DoD's $22.8M contract for predeployment services awarded to Insitu, Inc. lacked competition

Contract Overview

Contract Amount: $22,853,974 ($22.9M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-14

End Date: 2009-09-28

Contract Duration: 532 days

Daily Burn Rate: $43.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PREDEPLOYMENT SERVICES - OPERATIONAL DEP

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to INSITU, INC. for work described as: PREDEPLOYMENT SERVICES - OPERATIONAL DEP Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential overpayment and lack of market-driven pricing. 2. With a duration of 532 days, the contract's value suggests significant operational support was required. 3. The absence of competition limits the government's ability to secure the best possible value and innovation. 4. The fixed-price contract type shifts some risk to the contractor, but the lack of competition may negate this benefit. 5. This award represents a small portion of the Department of Defense's overall spending on engineering services. 6. The contract was awarded by U.S. Special Operations Command, indicating a focus on specialized operational needs.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids and specific service details. The $22.8 million awarded over approximately 1.5 years for 'PREDEPLOYMENT SERVICES - OPERATIONAL DEP' suggests a substantial cost per day. Without comparable sole-source awards or detailed performance metrics, it's difficult to definitively assess if this represents fair market value. The absence of competition means there was no market pressure to drive down costs, potentially leading to a less favorable price for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the unique capability or technology required, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This can lead to higher prices and potentially less optimal solutions.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. The government had limited leverage to negotiate the best possible price or terms.

Public Impact

Special Operations Command personnel likely benefited from specialized predeployment support, enhancing operational readiness. The services provided were critical for ensuring operational effectiveness of specialized units. The geographic impact is likely tied to specific deployment locations, though not explicitly detailed. Workforce implications would primarily affect specialized military personnel and potentially contractor support staff involved in the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in higher costs for taxpayers.
Sole-source awards can limit innovation by not engaging a broader market.
Transparency regarding the justification for sole-source award could be improved.

Positive Signals

Contract awarded to a single vendor, potentially indicating specialized expertise.
Fixed-price contract type can provide cost certainty if well-defined.

Sector Analysis

Engineering services, classified under NAICS code 541330, encompass a broad range of activities from design to consulting. The defense sector heavily utilizes these services for complex projects, including operational support and system development. The market for defense engineering services is substantial, with significant government spending annually. This contract for predeployment operational support fits within the specialized niche of defense-related engineering services, likely involving technical expertise for mission readiness.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the sole-source nature and the likely specialized requirements, it is improbable that small businesses were significantly involved as prime contractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the U.S. Special Operations Command's contracting officers and program managers. Accountability measures would be tied to the delivery of services as per the contract's terms and conditions. Transparency is limited due to the sole-source nature and the classification of operational support services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Contracts
Special Operations Forces Support Contracts
Engineering and Technical Services Contracts
Operational Support Contracts

Risk Flags

Sole-source award lacks competition
Potential for non-competitive pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to INSITU, INC.. PREDEPLOYMENT SERVICES - OPERATIONAL DEP

Who is the contractor on this award?

The obligated recipient is INSITU, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2008-04-14. End: 2009-09-28.

What specific predeployment services were provided under this contract?

The data provided describes the contract as being for 'PREDEPLOYMENT SERVICES - OPERATIONAL DEP'. While the exact nature of these services is not detailed, it likely encompasses a range of activities designed to prepare personnel and equipment for operational deployment. This could include logistical planning, technical support, training, equipment maintenance, and readiness assessments tailored to the specific needs of U.S. Special Operations Command missions. The 'OPERATIONAL DEP' designation suggests a focus on ensuring units are fully equipped and prepared for deployment in potentially complex or high-risk environments, ensuring all systems and personnel are mission-ready.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' (CT: NOT COMPETED), which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the data. Typically, sole-source awards are justified when only one responsible source is available to meet the government's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or specific requirements that only one contractor can fulfill. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons Insitu, Inc. was the sole provider.

How does the $22.8 million contract value compare to similar operational support contracts for Special Operations Command?

Direct comparison of this $22.8 million contract value to similar operational support contracts for U.S. Special Operations Command (SOCOM) is difficult without access to a broader dataset of SOCOM contracts, particularly those for specialized predeployment services. Sole-source awards, by their nature, lack direct competitive benchmarks. However, $22.8 million over approximately 1.5 years (532 days) represents a significant investment, averaging around $43,000 per day. This figure suggests the services were either highly specialized, resource-intensive, or critical to mission success. To provide a robust comparison, one would need to analyze other SOCOM contracts for similar durations and service types, ideally those awarded competitively to establish a market price baseline.

What is Insitu, Inc.'s track record with the Department of Defense, particularly with Special Operations Command?

Insitu, Inc. is a known entity within the Department of Defense, particularly recognized for its unmanned aerial systems (UAS) and related services. While this specific contract (awarded in 2008) is for 'PREDEPLOYMENT SERVICES - OPERATIONAL DEP', Insitu's primary offerings often involve intelligence, surveillance, and reconnaissance (ISR) capabilities, which are critical for special operations. Their track record with DoD likely includes numerous contracts for their UAS platforms and operational support. A deeper dive into contract databases would reveal the full scope and value of their past performance with DoD and SOCOM, assessing their history of successful delivery, contract compliance, and overall performance ratings.

What are the potential risks associated with awarding a large contract like this on a sole-source basis?

The primary risk associated with awarding a large contract on a sole-source basis is the potential for inflated costs due to a lack of competitive pressure. Without competing bids, the government may not achieve the best possible price or value for its money. Another significant risk is reduced innovation, as the absence of competition can disincentivize contractors from proposing novel or more efficient solutions. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. There's also a risk that the government becomes overly reliant on a single provider, potentially limiting future flexibility and options. Finally, without a competitive process, it can be harder to ensure the chosen contractor is truly the best fit for the requirement beyond their unique capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, HUBZone Firm, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,853,974

Exercised Options: $22,853,974

Current Obligation: $22,853,974

Contract Characteristics

Cost or Pricing Data: YES

Timeline