DoD awards $57.4M engineering services contract to Insitu, Inc. for HERO 4 site support

Contract Overview

Contract Amount: $57,370,529 ($57.4M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2025-04-30

Contract Duration: 944 days

Daily Burn Rate: $60.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF HERO 4 SITE

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $57.4 million to INSITU, INC. for work described as: AWARD OF HERO 4 SITE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 944 days indicates a significant, long-term need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. Awarded by U.S. Special Operations Command, highlighting a focus on specialized defense needs. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract's value is substantial, reflecting the critical nature of the supported sites.

Value Assessment

Rating: good

The contract value of $57.4 million over approximately 2.5 years for engineering services appears reasonable given the specialized nature of support likely required by U.S. Special Operations Command. Benchmarking against similar large-scale engineering support contracts for defense agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment, which typically leads to better pricing and innovation. The number of bidders is not specified, but the method of competition implies multiple interested parties vied for this award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down prices and encourages efficiency, leading to better value for public funds.

Public Impact

This contract directly supports U.S. Special Operations Command, enhancing their operational capabilities. Engineering services provided will likely ensure the functionality and maintenance of critical HERO 4 sites. The geographic impact is centered around the location of the HERO 4 sites, which are not specified but are critical for SOCOM operations. The contract supports specialized engineering roles, potentially impacting a niche segment of the defense engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'HERO 4 site' operations makes it difficult to fully assess the criticality and potential risks.
The duration of the contract (944 days) means that potential cost overruns or performance issues could have a prolonged impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is awarded to Insitu, Inc., a known entity in defense contracting, implying some level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industry. The market for specialized engineering support to defense agencies is substantial, driven by the need for advanced technical solutions and site maintenance. Comparable spending benchmarks would involve looking at other large engineering support contracts awarded by SOCOM or other branches of the Department of Defense for similar operational infrastructure.

Small Business Impact

The data indicates that 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 provision. However, the prime contractor, Insitu, Inc., may engage small businesses as subcontractors depending on their own procurement strategies and the specific needs of the HERO 4 site support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and U.S. Special Operations Command. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is facilitated by the contract award data being publicly available, though specific performance metrics and oversight reports may be classified or internal.

Related Government Programs

Special Operations Forces Support Contracts
Defense Engineering Services
Site Operations and Maintenance Contracts
U.S. Special Operations Command Procurement

Risk Flags

Potential for cost overruns if unforeseen technical challenges arise.
Risk of scope creep if contract requirements are not tightly managed.
Dependence on a single contractor for critical site support over a long duration.
Potential quality degradation if contractor prioritizes profit over performance on FFP contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.4 million to INSITU, INC.. AWARD OF HERO 4 SITE

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 $57.4 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-04-30.

What is the specific nature of the 'HERO 4 site' and the engineering services required?

The specific nature of the 'HERO 4 site' and the precise engineering services required are not detailed in the provided data, likely due to security classifications associated with U.S. Special Operations Command (SOCOM) activities. However, based on the NAICS code (541330 - Engineering Services) and the awarding agency (SOCOM), it can be inferred that these services are critical for the operation, maintenance, security, or enhancement of a specialized facility or platform vital to special operations missions. This could encompass a wide range of activities, from structural engineering and environmental assessments to the design and implementation of complex technical systems, ensuring the site's readiness and effectiveness for its intended purpose.

How does the $57.4 million award compare to other engineering services contracts awarded by SOCOM or the DoD?

The $57.4 million award for engineering services to Insitu, Inc. is a significant sum, placing it in the mid-to-large tier for individual contract awards within the defense sector. To benchmark effectively, one would need to compare it against similar firm-fixed-price, full-and-open competition contracts for engineering services awarded by U.S. Special Operations Command (SOCOM) or the broader Department of Defense (DoD) over the past 3-5 years. Contracts supporting specialized operational sites or unique technological platforms often command higher values. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents exceptional value, but it aligns with the substantial investment typically required for SOCOM's advanced operational needs.

What are the potential risks associated with a firm-fixed-price contract of this duration for specialized engineering services?

While a firm-fixed-price (FFP) contract offers cost certainty, risks can still arise, particularly for long-duration contracts involving specialized engineering services. For this 944-day (approx. 2.5 year) contract, potential risks include unforeseen technical challenges that could escalate costs for the contractor, potentially leading to performance issues if the contractor struggles to absorb them. Scope creep, if not managed tightly through contract modifications, could also become an issue. Furthermore, the specialized nature of the services means that finding alternative contractors mid-contract, should Insitu, Inc. underperform, could be difficult and costly. The government's risk is primarily that the contractor may cut corners on quality to maintain profitability, or that the fixed price may not adequately reflect evolving technological requirements.

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

Insitu, Inc. has a well-established track record with the Department of Defense (DoD), particularly in providing unmanned aerial systems (UAS) and related services. While this specific contract is for engineering services, Insitu's broader experience in supporting defense operations, including those of U.S. Special Operations Command (SOCOM), suggests familiarity with the agency's requirements and operational tempo. Their history likely includes numerous other contracts, potentially of varying types and values, demonstrating their capacity to perform complex defense-related tasks. A deeper dive into their contract history would reveal the extent and nature of their past performance specifically with SOCOM and the success rates of those prior engagements.

How has spending on engineering services by U.S. Special Operations Command trended in recent years?

Analyzing the spending trends on engineering services by U.S. Special Operations Command (SOCOM) requires access to historical contract data. Generally, SOCOM's spending fluctuates based on strategic priorities, emerging threats, and the lifecycle of specific programs and operational platforms. Given the increasing reliance on advanced technology and specialized operational capabilities, it is plausible that SOCOM's investment in engineering services has remained consistent or potentially increased to support modernization efforts and maintain readiness. The $57.4 million award for the HERO 4 site is one data point; understanding the broader trend would involve examining annual spending reports and contract databases for SOCOM's engineering service procurements over the last five to ten years.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $57,410,345

Exercised Options: $57,410,345

Current Obligation: $57,370,529

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $4,841,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240820D0004

IDV Type: IDC

Timeline