DoD awards $5.9M ES&D Support Services contract to DLH, LLC for engineering services
Contract Overview
Contract Amount: $5,935,251 ($5.9M)
Contractor: DLH, LLC
Awarding Agency: Department of Defense
Start Date: 2023-04-03
End Date: 2026-04-02
Contract Duration: 1,095 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ES&D SUPPORT SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $5.9 million to DLH, LLC for work described as: ES&D SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1095 days (3 years) indicates a medium-term engagement for these engineering services. 4. The award is a Delivery Order, likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract is managed by the Department of the Navy, a significant component of the DoD.
Value Assessment
Rating: fair
The total award amount of $5.9M over three years for engineering services appears reasonable given the scope. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates. Benchmarking against similar DoD engineering support contracts would provide a clearer picture of pricing efficiency.
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 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
The Department of the Navy benefits from specialized engineering and design support services. These services are crucial for maintaining and advancing naval engineering capabilities. The contract is geographically focused on Maryland (MD), suggesting a concentration of work in that region. The contract supports the broader mission of the Department of Defense in national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.
- The geographic concentration in Maryland might limit opportunities for contractors in other regions.
Positive Signals
- Awarded through full and open competition, ensuring a competitive bidding process.
- Multiple bidders (6) indicate significant interest and potential for competitive pricing.
- The contract supports critical engineering services for the Department of the Navy.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for defense engineering services is substantial, with significant government spending allocated annually. This contract represents a portion of the Department of the Navy's investment in maintaining and developing its technological and operational capabilities through specialized expertise.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, DLH, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor costs and ensure they remain reasonable and allocable to the contract. Transparency is generally maintained through contract reporting mechanisms, and any specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or audits.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Engineering Support Contracts
- Cost Plus Fixed Fee Contracts
- Engineering Services for Military Applications
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Limited information on specific deliverables makes value assessment challenging.
- Geographic concentration in Maryland may limit broader economic impact.
Tags
defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, delivery-order, full-and-open-competition, maryland, professional-services, medium-contract-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.9 million to DLH, LLC. ES&D SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is DLH, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $5.9 million.
What is the period of performance?
Start: 2023-04-03. End: 2026-04-02.
What is the track record of DLH, LLC in performing similar engineering services contracts for the Department of Defense?
DLH, LLC has a history of performing various service contracts, including those related to healthcare, IT, and professional services for government agencies. While specific details on their past performance in 'ES&D Support Services' for the Navy are not provided in this data snippet, their broader experience suggests a capacity to manage complex government contracts. A deeper dive into their contract history, past performance reviews, and any reported issues or successes on similar DoD contracts would be necessary for a comprehensive assessment of their track record in this specific domain. This would include examining their ability to manage CPFF contracts effectively and deliver on engineering requirements.
How does the awarded amount compare to similar engineering support contracts within the Department of the Navy?
The awarded amount of approximately $5.9 million over three years for Engineering, Scientific, and Design (ES&D) support services is a moderate figure for a DoD contract. To benchmark this effectively, one would need to compare it against contracts with similar scope, complexity, and duration awarded by the Department of the Navy or other DoD branches for comparable engineering services. Factors such as the specific technical requirements, labor categories involved, and geographic location can significantly influence pricing. Without access to a database of comparable contracts and their specific details, it is difficult to definitively state whether this award represents excellent, fair, or questionable value. However, the full and open competition suggests an effort to achieve competitive pricing.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this ES&D support services award?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total cost. For the government, this means the final cost could exceed initial projections if costs are not meticulously managed and controlled. Effective oversight, detailed cost tracking, and clear definition of work are crucial to mitigate these risks and ensure the government receives good value. The fixed fee itself is subject to negotiation and should reflect the level of risk and effort involved.
What is the expected impact of these ES&D support services on the Department of the Navy's overall engineering capabilities?
These ES&D support services are expected to enhance the Department of the Navy's engineering capabilities by providing specialized expertise that may not be available in-house or by augmenting existing teams. This support can be critical for complex projects, research and development, design modifications, and ensuring the technical integrity of naval systems and platforms. By leveraging external contractors like DLH, LLC, the Navy can access a wider pool of talent and specialized knowledge, potentially accelerating project timelines and improving the quality of engineering outcomes. This ultimately contributes to the Navy's readiness, modernization efforts, and ability to maintain a technological edge.
How has spending on engineering services by the Department of the Navy trended over the past five years?
Analyzing historical spending trends for engineering services by the Department of the Navy over the past five years would require access to detailed federal procurement data. Generally, spending in this category tends to fluctuate based on modernization programs, new platform development, maintenance requirements, and overall defense budgets. Periods of increased shipbuilding or major system upgrades often correlate with higher spending on engineering support. Conversely, budget constraints or shifts in strategic priorities might lead to reduced spending. Without specific data, it's difficult to provide precise figures, but engineering services are a consistent and significant expenditure for the Navy, essential for its operational and developmental needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523622R3059
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: DLH Holdings Corp
Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,635,783
Exercised Options: $8,523,889
Current Obligation: $5,935,251
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7739
IDV Type: IDC
Timeline
Start Date: 2023-04-03
Current End Date: 2026-04-02
Potential End Date: 2028-04-02 00:00:00
Last Modified: 2026-01-06
More Contracts from DLH, LLC
- OHS Monitoring Support Services — $180.0M (Department of the Interior)
- Nhlbi Service Desk, Configuration Management, and Infrastructure Operations and Maintenance — $97.1M (Department of Health and Human Services)
- NIH Oiit IT Services With Grsi — $60.4M (Department of Health and Human Services)
- OIT Support Services — $52.3M (Department of Health and Human Services)
- Igf:ct:igf Desktop Management and User Support Services — $52.2M (Department of the Interior)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)