DoD's $109M STUAS/TIER II UAS Contract Awarded to Insitu, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $109,260,877 ($109.3M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-07-29

End Date: 2015-10-15

Contract Duration: 1,904 days

Daily Burn Rate: $57.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: STUAS/TIER II UAS

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $109.3 million to INSITU, INC. for work described as: STUAS/TIER II UAS Key points: 1. The contract awarded to Insitu, Inc. for STUAS/TIER II UAS represents a significant investment in unmanned aerial systems. 2. Competition was full and open, suggesting a robust market for these capabilities. 3. The contract type (Cost Plus Incentive Fee) indicates a focus on performance incentives. 4. The sector is Aircraft Manufacturing, a key area for defense modernization.

Value Assessment

Rating: good

The contract value of $109.3 million over 1904 days suggests a substantial program. Benchmarking against similar UAS contracts would be necessary for a precise assessment, but the duration and scope imply a reasonable price point for the capabilities delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers, ensuring funds are used efficiently for critical defense assets.

Public Impact

Enhances intelligence, surveillance, and reconnaissance capabilities for the Navy. Supports tactical operations with advanced unmanned aerial systems. Contributes to the modernization of military aviation assets.

Waste & Efficiency Indicators

Waste Risk Score: 57 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not managed carefully.
Long contract duration (1904 days) may present risks related to technological obsolescence.
Lack of specific small business participation noted.

Positive Signals

Full and open competition ensures market-driven pricing.
Award to a single vendor (Insitu, Inc.) suggests specialized capability.
Definitive contract provides a clear framework for delivery.

Sector Analysis

The Aircraft Manufacturing sector is critical for defense procurement, with significant government spending on advanced platforms like unmanned aerial systems. Benchmarks for similar UAS programs would provide further context on cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a primary consideration in this award, as the contract was awarded to a single entity without specific small business set-asides mentioned. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

The definitive contract structure provides a clear framework for oversight. The Department of the Navy is responsible for monitoring performance and costs, particularly given the Cost Plus Incentive Fee structure, to ensure accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPIF contract type.
Risk of technological obsolescence over the contract's duration.
Limited visibility into small business subcontracting.
Dependence on a single vendor for critical UAS capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $109.3 million to INSITU, INC.. STUAS/TIER II UAS

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 $109.3 million.

What is the period of performance?

Start: 2010-07-29. End: 2015-10-15.

What specific performance metrics were incentivized in this Cost Plus Incentive Fee contract, and how did the contractor perform against them?

The contract details do not specify the exact performance metrics that were incentivized. Typically, CPIF contracts link contractor profit to achieving certain cost and performance targets. A review of contract modifications and performance reports would be necessary to assess how Insitu, Inc. met these incentives and whether they contributed to overall program success and cost efficiency.

Given the 5-year duration, what measures were in place to mitigate the risk of technological obsolescence for the STUAS/TIER II UAS?

The contract's 5-year duration (July 2010 - Oct 2015) presents a potential risk of technological obsolescence. Mitigation strategies could have included built-in upgrade clauses, provisions for incorporating new technologies, or a phased approach to development and deployment. Without specific contract clauses, it's difficult to ascertain the exact mitigation efforts employed.

How did the full and open competition process ensure the best value was achieved compared to other potential contracting methods?

Full and open competition allows a wide range of qualified vendors to submit proposals, fostering a competitive environment that typically drives down prices and encourages innovation. This process allows the government to evaluate technical capabilities and pricing comprehensively, ensuring the selected solution offers the best overall value for the taxpayer and meets the specific requirements of the STUAS/TIER II UAS program.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N0001909R0226

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $122,621,007

Exercised Options: $109,260,877

Current Obligation: $109,260,877

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $39,260,565

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline