RAND Corporation awarded $34.3M for Air Force core research, a sole-source R&D contract

Contract Overview

Contract Amount: $34,290,000 ($34.3M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Defense

Start Date: 2019-10-03

End Date: 2021-05-31

Contract Duration: 606 days

Daily Burn Rate: $56.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PKH-MCCRAY-AMOS-PROJECT AIR FORCE (PAF) CORE RESEARCH PROJECTS

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $34.3 million to THE RAND CORPORATION for work described as: PKH-MCCRAY-AMOS-PROJECT AIR FORCE (PAF) CORE RESEARCH PROJECTS Key points: 1. Contract awarded via sole-source negotiation, raising questions about price discovery and potential for overpayment. 2. Significant investment in social sciences and humanities research for the Air Force, indicating a focus on strategic analysis. 3. Contract duration of 606 days suggests a substantial research undertaking. 4. No small business set-aside, indicating the prime contractor is not a small business. 5. The RAND Corporation, a long-standing research institution, is the sole contractor, suggesting specialized expertise. 6. Research and Development in Social Sciences and Humanities (NAICS 541720) is a niche area for federal contracting.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to assess if the $34.3 million represents a fair market price for the research and development services provided. The contract type (COST NO FEE) suggests the government is covering costs but not paying a fee, which can sometimes indicate a focus on cost control, but the overall value proposition depends heavily on the quality and impact of the research outcomes.

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 approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means that taxpayers did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through market forces. Taxpayers may have paid a premium compared to what could have been achieved in a competitive environment.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving specialized research and analysis. The research is expected to inform strategic decision-making and policy development within the Air Force. The geographic impact is primarily national, focusing on defense policy and strategic planning. Workforce implications are likely within the RAND Corporation's research staff, specializing in social sciences and humanities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the negotiation process for sole-source contracts.
Difficulty in independently verifying the value for money without competitive benchmarks.

Positive Signals

Award to RAND Corporation, a reputable research institution with a history of government service.
Focus on R&D in social sciences and humanities suggests investment in critical thinking and long-term strategic insights.
Contract type (COST NO FEE) may indicate a focus on managing direct costs.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on social sciences and humanities. This is a specialized area within the broader R&D market, often characterized by think tanks and academic institutions. Comparable spending in this niche would involve other government contracts for policy analysis, strategic studies, and social science research, which can vary widely in scope and value.

Small Business Impact

This contract does not appear to have a small business set-aside. The prime contractor, The RAND Corporation, is a large research organization. There is no explicit information provided regarding subcontracting plans with small businesses, which could represent missed opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, transparency might be limited compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Project Air Force (PAF) Core Research
Department of Defense Research and Development Contracts
Social Sciences and Humanities Research Grants
RAND Corporation Federal Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for unverified value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.3 million to THE RAND CORPORATION. PKH-MCCRAY-AMOS-PROJECT AIR FORCE (PAF) CORE RESEARCH PROJECTS

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 $34.3 million.

What is the period of performance?

Start: 2019-10-03. End: 2021-05-31.

What is the track record of The RAND Corporation with the Department of Defense?

The RAND Corporation has a long and extensive history of working with the Department of Defense (DoD) and various branches of the U.S. military, including the Air Force. They are a federally funded research and development center (FFRDC) and have been instrumental in providing research and analysis on a wide range of defense-related issues, from strategic planning and force structure to technological assessments and policy recommendations. Their work often involves complex, long-term research projects that require deep expertise in social sciences, engineering, and policy. The 'Project Air Force (PAF) Core Research Projects' contract is indicative of this ongoing relationship, where RAND provides critical, non-partisan analysis to support Air Force decision-making.

How does the value of this contract compare to similar R&D contracts in social sciences?

Comparing the $34.3 million value of this contract to similar R&D contracts in social sciences is challenging due to the specialized nature of the work and the sole-source award. Federal R&D contracts, especially those involving think tanks like RAND for strategic analysis, can vary significantly in price based on scope, duration, and the specific expertise required. While $34.3 million over approximately two years (October 2019 - May 2021) is a substantial sum, it's difficult to benchmark without knowing the exact deliverables and research questions. Typically, sole-source awards may not reflect the most competitive pricing. However, the RAND Corporation's status as an FFRDC often means they are contracted for unique, high-level research that might not have direct, easily comparable market prices.

What are the primary risks associated with this sole-source R&D contract?

The primary risks associated with this sole-source R&D contract stem from the lack of competition. Firstly, there's a risk of 'price creep' or paying more than necessary because there were no competing bids to drive down costs. Secondly, without a competitive process, there's a reduced incentive for the contractor to innovate or deliver exceptional value beyond the contract's stated terms, as there's no alternative provider vying for future work. Thirdly, the sole-source nature can raise concerns about transparency and whether the government truly explored all available options or if there were pre-existing relationships that influenced the award. Finally, the success of the research is heavily dependent on the specific capabilities and execution of The RAND Corporation, making performance risk concentrated.

How effective is the 'Project Air Force (PAF) Core Research Projects' likely to be?

The effectiveness of the 'Project Air Force (PAF) Core Research Projects' is contingent on several factors, including the clarity of the research objectives, the quality of the research conducted by The RAND Corporation, and how well the findings are integrated into Air Force decision-making processes. Given RAND's established reputation and its role as an FFRDC, there is a strong likelihood that the research will be rigorous and insightful. However, the true measure of effectiveness lies in whether the research leads to improved strategies, policies, or operational capabilities for the Air Force. The sole-source nature, while potentially limiting price discovery, does not inherently preclude research effectiveness, as the focus remains on the quality and relevance of the output.

What are the historical spending patterns for R&D in social sciences and humanities by the Department of the Air Force?

Historical spending patterns for R&D in social sciences and humanities by the Department of the Air Force (and the DoD more broadly) tend to be less prominent than spending on hard sciences, engineering, or weapons systems development. However, these areas are crucial for strategic planning, understanding human factors in warfare, geopolitical analysis, and policy development. Contracts in this domain often go to specialized think tanks, universities, and research institutions like RAND. While specific dollar amounts fluctuate annually based on strategic priorities, there's a consistent, albeit smaller, allocation towards research that informs the 'softer' aspects of national security and military operations. The $34.3 million awarded to RAND for this specific project suggests a significant investment in this area for the period.

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

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: $34,290,000

Exercised Options: $34,290,000

Current Obligation: $34,290,000

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $121,519

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701416D1000

IDV Type: IDC

Timeline