Air Force awards $35.6M to RAND Corp for R&D core support, raising competition concerns
Contract Overview
Contract Amount: $35,629,800 ($35.6M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2022-10-14
End Date: 2025-03-22
Contract Duration: 890 days
Daily Burn Rate: $40.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: PKH: SANTOS/TEIXEIRA/FY23 PROJECTS AIR FORCE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER CORE SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $35.6 million to THE RAND CORPORATION for work described as: PKH: SANTOS/TEIXEIRA/FY23 PROJECTS AIR FORCE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER CORE SUPPORT Key points: 1. Significant funding for a single contractor highlights potential lack of competition. 2. RAND Corporation is a well-established FFRDC provider, suggesting specialized expertise. 3. The contract's duration and cost raise questions about long-term value and efficiency. 4. Focus on social sciences and humanities R&D may have niche public impact.
Value Assessment
Rating: questionable
The contract's cost of $35.6M over approximately 2.5 years for core support is substantial. Benchmarking is difficult without specific deliverables, but FFRDC core support contracts can vary widely. The lack of competition makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible value. The justification for a sole-source award to an FFRDC needs careful scrutiny.
Taxpayer Impact: Taxpayer funds are committed without competitive bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.
Public Impact
Funding for research in social sciences and humanities could influence policy and public understanding. The RAND Corporation's role as an FFRDC suggests its research may inform critical national security decisions. Long-term support for a single entity raises questions about adaptability and the introduction of new ideas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value for core support
Positive Signals
- Established FFRDC provider
- Long-term support mechanism
Sector Analysis
This contract falls under Research and Development in the Social Sciences and Humanities (NAICS 541720). Spending in this sector is crucial for informing policy and understanding complex societal issues. Benchmarks for FFRDC core support vary significantly based on scope and duration.
Small Business Impact
This contract was awarded to The RAND Corporation, a large, established research organization. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the justification is sound and that the government is receiving fair value. Regular performance reviews and cost audits are essential for accountability.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns without competition
- Limited transparency on specific research outcomes
- Long-term commitment to a single provider
Tags
research-and-development-in-the-social-s, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.6 million to THE RAND CORPORATION. PKH: SANTOS/TEIXEIRA/FY23 PROJECTS AIR FORCE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER CORE SUPPORT
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 $35.6 million.
What is the period of performance?
Start: 2022-10-14. End: 2025-03-22.
What is the specific scope of 'core support' for the Air Force FFRDC, and how does it align with current strategic priorities?
The 'core support' likely encompasses essential functions and capabilities that enable the FFRDC to provide continuous research and analysis to the Air Force. This could include maintaining expertise, infrastructure, and rapid response capabilities. Alignment with strategic priorities would involve ensuring the research areas funded directly contribute to the Air Force's most pressing challenges and future needs, such as in areas of emerging threats, technological advancements, or policy development.
Given the sole-source nature, what mechanisms are in place to ensure the RAND Corporation remains efficient and innovative?
Mechanisms to ensure efficiency and innovation in a sole-source FFRDC contract typically include performance-based metrics, regular program reviews, and potentially incentive structures tied to achieving specific research outcomes or cost savings. The government should also actively engage with the FFRDC to steer research directions and encourage the exploration of novel approaches, ensuring the contract fosters, rather than stifles, progress.
How does the $35.6M allocation for core support compare to historical spending on similar FFRDC support contracts within the Department of Defense?
Comparing this $35.6M allocation requires access to historical spending data for similar FFRDC core support contracts within the DoD. Factors influencing this figure include the specific FFRDC's mission, the breadth of its support, the duration of the contract, and the prevailing economic conditions. Without comparative data, it's difficult to definitively assess if this amount represents a standard, high, or low investment for comparable services.
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: $70,431,000
Exercised Options: $70,431,000
Current Obligation: $35,629,800
Actual Outlays: $28,009,356
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $9,738
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
Start Date: 2022-10-14
Current End Date: 2025-03-22
Potential End Date: 2025-03-22 00:00:00
Last Modified: 2024-06-04
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)