DHS FEMA Awards $56.3M FFRDC Contract to RAND Corp for Subject Matter Experts
Contract Overview
Contract Amount: $56,304,309 ($56.3M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2023-04-03
End Date: 2024-04-02
Contract Duration: 365 days
Daily Burn Rate: $154.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE DEPARTMENT OF HOMELAND SECURITY (DHS) FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) PUBLIC ASSISTANCE DIVISION HAS A REQUIREMENT TO ACQUIRE SUBJECT MATTER EXPERTS THROUGH THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) HOMELAND SECURITY
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472
Plain-Language Summary
Department of Homeland Security obligated $56.3 million to THE RAND CORPORATION for work described as: THE DEPARTMENT OF HOMELAND SECURITY (DHS) FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) PUBLIC ASSISTANCE DIVISION HAS A REQUIREMENT TO ACQUIRE SUBJECT MATTER EXPERTS THROUGH THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) HOMELAND SECURITY Key points: 1. RAND Corporation, a known FFRDC, secured the $56.3M contract. 2. The contract focuses on subject matter expertise for FEMA's Public Assistance Division. 3. This is a sole-source award, raising questions about competition and price discovery. 4. The R&D sector (NAICS 541720) is broad, but this is specific to social sciences and humanities. 5. The contract duration is one year, with a cost-plus-fixed-fee pricing structure.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables and comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to the RAND Corporation. This limits price discovery and potentially reduces the government's ability to secure the best value.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competed.
Public Impact
Citizens may be concerned about the lack of competition for a significant federal contract. The use of FFRDCs can provide specialized expertise but also raises questions about accessibility for other qualified contractors. Transparency in sole-source awards is crucial for public trust and accountability in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPFF contract type can increase cost risk.
- FFRDC usage may limit broader market access.
Positive Signals
- Utilizes a specialized FFRDC for critical expertise.
- Contract supports essential FEMA public assistance functions.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS 541720 (Research and Development in the Social Sciences and Humanities). Spending in this area often involves specialized knowledge and can be awarded through various mechanisms, including FFRDCs.
Small Business Impact
The contract was awarded to a Federally Funded Research and Development Center (FFRDC), which are typically large organizations. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the necessity of using an FFRDC and the reasonableness of the costs incurred. FEMA should document the justification for not competing.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of competition.
- Potential for cost overruns with CPFF.
- Limited transparency in sole-source justification.
- FFRDC reliance may not be cost-effective for all needs.
Tags
research-and-development-in-the-social-s, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $56.3 million to THE RAND CORPORATION. THE DEPARTMENT OF HOMELAND SECURITY (DHS) FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) PUBLIC ASSISTANCE DIVISION HAS A REQUIREMENT TO ACQUIRE SUBJECT MATTER EXPERTS THROUGH THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) HOMELAND SECURITY
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 $56.3 million.
What is the period of performance?
Start: 2023-04-03. End: 2024-04-02.
What specific subject matter expertise does RAND provide that justifies a sole-source FFRDC award?
The contract specifies subject matter experts for FEMA's Public Assistance Division. While FFRDCs like RAND offer unique, long-term research capabilities, the justification for sole-source procurement should detail why this specific expertise is unavailable or impractical to obtain through competitive means, especially given the one-year duration.
How is the fixed fee determined in this Cost Plus Fixed Fee contract to ensure fair value?
In a CPFF contract, the fixed fee represents the contractor's profit. Its determination should be based on factors like the complexity of the work, the contractor's risk, and the estimated cost. FEMA must ensure this fee is reasonable and reflects the value provided, especially since the contract was not competed, limiting external benchmarks.
What is the potential long-term impact of relying on FFRDCs for recurring subject matter expertise needs?
While FFRDCs are valuable for strategic, long-term research, over-reliance for recurring operational needs might stifle innovation in the broader market and potentially lead to higher costs. FEMA should periodically reassess if these needs could be met through competitive contracts or by developing internal capabilities.
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: $70,004,309
Exercised Options: $56,304,309
Current Obligation: $56,304,309
Actual Outlays: $49,866,149
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $4,188,940
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
Start Date: 2023-04-03
Current End Date: 2024-04-02
Potential End Date: 2026-04-02 00:00:00
Last Modified: 2025-12-03
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