Department of Defense awards $297M sole-source contract to Institute for Defense Analyses for critical research and analysis

Contract Overview

Contract Amount: $296,946,747 ($296.9M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2016-03-04

End Date: 2021-03-14

Contract Duration: 1,836 days

Daily Burn Rate: $161.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF AWARD OF A CONTRACT ON A SOLE SOURCE BASIS TO THE INSTITUTE FOR DEFENSE ANALYSES (IDA), A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC). THE OFFICE OF THE SECRETARY OF DEFENSE (OSD), THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFICES, AND OTHER USERS OF THE FFRDC HAVE A CONTINUING NEED FOR THE IDA FFRDC STUDY AND ANALYSIS REQUIREMENTS. IDA IS TO PROVIDE RESEARCH AND ANALYSIS TO THE OSD, THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFICES, AND OTHER USERS AS SPECIFIED IN THE SPONSORING AGREEMENT BETWEEN OSD AND IDA UNDER THE FFRDC

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $296.9 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: IGF::OT::IGF AWARD OF A CONTRACT ON A SOLE SOURCE BASIS TO THE INSTITUTE FOR DEFENSE ANALYSES (IDA), A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC). THE OFFICE OF THE SECRETARY OF DEFENSE (OSD), THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFI… Key points: 1. The contract leverages a Federally Funded Research and Development Center (FFRDC) for specialized, ongoing analytical needs. 2. Sole-source award indicates a lack of direct competition, potentially impacting price negotiation. 3. The duration of the contract (over 5 years) suggests a long-term requirement for these services. 4. The broad scope covers multiple defense entities, highlighting the centrality of IDA's role. 5. Performance is structured as Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized FFRDC designation. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to higher overall costs compared to fixed-price contracts if not managed tightly. While FFRDCs are intended to provide objective analysis, the lack of competition means there's no direct market price comparison to assess if the fee and reimbursed costs represent optimal value for money. The significant award amount suggests substantial analytical work is being performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the Institute for Defense Analyses (IDA), a Federally Funded Research and Development Center (FFRDC). This approach is typically used when a specific entity possesses unique capabilities or a pre-existing relationship that makes competition impractical or detrimental to the government's interests. The absence of a competitive bidding process means that the government did not solicit offers from multiple vendors, which limits the potential for price discovery through market forces.

Taxpayer Impact: Sole-source awards can limit opportunities for other qualified contractors and may result in higher costs for taxpayers compared to a competitively bid contract, as there is less pressure to offer the lowest price.

Public Impact

The primary beneficiaries are the Office of the Secretary of Defense (OSD), the Joint Staff/Combatant Commands, Defense Agencies, and Joint Program Offices, who receive critical research and analysis. The services delivered include specialized study and analysis requirements essential for defense planning and decision-making. The geographic impact is primarily within the defense establishment, supporting national security objectives. Workforce implications are centered around the highly skilled researchers and analysts at IDA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs.
CPFF contract type requires robust oversight to manage costs and ensure efficiency.
The specialized nature of FFRDC work can make it difficult to benchmark performance and cost-effectiveness against commercial alternatives.

Positive Signals

Utilizes an FFRDC, ensuring access to specialized, objective research and analysis capabilities.
Addresses continuing and critical needs for defense planning and decision support.
The long-term nature of the contract suggests a stable and reliable source for essential services.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector encompasses a wide range of specialized services. The award to IDA, an FFRDC, highlights a specific government strategy to leverage non-traditional, government-owned, contractor-operated entities for complex, long-term research and analysis needs that require a high degree of trust and continuity. Comparable spending in this broad sector can vary significantly, but contracts for high-level advisory and analysis services to federal agencies often represent substantial investments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded sole-source to the Institute for Defense Analyses. There is no indication of subcontracting requirements for small businesses within the provided data. The focus is on the unique capabilities of the FFRDC, rather than fostering small business participation through this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the sponsoring Department of Defense entities, particularly Washington Headquarters Services, which serves as the awarding agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight is necessary to monitor expenditures and ensure the fixed fee is justified. Transparency is generally maintained through contract reporting mechanisms, though the specific details of the analysis performed may be subject to security or proprietary considerations. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Federally Funded Research and Development Centers (FFRDCs)
Defense Research and Development
Professional, Scientific, and Technical Services Contracts
Sole Source Acquisitions
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
FFRDC reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $296.9 million to INSTITUTE FOR DEFENSE ANALYSES. IGF::OT::IGF AWARD OF A CONTRACT ON A SOLE SOURCE BASIS TO THE INSTITUTE FOR DEFENSE ANALYSES (IDA), A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC). THE OFFICE OF THE SECRETARY OF DEFENSE (OSD), THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFICES, AND OTHER USERS OF THE FFRDC HAVE A CONTINUING NEED FOR THE IDA FFRDC STUDY AND ANALYSIS REQUIREMENTS. IDA IS TO PROVIDE RESEARCH AND ANALYSIS TO THE OSD, THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT

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 $296.9 million.

What is the period of performance?

Start: 2016-03-04. End: 2021-03-14.

What is the historical spending trend for the Institute for Defense Analyses (IDA) with the Department of Defense?

Analyzing the historical spending trend for the Institute for Defense Analyses (IDA) with the Department of Defense reveals a consistent and significant engagement. While this specific award totals approximately $297 million, IDA has a long-standing relationship with the DoD, often operating under multiple contracts and task orders simultaneously. FFRDCs like IDA are designed for long-term, strategic support, meaning their funding typically reflects ongoing research and analysis requirements rather than one-off projects. Historical data would likely show a steady pattern of awards, potentially increasing or decreasing based on evolving defense priorities and research needs. Without access to comprehensive historical contract databases, a precise year-over-year spending trend is difficult to ascertain, but the nature of FFRDCs implies sustained, substantial federal investment.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost efficiency for research and analysis services?

The Cost Plus Fixed Fee (CPFF) contract structure is often used for research and development or complex services where the scope of work is not precisely defined at the outset, or where innovation is a key component. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer less cost certainty for the government, as the final cost is not capped. However, it can incentivize contractors to undertake high-risk, innovative projects that might be avoided under fixed-price agreements. For services like those provided by IDA, where the nature of analysis might evolve, CPFF allows flexibility. Efficiency hinges heavily on robust government oversight to manage costs and ensure the fixed fee remains reasonable relative to the effort.

What are the implications of a sole-source award to an FFRDC for future competition in this service area?

A sole-source award to a Federally Funded Research and Development Center (FFRDC) like the Institute for Defense Analyses (IDA) has specific implications for future competition. FFRDCs are established to provide unique, long-term research and development capabilities to the government, often operating under special agreements that facilitate close collaboration and access to sensitive information. This unique status inherently limits direct competition, as FFRDCs are not typically subject to the same competitive processes as commercial firms. While this ensures the government retains access to specialized expertise, it means that other qualified contractors in the broader professional, scientific, and technical services market may not have opportunities to bid on these specific requirements. Future competition might arise if the government decides to procure similar services through different contract vehicles or if the FFRDC's role evolves.

What specific types of 'All Other Professional, Scientific, and Technical Services' does IDA typically provide under such contracts?

Under contracts like this one, the Institute for Defense Analyses (IDA) typically provides a wide array of high-level research, analysis, and advisory services tailored to the Department of Defense's strategic and operational needs. This can encompass areas such as national security strategy, defense resource allocation, advanced technology assessment, wargaming and simulation analysis, policy development support, and systems engineering and integration studies. The 'All Other Professional, Scientific, and Technical Services' category is broad, allowing IDA to apply its expertise across diverse defense challenges. Their work often involves complex problem-solving, objective analysis of technical and programmatic issues, and providing recommendations to senior decision-makers, contributing to informed policy and investment choices within the DoD.

What are the key performance indicators (KPIs) or metrics likely used to evaluate IDA's performance on this contract?

Evaluating the performance of an FFRDC like IDA on a contract focused on research and analysis typically involves metrics beyond simple on-time delivery or adherence to budget, although those are foundational. Key performance indicators (KPIs) would likely focus on the quality, objectivity, and impact of the analysis provided. This could include the clarity and rigor of research methodologies, the soundness of conclusions and recommendations, the responsiveness to task requirements, and the perceived value of the insights generated by decision-makers. For a CPFF contract, cost control and efficient resource utilization are also critical. The government would assess whether IDA's work directly contributes to improved decision-making, policy formulation, or program effectiveness within the sponsoring DoD entities. Peer reviews, stakeholder feedback, and the successful application of IDA's findings in subsequent government actions would serve as important qualitative measures.

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: $296,946,747

Exercised Options: $296,946,747

Current Obligation: $296,946,747

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