DoD's Air Force awards $33.6M to RAND Corp for R&D services, raising competition concerns
Contract Overview
Contract Amount: $33,615,000 ($33.6M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-14
End Date: 2020-09-27
Contract Duration: 744 days
Daily Burn Rate: $45.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: PROJECT AIR FORCE (PAF) SERVICES -- FY19 CORE RESEARCH
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $33.6 million to THE RAND CORPORATION for work described as: PROJECT AIR FORCE (PAF) SERVICES -- FY19 CORE RESEARCH Key points: 1. Significant award of $33.6M for R&D services. 2. Sole-source award to RAND Corporation limits competition. 3. Potential for higher costs due to lack of competition. 4. Focus on social sciences and humanities R&D.
Value Assessment
Rating: questionable
The award amount of $33.6M for R&D services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for social science and humanities research.
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 lack of competition limits price discovery and may not ensure the best value for taxpayer dollars.
Taxpayer Impact: The absence of competition could lead to inflated costs, impacting the efficient use of taxpayer funds for research and development.
Public Impact
Taxpayers may be paying a premium for R&D services due to the lack of competitive bidding. The RAND Corporation, a long-standing research institution, receives a significant sole-source contract. The focus on social sciences and humanities research may have limited the pool of potential competitors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Established contractor
- Specific R&D focus
Sector Analysis
This contract falls under Research and Development in the Social Sciences and Humanities. Spending in this sector can vary widely, but sole-source awards warrant scrutiny to ensure value.
Small Business Impact
This contract was not awarded to a small business. The sole-source nature of the award further suggests that small businesses were not considered or given an opportunity to compete.
Oversight & Accountability
The sole-source nature of this award raises questions about the oversight processes that led to its non-competitive award. Further review is needed to understand the justification.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated costs
- Limited transparency
- No small business participation
Tags
research-and-development-in-the-social-s, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to THE RAND CORPORATION. PROJECT AIR FORCE (PAF) SERVICES -- FY19 CORE RESEARCH
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 $33.6 million.
What is the period of performance?
Start: 2018-09-14. End: 2020-09-27.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances. Without specific documentation, it's presumed that the Department of the Air Force identified RAND Corporation as the only entity capable of fulfilling the requirements. However, the lack of competition makes it challenging to independently verify fair pricing and value for money.
What are the potential risks associated with awarding a $33.6M contract without competition?
The primary risk is paying a higher price than would be achieved through a competitive process. Additionally, a lack of competition can stifle innovation and reduce the incentive for the contractor to perform at their best. There's also a risk of vendor lock-in and reduced transparency in the contract's execution and outcomes.
How effective is the RAND Corporation in delivering R&D services in social sciences and humanities, and does this sole-source award reflect that effectiveness?
The RAND Corporation has a long-standing reputation for high-quality research in these fields. While their expertise is recognized, a sole-source award doesn't inherently prove effectiveness or value compared to potential alternatives. It suggests confidence in their capabilities but bypasses the validation that competition provides.
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: $33,615,000
Exercised Options: $33,615,000
Current Obligation: $33,615,000
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: 2018-09-14
Current End Date: 2020-09-27
Potential End Date: 2020-09-27 00:00:00
Last Modified: 2020-01-17
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)