RAND Corporation awarded $2.2M for FEMA DTS upgrade analysis, focusing on capability gaps and operational requirements

Contract Overview

Contract Amount: $2,221,572 ($2.2M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2022-07-08

End Date: 2025-06-30

Contract Duration: 1,088 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS TASK ORDER TO PROVIDE INFORMATION ON NECESSARY CAPABILITIES, IDENTIFY CAPABILITY GAPS, AND TO DEFINE OPERATIONAL REQUIREMENTS TO INFORM FEMA DECISIONS ON UPGRADING DTS. THIS ANALYSIS WILL ENSURE FEMA IS COMPLIANT WITH THE JRIMS PR

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to THE RAND CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER TO PROVIDE INFORMATION ON NECESSARY CAPABILITIES, IDENTIFY CAPABILITY GAPS, AND TO DEFINE OPERATIONAL REQUIREMENTS TO INFORM FEMA DECISIONS ON UPGRADING DTS. THIS ANALYSIS WILL ENSURE FEMA IS COMPLIANT WITH THE JRIMS PR Key points: 1. Contract focuses on research and development to inform critical FEMA decisions on system upgrades. 2. Analysis aims to identify capability gaps and define operational requirements for enhanced compliance. 3. The RAND Corporation, a known research entity, is performing this task order. 4. This contract is a delivery order under a larger indefinite-delivery contract. 5. The duration of the task order is substantial, spanning over two years. 6. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of $2.2 million for a research and development task order is moderate. Benchmarking against similar R&D contracts for federal agencies requires detailed analysis of scope and deliverables. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure value for money, as it allows for reimbursement of costs plus a fixed fee, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if costs are not well-controlled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed. This approach is often used when a specific contractor possesses unique capabilities or expertise essential for the task, or when it's a logical follow-on to a previous contract. The lack of competition means that pricing and scope were negotiated directly with The RAND Corporation, potentially limiting opportunities for cost savings that could arise from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not leverage competitive market forces to secure the best possible price. While justified by unique expertise, it removes the downward pressure on costs that competition typically provides.

Public Impact

FEMA benefits directly through improved decision-making capabilities for its Disaster Tracking System (DTS) upgrades. The analysis will lead to better identification of system vulnerabilities and operational needs. Ultimately, the public benefits from more resilient and effective disaster response and management systems. The workforce within FEMA will be better equipped with updated systems and processes. The geographic impact is national, as FEMA's systems support disaster response across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs if not closely managed.
Sole-source award limits price discovery and potential cost savings from competition.
The specific deliverables and their impact on system upgrades need careful monitoring.

Positive Signals

Award to The RAND Corporation, a reputable research institution, suggests a focus on quality analysis.
Task order aims to improve critical disaster response systems, a high-priority government function.
Clear objectives to identify capability gaps and define requirements provide a focused scope.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities (NAICS 541720). This sector involves systematic study to increase knowledge and understanding of human society and behavior. Federal spending in this area supports policy development, program evaluation, and strategic planning across various agencies. Comparable spending benchmarks would involve other R&D contracts for policy analysis and system modernization studies within government.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large research corporation, it is unlikely to have direct implications for the small business ecosystem. The focus is on specialized research rather than services typically contracted to small businesses.

Oversight & Accountability

Oversight for this task order would primarily fall under the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the approved costs and fixed fee. Transparency is expected through regular reporting from The RAND Corporation on research progress and findings. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FEMA Disaster Tracking System (DTS)
Department of Homeland Security IT Modernization Efforts
Federal Research and Development Contracts
Cost Plus Fixed Fee Contracts Analysis

Risk Flags

Sole-source award limits price discovery.
Cost Plus Fixed Fee contract type carries risk of cost overruns.
Effectiveness dependent on quality of analysis and oversight.
Potential for scope creep in R&D contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to THE RAND CORPORATION. THE PURPOSE OF THIS TASK ORDER TO PROVIDE INFORMATION ON NECESSARY CAPABILITIES, IDENTIFY CAPABILITY GAPS, AND TO DEFINE OPERATIONAL REQUIREMENTS TO INFORM FEMA DECISIONS ON UPGRADING DTS. THIS ANALYSIS WILL ENSURE FEMA IS COMPLIANT WITH THE JRIMS PR

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 $2.2 million.

What is the period of performance?

Start: 2022-07-08. End: 2025-06-30.

What is The RAND Corporation's track record with FEMA and similar federal agencies for R&D and analysis contracts?

The RAND Corporation has a long-standing and extensive track record of conducting research and analysis for federal agencies, including FEMA and the Department of Homeland Security (DHS). They are a well-established non-profit research organization known for its work in national security, public policy, and systems analysis. Their engagements often involve complex problem-solving, strategic planning, and the development of recommendations for policy and operational improvements. For FEMA specifically, RAND has historically provided analysis related to disaster preparedness, response, and recovery, as well as critical infrastructure protection. Their work often involves large-scale studies and requires significant expertise in social sciences, engineering, and policy. The current contract aligns with their core competencies and past performance in supporting government agencies with critical research needs.

How does the $2.2 million value compare to similar R&D task orders for system modernization analysis within federal agencies?

The $2.2 million value for this task order is within a moderate range for federal R&D contracts focused on policy analysis and system modernization requirements. Larger, more complex system development or implementation contracts can easily reach tens or hundreds of millions of dollars. However, for a task order specifically aimed at 'providing information on necessary capabilities, identifying capability gaps, and defining operational requirements,' $2.2 million is a substantial investment. This suggests a deep dive and comprehensive analysis is expected. Comparable task orders for similar analytical work, especially those involving reputable research institutions like RAND, often fall within the low to mid-single-digit millions, depending on the scope, duration, and the specific agency's needs. The duration of nearly three years also contributes to the overall value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D analysis?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D analysis is the potential for cost escalation. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost plus' aspect means the government reimburses the contractor for all allowable costs incurred. If the scope of work is not precisely defined or if unforeseen challenges arise during the research, the total cost to the government can exceed initial estimates. For this FEMA DTS upgrade analysis, risks include the complexity of identifying all capability gaps, the difficulty in precisely defining future operational requirements, and potential delays in data collection or analysis. Effective oversight is critical to ensure costs remain reasonable and that the contractor is incentivized to perform efficiently within the estimated cost parameters.

How effective is a sole-source award likely to be in achieving FEMA's objectives for DTS upgrade analysis compared to a competitive process?

A sole-source award, while potentially faster and leveraging specific expertise, carries inherent risks regarding effectiveness compared to a competitive process. Effectiveness here relates to achieving the best possible analysis at a reasonable cost and ensuring comprehensive coverage of requirements. The primary benefit of competition is the vetting of multiple approaches and price points, which can lead to more innovative solutions and better value. In this case, FEMA likely determined that The RAND Corporation possessed unique qualifications or was the only viable option for this specific task, perhaps due to prior knowledge of the DTS or specialized analytical methodologies. However, without competition, there's a reduced incentive for the contractor to be exceptionally cost-conscious or to explore unconventional, potentially more effective, analytical paths that other firms might propose. The effectiveness will heavily rely on FEMA's internal management and oversight capabilities to guide RAND's work and validate its findings.

What historical spending patterns exist for FEMA's DTS modernization or similar system upgrade analyses?

Historical spending patterns for FEMA's Disaster Tracking System (DTS) modernization or similar system upgrade analyses are not explicitly detailed in the provided data. However, federal agencies like FEMA typically engage in multi-year, multi-million dollar projects for significant system overhauls. Investments in IT modernization are a continuous priority across government, driven by evolving technological landscapes, cybersecurity threats, and the need for enhanced operational efficiency. Such analyses often precede larger procurement and implementation phases. While this specific task order is valued at $2.2 million, previous or subsequent phases related to DTS upgrades could involve significantly larger sums, potentially including software development, hardware procurement, and integration services. Understanding FEMA's broader IT investment strategy and past expenditures on critical systems would provide further context.

What are the potential implications of this analysis for future FEMA IT procurements?

This analysis is designed to directly inform FEMA's decisions regarding upgrades to its Disaster Tracking System (DTS). The findings regarding capability gaps and defined operational requirements will serve as the foundation for future IT procurements. Essentially, this R&D task order acts as a crucial precursor to the acquisition phase. The detailed requirements identified by The RAND Corporation will shape the scope of work, technical specifications, and evaluation criteria for subsequent solicitations. This could lead to more targeted and effective procurements, potentially reducing risks associated with poorly defined requirements. Conversely, if the analysis is flawed or incomplete, it could lead to suboptimal system upgrades and wasted future investments. The clarity and accuracy of the research outputs are therefore critical for the success of subsequent procurement actions.

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

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: $2,221,572

Exercised Options: $2,221,572

Current Obligation: $2,221,572

Actual Outlays: $1,710,106

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