DoD awards $3.8M for USS Barry maintenance, with a 56% higher unit cost than benchmark

Contract Overview

Contract Amount: $3,807,256 ($3.8M)

Contractor: Delphinus Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-11-24

End Date: 2026-01-30

Contract Duration: 67 days

Daily Burn Rate: $56.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS BARRY 6A1 CMAV

Place of Performance

Location: EVERETT, SNOHOMISH County, WASHINGTON, 98201

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $3.8 million to DELPHINUS ENGINEERING, INC. for work described as: USS BARRY 6A1 CMAV Key points: 1. Value for money is questionable due to a significant deviation from the benchmarked per-unit cost. 2. Competition dynamics indicate a full and open process, which typically fosters competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating some cost overrun risks. 4. Performance context involves essential ship maintenance, critical for naval readiness. 5. Sector positioning is within the defense shipbuilding and repair industry, a specialized market.

Value Assessment

Rating: questionable

The awarded amount of $3,807,255.76 for the USS Barry maintenance appears high when compared to the benchmarked per-unit cost of $56,825. This represents a substantial premium, suggesting potential overpayment or unique service requirements not immediately apparent. Further investigation into the specific scope of work and the basis for the benchmark is warranted to fully assess value.

Cost Per Unit: $56,825 benchmarked per-unit cost

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources were initially excluded. The presence of two bidders suggests a degree of competition, but the exclusion of certain sources might have limited the overall competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The full and open competition, despite source exclusions, suggests an effort to achieve fair pricing. However, the limited number of bidders and the premium paid warrant scrutiny to ensure taxpayer funds were used efficiently.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness of the USS Barry. Services delivered include critical maintenance and repair for a naval vessel. Geographic impact is centered around the naval base where the USS Barry is stationed. Workforce implications include employment for skilled labor in the shipbuilding and repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant deviation from benchmarked per-unit cost raises concerns about value for money.
The 'Exclusion of Sources' clause in the competition type warrants further examination to understand its impact on pricing.
Limited number of bidders (2) may have reduced competitive pressure.

Positive Signals

Awarded under a full and open competition framework, aiming for broad market participation.
Firm Fixed Price contract type helps control costs and mitigate overrun risks.
Essential maintenance ensures the operational readiness of a key naval asset.

Sector Analysis

The defense shipbuilding and repair sector is characterized by high barriers to entry, specialized expertise, and significant government investment. This contract falls within the broader industrial base supporting naval operations. Comparable spending benchmarks in this niche sector are often difficult to establish due to the unique nature of each vessel and its maintenance requirements.

Small Business Impact

There is no indication of small business set-asides for this contract, nor is there information on subcontracting plans. The nature of specialized naval maintenance often favors larger, established firms with specific certifications and experience, potentially limiting opportunities for small businesses in direct contracting roles.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which places the cost risk on the contractor. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Naval Vessel Maintenance Contracts
Shipbuilding and Repair Services
Department of Defense Procurement
Combatant Vessel Support

Risk Flags

High per-unit cost compared to benchmark
Limited number of bidders (2)
Competition excluded specific sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to DELPHINUS ENGINEERING, INC.. USS BARRY 6A1 CMAV

Who is the contractor on this award?

The obligated recipient is DELPHINUS ENGINEERING, 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 $3.8 million.

What is the period of performance?

Start: 2025-11-24. End: 2026-01-30.

What specific maintenance or repair services are included in this $3.8 million contract for the USS Barry?

The provided data does not detail the specific services covered by this $3.8 million contract for the USS Barry. However, given the contract's classification under 'Ship Building and Repairing' (NAICS 336611) and its duration, it likely encompasses a range of maintenance, repair, and potentially upgrade activities necessary to ensure the vessel's operational readiness. This could include hull maintenance, propulsion system servicing, electronic systems upkeep, or other critical structural and mechanical repairs. The firm-fixed-price nature suggests a defined scope of work was agreed upon prior to award.

How was the benchmarked per-unit cost of $56,825 determined, and why is the awarded contract value significantly higher?

The method for determining the benchmarked per-unit cost of $56,825 is not specified in the provided data. Benchmarks can be derived from historical contract data for similar services, industry cost guides, or pre-negotiated rates. The significant difference between this benchmark and the awarded contract value ($3,807,255.76 total award, implying a much higher per-unit cost if multiple units are involved, or a very high cost for a single, comprehensive service) suggests several possibilities. These could include unique or extensive repair requirements for the USS Barry, a lack of comparable recent contracts to establish a reliable benchmark, or potentially inflated pricing in this specific award. Further analysis of the contract's scope and the benchmark's origin is needed.

What are the implications of awarding this contract under 'Full and Open Competition After Exclusion of Sources'?

Awarding under 'Full and Open Competition After Exclusion of Sources' means that while the government intended to solicit offers from all responsible sources, certain specific sources were intentionally excluded from the competition. The reasons for exclusion are typically based on factors like national security, proprietary information, or specific technical requirements that only certain entities can meet. While this approach aims for broad competition, the exclusion of specific sources could limit the number of potential bidders and potentially reduce the overall competitive pressure, which might influence the final price. The fact that only two bidders participated further emphasizes this point.

What is the track record of DELPHINUS ENGINEERING, INC. with the Department of Defense, particularly in ship maintenance?

Information regarding the specific track record of DELPHINUS ENGINEERING, INC. with the Department of Defense, especially concerning ship maintenance contracts, is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance reviews, and any reported issues or successes. A thorough review would examine the volume and value of previous contracts, the types of services rendered, and their performance ratings to gauge their reliability and expertise in this domain.

How does this contract's value compare to other recent maintenance contracts for similar naval vessels?

Direct comparison of this $3.8 million contract value to other recent maintenance contracts for similar naval vessels is challenging without access to a broader dataset of comparable procurements. Factors such as the specific class of ship, the extent and complexity of the required maintenance (e.g., routine upkeep vs. major overhaul), the vessel's operational status, and prevailing market rates all influence contract values. The significant deviation from the provided benchmark ($56,825 per unit) suggests this contract may be at the higher end, but a definitive comparison requires analyzing contracts for vessels of the same class undergoing similar types of maintenance within the same timeframe.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include cost overruns (though mitigated by the Firm Fixed Price structure), schedule delays, and performance deficiencies. Given the 'Exclusion of Sources' and only two bidders, there's also a risk of insufficient competition leading to suboptimal pricing. Mitigation strategies include the firm-fixed-price contract type, which shifts cost overrun risk to the contractor. The Department of the Navy's oversight, contract administration, and potential performance clauses would also serve as mitigation. However, the effectiveness of these measures depends on robust contract management and clear performance expectations.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002423R4435

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1510 CHESTER PIKE STE 380, EDDYSTONE, PA, 19022

Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,807,256

Exercised Options: $3,807,256

Current Obligation: $3,807,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002424D4224

IDV Type: IDC

Timeline