RAND Corporation awarded $32.7M for COVID-19 research, raising questions about value and competition

Contract Overview

Contract Amount: $32,766,878 ($32.8M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2021-06-01

End Date: 2023-03-23

Contract Duration: 660 days

Daily Burn Rate: $49.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COVID-19 RESEARCH STUDY FOR THE PUBLIC ASSISTANCE DIVISION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.8 million to THE RAND CORPORATION for work described as: COVID-19 RESEARCH STUDY FOR THE PUBLIC ASSISTANCE DIVISION Key points: 1. Contract value appears high relative to the duration and scope, warranting a closer look at cost-effectiveness. 2. The full and open competition suggests a robust market, but the specific outcomes need scrutiny. 3. Potential risks include scope creep and ensuring the research directly informs public assistance strategies. 4. This contract falls within the R&D sector, specifically focusing on social sciences related to emergency management. 5. The RAND Corporation, a well-established research institution, is the sole awardee, indicating a specialized capability.

Value Assessment

Rating: fair

The contract's total value of $32.7 million over approximately two years for research services suggests a significant investment. Benchmarking this against similar R&D contracts for public assistance or emergency management studies is crucial. Without specific deliverables or performance metrics, assessing the value-for-money is challenging. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can sometimes lead to higher overall costs if not tightly managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. However, the data does not specify the number of bids received or the evaluation process. A full and open competition is generally preferred as it fosters a competitive environment that can lead to better pricing and innovation. The specific details of the competition, such as the number of proposals evaluated, would provide further insight into the effectiveness of the procurement process.

Taxpayer Impact: A full and open competition is positive for taxpayers as it theoretically allows for the best value to be secured through market forces. It ensures that the government explores a wide range of potential solutions and providers, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiaries are likely the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS), who will receive research insights. The services delivered are research studies focused on COVID-19's impact on public assistance. The geographic impact is national, as the research aims to inform federal public assistance policies. Workforce implications are minimal in terms of direct job creation from this contract, but the research may influence future workforce needs in emergency management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for research scope to expand beyond initial objectives, leading to cost overruns.
Ensuring the research findings are actionable and directly applicable to FEMA's public assistance programs.
The CPFF contract type requires diligent oversight to manage costs effectively.
Dependence on a single contractor (RAND Corporation) for critical research may limit alternative perspectives.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
RAND Corporation is a reputable research institution with a track record in public policy and national security.
The research topic is highly relevant to current public health and emergency management challenges.
Clear contract duration provides a defined timeframe for research completion.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on social sciences and humanities (NAICS code 541720). This sector involves systematic study to gain new knowledge and understanding, often applied to policy or program development. Comparable spending in this area can vary widely depending on the complexity and scope of the research. Federal agencies frequently contract for specialized research to inform policy decisions, particularly in areas like public health, emergency management, and social services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the competition was open to all eligible firms, including large businesses and research institutions like The RAND Corporation. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific research components.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the Federal Emergency Management Agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight is expected to ensure costs are reasonable and allocable to the contract. Transparency would be enhanced by public reporting of research findings and performance metrics. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

COVID-19 Research Grants
Public Assistance Program Studies
Emergency Management Research
Social Science Research Contracts
Homeland Security R&D

Risk Flags

Cost Overrun Risk
Scope Creep Potential
Value for Money Assessment Needed
Deliverable Quality Scrutiny

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.8 million to THE RAND CORPORATION. COVID-19 RESEARCH STUDY FOR THE PUBLIC ASSISTANCE DIVISION

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 $32.8 million.

What is the period of performance?

Start: 2021-06-01. End: 2023-03-23.

What specific research questions is this contract intended to answer regarding COVID-19 and public assistance?

The provided data does not detail the specific research questions. However, given the context of COVID-19 and public assistance, the research likely aims to understand the pandemic's impact on the delivery and effectiveness of federal public assistance programs, identify challenges faced by recipients and administrators, and propose improvements or policy recommendations. This could include studying the uptake of aid, the efficiency of distribution mechanisms, the socio-economic consequences for affected populations, and the preparedness of systems for future crises. Further details would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract.

How does the $32.7 million award compare to similar R&D contracts for public assistance research?

Benchmarking this $32.7 million award requires access to databases of similar contracts, which is not provided in the data. However, large-scale R&D projects, especially those involving complex social science research over multiple years, can command significant funding. Factors influencing cost include the scope of research, the number of research questions, the methodologies employed (e.g., surveys, data analysis, modeling), the duration, and the reputation and overhead of the research institution. Without specific comparable contract data, it's difficult to definitively state if this award is high or low, but it represents a substantial investment in understanding the pandemic's impact on public assistance.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. Typically, for R&D contracts, deliverables would include interim and final research reports, data sets, presentations, policy briefs, and potentially software or models developed during the research. KPIs would focus on the quality of research, adherence to timelines, and the relevance and impact of findings. These details are usually outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would need to be consulted for a comprehensive understanding.

What is The RAND Corporation's track record in conducting research for the Department of Homeland Security or FEMA?

The RAND Corporation has a long-standing and extensive track record of conducting research for various U.S. government agencies, including the Department of Homeland Security (DHS) and its components like FEMA. RAND is a federally funded research and development center (FFRDC) known for its work in national security, public policy, and emergency management. They have undertaken numerous studies related to disaster preparedness, response, recovery, and the effectiveness of public assistance programs. Their involvement suggests a high level of expertise and familiarity with the types of challenges DHS and FEMA face.

What is the historical spending trend for COVID-19 related research by FEMA or DHS?

The provided data focuses on a single contract and does not offer historical spending trends. However, federal spending on COVID-19 related research surged across numerous agencies, including DHS and FEMA, starting in early 2020. This spending encompassed various areas, from vaccine development and public health interventions to the economic and social impacts of the pandemic, including the effectiveness and administration of relief and assistance programs. To understand historical trends for FEMA/DHS specifically, one would need to analyze their budget allocations and contract awards related to COVID-19 over the period of 2020-2023.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for research?

A Cost Plus Fixed Fee (CPFF) contract, like the one awarded to The RAND Corporation, carries specific risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If costs escalate unexpectedly due to inefficiencies, scope creep, or poor management, the total contract cost can increase significantly, potentially exceeding initial estimates. While the fixed fee provides some cost certainty for the contractor's profit, it doesn't cap the total project cost. Effective government oversight is crucial to monitor costs, ensure efficiency, and prevent unnecessary expenditures to mitigate these risks.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FB8021R00000004

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: $33,249,490

Exercised Options: $33,249,490

Current Obligation: $32,766,878

Actual Outlays: $-105,372

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,835,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC16D00007

IDV Type: IDC

Timeline