RAND Corporation awarded $31.6M for R&D services to the Air Force, a sole-source contract
Contract Overview
Contract Amount: $31,662,478 ($31.7M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2017-10-01
End Date: 2019-02-20
Contract Duration: 507 days
Daily Burn Rate: $62.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF PROJECT AIR FORCE (PAF) SERVICES
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $31.7 million to THE RAND CORPORATION for work described as: IGF::OT::IGF PROJECT AIR FORCE (PAF) SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Research and Development in Social Sciences and Humanities sector. 3. Contract duration of 507 days. 4. No small business set-aside or subcontracting noted. 5. Performance period from October 2017 to February 2019. 6. Contract type is Cost No Fee, indicating focus on research completion rather than profit margin.
Value Assessment
Rating: fair
The contract's value of $31.6 million for R&D services is difficult to benchmark without specific deliverables. As a sole-source award, direct price comparisons to similar competitive contracts are not feasible. The Cost No Fee structure suggests the government is primarily concerned with the execution of the research rather than negotiating a fixed price, which can sometimes lead to less aggressive cost management by the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing.
Public Impact
The primary beneficiary is the Department of the Air Force, receiving research and development services. Services delivered fall under Research and Development in the Social Sciences and Humanities. Geographic impact is primarily associated with the contractor's location in California. Workforce implications are related to the specialized researchers and analysts employed by RAND Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost No Fee structure may reduce incentive for cost efficiency.
- Lack of transparency on specific research outcomes and their impact.
Positive Signals
- RAND Corporation is a well-established research institution.
- Contract addresses specific R&D needs of the Air Force.
- Focus on social sciences and humanities research can provide unique insights.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on social sciences and humanities. This sector is characterized by specialized knowledge and often involves long-term projects. The market for such services is often dominated by think tanks and research institutions like RAND Corporation, which possess the expertise and infrastructure for complex analytical work. Benchmarking is challenging due to the bespoke nature of R&D services.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized research services provided by RAND Corporation, it is unlikely that significant subcontracting opportunities for small businesses were mandated or pursued under this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Transparency is limited due to the sole-source nature and the proprietary aspects of research and development. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Air Force Research and Development Programs
- Social Science Research Contracts
- Department of Defense R&D Spending
Risk Flags
- Sole-source award
- Cost-reimbursement type contract (Cost No Fee)
Tags
research-and-development, social-sciences, humanities, department-of-defense, department-of-the-air-force, sole-source, cost-no-fee, california, large-contract, non-competed
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 million to THE RAND CORPORATION. IGF::OT::IGF PROJECT AIR FORCE (PAF) SERVICES
Who is the contractor on this award?
The obligated recipient is THE RAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2017-10-01. End: 2019-02-20.
What specific research questions or objectives were addressed by this contract?
The provided data does not specify the exact research questions or objectives. However, given the contractor (The RAND Corporation) and the sector (Research and Development in the Social Sciences and Humanities), the work likely involved analytical studies, policy analysis, or strategic assessments relevant to the Department of the Air Force's mission. RAND is known for its work in areas such as national security, defense policy, and public safety. The 'Cost No Fee' contract type suggests the focus was on the effort and completion of the research rather than a fixed deliverable price, implying a need for flexibility in exploring complex issues.
How does the $31.6 million award compare to other R&D contracts in social sciences and humanities?
Direct comparison of the $31.6 million award to other R&D contracts in social sciences and humanities is challenging due to the unique nature of research projects and the sole-source award. Competitive R&D contracts often have varying scopes, deliverables, and durations. However, for large-scale, multi-year research initiatives undertaken by established institutions like RAND, this figure is within a plausible range. The absence of competition means a direct 'value for money' comparison against bids is not possible, making it difficult to assess if this price was optimal.
What are the potential risks associated with a sole-source R&D contract of this magnitude?
A primary risk of a sole-source R&D contract is the lack of competitive pressure, which can potentially lead to higher costs than if the contract were competed. There's also a risk that the government might not be exposed to innovative approaches or alternative solutions that a competitive process could have uncovered. Furthermore, without clear, measurable performance metrics tied to a competitive bid, assessing the contractor's efficiency and effectiveness can be more subjective. The 'Cost No Fee' structure, while allowing flexibility, also means the contractor has less financial incentive to control costs rigorously.
What is RAND Corporation's track record with federal R&D contracts?
The RAND Corporation has a long and extensive track record of performing research and development for various U.S. federal agencies, including the Department of Defense, Department of Homeland Security, and others. They are a federally funded research and development center (FFRDC) and are widely recognized for their expertise in policy analysis, national security, and social sciences. Their history includes numerous large-scale contracts and grants, indicating a strong capability to manage complex research projects and deliver analytical products to government clients.
What does the 'Cost No Fee' (CNF) contract type imply for this award?
A 'Cost No Fee' contract type means the contractor is reimbursed for allowable costs incurred in performing the contract but receives no fee or profit. This structure is typically used for research and development efforts where the scope of work is uncertain or difficult to define precisely at the outset, and the government's primary interest is in the performance of the research itself. It places the risk of cost overruns primarily on the government and removes the contractor's profit motive, potentially shifting their focus entirely to the research objectives and completion.
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
Solicitation ID: FA701415R1007
Pricing Type: COST NO FEE (S)
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: $31,662,478
Exercised Options: $31,662,478
Current Obligation: $31,662,478
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701416D1000
IDV Type: IDC
Timeline
Start Date: 2017-10-01
Current End Date: 2019-02-20
Potential End Date: 2019-02-20 00:00:00
Last Modified: 2021-05-13
More Contracts from THE Rand Corporation
- 200610!000022!5700!fa7014!air Force DST of Washington !FA701406C0001 !A!N! !Y! !p00002!20051202!20100930!006914071!006914071!006914071!n!rand Corporation !1776 Main ST !santa Monica !ca!90401!70000!037!06!santa Monica !LOS Angeles !california!+000000500000!n!n!000000000000!az16!rdte/Other Research & Development-Mgmt Support !S1 !services !000 !NOT Discernable !541710!E! !3! ! !C! ! !99990909!B! ! !n!z!d!n!u!1!001!n!3a!z!n!z! ! !N!Z!N! ! ! ! ! !a!a!000!a!b!n! ! ! !y!5700!f1af1k!0001! ! — $466.8M (Department of Defense)
- Ffrdc Rand Arroyo — $328.2M (Department of Defense)
- Ffrdc Rand Ndri — $307.5M (Department of Defense)
- Project: AT&L 12-408 — $225.6M (Department of Defense)
- National Defense Research Institute Federally Funded Research and Development Center Operated by the Rand Corporation - FY16-20 Task Order 0001 — $192.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)