DoD's $28M surveying contract awarded to Insitu, Inc. raises questions about competition and value

Contract Overview

Contract Amount: $28,074,302 ($28.1M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-06-24

End Date: 2024-07-09

Contract Duration: 1,842 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEPLOYMENT SUPPORT

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to INSITU, INC. for work described as: DEPLOYMENT SUPPORT Key points: 1. The contract's value of $28 million over five years suggests a significant investment in surveying and mapping services. 2. Awarded on a sole-source basis, the lack of competition limits price discovery and potentially increases costs for taxpayers. 3. The firm-fixed-price contract type shifts performance risk to the contractor, but the absence of competition may negate cost savings. 4. The duration of the contract (1842 days) indicates a long-term need for these specialized services. 5. The contractor, Insitu, Inc., is positioned as a key provider in this niche sector, but its track record on similar sole-source awards warrants scrutiny. 6. The geographic focus on Washington state (ST='WA') suggests a localized but substantial requirement.

Value Assessment

Rating: questionable

Benchmarking the value of this $28 million contract is challenging due to its sole-source nature and the specialized surveying and mapping services provided. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. Comparisons to similar contracts are limited, but the duration and scope suggest a significant investment. The firm-fixed-price structure is generally favorable for cost control, but the lack of competition undermines the potential for optimal value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Insitu, Inc., was solicited. The justification for this approach is not provided in the data, but it implies that the agency determined only this contractor could meet the specific requirements. The lack of competition means there was no opportunity for multiple firms to bid, which typically drives down prices and encourages innovation.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions and efficiencies that typically arise from a competitive bidding process. This can lead to higher overall spending for the government.

Public Impact

The Department of the Navy benefits from specialized surveying and mapping services essential for its operations. The contract supports the maintenance and enhancement of critical infrastructure and operational capabilities within the defense sector. The geographic impact is concentrated in Washington state, suggesting a focus on specific naval installations or operational areas. While not explicitly stated, the contract likely supports a workforce skilled in surveying, mapping, and potentially related geospatial technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of transparency in the sole-source justification makes it difficult to assess necessity.
Long contract duration without competition may reduce incentives for cost efficiency over time.
Limited public data on Insitu, Inc.'s performance specifically for this contract.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Contract addresses a specific, likely critical, need for surveying and mapping services.
Insitu, Inc. is a specialized provider, suggesting expertise in the required domain.

Sector Analysis

The surveying and mapping services sector is a niche within the broader professional services industry. This contract falls under NAICS code 541370, 'Surveying and Mapping (except Geophysical) Services.' The federal government is a significant consumer of these services for infrastructure projects, environmental assessments, and operational planning. While specific market size data for federal surveying contracts is not readily available, the overall market is competitive, making sole-source awards for specialized needs notable.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Insitu, Inc., may engage small businesses as subcontractors, but this information is not detailed in the provided data. The absence of a small business set-aside means larger firms are eligible to compete or be awarded such contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm-fixed-price nature provides some cost control, but the lack of competition means oversight will focus heavily on performance monitoring and ensuring the contractor meets all specified deliverables. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Geospatial Intelligence Services
Defense Mapping Agency Support
Naval Infrastructure Support
Federal Surveying Contracts
Professional Services Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding contractor selection rationale.
Long contract duration without competitive review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to INSITU, INC.. DEPLOYMENT SUPPORT

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 $28.1 million.

What is the period of performance?

Start: 2019-06-24. End: 2024-07-09.

What specific surveying and mapping services are being provided under this contract?

The contract data indicates the service category is 'Surveying and Mapping (except Geophysical) Services' (NAICS 541370). While the specific deliverables are not detailed, this typically includes activities such as land surveying, topographic mapping, hydrographic surveying, aerial photography, and the creation of digital maps and geographic information systems (GIS) data. For the Department of the Navy, these services are crucial for base operations, infrastructure development, coastal management, navigation safety, and potentially intelligence gathering.

What is the justification for awarding this $28 million contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED' (ct='NOT COMPETED'), indicating a sole-source award. However, the specific justification for this determination is not included. Federal regulations allow for sole-source awards under certain circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. Without the official justification document, it is impossible to verify the validity of the sole-source determination and assess if competitive alternatives were adequately explored.

How does the $28 million value compare to typical federal spending on surveying and mapping services?

Comparing the $28 million value requires context regarding the scope and duration. This contract spans approximately five years (1842 days), averaging around $5.6 million annually. Federal spending on surveying and mapping services varies widely based on agency needs, project scale, and geographic scope. While $5.6 million annually for specialized services might be reasonable for a large agency like the Navy, the lack of competition makes it difficult to benchmark against market rates. Broader federal spending on geospatial services is substantial, but this specific contract's value is best assessed against similar sole-source awards or through detailed cost analysis if available.

What is Insitu, Inc.'s track record with federal surveying and mapping contracts, particularly sole-source awards?

The provided data identifies Insitu, Inc. as the sole contractor for this $28 million Department of Defense contract. Further analysis of Insitu, Inc.'s federal contracting history would be necessary to assess their track record. Specifically, it would be beneficial to examine past performance on similar surveying and mapping contracts, their history with sole-source awards, and any performance evaluations or past performance questionnaires available. Understanding their experience, especially in sole-source scenarios, can provide insights into their capabilities and the potential risks associated with this award.

What are the potential risks associated with a sole-source award of this magnitude and duration?

The primary risks associated with a sole-source award of this magnitude ($28 million over five years) include inflated pricing due to the absence of competitive pressure, potential for complacency from the contractor regarding performance and innovation, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value. Furthermore, if Insitu, Inc. underperforms or faces financial difficulties, the government has limited recourse without a competitive landscape to quickly transition to another provider. The long duration exacerbates these risks.

Are there any indications of performance issues or contract modifications that might suggest problems with this award?

The provided data does not contain specific details regarding contract modifications, performance issues, or disputes related to this contract. The contract is active and scheduled to end in July 2024. Without access to contract line item details, modification history, or performance reports, it is impossible to identify any potential red flags or confirm satisfactory performance. A deeper dive into the contract's administrative file would be required to assess its execution history.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001919R0032

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: $28,074,302

Exercised Options: $28,074,302

Current Obligation: $28,074,302

Actual Outlays: $1,421,524

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $3,192,814

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline