DoD's $281.9M Contract with Institute for Defense Analyses Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $281,920,412 ($281.9M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2013-11-01

End Date: 2019-05-31

Contract Duration: 2,037 days

Daily Burn Rate: $138.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF PROJECT NUMBER BB-6-3681

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $281.9 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: IGF::CL::IGF PROJECT NUMBER BB-6-3681 Key points: 1. Significant spending of $281.9M on professional services. 2. Sole-source award raises concerns about price discovery and value. 3. Contract duration of 2037 days (over 5 years) indicates long-term reliance. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990).

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes it difficult to assess value for money. Without competitive bids, it's hard to benchmark pricing against similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The long duration suggests a critical need, but the sole-source nature warrants further investigation into necessity. The broad service category makes it challenging to pinpoint specific impacts without more detail.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus contract type

Positive Signals

Services provided by a specialized entity (IDA)
Long-term engagement suggests critical support

Sector Analysis

The Department of Defense frequently contracts for professional, scientific, and technical services. Benchmarks for this broad category vary widely, but sole-source awards for large sums are generally flagged for review.

Small Business Impact

This contract was not awarded to a small business. The sole-source nature also means small businesses were not given an opportunity to compete for this work.

Oversight & Accountability

The sole-source award mechanism for a contract of this magnitude warrants close oversight to ensure fair pricing and necessity. The duration also suggests a need for ongoing accountability.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Washington Headquarters Services Programs

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $281.9 million to INSTITUTE FOR DEFENSE ANALYSES. IGF::CL::IGF PROJECT NUMBER BB-6-3681

Who is the contractor on this award?

The obligated recipient is INSTITUTE FOR DEFENSE ANALYSES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $281.9 million.

What is the period of performance?

Start: 2013-11-01. End: 2019-05-31.

What specific technical and scientific services were provided under this contract, and how did they directly support the Department of Defense's mission?

The contract falls under 'All Other Professional, Scientific, and Technical Services.' Without further details, it's impossible to specify the exact services. However, given the contractor (Institute for Defense Analyses), it likely involved complex research, analysis, and advisory support critical to national defense strategy and technology development.

What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

Sole-source awards typically require a strong justification, such as unique capabilities possessed by only one vendor or urgent, unforeseen needs. The Department of Defense would need to document why the Institute for Defense Analyses was the only viable option and why a competitive process was not feasible or in the government's best interest.

How was the 'fixed fee' component determined in this Cost Plus Fixed Fee contract, and what mechanisms were in place to control costs during the contract's execution?

In a CPFF contract, the fixed fee is negotiated upfront and represents the contractor's profit. Determining this fee involves assessing the scope of work, risks, and expected effort. Cost controls would typically involve government oversight of expenditures, regular reporting, and potentially performance metrics to ensure the contractor operates efficiently within the agreed-upon cost ceiling.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003413R0092

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4850 MARK CENTER DR, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $281,947,191

Exercised Options: $281,947,191

Current Obligation: $281,920,412

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003414D0001

IDV Type: IDC

Timeline