DoD's $99M 'All Other Professional Services' Contract Awarded to Institute for Defense Analyses

Contract Overview

Contract Amount: $99,246,186 ($99.2M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2014-08-04

End Date: 2021-08-23

Contract Duration: 2,576 days

Daily Burn Rate: $38.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF PROJECT NUMBER: AU-5-3856

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $99.2 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: IGF::CL::IGF PROJECT NUMBER: AU-5-3856 Key points: 1. Significant contract value of $99.2M awarded for professional, scientific, and technical services. 2. The contract was not competed, raising questions about price discovery and potential value. 3. Long duration of 2576 days (approx. 7 years) suggests a substantial, ongoing need. 4. The 'All Other Professional Services' category is broad, making direct sector benchmarks difficult.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competition, it's difficult to assess if the fixed fee represents fair value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a nearly $100M contract means taxpayers may not have received the best possible price for these services.

Public Impact

Taxpayers may be overpaying for 'All Other Professional Services' due to the lack of competition. The broad nature of the service category could mask inefficiencies or unnecessary spending. Long-term contracts without competition warrant close scrutiny to ensure continued necessity and fair pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Broad service category
Cost-plus contract type

Positive Signals

Established contractor (IDA)
Long-term engagement

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Spending in this area can vary widely, but large, non-competed contracts warrant scrutiny to ensure they align with government needs and offer good value.

Small Business Impact

The contractor is the Institute for Defense Analyses, a large research and development organization. There is no indication that small businesses were involved in this sole-source award.

Oversight & Accountability

The non-competed nature of this large contract necessitates robust oversight from the Department of Defense to ensure the services are necessary, effectively performed, and priced fairly.

Related Government Programs

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

Risk Flags

Potential for overpayment due to lack of competition.
Broad service category lacks specificity, hindering performance evaluation.
Cost-plus contract type increases risk of cost overruns.
Long contract duration without competition raises concerns about sustained necessity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.2 million to INSTITUTE FOR DEFENSE ANALYSES. IGF::CL::IGF PROJECT NUMBER: AU-5-3856

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 $99.2 million.

What is the period of performance?

Start: 2014-08-04. End: 2021-08-23.

What specific services were provided under this 'All Other Professional Services' contract, and how were they justified as sole-source?

The contract covers 'All Other Professional, Scientific, and Technical Services.' A sole-source justification would typically detail why only the Institute for Defense Analyses could provide these specific, critical services, often citing unique expertise, prior work, or urgent needs that preclude a competitive process. Without this justification, the value and necessity remain unclear.

What is the estimated cost savings or premium associated with awarding this contract on a sole-source basis versus a competitive bid?

Estimating the exact cost difference is challenging without a competitive benchmark. However, sole-source contracts generally carry a premium due to the absence of market pressure to offer the lowest price. This premium can range significantly, but for a contract of this magnitude, it could represent millions of dollars in potential overspending for taxpayers.

How effectively has the Institute for Defense Analyses performed under this contract, and have the services evolved over its nearly seven-year duration?

Performance effectiveness would be assessed through contract performance reports and agency evaluations. Given the long duration and cost-plus structure, it's crucial that the Department of Defense has actively monitored deliverables, milestones, and overall value. Understanding service evolution is key to confirming ongoing relevance and preventing scope creep without proper justification.

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: $99,246,186

Exercised Options: $99,246,186

Current Obligation: $99,246,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003414D0001

IDV Type: IDC

Timeline