Department of Defense awarded $210M to Institute for Defense Analyses for professional services over 6 years

Contract Overview

Contract Amount: $209,726,092 ($209.7M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2003-10-28

End Date: 2009-08-30

Contract Duration: 2,133 days

Daily Burn Rate: $98.3K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $209.7 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: Key points: 1. Contract value represents significant investment in specialized technical and scientific support. 2. Long duration suggests a sustained need for the services provided. 3. Cost-plus-fixed-fee structure may incentivize cost control while ensuring contractor availability. 4. Sole-source award raises questions about competition and potential for better pricing. 5. Performance period spans a critical era of defense operations. 6. Contractor's established relationship with DoD indicates a level of trust and expertise. 7. Geographic concentration in Virginia highlights regional economic impact.

Value Assessment

Rating: fair

The contract's total value of approximately $210 million over six years averages to about $35 million annually. Benchmarking this against similar large-scale, long-term professional services contracts for the Department of Defense is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common for complex R&D or advisory services, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. The absence of a specific price per unit or service makes direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, the Institute for Defense Analyses (IDA), was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be obtained through full and open competition. While it ensures the specific needs are met by a trusted entity, it bypasses the competitive process that could potentially drive down costs and foster innovation from a wider range of providers.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for federal dollars and may result in higher costs for taxpayers compared to competitively awarded contracts.

Public Impact

The primary beneficiary is the Department of Defense, receiving critical analytical and advisory support for its operations. Services likely encompass research, analysis, and technical advice across various defense domains. The contract's duration suggests a long-term impact on defense strategy and policy development. Workforce implications include the employment of highly skilled scientists, engineers, and analysts at IDA. Geographic impact is concentrated in Virginia, where IDA is headquartered and likely performs much of the work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost-plus-fixed-fee structure requires robust oversight to prevent cost overruns.
Long contract duration may not adapt well to rapidly changing defense needs without modifications.
Lack of specific service details hinders a precise assessment of performance metrics.
Potential for contractor 'lock-in' due to specialized knowledge and long-term relationship.

Positive Signals

Institute for Defense Analyses is a federally funded research and development center (FFRDC) with a strong reputation for objective analysis.
Long-standing relationship indicates proven capability and reliability in meeting DoD's complex requirements.
CPFF structure can ensure contractor commitment to a critical mission, even with evolving requirements.
The contract's duration suggests a stable, predictable support mechanism for the agency.
High level of expertise available through IDA likely contributes to informed decision-making within DoD.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting defense-related research and analysis. This sector is crucial for government agencies requiring specialized expertise that is often not available in-house. The market for such services is characterized by a mix of large, established firms, think tanks, and FFRDCs like IDA, often competing for significant, long-term engagements. Spending in this category is substantial, reflecting the government's reliance on external expertise for complex problem-solving and strategic planning.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded sole-source to the Institute for Defense Analyses, a non-profit research organization. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on leveraging the unique capabilities of the prime contractor rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Defense contracting officers and program managers. As a sole-source award to an FFRDC, there may be additional layers of oversight from relevant government bodies overseeing FFRDCs. Transparency is generally moderate for such contracts, with details often classified or sensitive due to the nature of defense work. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Technical and Management Support Services
Professional and Consulting Services
Federally Funded Research and Development Centers (FFRDCs)

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of specific service details
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $209.7 million to INSTITUTE FOR DEFENSE ANALYSES. See the official description on USAspending.

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 $209.7 million.

What is the period of performance?

Start: 2003-10-28. End: 2009-08-30.

What specific types of professional, scientific, and technical services were provided under this contract?

While the specific details of the services rendered under this $210 million contract are not publicly itemized, the Institute for Defense Analyses (IDA) is a Federally Funded Research and Development Center (FFRDC) known for providing objective, rigorous analysis and advice to the Department of Defense (DoD). Their work typically spans a wide range of critical areas, including strategic planning, force modernization, weapons system analysis, intelligence support, and policy development. Given the contract's duration (2003-2009) and its sole-source nature, it likely supported significant, ongoing defense initiatives during that period, requiring specialized expertise that IDA uniquely possesses. The services would have been tailored to address complex national security challenges and inform high-level decision-making within the DoD.

How does the average annual cost of this contract compare to similar DoD professional services contracts?

The average annual cost of this contract was approximately $35 million ($210M / 6 years). Comparing this figure directly to similar Department of Defense (DoD) professional services contracts is challenging without knowing the precise nature and scope of the services provided. However, for large-scale, long-term engagements involving specialized research, analysis, and advisory support, particularly from FFRDCs like IDA, this annual expenditure is within a plausible range. Contracts for major weapon system development, large-scale IT modernization, or extensive strategic consulting can often reach or exceed this level. The sole-source nature and the specific expertise of IDA mean direct comparisons to competitively bid, broader service contracts may not be entirely appropriate for assessing value.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($210 million) include a lack of competitive pressure, which can lead to suboptimal pricing and reduced incentive for innovation. Without competing bids, the government may pay more than necessary. There's also a risk of contractor complacency or 'lock-in,' where the government becomes overly reliant on a single provider, making it difficult to switch or negotiate favorable terms in the future. Furthermore, the absence of a competitive process limits opportunities for other qualified firms to demonstrate their capabilities and potentially offer better solutions. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What was the Institute for Defense Analyses' track record prior to and during this contract period?

The Institute for Defense Analyses (IDA) has a long-standing and well-established track record as a Federally Funded Research and Development Center (FFRDC) providing objective, rigorous analysis to the U.S. government, particularly the Department of Defense. Prior to and during the 2003-2009 contract period, IDA was recognized for its expertise in areas such as national security strategy, defense resource management, and technology assessment. Their work is characterized by deep technical expertise and a commitment to independent analysis. The sole-source nature of this significant contract suggests that DoD viewed IDA's capabilities as essential and unique, building upon a history of successful support and trust established over many years.

How effective was this contract in meeting the Department of Defense's needs during the specified period?

Assessing the effectiveness of this contract is difficult without specific performance metrics and details on the services provided. However, the fact that the Department of Defense (DoD) awarded this contract on a sole-source basis to the Institute for Defense Analyses (IDA) for a six-year period (2003-2009) strongly implies a high degree of perceived effectiveness and necessity. IDA, as an FFRDC, is specifically chartered to provide critical, long-term support that requires specialized expertise. The contract likely supported key defense initiatives and strategic decisions during a period of significant global security challenges, suggesting that IDA's analytical contributions were deemed vital and effective in informing DoD's mission.

What does historical spending data reveal about DoD's reliance on organizations like IDA?

Historical spending data indicates a consistent and significant reliance by the Department of Defense (DoD) on Federally Funded Research and Development Centers (FFRDCs) like the Institute for Defense Analyses (IDA). These organizations are established to provide unique, long-term capabilities and objective analysis that government agencies cannot readily replicate internally. DoD consistently allocates substantial funding to FFRDCs across various domains, including research, development, testing, evaluation, and strategic planning. This pattern suggests that organizations like IDA are integral to DoD's operational framework, providing essential expertise and continuity for complex, enduring national security requirements, often through sole-source or limited-competition arrangements.

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

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $226,650,153

Exercised Options: $209,990,153

Current Obligation: $209,726,092

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline