DoD's $178M RQ-21A Blackjack Contract Awarded to Insitu, Inc. with No Competition

Contract Overview

Contract Amount: $178,194,695 ($178.2M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-05-31

End Date: 2022-03-31

Contract Duration: 2,130 days

Daily Burn Rate: $83.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RQ-21A BLACKJACK

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $178.2 million to INSITU, INC. for work described as: RQ-21A BLACKJACK Key points: 1. Significant spending on unmanned aerial systems (UAS) for the Navy. 2. Sole-source award to Insitu, Inc. raises questions about price discovery. 3. Potential for higher costs due to lack of competitive pressure. 4. The contract supports aircraft manufacturing within the defense sector.

Value Assessment

Rating: questionable

The total award of $178,194,695.13 for the RQ-21A Blackjack program appears substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar unmanned aerial systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Insitu, Inc. This lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: The absence of competition may lead to taxpayers potentially overpaying for the RQ-21A Blackjack systems and associated services.

Public Impact

Unmanned aerial systems are increasingly vital for military intelligence, surveillance, and reconnaissance. The Navy's reliance on a single provider for this capability could impact future procurement flexibility. This contract highlights the significant investment in advanced defense technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Supports critical defense capability
Long-term contract duration

Sector Analysis

The defense sector, particularly in aircraft manufacturing, often involves complex and high-value contracts. Benchmarks for similar unmanned aerial systems are difficult to establish due to proprietary technology and specialized applications.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price escalation
Limited market research evident
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $178.2 million to INSITU, INC.. RQ-21A BLACKJACK

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 $178.2 million.

What is the period of performance?

Start: 2016-05-31. End: 2022-03-31.

What is the rationale behind the sole-source award for the RQ-21A Blackjack, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT COMPETED.' A sole-source award typically occurs when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Further investigation would be required to understand the specific justification and whether alternatives were explored before this determination was made.

How does the cost of the RQ-21A Blackjack compare to other similar unmanned aerial systems in the market?

Without competitive bidding, a direct cost comparison is challenging. The $178 million contract value for the RQ-21A Blackjack needs to be benchmarked against publicly available data for comparable UAS platforms, considering factors like payload capacity, range, endurance, and sensor suites. The lack of competition suggests this benchmark may be difficult to establish accurately.

What are the long-term implications of a sole-source contract for this critical defense system on future procurement and innovation?

Sole-source contracts can stifle innovation and limit future procurement options if the incumbent contractor does not face competitive pressure to improve technology or reduce costs. This could lead to vendor lock-in and potentially higher prices in subsequent procurements. The Department of Defense should actively seek opportunities to introduce competition or explore alternative solutions to mitigate these risks.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001915R0085

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: $178,289,026

Exercised Options: $178,289,026

Current Obligation: $178,194,695

Subaward Activity

Number of Subawards: 163

Total Subaward Amount: $181,147,511

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline