DoD's $50M contract for UAS Field Service Reps awarded to Insitu, Inc. amid limited competition

Contract Overview

Contract Amount: $50,270,537 ($50.3M)

Contractor: Insitu, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-25

End Date: 2023-10-31

Contract Duration: 1,681 days

Daily Burn Rate: $29.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: UNMANNED AIRCRAFT SYSTEM FIELD SERVICE REPRESENTATIVE OPERATORS

Plain-Language Summary

Department of Defense obligated $50.3 million to INSITU, INC. for work described as: UNMANNED AIRCRAFT SYSTEM FIELD SERVICE REPRESENTATIVE OPERATORS Key points: 1. Significant investment in specialized unmanned aircraft system (UAS) operator support. 2. Sole reliance on Insitu, Inc. raises questions about competitive pricing and innovation. 3. Contract duration of nearly 5 years suggests long-term operational needs. 4. Research and Development sector focus highlights advanced technology procurement.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without comparable benchmarks due to the 'NOT AVAILABLE FOR COMPETITION' status. The firm fixed-price structure aims to control costs, but the lack of competition may lead to suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and potentially limits the government's ability to secure the best value.

Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

Ensures continued operational readiness for critical unmanned aircraft systems. Supports advanced technological capabilities within the Department of the Navy. Potential for increased costs due to lack of competitive pressure. Highlights reliance on specific contractors for specialized technical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Contractor lock-in

Positive Signals

Ensures specialized operator support
Supports advanced technology

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The $50M expenditure for specialized field service representatives for UAS is substantial and indicates a significant investment in maintaining and operating advanced aerial platforms.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the prime contractor is Insitu, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny. Oversight should focus on the justification for limiting competition and ensuring that the pricing remains fair and reasonable throughout the contract's duration.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Dependency on a single contractor
Limited transparency in cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.3 million to INSITU, INC.. UNMANNED AIRCRAFT SYSTEM FIELD SERVICE REPRESENTATIVE OPERATORS

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 $50.3 million.

What is the period of performance?

Start: 2019-03-25. End: 2023-10-31.

What is the justification for limiting competition on this contract, and has it been adequately documented?

The justification for limiting competition is crucial for understanding the value proposition. Without competitive bidding, the government must rely on robust internal analysis or specific justifications like unique capabilities or urgent needs. Adequate documentation ensures accountability and allows for post-award review to confirm the necessity of the sole-source approach and its impact on overall cost-effectiveness.

How does the cost of these field service representatives compare to industry benchmarks for similar specialized technical support roles?

Benchmarking the cost of these field service representatives against industry standards is essential for assessing value. Given the specialized nature of UAS operations, direct comparisons might be challenging. However, analyzing salary data for comparable technical roles, factoring in travel and overhead, can provide a reasonable estimate. A significant deviation from benchmarks, especially without clear justification, would signal potential overpricing.

What performance metrics are in place to ensure the effectiveness of the field service representatives and the overall value delivered?

Effective performance metrics are vital for ensuring the value delivered by the field service representatives. Key performance indicators (KPIs) should focus on response times, system uptime, successful mission support, and adherence to safety protocols. Regular performance reviews against these metrics, coupled with feedback from operational units, will help ascertain if the contractor is meeting expectations and providing the intended value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $86,059,682

Exercised Options: $50,270,537

Current Obligation: $50,270,537

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $5,711,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6833516G0046

IDV Type: BOA

Timeline