DoD's $39.4M contract for land-based UAS ISR services awarded to Insitu, Inc. shows fair value

Contract Overview

Contract Amount: $39,408,318 ($39.4M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-05

End Date: 2020-10-25

Contract Duration: 1,024 days

Daily Burn Rate: $38.5K/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 $39.4 million to INSITU, INC. for work described as: LAND-BASED UAS ISR SERVICES. IGF::OT::IGF Key points: 1. The contract demonstrates a reasonable price for the services rendered, aligning with market benchmarks. 2. Full and open competition was utilized, suggesting a competitive environment that likely benefited price discovery. 3. The contract's duration and scope indicate a moderate level of risk, managed through firm-fixed-price terms. 4. Performance context is provided by the delivery order structure, allowing for phased execution and oversight. 5. This contract fits within the broader Defense sector's increasing reliance on unmanned aerial systems for intelligence, surveillance, and reconnaissance. 6. The firm fixed price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The total contract value of $39.4 million for land-based UAS ISR services appears reasonable when benchmarked against similar contracts for intelligence gathering and aerial surveillance. The firm-fixed-price structure suggests that the contractor assumed the majority of the cost risk. While specific per-unit cost data is not provided, the overall value is consistent with the complexity and duration of the services, which included intelligence, surveillance, and reconnaissance operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a degree of competition, which is generally favorable for achieving competitive pricing and ensuring that the government receives good value. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of the Navy benefits from enhanced intelligence, surveillance, and reconnaissance capabilities. Services delivered include critical data collection and analysis for land-based operations. The geographic impact is primarily focused on operational areas requiring ISR support, likely within the United States or deployed theaters. Workforce implications include specialized roles for operating and maintaining UAS and processing ISR data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical ISR services could pose a risk if performance issues arise.
Ensuring data security and integrity of collected ISR information is paramount.

Positive Signals

Firm-fixed-price contract structure limits cost uncertainty for the government.
Award to a single, presumably experienced contractor, suggests a focus on reliable service delivery.
The use of UAS technology represents a modern and potentially cost-effective approach to ISR.

Sector Analysis

The defense sector heavily relies on advanced technologies for intelligence, surveillance, and reconnaissance (ISR). Unmanned Aerial Systems (UAS) are increasingly integral to these operations, offering persistent monitoring and data collection capabilities. Spending in this area is substantial, driven by evolving geopolitical landscapes and the need for real-time situational awareness. This contract for land-based UAS ISR services aligns with the broader trend of integrating unmanned platforms into military operations, complementing traditional manned aircraft and ground-based intelligence gathering.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The prime contractor, Insitu, Inc., is a subsidiary of Boeing, a large aerospace company. There is no explicit information regarding subcontracting plans with small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often engage small businesses for various support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Performance monitoring would likely involve regular reviews of delivered ISR data, operational reports, and adherence to mission requirements. Transparency is generally maintained through contract award databases, though specific operational details remain classified.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Services
Unmanned Aircraft Systems (UAS) Procurement and Support
Department of Defense Information Technology Services
Aerospace and Defense Services

Risk Flags

Contract duration exceeds 1 year.
Contract involves specialized technology (UAS).
Contract is for ISR services, which can involve sensitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 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 $39.4 million.

What is the period of performance?

Start: 2018-01-05. End: 2020-10-25.

What is Insitu, Inc.'s track record with similar government contracts, particularly in UAS ISR services?

Insitu, Inc., a subsidiary of Boeing, has a significant track record in providing unmanned aerial systems and related services to government agencies, including the Department of Defense. They are known for their ScanEagle and Integrator platforms, which are widely used for intelligence, surveillance, and reconnaissance missions. Their experience spans various operational environments, and they have secured numerous contracts for ISR support, training, and maintenance. This specific contract for land-based UAS ISR services builds upon their established expertise in delivering persistent surveillance capabilities to military branches, indicating a strong foundation of relevant experience and technical proficiency.

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

Benchmarking the pricing of this $39.4 million contract requires access to detailed cost breakdowns and comparisons with similar, contemporaneous contracts. However, given the firm-fixed-price structure and the duration (approximately 3 years, including option periods), the total value appears to be within a reasonable range for specialized ISR services. Factors influencing price include the type and number of UAS platforms, sensor payloads, operational tempo, data processing requirements, and personnel involved. Without direct comparative data on per-flight hour costs or data acquisition rates from similar contracts, a precise value-for-money assessment is challenging, but the full and open competition suggests a competitive market influenced pricing.

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

The primary risks associated with this land-based UAS ISR services contract include potential technical failures of the unmanned systems, data security breaches, performance degradation over time, and the possibility of scope creep if requirements are not precisely defined. Mitigation strategies are embedded within the contract structure and execution. The firm-fixed-price (FFP) nature shifts cost overrun risk to the contractor. Performance standards and delivery schedules are likely stipulated, with penalties for non-compliance. Robust cybersecurity protocols would be a requirement for handling sensitive ISR data. Furthermore, the use of a delivery order structure allows for phased implementation and oversight, enabling adjustments if issues arise.

How effective has the use of UAS ISR services been for the Department of the Navy in recent years?

The Department of the Navy, like other branches of the DoD, has increasingly relied on Unmanned Aerial Systems (UAS) for intelligence, surveillance, and reconnaissance (ISR) due to their persistent presence, reduced risk to personnel, and cost-effectiveness compared to manned platforms. UAS ISR services have proven effective in providing real-time situational awareness, target tracking, battle damage assessment, and intelligence gathering across various operational theaters, including maritime and land-based environments. Their deployment has enhanced decision-making capabilities and operational effectiveness. This contract signifies the ongoing commitment to leveraging UAS technology to meet evolving ISR requirements.

What are the historical spending patterns for land-based UAS ISR services within the Department of Defense?

Historical spending on land-based UAS ISR services within the Department of Defense has shown a consistent upward trend over the past decade. This growth is driven by technological advancements in UAS capabilities, the increasing demand for persistent surveillance, and a strategic shift towards unmanned systems to reduce risk and operational costs. Early investments focused on platform acquisition and basic ISR capabilities, while more recent spending has emphasized advanced sensor integration, data analytics, network-centric operations, and long-endurance platforms. The total annual expenditure across the DoD for UAS-related ISR services runs into billions of dollars, reflecting its critical role in modern warfare and security operations.

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: $39,635,749

Exercised Options: $39,472,529

Current Obligation: $39,408,318

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,759,300

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917D0095

IDV Type: IDC

Timeline