DoD Awards $8.88M for ScanEagle Hardware and Services to Insitu, Inc. for Bulgaria Site
Contract Overview
Contract Amount: $8,877,957 ($8.9M)
Contractor: Insitu, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2026-05-15
Contract Duration: 592 days
Daily Burn Rate: $15.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE INITIAL SCANEAGLE HARDWARE AND SERVICES IN SUPPORT OF A FUTURE SITE FOR FMS BULGARIA, BU-P-LBJ.
Place of Performance
Location: BINGEN, KLICKITAT County, WASHINGTON, 98605
Plain-Language Summary
Department of Defense obligated $8.9 million to INSITU, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE INITIAL SCANEAGLE HARDWARE AND SERVICES IN SUPPORT OF A FUTURE SITE FOR FMS BULGARIA, BU-P-LBJ. Key points: 1. Procurement of ScanEagle hardware and services for a future site in Bulgaria. 2. Contract awarded to Insitu, Inc., a single source provider. 3. Potential risks include reliance on a sole-source vendor and long-term serviceability. 4. Spending falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract value of $8.88M for initial hardware and services appears reasonable given the specialized nature of drone systems. However, without comparable sole-source contracts, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may lead to higher prices than if multiple vendors were considered, impacting taxpayer value.
Public Impact
Supports U.S. military operations and intelligence gathering capabilities abroad. Enhances situational awareness for deployed forces. Contributes to the modernization of defense infrastructure in allied nations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns due to lack of competitive bidding.
- Long-term sustainment costs are not fully detailed.
Positive Signals
- Provides critical intelligence, surveillance, and reconnaissance capabilities.
- Supports U.S. foreign military sales objectives.
- Addresses a specific operational requirement for the Bulgarian site.
Sector Analysis
This spending is within the Engineering Services sector, which includes a wide range of technical and consulting services for government projects. Defense-related drone procurement is a significant sub-segment.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to ensure the effective use of funds and performance of services, especially given the sole-source nature of the award.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Limited transparency on long-term costs
Tags
engineering-services, department-of-defense, wa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.9 million to INSITU, INC.. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE INITIAL SCANEAGLE HARDWARE AND SERVICES IN SUPPORT OF A FUTURE SITE FOR FMS BULGARIA, BU-P-LBJ.
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 $8.9 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-05-15.
What is the long-term cost projection for maintaining and operating the ScanEagle system at the Bulgarian site?
The provided data focuses on the initial hardware and services procurement. A comprehensive long-term cost projection is essential to understand the total lifecycle cost. This should include anticipated maintenance, software updates, training, and potential upgrades over the system's operational life to ensure sustained effectiveness and budget predictability.
What steps are being taken to mitigate the risks associated with a sole-source procurement for this critical hardware?
Given the sole-source nature, the Department of the Navy should implement rigorous performance monitoring and contract management. Exploring potential future competition for sustainment services or alternative systems could be considered. Transparency in pricing justification and regular reviews of vendor performance are key to mitigating risks.
How does the procurement of ScanEagle hardware align with broader U.S. defense strategy in Eastern Europe?
The procurement supports U.S. foreign military sales and strengthens allied defense capabilities. Enhancing intelligence, surveillance, and reconnaissance (ISR) in Bulgaria contributes to regional stability and interoperability with NATO forces. This aligns with strategic goals of deterring aggression and maintaining a secure European theater.
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
Solicitation ID: N0001922R0038
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: $8,877,957
Exercised Options: $8,877,957
Current Obligation: $8,877,957
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $720,000
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
Start Date: 2024-09-30
Current End Date: 2026-05-15
Potential End Date: 2026-05-15 00:00:00
Last Modified: 2025-12-05
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