DoD awards $3.2M contract for corrosion control support, with delivery expected by January 2027

Contract Overview

Contract Amount: $3,198,264 ($3.2M)

Contractor: DON Selvy Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2027-01-07

Contract Duration: 364 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CCAT SUPPORT IN THE EXECUTION OF PROVIDING SUPPORT AND ASSISTANCE TO SHIPS FORCE FOR CORROSION CONTROL AND PRESERVATION EFFORTS.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to DON SELVY ENTERPRISES, INC. for work described as: CCAT SUPPORT IN THE EXECUTION OF PROVIDING SUPPORT AND ASSISTANCE TO SHIPS FORCE FOR CORROSION CONTROL AND PRESERVATION EFFORTS. Key points: 1. Contract focuses on essential ship preservation and corrosion control, a critical maintenance area for naval assets. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration is one year, with a potential for extension. 4. The contractor, DON SELVY ENTERPRISES, INC., has secured this award. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. The estimated value is $3,198,264.

Value Assessment

Rating: fair

The contract value of $3.2 million for a one-year period of support for corrosion control appears within a reasonable range for specialized engineering services. However, without specific details on the scope of work, deliverables, and the contractor's proposed fixed fee, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for ship preservation and corrosion control services would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a moderate level of competition for this requirement. A competitive process generally helps in achieving better pricing and service quality by allowing the government to select the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that the government receives the best possible value for its investment.

Public Impact

Naval forces benefit from enhanced ship readiness and extended asset lifespan through improved corrosion control. The services delivered will directly support the operational effectiveness and maintenance of naval vessels. The geographic impact is likely concentrated around naval bases and shipyards where the services are performed. The contract supports specialized engineering and technical labor within the maritime services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not carefully managed, as the contractor is reimbursed for costs incurred.
The specific scope of work and performance metrics need to be rigorously monitored to ensure optimal value.
Reliance on a single contractor for this specific support may pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The contract duration of one year provides a defined period for service delivery and performance evaluation.
The focus on corrosion control is a critical aspect of naval asset maintenance, contributing to long-term readiness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's maritime maintenance needs. The market for specialized ship maintenance and preservation services is significant, driven by the continuous need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would involve analyzing other contracts for similar services awarded by the Navy and other military branches.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made under full and open competition. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight will be provided by the Department of the Navy, likely through contracting officers and technical representatives who will monitor performance, costs, and compliance with contract terms. Transparency is facilitated by the public nature of contract awards, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance Contracts
Corrosion Prevention Services
Defense Engineering Services
Maritime Asset Preservation

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to DON SELVY ENTERPRISES, INC.. CCAT SUPPORT IN THE EXECUTION OF PROVIDING SUPPORT AND ASSISTANCE TO SHIPS FORCE FOR CORROSION CONTROL AND PRESERVATION EFFORTS.

Who is the contractor on this award?

The obligated recipient is DON SELVY ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2026-01-08. End: 2027-01-07.

What is the track record of DON SELVY ENTERPRISES, INC. with the Department of Defense, particularly in corrosion control services?

A review of federal procurement data indicates that DON SELVY ENTERPRISES, INC. has a history of receiving contracts from the Department of Defense. To assess their track record specifically for corrosion control services, a deeper dive into their past performance evaluations, contract history, and any reported issues or commendations related to similar projects would be necessary. This would involve examining contract award databases for previous awards to this company for services directly related to ship preservation, corrosion mitigation, and material protection. Understanding their experience with Cost Plus Fixed Fee contracts and their ability to manage costs effectively within such structures is also crucial for evaluating their suitability for this current award.

How does the estimated value of this contract compare to similar corrosion control contracts awarded by the Navy?

Benchmarking this $3.2 million contract against similar corrosion control and preservation services awarded by the Department of the Navy requires access to a comprehensive database of historical contracts. Factors such as the scope of work, duration, vessel types, and specific services (e.g., surface preparation, coating application, inspection) would need to be standardized for a meaningful comparison. If this contract's value is significantly higher or lower than comparable awards for similar scope and duration, it could indicate potential issues with pricing, scope definition, or market competitiveness. Without specific comparative data, it is difficult to definitively assess if this contract represents excellent, fair, or questionable value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for corrosion control services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for corrosion control services revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. For the government, the risk is that the total cost of the contract could exceed initial estimates if costs are not rigorously monitored and controlled. Effective oversight, detailed cost tracking, and clear definitions of allowable costs are critical to mitigating these risks and ensuring the government receives good value.

What is the expected impact of this contract on naval readiness and asset longevity?

This contract is expected to have a positive impact on naval readiness and asset longevity by ensuring that ships receive necessary corrosion control and preservation efforts. Corrosion is a significant threat to the structural integrity and operational capability of naval vessels, leading to costly repairs and reduced service life if left unaddressed. By awarding this contract, the Navy is investing in proactive maintenance, which helps to mitigate the degradation of ship hulls and components. This, in turn, contributes to maintaining the fleet's operational availability, reducing the likelihood of mission-impacting failures, and extending the overall lifespan of valuable naval assets, thereby optimizing the return on investment for these platforms.

How has spending on engineering services for ship maintenance evolved within the Department of the Navy over the past five years?

Analyzing the evolution of spending on engineering services for ship maintenance within the Department of the Navy over the past five years would reveal trends in investment in fleet readiness and modernization. This would involve aggregating data on contracts awarded for services such as hull maintenance, corrosion control, repair, and technical support. An increasing trend might indicate a greater focus on fleet upkeep or an aging fleet requiring more intensive maintenance. Conversely, a decreasing trend could suggest shifts in budget priorities or a move towards different maintenance strategies. Understanding these historical spending patterns provides context for the current award and helps in assessing its significance within the broader budgetary landscape for naval maintenance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016725R3008

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 103 WEST RIDING DRIVE, BEL AIR, MD, 21014

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $64,682,454

Exercised Options: $7,854,223

Current Obligation: $3,198,264

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7533

IDV Type: IDC

Timeline