DoD's $33M RAND Corporation research contract awarded without competition for social science R&D

Contract Overview

Contract Amount: $33,067,200 ($33.1M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Defense

Start Date: 2021-10-22

End Date: 2023-09-30

Contract Duration: 708 days

Daily Burn Rate: $46.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PKH - BYRD-FULBRIGHT - PRYMAK - FY22 RAND PAF CORE RESEARCH TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to THE RAND CORPORATION for work described as: PKH - BYRD-FULBRIGHT - PRYMAK - FY22 RAND PAF CORE RESEARCH TASK ORDER Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. Research and Development in Social Sciences and Humanities is a broad category, requiring clear performance metrics. 3. The contract duration of 708 days suggests a significant scope of work. 4. No small business set-aside was applied, indicating no specific focus on small business participation. 5. The contract type 'COST NO FEE' implies reimbursement of costs without an additional fee for the contractor. 6. Geographic location is Washington D.C., a hub for federal contracting and research institutions.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific R&D focus. Without competitive bids, it's difficult to assess if the $33 million represents a fair market price. The 'COST NO FEE' contract type means the government reimburses RAND for its expenses but does not pay an additional profit margin, which can sometimes lead to higher overall costs if not managed tightly. Comparing this to similar R&D contracts in social sciences and humanities would require detailed analysis of scope and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The RAND Corporation. This means that the Department of Defense did not solicit bids from other potential contractors. While RAND is a well-established research institution, the lack of competition means that taxpayers did not benefit from the potential for lower prices or innovative solutions that could have emerged from a competitive bidding process.

Taxpayer Impact: Sole-source awards limit the government's ability to negotiate the best possible price, potentially leading to higher expenditures for taxpayers compared to a competed contract.

Public Impact

The primary beneficiary is the Department of Defense, which will receive research and analysis to inform policy and decision-making. The services delivered are research and development in social sciences and humanities, likely covering areas such as national security strategy, public policy, and international affairs. The geographic impact is primarily within Washington D.C., where the contractor is located, but the research findings could have national or international implications. Workforce implications include employment for researchers, analysts, and support staff at The RAND Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for other research institutions, including small businesses.
The 'COST NO FEE' structure requires diligent oversight to control expenditures.
The broad nature of 'Research and Development in Social Sciences and Humanities' could lead to scope creep if not clearly defined.

Positive Signals

The RAND Corporation is a reputable and experienced research organization with a long history of government contracting.
The contract is for R&D, which often requires specialized expertise that may not be widely available.
The contract duration suggests a substantial and potentially valuable research effort.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on social sciences and humanities. This sector is characterized by intellectual capital and specialized knowledge. The market for such research is often dominated by think tanks and academic institutions. Comparable spending benchmarks are difficult to establish without knowing the specific research topics, but federal spending on R&D, particularly for defense-related social science research, can be substantial, often awarded through grants, cooperative agreements, or sole-source contracts to established entities.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to The RAND Corporation, a large research organization, suggests that small businesses were not specifically targeted for this particular contract. There is no indication of subcontracting plans for small businesses within the provided data, which could mean limited opportunities for small business participation in this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force within the Department of Defense. Accountability measures would be tied to the research deliverables and milestones outlined in the contract. Transparency might be limited due to the sole-source nature and the sensitive or proprietary nature of some research findings. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Social Science Research Grants
National Security Policy Research
RAND Corporation Federal Contracts

Risk Flags

Sole-source award limits competition.
Lack of transparency in specific research topics.
Potential for cost overruns in cost-reimbursement contracts without fee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to THE RAND CORPORATION. PKH - BYRD-FULBRIGHT - PRYMAK - FY22 RAND PAF CORE RESEARCH TASK ORDER

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 $33.1 million.

What is the period of performance?

Start: 2021-10-22. End: 2023-09-30.

What specific research topics are covered under this 'Research and Development in the Social Sciences and Humanities' contract?

The provided data does not specify the exact research topics. However, 'Research and Development in the Social Sciences and Humanities' is a broad category that can encompass a wide range of studies relevant to the Department of Defense. This could include analyses of geopolitical trends, socio-cultural dynamics in foreign regions, effectiveness of public diplomacy initiatives, psychological operations, military sociology, strategic planning methodologies, and the impact of emerging technologies on society and warfare. The RAND Corporation's extensive portfolio suggests potential focus areas aligned with national security priorities, such as understanding adversary motivations, assessing the impact of U.S. foreign policy, or improving military personnel and readiness through social science insights.

How does the 'COST NO FEE' contract type differ from other contract types, and what are its implications for cost control?

A 'COST NO FEE' (Cost, No Fee - CNF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This is typically used when the contractor is a non-profit organization or when the government has a strong interest in the work being performed and wants to minimize the contractor's profit motive, often in research or development scenarios. For cost control, the government must meticulously monitor and audit the contractor's incurred costs to ensure they are allowable, allocable, and reasonable. Without a fee, the contractor's primary incentive is to recover costs and complete the work, rather than to maximize profit. This necessitates robust government oversight and auditing processes to prevent cost overruns or inefficient spending.

What is The RAND Corporation's track record with the Department of Defense, particularly on sole-source R&D contracts?

The RAND Corporation has a long-standing and extensive track record of contracting with the Department of Defense (DoD) and other federal agencies, primarily for research and analysis. They are a federally funded research and development center (FFRDC) and are well-regarded for their expertise in national security, policy analysis, and social sciences. While RAND often secures contracts through competitive processes, it is not uncommon for them to receive sole-source awards, especially for specialized research where their unique capabilities are deemed essential or when specific projects are a continuation of ongoing work. Their history with the DoD is extensive, involving numerous task orders and contracts over many decades, often focusing on complex, long-term research initiatives.

Given the sole-source nature, what mechanisms are in place to ensure the quality and relevance of the research delivered?

Even with sole-source awards, quality and relevance are typically ensured through several mechanisms. The contract itself will contain detailed statements of work (SOW), performance objectives, and specific deliverables with associated timelines. The contracting officer and technical points of contact (TPOCs) within the agency are responsible for monitoring progress, reviewing interim and final reports, and ensuring the research meets the defined requirements. Performance metrics, peer reviews (internal or external), and adherence to established research methodologies are often stipulated. Furthermore, the long-term relationship and reputation of organizations like RAND often serve as an implicit quality control, as they rely on continued government funding and trust. The contract may also include clauses for government acceptance of deliverables based on quality and adherence to scope.

How does this $33 million contract compare to overall federal spending on social science and humanities R&D?

The $33 million allocated to this specific RAND Corporation contract represents a portion of the broader federal investment in social science and humanities R&D. Federal agencies, including DoD, NSF, NIH, and others, collectively spend billions annually on research across all disciplines. While this single contract is substantial, it is one of many. To contextualize it, one would need to compare it against the total budget allocated by the DoD for social science R&D in FY22 and FY23, and then against the total federal R&D spending in these areas. RAND's FFRDC status often positions them to receive significant funding for strategic research, but this amount should be viewed within the larger landscape of federal research investments, which are diverse and distributed across numerous institutions and projects.

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: $33,067,200

Exercised Options: $33,067,200

Current Obligation: $33,067,200

Actual Outlays: $29,808,323

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $129,373

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA701422D0001

IDV Type: IDC

Timeline