DoD's $43.9M contract for surveying services awarded to Insitu, Inc. shows fair value with 2 bidders

Contract Overview

Contract Amount: $43,890,264 ($43.9M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-26

End Date: 2024-11-25

Contract Duration: 1,218 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OIR LOT 4 SITES 8 AND 9

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $43.9 million to INSITU, INC. for work described as: OIR LOT 4 SITES 8 AND 9 Key points: 1. The contract's value appears reasonable given the scope of surveying and mapping services required. 2. Limited competition with two bidders suggests potential for price negotiation but may not represent the broadest market engagement. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is tied to specific sites, indicating a focused and geographically constrained project. 5. This contract falls within the broader professional, scientific, and technical services sector for the Department of the Navy. 6. The duration of the contract (over 3 years) suggests a significant, ongoing need for these services.

Value Assessment

Rating: good

The contract's total value of approximately $43.9 million over three years suggests a moderate annual spend. Benchmarking against similar surveying and mapping contracts is challenging without more specific service details. However, the firm-fixed-price structure generally indicates that the government secured a defined scope at a negotiated price, implying a degree of value for money if the deliverables meet expectations. The presence of two bidders suggests a competitive process that likely led to a reasonable price point.

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. Two bids were received, which is a moderate level of competition. While more bidders could potentially drive prices lower, two offers suggest that the opportunity was known and attractive enough to elicit responses from multiple qualified firms. The government likely had options to compare and select the best value.

Taxpayer Impact: The full and open competition, even with two bidders, provides a baseline for fair pricing and ensures that taxpayer funds are used efficiently by selecting from available market options.

Public Impact

The Department of the Navy benefits from essential surveying and mapping services for specific sites, crucial for infrastructure planning and maintenance. This contract supports the operational readiness and land management capabilities of the U.S. military. The services delivered are critical for accurate geographical data collection, aiding in various defense-related activities. The geographic impact is localized to the specific sites designated for surveying, as indicated by the contract details.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation due to a fixed-price contract structure.
Dependence on a single contractor for a multi-year period could pose risks if performance degrades.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Clear performance period and defined scope reduce ambiguity.
Awarded through full and open competition, suggesting a fair market process.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on surveying and mapping. This sector is vital for government operations, supporting infrastructure development, environmental monitoring, and defense activities. The market for these services is competitive, with numerous firms offering specialized expertise. The annual spending on surveying and mapping services by the federal government can range significantly, but contracts like this represent a substantial investment in foundational data acquisition.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). While Insitu, Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is therefore indirect, depending on whether Insitu, Inc. chooses to engage small businesses for specialized support or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Geospatial Information and Services
Military Construction
Base Realignment and Closure (BRAC) Support Services
Environmental Services

Risk Flags

Limited competition may impact price discovery.
Firm-fixed-price contracts can sometimes stifle innovation if not managed carefully.
Contract duration requires sustained oversight to ensure continued performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.9 million to INSITU, INC.. OIR LOT 4 SITES 8 AND 9

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 $43.9 million.

What is the period of performance?

Start: 2021-07-26. End: 2024-11-25.

What is the track record of Insitu, Inc. with federal contracts, particularly within the Department of Defense?

Insitu, Inc. has a history of receiving federal contracts, primarily from the Department of Defense, often related to aerial systems and services. While this specific contract is for surveying and mapping, the company's broader federal contracting experience suggests familiarity with government procurement processes and compliance requirements. Analyzing their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget, would provide further insight into their reliability. A review of their contract history would reveal the volume and types of awards they have secured, indicating their established presence within the federal contracting landscape.

How does the pricing of this contract compare to similar surveying and mapping services awarded by the government?

Directly comparing the pricing of this $43.9 million contract to similar services is challenging without detailed service specifications and geographic scope. However, the firm-fixed-price nature suggests a negotiated rate for a defined set of deliverables. The fact that two bids were received under full and open competition implies that the pricing was competitive within the market for these services at the time of award. To conduct a thorough benchmark, one would need to identify contracts with comparable tasks (e.g., topographic surveying, aerial mapping, GIS data collection) and analyze their total value, duration, and the number of bidders to assess if Insitu, Inc.'s award represents a fair market price.

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

The primary risks associated with this contract include potential performance issues, schedule delays, and unforeseen site conditions impacting the surveying work. Since it's a firm-fixed-price contract, cost overruns are primarily borne by the contractor, Insitu, Inc., which mitigates financial risk for the government. Mitigation strategies likely involve robust contract oversight by the COR, clear performance metrics, and regular progress reviews. The contractor's own risk mitigation would involve detailed site assessments and contingency planning. The multi-year duration also presents a risk of contractor performance degradation over time, which requires ongoing monitoring.

How effective is the competition level (2 bidders) in ensuring optimal value for taxpayers?

A competition level of two bidders represents a moderate degree of market engagement. While it is better than a sole-source award, it may not be as robust as a process with three or more offers, which typically drives more aggressive pricing and innovation. The effectiveness in ensuring optimal value for taxpayers depends on the specific market dynamics for these specialized surveying services. If the market is inherently limited to a few highly qualified firms, two bidders might represent the best achievable competition. However, if more firms could have realistically bid, the limited competition could mean taxpayers did not receive the lowest possible price.

What is the historical spending trend for surveying and mapping services by the Department of the Navy?

Historical spending data for surveying and mapping services by the Department of the Navy would reveal trends in demand and investment in this area. Analyzing past contract awards for similar services over several fiscal years would indicate whether spending has been consistent, increasing, or decreasing. This context is crucial for understanding if the current $43.9 million award is in line with historical patterns or represents a significant shift in investment. Such analysis helps in forecasting future needs and budgeting appropriately for essential geospatial data acquisition.

What are the implications of the 'WA' (Washington) state designation for this contract?

The 'WA' designation indicates that the contract performance or the contractor's location is associated with Washington state. This could mean the surveying work is being conducted within Washington, or that Insitu, Inc. has a significant operational presence or headquarters there. For the Department of the Navy, this might relate to specific naval installations or projects located in Washington. From a taxpayer perspective, it suggests that federal funds are being directed towards a specific geographic region, potentially supporting local economies or addressing needs within that state's defense infrastructure.

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

Offers Received: 2

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: $43,890,264

Exercised Options: $43,890,264

Current Obligation: $43,890,264

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $11,433,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001921G0007

IDV Type: BOA

Timeline