DoD Awards $197M Cost-Plus Contract to Institute for Defense Analyses for Basic Research Services

Contract Overview

Contract Amount: $197,247,873 ($197.2M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2002-02-04

End Date: 2005-03-31

Contract Duration: 1,151 days

Daily Burn Rate: $171.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200212!000366!2100!SW01 !DEF. CONTRACT. CMD. - WASHINGTON!DASW0102C0012 !A!N! !N!P00001 !20020204!20030930!074849589!074849589!074849589!N!INSTITUTE FOR DEFENSE ANALYSES!4850 MARK CENTER DR !ALEXANDRIA !VA!22311!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000012560467!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !3! ! !A! ! !99990909!B! ! !N!Z!D!N!U!1!001!N!1G!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $197.2 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: 200212!000366!2100!SW01 !DEF. CONTRACT. CMD. - WASHINGTON!DASW0102C0012 !A!N! !N!P00001 !20020204!20030930!074849589!074849589!074849589!N!INSTITUTE FOR DEFENSE ANALYSES!4850 MARK CENTER DR !ALEXANDRIA !VA!22311!01000!510!51!ALEXANDRIA !ALEXA… Key points: 1. The contract, valued at $197.25 million, is for basic research services. 2. The Institute for Defense Analyses, a non-profit research organization, is the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Research and Development, specifically professional, scientific, and technical services.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, 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 awarded sole-source, meaning it was not competed. This limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for a nearly $200 million contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the sole-source nature of the award. The contract supports basic research, which can have long-term benefits but immediate impact is not always clear. The duration of the contract (over 3 years) suggests a significant, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Supports basic research
Experienced contractor

Sector Analysis

This contract falls within the Research and Development sector, specifically for professional, scientific, and technical services. Spending in this area is crucial for innovation but requires careful oversight to ensure value.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which is common for specialized research contracts.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure the contractor is delivering value and managing costs effectively. The Defense Contract Management Agency is responsible for oversight.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns with cost-plus contract
Difficulty in benchmarking sole-source R&D contracts
Limited transparency on specific research objectives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $197.2 million to INSTITUTE FOR DEFENSE ANALYSES. 200212!000366!2100!SW01 !DEF. CONTRACT. CMD. - WASHINGTON!DASW0102C0012 !A!N! !N!P00001 !20020204!20030930!074849589!074849589!074849589!N!INSTITUTE FOR DEFENSE ANALYSES!4850 MARK CENTER DR !ALEXANDRIA !VA!22311!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000012560467!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !3! ! !A! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $197.2 million.

What is the period of performance?

Start: 2002-02-04. End: 2005-03-31.

What specific basic research services are being procured, and how do they align with current defense priorities?

The contract specifies 'RDTE/SERVICES-BASIC RESEARCH' and 'All Other Professional, Scientific, and Technical Services.' While the exact nature of the research is likely classified or proprietary, it is intended to support the Department of Defense's research and development objectives. The alignment with specific priorities would require access to internal DoD planning documents.

What justification was provided for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves a determination that only one source is capable of meeting the requirement. For a contract of this magnitude, the government should have conducted a thorough price analysis, potentially including cost breakdowns and comparisons to similar, albeit non-identical, services, to ensure the price was fair and reasonable.

How will the effectiveness and impact of the basic research funded by this contract be measured and assessed?

Measuring the effectiveness of basic research is inherently challenging due to its long-term and exploratory nature. The government likely relies on milestones, technical reports, and the eventual application or integration of research findings into new technologies or capabilities as indicators of success. Formal reviews and program manager assessments would be key.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 4850 MARK CENTER DR, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline