DoD awards $63M contract for RQ-21A Blackjack attrition parts to Insitu, Inc

Contract Overview

Contract Amount: $63,079,332 ($63.1M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-07-01

End Date: 2022-01-14

Contract Duration: 1,293 days

Daily Burn Rate: $48.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF (1) RQ-21A BLACKJACK ATTRITION AV&SEPM FOR THE COUNTRY OF POLAND

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $63.1 million to INSITU, INC. for work described as: PROCUREMENT OF (1) RQ-21A BLACKJACK ATTRITION AV&SEPM FOR THE COUNTRY OF POLAND Key points: 1. Significant investment in unmanned aerial system components for Poland. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (1293 days) may indicate ongoing support needs. 4. Aircraft manufacturing sector sees continued defense spending.

Value Assessment

Rating: questionable

The contract value of $63,079,332.18 for attrition parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market alternatives or if it reflects fair value.

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 price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this sole-source award means taxpayers may not be receiving the best possible price for these critical aircraft components.

Public Impact

Enhances Poland's defense capabilities with advanced drone technology. Supports U.S. foreign military sales and defense industrial base. Potential for follow-on contracts for maintenance and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of price benchmarks for attrition parts.
Long contract duration could mask inefficiencies.

Positive Signals

Supports a key NATO ally.
Acquisition of advanced defense technology.
Direct contract with the manufacturer.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often driven by geopolitical needs and technological advancements in military hardware.

Small Business Impact

The contract was awarded directly to Insitu, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within this specific award, potentially limiting their participation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, oversaw this award. Further oversight would be beneficial to ensure fair pricing and performance given the sole-source nature.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source procurement.
Lack of competitive bidding.
Potential for inflated pricing.
Limited transparency on price justification.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.1 million to INSITU, INC.. PROCUREMENT OF (1) RQ-21A BLACKJACK ATTRITION AV&SEPM FOR THE COUNTRY OF POLAND

Who is the contractor on this award?

The obligated recipient is INSITU, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $63.1 million.

What is the period of performance?

Start: 2018-07-01. End: 2022-01-14.

What is the justification for the sole-source award, and were alternative procurement methods considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's unclear if Insitu, Inc. was the only provider or if other options were explored. This lack of transparency hinders a full assessment of value for money.

How is the performance and cost-effectiveness of these attrition parts being monitored over the contract's duration?

Given the long duration and sole-source nature, robust performance metrics and cost-tracking mechanisms are crucial. Regular reviews by the Defense Contract Management Agency should focus on ensuring the parts meet specifications and that costs remain reasonable, even without competitive pressure.

What is the long-term strategy for RQ-21A Blackjack sustainment and potential future procurements?

Understanding the long-term sustainment plan is vital. This includes assessing whether future procurements will also be sole-source or if competition can be introduced. Planning for obsolescence and upgrades should also be considered to ensure the continued effectiveness of the platform.

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: N0001918R0052

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: $84,981,553

Exercised Options: $63,079,332

Current Obligation: $63,079,332

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $357,823

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline