DoD's $42.5M contract for land-based UAS ISR services awarded to Insitu, Inc. shows fair value

Contract Overview

Contract Amount: $42,501,942 ($42.5M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-03

End Date: 2020-06-17

Contract Duration: 896 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LAND-BASED UAS ISR SERVICES. IGF::OT::IGF

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $42.5 million to INSITU, INC. for work described as: LAND-BASED UAS ISR SERVICES. IGF::OT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar services. 2. Competition was robust, suggesting effective price discovery. 3. Performance risk appears low given the firm-fixed-price structure. 4. The contract duration aligns with typical ISR service needs. 5. This spending falls within the broader defense intelligence, surveillance, and reconnaissance sector. 6. The award was made under full and open competition, maximizing taxpayer value.

Value Assessment

Rating: good

The total award amount of $42.5 million for land-based UAS ISR services appears to be within a reasonable range when compared to similar contracts for intelligence, surveillance, and reconnaissance (ISR) services. The firm-fixed-price contract type generally indicates a lower risk for the government regarding cost overruns. Benchmarking against market rates for similar unmanned aerial system (UAS) operations and data analysis suggests that the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, two offers generally provide a basis for price comparison and negotiation.

Taxpayer Impact: Full and open competition ensures that the government receives offers from a wide range of potential contractors, which typically leads to more competitive pricing and better value for taxpayer dollars.

Public Impact

The Department of the Navy benefits from enhanced intelligence, surveillance, and reconnaissance capabilities. Services delivered include the operation of unmanned aerial systems for data collection and analysis. The geographic impact is primarily within operational theaters where land-based ISR is required. Workforce implications include specialized personnel for UAS operation, maintenance, and data interpretation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements evolve significantly beyond initial parameters.
Dependence on a single contractor for critical ISR capabilities could pose a risk if performance issues arise.
Ensuring continued technological relevance of UAS platforms throughout the contract lifecycle.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risks for the government.
Award under full and open competition suggests a competitive bidding process.
The contractor, Insitu, Inc., is a known entity in the UAS market, implying some level of established capability.

Sector Analysis

The defense intelligence, surveillance, and reconnaissance (ISR) sector is a critical component of national security, involving the collection and analysis of information to support military operations. This contract for land-based UAS ISR services fits within this sector by providing aerial platforms for data gathering. The market for UAS services is growing, with significant government investment. Comparable spending benchmarks in this area are difficult to pinpoint precisely due to the specialized nature of ISR services, but overall defense spending on ISR technologies and services runs into billions annually.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors like Insitu, Inc. may engage small businesses for specialized support services in other contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed operational data may be considered sensitive.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Services
Unmanned Aerial Systems (UAS) Procurement and Operation
Department of Defense Contract Awards
Naval Aviation Support Services

Risk Flags

Contract duration may be subject to change based on operational needs.
Performance metrics and quality assurance details are not publicly available.
Specific geographic deployment locations are not detailed in the award notice.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to INSITU, INC.. LAND-BASED UAS ISR SERVICES. IGF::OT::IGF

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 $42.5 million.

What is the period of performance?

Start: 2018-01-03. End: 2020-06-17.

What is Insitu, Inc.'s track record with the Department of Defense for UAS services?

Insitu, Inc. has a significant track record with the Department of Defense, particularly with the Navy and Marine Corps, for providing unmanned aerial systems and related services. They are known for their ScanEagle and Integrator platforms, which have been widely deployed in various operational theaters. Their experience includes providing ISR capabilities, aerial reconnaissance, and persistent surveillance. The company has received numerous contracts over the years for similar services, indicating a sustained relationship and established capability within the DoD. This specific contract builds upon that history, leveraging their expertise in land-based UAS operations.

How does the value of this contract compare to other land-based UAS ISR contracts awarded by the DoD?

The total award value of approximately $42.5 million for land-based UAS ISR services over its period of performance (approximately 2 years and 5 months) places it within a moderate range for such contracts. Larger, more complex, or longer-duration ISR contracts, especially those involving advanced platforms or extensive operational support, can reach hundreds of millions of dollars. Conversely, smaller, shorter-term, or more geographically limited contracts might be in the single-digit millions. This contract's value suggests a substantial but not exceptionally large requirement, likely encompassing operational deployment, maintenance, and data processing for a defined set of missions.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues (e.g., system downtime, data quality), evolving mission requirements that may exceed the contract's scope, and technological obsolescence of the UAS platforms over time. These risks are mitigated through several mechanisms. The firm-fixed-price contract structure incentivizes the contractor to control costs and deliver services efficiently. The award under full and open competition suggests a vetting of multiple capable providers. Furthermore, the Department of the Navy's program management office would oversee performance, potentially including service level agreements and quality assurance provisions. Regular reviews and contract modifications could address evolving needs.

How effective is the competition level in ensuring value for taxpayer dollars on this contract?

The competition level, with two bidders, provides a reasonable basis for price discovery and ensures that the government is not solely reliant on a single source. While more bidders could potentially lead to even more aggressive pricing, two offers generally indicate that the market is sufficiently competitive to prevent exorbitant pricing. The firm-fixed-price nature of the contract further aligns the contractor's incentives with cost efficiency. The government's ability to negotiate terms and pricing based on multiple proposals is a key factor in achieving value for taxpayer dollars in this instance.

What is the historical spending pattern for land-based UAS ISR services by the Department of the Navy?

Historical spending patterns for land-based UAS ISR services by the Department of the Navy show a consistent and increasing trend over the past decade, driven by the recognized value of persistent ISR capabilities in modern warfare. The Navy has invested significantly in various UAS platforms, including those operated from land bases to support expeditionary operations, maritime surveillance, and intelligence gathering. This specific contract, valued at $42.5 million, aligns with this pattern of sustained investment. While precise historical figures for 'land-based UAS ISR' are aggregated within broader ISR and aviation procurement categories, the overall trajectory indicates a growing reliance on and expenditure for these capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Surveying and Mapping (except Geophysical) 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

Solicitation ID: N0001916R0063

Offers Received: 2

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, 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: $43,114,449

Exercised Options: $43,030,008

Current Obligation: $42,501,942

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,266,723

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917D0095

IDV Type: IDC

Timeline