DoD's $192M Rand Corp. Contract for Technical Services: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $192,345,350 ($192.3M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2015-11-30
End Date: 2023-08-30
Contract Duration: 2,830 days
Daily Burn Rate: $68.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF NATIONAL DEFENSE RESEARCH INSTITUTE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER OPERATED BY THE RAND CORPORATION - FY16-20 TASK ORDER 0001
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $192.3 million to THE RAND CORPORATION for work described as: IGF::OT::IGF NATIONAL DEFENSE RESEARCH INSTITUTE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER OPERATED BY THE RAND CORPORATION - FY16-20 TASK ORDER 0001 Key points: 1. Significant contract value ($192M) awarded to a single, well-established research corporation. 2. Limited competition raises questions about potential price discovery and value for taxpayer money. 3. The contract spans nearly 8 years, indicating a long-term need for these specialized services. 4. Focus on 'All Other Professional, Scientific, and Technical Services' suggests broad R&D or advisory support.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar sole-source R&D contracts would be necessary to determine if the fixed fee is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may result in higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition for a substantial contract raises concerns about the efficient use of taxpayer funds, as alternative, potentially more cost-effective solutions may not have been explored.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract suggests a sustained reliance on Rand Corporation's expertise. Transparency in the justification for sole-source procurement is crucial for public trust. Potential for innovation may be stifled if alternative research institutions are not considered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
- Sole-source justification unclear
Positive Signals
- Awarded to a reputable FFRDC operator
- Long-term engagement suggests critical need
- Clear end date provides some predictability
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category often encompassing research and development. Federal spending in this sector can vary widely, but large sole-source awards warrant scrutiny for value.
Small Business Impact
The contract was awarded to The RAND Corporation, a Federally Funded Research and Development Center (FFRDC), and there is no indication of small business participation. This suggests the scope of work is highly specialized and likely beyond the capacity of most small businesses.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the fixed fee is justified and that the contractor is delivering on all contractual obligations effectively and efficiently. Audits of costs and performance would be essential.
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 cost overruns due to CPFF structure
- Limited transparency in sole-source justification
- Long contract duration may indicate lack of market alternatives
- Difficulty in benchmarking pricing
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $192.3 million to THE RAND CORPORATION. IGF::OT::IGF NATIONAL DEFENSE RESEARCH INSTITUTE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER OPERATED BY THE RAND CORPORATION - FY16-20 TASK ORDER 0001
Who is the contractor on this award?
The obligated recipient is THE RAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $192.3 million.
What is the period of performance?
Start: 2015-11-30. End: 2023-08-30.
What is the specific justification for awarding this substantial contract on a sole-source basis, and how does it align with federal procurement regulations promoting competition?
Federal procurement regulations generally require full and open competition unless specific exceptions apply, such as the unique capabilities of a sole provider or urgent needs. For a contract of this magnitude and duration, a strong justification demonstrating why no other entity could fulfill the requirement is essential. Without this, the award may not represent the best value for taxpayers.
How is the 'fixed fee' component of this Cost Plus Fixed Fee contract determined, and what mechanisms are in place to ensure it remains reasonable given the lack of competitive bidding?
The fixed fee in a CPFF contract is typically negotiated based on the contractor's estimated costs and a reasonable profit margin. In a sole-source scenario, the government must rely heavily on historical data, industry benchmarks, and thorough cost analysis to validate the fee. Regular audits and performance reviews are critical to ensure the fee remains fair throughout the contract's life.
What specific deliverables or outcomes are expected from this $192 million contract, and how is the contractor's performance being measured to ensure effective use of funds?
The contract's broad classification suggests deliverables could range from research reports and analyses to strategic recommendations. Performance measurement should involve clearly defined metrics tied to the contract's objectives, such as the quality and impact of research, adherence to timelines, and responsiveness to agency needs. Regular progress reports and stakeholder feedback are vital for assessing effectiveness.
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: HQ003415R0059
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1776 MAIN ST, SANTA MONICA, CA, 90401
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: $192,345,350
Exercised Options: $192,345,350
Current Obligation: $192,345,350
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $543,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ003416D0001
IDV Type: IDC
Timeline
Start Date: 2015-11-30
Current End Date: 2023-08-30
Potential End Date: 2023-08-30 00:00:00
Last Modified: 2024-09-18
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