DHS Awards $96M Contract to Insitu for Unmanned Aviation Systems on National Security Cutters

Contract Overview

Contract Amount: $96,144,711 ($96.1M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-06-06

End Date: 2026-06-05

Contract Duration: 2,921 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTALL NATIONAL SECURITY CUTTERS (NSC) WITH UNMANNED AVIATION SYSTEM (UAS) CAPABILITY

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $96.1 million to INSITU, INC. for work described as: INSTALL NATIONAL SECURITY CUTTERS (NSC) WITH UNMANNED AVIATION SYSTEM (UAS) CAPABILITY Key points: 1. The contract focuses on integrating Unmanned Aviation Systems (UAS) into National Security Cutters, a critical capability for maritime surveillance and security. 2. Insitu, Inc. is the sole awardee, raising questions about the extent of competition for this specialized technology. 3. The firm fixed-price contract structure aims to control costs, but the long duration and lack of competition could pose risks. 4. This spending falls under the 'Surveying and Mapping (except Geophysical) Services' NAICS code, which may not fully capture the complexity of UAS integration.

Value Assessment

Rating: fair

The contract value of $96.1 million over approximately 8 years appears substantial for integrating UAS capabilities. Benchmarking against similar complex defense/security technology integration contracts is difficult without more specific details on the scope of work and technology involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the fact that only one awardee is listed suggests that either few companies were capable of meeting the requirements or that Insitu was the only bidder.

Taxpayer Impact: Taxpayer funds are being used to enhance the Coast Guard's surveillance capabilities, which could lead to improved national security and interdiction efforts. The effectiveness of this investment depends on the successful integration and operational utility of the UAS.

Public Impact

Enhances U.S. Coast Guard's maritime domain awareness and operational effectiveness. Potential for improved search and rescue, drug interdiction, and homeland security missions. Supports the development and deployment of advanced unmanned aerial systems in critical national security applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation.
Long contract duration (8 years) may limit flexibility.
Potential for cost overruns if integration proves more complex than anticipated.

Positive Signals

Addresses a critical need for enhanced surveillance capabilities.
Utilizes advanced UAS technology for improved operational outcomes.
Firm fixed-price contract aims for cost certainty.

Sector Analysis

This contract falls under the IT and Defense sectors, specifically related to advanced surveillance and unmanned systems. Spending benchmarks for UAS integration on large maritime platforms are not readily available, but $96 million represents a significant investment in this specialized capability.

Small Business Impact

The data indicates this contract was not set aside for small businesses and that the awardee, Insitu, Inc., is not a small business. Therefore, there is no direct benefit to small businesses from this specific contract award.

Oversight & Accountability

The U.S. Coast Guard, under the Department of Homeland Security, is responsible for overseeing this contract. Standard oversight mechanisms for large acquisition programs would apply, including performance monitoring and financial accountability.

Related Government Programs

Surveying and Mapping (except Geophysical) Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Potential for vendor lock-in due to specialized integration.
Risk of scope creep or unforeseen technical challenges during integration.
Long contract duration may not adapt to rapidly evolving UAS technology.
Lack of clear performance metrics for UAS effectiveness in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $96.1 million to INSITU, INC.. INSTALL NATIONAL SECURITY CUTTERS (NSC) WITH UNMANNED AVIATION SYSTEM (UAS) CAPABILITY

Who is the contractor on this award?

The obligated recipient is INSITU, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $96.1 million.

What is the period of performance?

Start: 2018-06-06. End: 2026-06-05.

What specific UAS technology is being integrated, and how does it compare to commercially available or other government-procured systems in terms of capability and cost-effectiveness?

The specific UAS technology is not detailed in the provided data. A comprehensive assessment would require examining the technical specifications of the integrated system and comparing its performance metrics and lifecycle costs against alternative solutions. This includes evaluating factors like flight endurance, sensor payload, data processing, and maintenance requirements to determine true cost-effectiveness beyond the initial contract value.

Given the 'full and open' competition designation, why did only one awardee emerge, and what steps were taken to ensure a robust price discovery process?

The emergence of a single awardee under 'full and open' competition warrants further investigation. It could indicate highly specialized requirements that only one firm could meet, or potential barriers to entry for other capable companies. The agency should have employed robust market research and potentially used techniques like competitive range discussions to ensure the awarded price was fair and reasonable, even with limited bids.

What are the projected operational benefits and return on investment for the U.S. Coast Guard in terms of enhanced mission effectiveness and cost savings from this UAS integration?

The projected benefits include improved maritime domain awareness, extended range surveillance, and potentially reduced risk to personnel during dangerous missions. Quantifying the ROI requires measuring improvements in interdiction rates, response times for search and rescue, and the cost avoidance associated with using unmanned systems versus manned platforms for certain tasks over the system's lifespan.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70Z02318R2DAU04

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company

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: $96,144,711

Exercised Options: $96,144,711

Current Obligation: $96,144,711

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $5,767,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline