DoD Awards $16.5M for Acoustic Sensor Engineering Support, Competition Open
Contract Overview
Contract Amount: $16,538,068 ($16.5M)
Contractor: Delphinus Engineering, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-06-30
End Date: 2026-06-29
Contract Duration: 2,556 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: ACOUSTIC SENSORS ENGINEERING SUPPORT SERVICES
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.5 million to DELPHINUS ENGINEERING, INC. for work described as: ACOUSTIC SENSORS ENGINEERING SUPPORT SERVICES Key points: 1. Significant contract value of $16.5M for specialized engineering services. 2. Full and open competition indicates a healthy market for these services. 3. Potential risk associated with long-term support contracts and evolving technology. 4. Services fall under the Engineering Services sector, crucial for defense applications.
Value Assessment
Rating: good
The contract's Cost No Fee (CNF) pricing structure is common for R&D or services where cost is difficult to estimate upfront. Benchmarking against similar engineering support contracts is challenging without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors were eligible and competed. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary engineering services.
Public Impact
Enhances critical acoustic sensor capabilities for naval operations. Supports advanced defense technology development and maintenance. Ensures readiness and effectiveness of naval platforms through expert engineering.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Long contract duration (approx. 7 years) may lead to cost overruns if scope changes.
- Reliance on a single award for a critical function could pose a risk if the contractor underperforms.
Positive Signals
- Full and open competition suggests a robust market and potential for innovation.
- Experienced contractor likely to deliver high-quality engineering support.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for the Department of Defense's technological advancements. Spending benchmarks for similar specialized engineering support services can vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting large businesses were the primary competitors. Further analysis would be needed to determine if small business participation was subcontracted.
Oversight & Accountability
The contract's duration and value warrant ongoing oversight to ensure performance standards are met and costs remain within reasonable bounds. Regular performance reviews by the Department of the Navy are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration
- Potential for scope creep
- Reliance on single awardee
- Cost control challenges with CNF pricing
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.5 million to DELPHINUS ENGINEERING, INC.. ACOUSTIC SENSORS ENGINEERING SUPPORT SERVICES
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 $16.5 million.
What is the period of performance?
Start: 2019-06-30. End: 2026-06-29.
What is the specific nature of the acoustic sensor engineering support required, and how does it align with current and future naval defense needs?
The specific engineering support likely involves design, development, testing, integration, and maintenance of acoustic sensor systems. This aligns with naval defense needs by enhancing underwater surveillance, anti-submarine warfare capabilities, and overall situational awareness in complex maritime environments. The long-term nature suggests a strategic investment in maintaining and advancing these critical technologies.
How will the government ensure cost control and value for money over the contract's seven-year duration, especially given the Cost No Fee structure?
The government will likely employ robust contract management, including regular performance reviews, milestone tracking, and potentially independent cost analyses. While CNF pricing offers flexibility, the contracting officer must diligently monitor expenditures and contractor performance to prevent cost overruns and ensure the services delivered provide adequate value relative to the total cost.
What are the potential risks associated with the long-term reliance on a single contractor for such critical engineering services, and what mitigation strategies are in place?
Risks include potential contractor underperformance, loss of institutional knowledge if the contractor's key personnel depart, and reduced leverage for future contract negotiations. Mitigation strategies may involve performance incentives, clear exit clauses, requirements for knowledge transfer, and maintaining market awareness to ensure competitive options are available upon contract expiration.
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: N6426719R3000
Offers Received: 2
Pricing Type: COST NO FEE (S)
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: $18,585,489
Exercised Options: $18,585,489
Current Obligation: $16,538,068
Actual Outlays: $325,372
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,032,216
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7932
IDV Type: IDC
Timeline
Start Date: 2019-06-30
Current End Date: 2026-06-29
Potential End Date: 2026-06-29 00:00:00
Last Modified: 2025-11-19
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