DoD's $4.76M Engineering Services Contract Awarded to Insitu, Inc. with No Competition

Contract Overview

Contract Amount: $4,756,274 ($4.8M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROGRAM MANAGEMENT

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $4.8 million to INSITU, INC. for work described as: PROGRAM MANAGEMENT Key points: 1. Significant contract value of $4.76 million for engineering services. 2. Sole-source award to Insitu, Inc. raises questions about competition. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Engineering services sector is critical for defense modernization.

Value Assessment

Rating: questionable

The contract value of $4.76 million is difficult to assess without comparable contract data. The lack of competition makes it challenging to determine if the pricing is fair and reasonable compared to market rates for similar engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for the government compared to a fully competitive procurement.

Taxpayer Impact: Taxpayer funds may be used less efficiently due to the absence of competitive pressure to drive down costs.

Public Impact

Taxpayers may be paying a premium for engineering services due to the sole-source award. Lack of transparency in the procurement process could erode public trust. Potential for reduced innovation if only one vendor is considered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract supports critical defense needs
Firm fixed price contract limits cost overrun risk

Sector Analysis

This contract falls within the engineering services sector, which is vital for supporting complex defense programs. Benchmarks for this sector can vary widely based on specialization and project scope, but competitive bidding typically ensures better value.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, potentially limiting opportunities for smaller firms in this contract.

Oversight & Accountability

Oversight is crucial to ensure that even sole-source contracts deliver value for money. The Department of the Navy should have robust internal controls to validate the necessity and pricing of such awards.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in procurement.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to INSITU, INC.. PROGRAM MANAGEMENT

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 $4.8 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the justification for the sole-source award, and how was the fair and reasonable price determined without competition?

The justification for a sole-source award typically involves unique capabilities or urgent needs that only one vendor can meet. Determining a fair and reasonable price without competition is challenging and often relies on historical pricing, cost analysis, or independent government cost estimates. Robust documentation is essential to validate the pricing.

What are the risks associated with awarding a significant contract like this without competition?

The primary risks include paying a higher price than necessary, receiving less innovative solutions, and potentially fostering vendor complacency. Without competitive pressure, the vendor may have less incentive to optimize costs or performance. This can lead to inefficient use of taxpayer funds and potentially suboptimal outcomes for the program.

How will the effectiveness of the engineering services provided by Insitu, Inc. be measured and ensured?

Effectiveness will be measured through defined performance metrics and deliverables outlined in the contract. The Department of the Navy should actively monitor progress, conduct quality assurance reviews, and ensure that the services meet the specified technical requirements and contribute to the program's overall success. Regular communication and performance feedback are key.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001925R0198

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: $6,335,767

Exercised Options: $4,756,274

Current Obligation: $4,756,274

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