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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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