RAND Corporation awarded $6.5M for NDEMU FFRDC research and development, with a 3-year duration

Contract Overview

Contract Amount: $6,501,042 ($6.5M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2027-01-29

Contract Duration: 851 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BUILDING THE NDEMU - FFRDC HSOAC

Place of Performance

Location: EMMITSBURG, FREDERICK County, MARYLAND, 21727

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.5 million to THE RAND CORPORATION for work described as: BUILDING THE NDEMU - FFRDC HSOAC Key points: 1. Value for money is difficult to assess without detailed cost breakdowns and performance metrics. 2. The contract is sole-source, limiting competitive dynamics and potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the complexity of FFRDC research. 4. Performance context is limited by the FFRDC designation, which implies a long-term strategic relationship. 5. This contract positions RAND as a key research partner for FEMA in social sciences and humanities. 6. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely monitored.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and FFRDC designation. FFRDCs are intended for long-term, strategic research needs where a specific contractor's expertise is essential. Without comparable sole-source contracts for similar R&D in social sciences and humanities, a direct price comparison is not feasible. The fixed fee component provides some cost control, but the overall cost-effectiveness will depend on the successful delivery of research outcomes aligned with FEMA's objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This is typical for Federally Funded Research and Development Centers (FFRDCs) like RAND, which are established to provide specialized, long-term research capabilities to government agencies. The lack of competition means that FEMA did not solicit bids from other potential contractors, which can limit opportunities for price negotiation and innovation that might arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not receive the benefit of competitive pricing. However, the sole-source award is justified by the unique capabilities and established relationship with an FFRDC, intended to ensure access to critical expertise.

Public Impact

The primary beneficiary is the Department of Homeland Security (FEMA), which will receive specialized research and development services. The services delivered will focus on research and development in the social sciences and humanities, likely supporting policy development, strategic planning, and operational analysis. The geographic impact is national, as FEMA's mission is nationwide, though specific project locations may vary. Workforce implications include the engagement of highly skilled researchers and analysts at RAND, contributing to the federal government's knowledge base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Cost Plus Fixed Fee contract type can incentivize higher costs if not managed stringently.
FFRDC designation implies a long-term, potentially less agile relationship compared to competitive contracts.

Positive Signals

Award to RAND, a well-established FFRDC, suggests access to specialized expertise and continuity of research.
The contract duration of nearly three years allows for in-depth research and development.
FFRDC structure is designed to ensure objective, independent research for critical government needs.

Sector Analysis

The Research and Development in the Social Sciences and Humanities sector (NAICS 541720) encompasses a broad range of analytical and advisory services. This contract fits within the broader federal R&D spending landscape, specifically supporting the mission-critical needs of homeland security. Comparable spending in this sector often involves think tanks, universities, and specialized research firms. The FFRDC model is a specific mechanism within this sector to ensure dedicated, long-term research support for unique government challenges.

Small Business Impact

This contract does not appear to involve small business set-asides. As a sole-source award to an FFRDC, the primary contractor is RAND Corporation, a large research institution. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific award, though RAND's broader operations may involve such arrangements.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. As an FFRDC, RAND operates under specific agreements that include oversight mechanisms designed to ensure objectivity and adherence to research objectives. Transparency may be limited due to the nature of R&D and sole-source awards, but reporting requirements are typically stipulated in the contract.

Related Government Programs

Department of Homeland Security Research and Development Programs
Federal Emergency Management Agency Strategic Planning Support
Federally Funded Research and Development Centers (FFRDCs)
Social Science and Humanities Research Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost escalation without strong oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.5 million to THE RAND CORPORATION. BUILDING THE NDEMU - FFRDC HSOAC

Who is the contractor on this award?

The obligated recipient is THE RAND CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-01-29.

What is the track record of The RAND Corporation in delivering research and development services for federal agencies, particularly in the social sciences and humanities?

The RAND Corporation has a long and distinguished track record as a Federally Funded Research and Development Center (FFRDC), serving various government agencies for decades. They are renowned for their expertise in a wide array of fields, including national security, education, health, justice, and infrastructure, many of which fall under social sciences and humanities. Their work often involves complex policy analysis, strategic planning, and program evaluation. For the Department of Homeland Security and FEMA specifically, RAND has historically provided critical research and analysis to inform policy and operational decisions. Their extensive body of published research and their FFRDC status indicate a deep institutional capacity and a history of delivering high-quality, objective analysis relevant to government needs.

How does the cost of this contract compare to similar R&D efforts in the social sciences and humanities, considering it's a sole-source award?

Direct cost comparison for this sole-source FFRDC contract is challenging. Sole-source awards, by definition, lack a competitive bidding process, which is the primary mechanism for price discovery and benchmarking in government contracting. FFRDCs like RAND are established for unique, long-term strategic needs where competition is not feasible or desirable. The 'Cost Plus Fixed Fee' (CPFF) contract type means RAND will be reimbursed for its allowable costs plus a negotiated fixed fee. While the fixed fee provides some predictability, the overall cost-effectiveness hinges on efficient cost management by RAND and diligent oversight by FEMA. Benchmarking would require access to detailed cost breakdowns and performance metrics, which are not publicly available for sole-source FFRDC contracts. However, the government's rationale for using an FFRDC is typically based on the unique value and expertise provided, rather than solely on achieving the lowest possible price.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for R&D services?

The primary risks associated with this contract structure include potential cost overruns and a lack of competitive pressure to innovate or optimize efficiency. In a Cost Plus Fixed Fee (CPFF) arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If cost controls are weak or if the scope of work expands without adequate adjustments, costs can escalate beyond initial projections. The sole-source nature means there is no competitive pressure to drive down prices or encourage novel approaches that might be offered by other firms. Additionally, the long-term nature of FFRDC work can sometimes lead to inertia if not actively managed. Effective oversight, clear performance metrics, and robust communication are crucial to mitigate these risks.

What specific performance metrics or deliverables are expected under this contract, and how will their effectiveness be measured?

Specific performance metrics and deliverables for this contract are not detailed in the provided data. However, for an R&D contract of this nature, particularly with an FFRDC like RAND, deliverables typically include research reports, analytical studies, policy recommendations, data analysis, and potentially prototype development or simulation results. Effectiveness is usually measured against pre-defined objectives outlined in the Statement of Work (SOW). This could involve assessing the quality, relevance, and timeliness of the research, the impact of recommendations on policy or operations, and the achievement of specific research goals. FEMA's program managers and contracting officers would be responsible for monitoring progress, reviewing deliverables, and ensuring that the research contributes to the agency's mission objectives. Formal reviews and acceptance criteria for deliverables would be stipulated in the contract.

How does this contract align with FEMA's broader mission and strategic goals, particularly in the context of evolving threats and challenges?

This contract directly supports FEMA's mission by providing essential research and development capabilities in social sciences and humanities. These fields are critical for understanding complex issues such as disaster preparedness, response, recovery, community resilience, risk communication, and the social impacts of climate change or other large-scale events. By engaging RAND, a trusted FFRDC, FEMA aims to leverage specialized expertise to inform its strategic planning, policy development, and operational strategies. The R&D funded under this contract is likely intended to address emerging threats, improve existing programs, and enhance the agency's overall effectiveness in protecting the nation from disasters and other emergencies. The long-term nature of the FFRDC relationship suggests a commitment to ongoing analysis and support for FEMA's evolving needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

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: 70FA2024Q00000052

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: $9,196,946

Exercised Options: $6,501,042

Current Obligation: $6,501,042

Actual Outlays: $1,862,800

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,055,085

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70RSAT22D00000001

IDV Type: IDC

Timeline