DoD's $73M Surveying Contract to Insitu, Inc. Shows Moderate Value Amidst Limited Competition

Contract Overview

Contract Amount: $73,265,248 ($73.3M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-20

End Date: 2020-02-01

Contract Duration: 2,782 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUTHORITY TO OPERATE

Plain-Language Summary

Department of Defense obligated $73.3 million to INSITU, INC. for work described as: AUTHORITY TO OPERATE Key points: 1. Contract value of $73.3M over 8 years suggests a steady, long-term need for surveying services. 2. The fixed-price contract type offers cost certainty for the government, shifting performance risk to the contractor. 3. A single award for a delivery order indicates a focused approach, potentially limiting broader market engagement. 4. The contract's duration and value place it within a significant spending range for specialized surveying services. 5. While specific performance metrics are not detailed, the long duration implies satisfactory performance to date. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract's total value of $73.3 million over approximately 8 years averages to about $9.16 million annually. Benchmarking this against similar large-scale surveying and mapping contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests an attempt to control costs. The absence of detailed performance data makes a definitive value-for-money assessment difficult, but the consistent funding over a long period implies a perceived need and acceptable pricing by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the award was a single delivery order, which might suggest that while the initial competition was broad, the subsequent execution was managed through a specific task order. The number of bidders is not specified, but full and open competition generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it aims to secure the best possible pricing and service by allowing all eligible contractors to participate, fostering a competitive environment that can drive down costs.

Public Impact

The Department of Defense benefits from specialized surveying and mapping services essential for its operations and infrastructure planning. Services delivered likely include detailed topographical surveys, geospatial data collection, and mapping for military installations and training areas. Geographic impact is likely concentrated around Department of Defense facilities and areas requiring extensive mapping for strategic purposes. The contract supports a workforce skilled in surveying, mapping, and geospatial analysis, contributing to the technical expertise within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.
The long duration of the contract could potentially lead to complacency or reduced urgency if not actively managed.
Limited transparency on the number of bidders in the full and open competition makes it hard to gauge the true level of market engagement.
The absence of explicit small business participation details raises concerns about broader economic impact and subcontracting opportunities.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the government, mitigating budget overruns.
Awarding under full and open competition suggests a commitment to leveraging market forces for competitive pricing.
The long-term nature of the contract indicates a stable, ongoing requirement and likely satisfaction with the contractor's services.
The contract's substantial value suggests the contractor possesses the capacity and expertise to handle significant surveying and mapping projects.

Sector Analysis

The surveying and mapping services sector is critical for infrastructure development, urban planning, and defense applications. This contract falls under the broader professional, scientific, and technical services industry. The market for these services is characterized by a mix of large, established firms and smaller specialized companies. Government contracts often represent a significant portion of revenue for firms in this space, particularly those with specialized equipment and expertise in areas like geospatial data analysis and aerial surveying.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through subcontracting if Insitu, Inc. chooses to engage them. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy, ensuring adherence to contract terms and performance standards. Accountability is primarily driven by the firm-fixed-price structure, which incentivizes the contractor to meet deliverables within the agreed budget. Transparency is facilitated by the contract's public availability, though detailed performance reports and specific oversight activities are generally not publicly disclosed.

Related Government Programs

Geospatial Information and Services
Architectural and Engineering Services
Defense Mapping Agency activities
National Geospatial-Intelligence Agency programs

Risk Flags

Long contract duration may lead to price inflexibility.
Limited competition details obscure true market price discovery.
Lack of explicit small business participation requires further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.3 million to INSITU, INC.. AUTHORITY TO OPERATE

Who is the contractor on this award?

The obligated recipient is INSITU, 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 $73.3 million.

What is the period of performance?

Start: 2012-06-20. End: 2020-02-01.

What specific surveying and mapping services were delivered under this contract?

While the contract number and award details are available, the specific services rendered under this $73.3 million delivery order to Insitu, Inc. are not explicitly detailed in the provided data. However, given the NAICS code 541370 (Surveying and Mapping (except Geophysical) Services) and the agency (Department of the Navy), it is highly probable that the services included detailed topographical surveys, creation of nautical charts, geospatial data acquisition and analysis, land surveying for base infrastructure, and potentially aerial or satellite imagery processing for mapping purposes. These services are crucial for naval operations, infrastructure management, and strategic planning.

How does the annual spending on this contract compare to similar government surveying contracts?

The contract's total value of $73.3 million spread over approximately 8 years (June 2012 - Feb 2020) results in an average annual expenditure of roughly $9.16 million. Comparing this to similar government surveying contracts requires access to a broader dataset of federal procurement. However, this annual figure places it in the mid-to-high range for specialized surveying and mapping services. Contracts for large-scale infrastructure projects or national mapping initiatives can reach higher values, while smaller, localized surveying tasks would be significantly less. The Department of Defense and other agencies like the Army Corps of Engineers frequently procure such services, with values varying based on scope and duration.

What is the track record of Insitu, Inc. with government contracts, particularly within the Department of Defense?

Insitu, Inc., a subsidiary of Boeing, has a significant track record with government contracts, particularly within the Department of Defense, often related to unmanned aerial systems (UAS) and associated services. While this specific contract focuses on surveying and mapping, Insitu's broader involvement with DoD suggests a strong existing relationship and familiarity with military requirements. Their experience with complex, long-term government projects indicates a capacity to manage large-scale contracts and deliver on demanding specifications. Further investigation into their contract history would reveal the breadth and depth of their service offerings to the government beyond this particular surveying award.

What are the potential risks associated with a long-term, firm-fixed-price contract for surveying services?

Long-term, firm-fixed-price contracts for surveying services carry several potential risks. For the government, a primary risk is that the fixed price might become uncompetitive over time if market rates decrease or technology advances significantly, leading to the government overpaying for services rendered in later years. There's also a risk that the contractor might cut corners on quality or scope to maintain profitability if unforeseen challenges arise, although the fixed-price nature aims to shift this risk. For the contractor, the risk lies in underestimating costs or encountering unexpected complexities that erode profit margins. Effective oversight is crucial to mitigate these risks by ensuring performance standards are met and that the pricing remains fair throughout the contract's life.

How has spending on surveying and mapping services by the Department of the Navy evolved over time?

Analyzing the evolution of spending on surveying and mapping services by the Department of the Navy requires access to historical procurement data beyond this single contract. However, general trends suggest a consistent and significant need for these services due to the Navy's global presence, infrastructure requirements, and operational needs. Spending likely fluctuates based on major infrastructure projects, new base developments, modernization efforts, and evolving geospatial intelligence requirements. The increasing reliance on digital mapping, GIS, and advanced data analytics in recent years may have also influenced the types of services procured and the overall spending patterns, potentially shifting towards more data-intensive and analytical services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Surveying and Mapping (except Geophysical) Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0001910R0054

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 118 E COLUMBIA RIVER WAY, BINGEN, WA, 98605

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $101,873,148

Exercised Options: $73,265,248

Current Obligation: $73,265,248

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $499,802

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001912D0011

IDV Type: IDC

Timeline