Navy Awards $19.17M for RQ-21A Drone Systems and Support to Insitu, Inc

Contract Overview

Contract Amount: $19,166,328 ($19.2M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2026-05-13

Contract Duration: 1,138 days

Daily Burn Rate: $16.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RQ-21A AIR VEHICLES, TRAINING, SUPPORT EQUIPMENT, AND SPARES

Place of Performance

Location: BINGEN, KLICKITAT County, WASHINGTON, 98605

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to INSITU, INC. for work described as: RQ-21A AIR VEHICLES, TRAINING, SUPPORT EQUIPMENT, AND SPARES Key points: 1. Contract awarded to Insitu, Inc. for RQ-21A drone systems, training, and support. 2. The total value is $19.17 million over a period of approximately 3.7 years. 3. This is a sole-source award, indicating limited competition. 4. The contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

Pricing is based on a Firm Fixed Price contract. Without access to detailed cost breakdowns or historical data for similar systems, a precise value assessment is difficult. However, the duration and scope suggest a moderate investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is a sole-source award, meaning competition was not sought. This limits price discovery and potentially leads to higher costs than if multiple vendors had bid.

Taxpayer Impact: Taxpayer funds are being used for this sole-source award, which may not represent the best possible value due to the lack of competitive bidding.

Public Impact

Enhances intelligence, surveillance, and reconnaissance capabilities for the Navy. Supports unmanned aerial vehicle operations critical for military missions. Ensures readiness and operational effectiveness through training and equipment. Potential for increased operational costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of transparency on cost components.
Long-term reliance on a single vendor for critical systems.

Positive Signals

Provides essential ISR capabilities.
Supports ongoing military operations.
Firm Fixed Price contract provides cost certainty for the awarded amount.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense systems. Spending in this area is often driven by specialized technological requirements and national security needs, with benchmarks varying widely based on system complexity and scale.

Small Business Impact

The contract was awarded to Insitu, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

The award is managed by the Department of the Navy. Oversight would typically involve contract administration, performance monitoring, and financial accountability to ensure the delivery of goods and services aligns with the contract terms and taxpayer interests.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated costs due to lack of bidding.
Dependency on a single vendor for critical drone systems.
Limited transparency on pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to INSITU, INC.. RQ-21A AIR VEHICLES, TRAINING, SUPPORT EQUIPMENT, AND SPARES

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 $19.2 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-05-13.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing without competition?

The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or the absence of other responsible sources. Agencies are still required to conduct market research and negotiate for fair and reasonable pricing, often by comparing to historical data, independent cost estimates, or commercial pricing if applicable. Without this specific justification, it's difficult to assess the necessity and pricing strategy.

How does the per-unit cost of the RQ-21A air vehicles and support compare to similar unmanned aerial systems in the market?

Benchmarking the per-unit cost is challenging without specific unit cost data and comparable systems. The RQ-21A is a specialized intelligence, surveillance, and reconnaissance (ISR) platform. Its cost would need to be compared against other tactical UAS in its class, considering factors like payload capacity, endurance, sensor suite, and operational range. A lack of competitive bidding makes direct comparison more difficult.

What is the long-term strategy for maintaining and upgrading the RQ-21A fleet, and will future requirements also be sole-sourced?

The long-term strategy for fleet maintenance and upgrades is crucial for sustained operational capability and cost-effectiveness. If Insitu, Inc. holds unique intellectual property or essential support capabilities, future requirements might also lean towards sole-source awards. Agencies should periodically reassess the market to identify potential competition for sustainment and upgrades to avoid vendor lock-in and ensure competitive pricing over the system's lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $19,166,328

Exercised Options: $19,166,328

Current Obligation: $19,166,328

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $7,387,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001922D0038

IDV Type: IDC

Timeline