DoD's $182.6M Contract with Institute for Defense Analyses: A Cost Plus Fixed Fee Agreement

Contract Overview

Contract Amount: $182,637,218 ($182.6M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 1999-10-29

End Date: 2003-09-30

Contract Duration: 1,432 days

Daily Burn Rate: $127.5K/day

Competition Type: NOT COMPETED

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 $182.6 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: Key points: 1. Significant spending of $182.6M on research and analysis. 2. Sole-source award suggests limited competition. 3. Long contract duration (1432 days) may indicate complex or ongoing needs. 4. Focus on defense sector analysis.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without specific benchmarks for similar analysis contracts, it's difficult to definitively assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs than a competitive process might yield.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The lack of competition raises concerns about the efficiency and cost-effectiveness of the spending.

Public Impact

Defense research and analysis services are funded by taxpayers. The sole-source nature of the award limits transparency in pricing. Long-term contracts can tie up significant resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Supports critical defense analysis

Sector Analysis

This contract falls within the defense sector, specifically focusing on research and analysis. Spending benchmarks for similar sole-source, cost-plus contracts in defense research can vary widely depending on the complexity and scope of the work.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any potential impact on small business participation.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Defense. The effectiveness of oversight depends on the agency's diligence in monitoring costs, performance, and adherence to contract terms, especially given the sole-source nature.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns (CPFF)
Long contract duration
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $182.6 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 $182.6 million.

What is the period of performance?

Start: 1999-10-29. End: 2003-09-30.

What specific defense analysis services were provided under this contract, and how did they contribute to national security objectives?

The contract was awarded to the Institute for Defense Analyses (IDA), a non-profit corporation that operates federally funded research and development centers (FFRDCs). IDA provides objective, rigorous analysis to the Department of Defense and other government agencies. The specific services would have been detailed in the contract's statement of work, likely encompassing areas such as strategic planning, force structure analysis, technology assessment, and policy development, all aimed at enhancing national security.

Given the sole-source award and Cost Plus Fixed Fee structure, what mechanisms were in place to ensure cost control and prevent contractor inefficiency?

While sole-source awards inherently limit competitive pressure, Cost Plus Fixed Fee contracts typically include provisions for government oversight of costs incurred. The 'fixed fee' component provides some incentive for the contractor to manage costs efficiently to maximize their profit margin. Robust government auditing, performance monitoring, and clear milestones within the contract would be crucial for cost control and accountability.

How does the $182.6 million expenditure compare to other similar defense analysis contracts, and what was the justification for this level of investment?

Comparing this expenditure requires detailed market research on similar sole-source, long-duration defense analysis contracts. The justification for this investment would likely stem from the unique expertise and capabilities of the Institute for Defense Analyses as an FFRDC, and the critical, complex nature of the defense issues addressed. The significant amount suggests a substantial and ongoing need for specialized analytical support by the DoD.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1801 N BEAUREGARD ST, 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