Delphinus Engineering, Inc. (N6339422R0510-0008)
Case: B-423203.3
Agency: Department of the Navy : Naval Surface Warfare Center
Date: 2025-12-19
Granted
B-423203.3
Jul 14, 2025
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Highlights
Delphinus Engineering, Inc. (Delphinus), a small business of Newton Square, Pennsylvania, requests that our Office recommend reimbursement for the reasonable costs of filing and pursuing its protest. The requester challenged the award of a contract to Prism Maritime, LLC (Prism), a small business of Chesapeake, Virginia, under request for proposals (RFP) No. N6339422R0510, issued by the Department of the Navy, Naval Surface Warfare Center, for alteration installation team (AIT) services and in service engineering agent support. Delphinus argues that the Navy unduly delayed taking corrective action in the face of a clearly meritorious protest.
We grant the request.
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Decision
Matter of: Delphinus Engineering, Inc.‑‑Costs
File: B-423203.3
Date: July 14, 2025
Lucas T. Hanback, Esq., Rogers Joseph O’Donnell, PC, for the requester.
Andrea Maglasang‑Miller, Esq., and Julianne M. Surane, Esq., Department of the Navy, for the agency.
Raymond Richards, Esq., and John Sorrenti, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision.
DIGEST
1. Request that GAO recommend reimbursement of protest costs is granted where initial protest arguments challenging the best‑value tradeoff decision were clearly meritorious and where the agency unduly delayed taking corrective action.
2. Reimbursement of costs are not recommended with respect to issues concerning the agency’s technical evaluation, cost evaluation, or the allegation of misleading discussions where such issues were not clearly meritorious and are readily severable from the challenge to the agency’s best‑value tradeoff decision.
DECISION
Delphinus Engineering, Inc. (Delphinus), a small business of Newton Square, Pennsylvania, requests that our Office recommend reimbursement for the reasonable costs of filing and pursuing its protest. The requester challenged the award of a contract to Prism Maritime, LLC (Prism), a small business of Chesapeake, Virginia, under request for proposals (RFP) No. N6339422R0510, issued by the Department of the Navy, Naval Surface Warfare Center, for alteration installation team (AIT) services and in service engineering agent support. Delphinus argues that the Navy unduly delayed taking corrective action in the face of a clearly meritorious protest.
We grant the request.
Background
The Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD), supports a variety of programs in its mission as the in‑service engineering agent. Agency Report (AR), Tab 2, RFP at 24.[1] The instant requirement is for AIT services to NSWC PHD onboard ships and land‑based facilities, including government laboratories. Id. AIT services include tasks such as installation and engineering support, removal and modification of equipment or systems, welding, rigging, and fire watch. Id. at 24‑25.
On October 28, 2021, the Navy issued the RFP as a small business set‑aside under the procedures of Federal Acquisition Regulation (FAR) part 15. RFP at 1; Contracting Officer’s Statement (COS) at 1. The solicitation contemplated the award of a cost‑plus‑fixed‑fee contract with a 1‑year base period and four 1‑year option periods. RFP at 6‑18, 149.
Award would be made on a best‑value tradeoff basis considering the following evaluation factors: (1) technical capability; (2) management approach; (3) past performance; and (4) cost. Id. at 155. The technical capability factor was considered more important than the management approach factor and the past performance factor, and significantly more important than cost. Id. Relevant here, the technical capability factor was divided into the following three elements: (A) technical approach; (B) staffing plan; and (C) key personnel. Id. at 155‑157.
Proposals were initially due on January 7, 2022. Id. at 1. The Navy received multiple proposals by the submission deadline, including proposals from Delphinus and Prism, and the agency opened discussions with all offerors. COS at 1. Final proposal revisions (FPR) were due on November 1, 2023. Id.
The Navy determined that Prism’s proposal was technically superior to Delphinus’s proposal largely due to Prism’s experience with industrial installation efforts and its ability to support warehousing and industrial support, and that Prism’s technical superiority was worth the associated price premium. AR, Tab 6, Source Selection Decision Document (SSDD) at 4‑8. Ultimately, the agency made award to Prism.
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