DoD awards $15.9M engineering support contract to Don Selvy Enterprises, Inc. for 3 years

Contract Overview

Contract Amount: $15,896,420 ($15.9M)

Contractor: DON Selvy Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-10

End Date: 2026-11-30

Contract Duration: 1,055 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CAPABILITY- ENGINEERING AND TECHNICAL SUPPORT CONTRACTOR SERVICES

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to DON SELVY ENTERPRISES, INC. for work described as: CAPABILITY- ENGINEERING AND TECHNICAL SUPPORT CONTRACTOR SERVICES Key points: 1. Contract value appears reasonable for the duration and scope of engineering and technical support. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. Contract performance will be crucial for the Navy's technical requirements. 5. This contract fits within the broader engineering services sector for defense. 6. The award is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $15.9 million over 1055 days (roughly 3 years) for engineering and technical support services appears to be within a reasonable range for similar government contracts. The Cost Plus Fixed Fee (CPFF) pricing structure, while offering flexibility, necessitates close monitoring to ensure cost efficiency. Benchmarking against other engineering services contracts of similar scope and duration would provide a more precise value-for-money assessment, but initial indications suggest fair pricing given the competitive award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 4 bidders (as suggested by 'no': 4) signifies a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. This level of competition suggests that the market is robust for these types of engineering and technical support services.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

The Department of the Navy will benefit from specialized engineering and technical support services. Services delivered will likely encompass design, analysis, testing, and integration for naval systems. The geographic impact is centered in Maryland (MD), where the contractor is based. The contract supports a workforce skilled in engineering and technical disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
Reliance on a single delivery order under a larger contract vehicle may limit long-term strategic planning.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration of over three years provides stability for service delivery.
The contractor, Don Selvy Enterprises, Inc., is established in the engineering services sector.

Sector Analysis

The engineering services sector is a critical component of the federal procurement landscape, particularly for defense agencies. This contract falls under NAICS code 541330 (Engineering Services), a broad category encompassing a wide range of technical expertise. The total federal spending in this sector is substantial, with defense agencies being major clients. This award represents a portion of that spending, aimed at acquiring specialized technical capabilities for the Department of the Navy.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Don Selvy Enterprises, Inc. may be a small business itself, the award mechanism did not prioritize small business participation. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to leverage the small business ecosystem for specialized tasks within this engineering support contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy's contracting officers and program managers. Given the CPFF structure, rigorous financial oversight and performance monitoring will be essential to control costs and ensure deliverables meet requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Engineering and Technical Services
Department of Defense IT and Engineering Support
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring.
Delivery Order under a larger contract vehicle may limit specific competition.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to DON SELVY ENTERPRISES, INC.. CAPABILITY- ENGINEERING AND TECHNICAL SUPPORT CONTRACTOR SERVICES

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 $15.9 million.

What is the period of performance?

Start: 2024-01-10. End: 2026-11-30.

What is the track record of Don Selvy Enterprises, Inc. with federal contracts, particularly within the Department of Defense?

Don Selvy Enterprises, Inc. has a history of receiving federal contracts, primarily within the engineering and technical services domain. While specific details on past performance metrics are not provided in this data snippet, their continued awards suggest a satisfactory performance history. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment. Their presence in Maryland also indicates a focus on supporting East Coast defense installations. Analyzing the value and duration of previous contracts could reveal trends in their service offerings and client base within the DoD.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex services where the scope is not fully defined at the outset. It allows the contractor to incur costs and then adds a predetermined fixed fee, representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements evolve but carries a higher risk of cost overruns. Fixed-Price Incentive (FPI) contracts share some risk between the government and contractor. For well-defined engineering tasks, FFP is often preferred for cost certainty. The choice of CPFF here suggests the Navy anticipated potential scope changes or uncertainties in the technical requirements.

What are the potential risks associated with a delivery order awarded under a larger contract vehicle?

Delivery orders (DOs) awarded under larger indefinite-delivery, indefinite-quantity (IDIQ) or similar contract vehicles offer flexibility and speed for agencies needing specific services. However, risks can include a lack of comprehensive competition for each individual DO if not managed properly, potentially leading to suboptimal pricing. There's also a risk that the overall ceiling of the parent contract might be reached without full utilization of funds, or conversely, that the parent contract might not adequately cover the cumulative needs across all DOs. Furthermore, the specific performance and oversight might be less granular than for a standalone contract, relying heavily on the terms established in the base contract.

What is the typical market size and competitive landscape for engineering services within the Department of the Navy?

The market for engineering and technical support services within the Department of the Navy is substantial and highly competitive. Numerous large and small businesses possess the specialized expertise required for naval systems, encompassing areas like naval architecture, systems engineering, cybersecurity, and lifecycle support. The Navy frequently utilizes various contract vehicles, including IDIQs, to procure these services efficiently. Competition is generally robust, driven by the significant spending in this area, but specialized niches can see fewer bidders. The presence of multiple bidders for this specific contract (4 indicated) aligns with the broader competitive landscape for general engineering services.

How has federal spending on engineering services (NAICS 541330) trended over the past five years, and how does this contract fit within that trend?

Federal spending on engineering services (NAICS 541330) has generally remained strong, particularly within the Department of Defense, reflecting ongoing modernization and sustainment needs. While specific year-over-year data requires detailed analysis, the overall trend indicates consistent demand. This $15.9 million contract for Don Selvy Enterprises, Inc. represents a typical award size for specialized engineering support within the Navy's budget. It aligns with the broader pattern of DoD agencies procuring technical expertise to maintain and advance complex defense systems, contributing to the overall significant federal expenditure in this sector.

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: N0042122R3013

Offers Received: 4

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: $68,440,471

Exercised Options: $39,638,448

Current Obligation: $15,896,420

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