Iraq will spend about $8M for ScanEagle spares, support equipment

Iraq will spend about $8 million for ScanEagle unmanned aircraft system spares, support equipment and services, according to a recent contract announcement.

On Aug. 9, Insitu was awarded a firm-fixed-price delivery order for Iraq's intelligence, surveillance and reconnaissance program. The work will wrap up in August 2017 with 90 percent of it performed in Baghdad and 10 percent in Bingen, WA, where Insitu is based.

Inside the Navy reported in June that the Defense Department inspector general claimed the Navy overpaid by $2.1 million on sole-source spare parts for the ScanEagle following an audit conducted from June 2015 through March 2016.

Additionally, the IG predicted the service would overpay on the remaining value of $42.6 million for ScanEagle spare parts if Naval Air Systems Command contracting officials continue using the current negotiated spare part prices, according to the report released June 1.

"Naval Air Systems Command may also overpay on future ScanEagle contracts if officials do not substantiate their analysis to determine the price's reasonableness or quantify the spare-part requirements," the report reads.

The IG suggests Navy contracting officials should use price analysis to verify that the overall price offered is fair and reasonable. The agency is concerned the service did not take advantage of quantity discounts when negotiating a contract with contractor Insitu for ScanEagle spare parts.

NAVAIR contracting officials did not know the quantity of each spare part needed and requested Insitu price the spare parts as if the service was purchasing only one spare part, the report reads. Contracting officials argue the reason they negotiated the spare parts contract in this manner is because the program office did not define spare part requirements, according to the IG report.