DoD's $31M RAND Corp. R&D contract for social science research lacks competition, raising value concerns

Contract Overview

Contract Amount: $31,059,000 ($31.1M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Defense

Start Date: 2023-10-14

End Date: 2025-03-31

Contract Duration: 534 days

Daily Burn Rate: $58.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PKH: WESTON/TEIXEIRA FY24 CORE PLAN

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 $31.1 million to THE RAND CORPORATION for work described as: PKH: WESTON/TEIXEIRA FY24 CORE PLAN Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The duration of the contract (over 1.5 years) suggests a need for sustained research efforts. 3. Research and Development in Social Sciences and Humanities is a niche area, but competition is still expected. 4. The absence of small business involvement is noted, with no set-aside or subcontracting requirements. 5. Performance is tracked through delivery orders, indicating a phased approach to research execution. 6. The contract's value is significant for this specific R&D category, warranting scrutiny.

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 ascertain if the $31 million represents a fair market price for the research and development services provided by The RAND Corporation. The cost-plus-no-fee (CPNF) contract type, while common for R&D where scope can evolve, offers less incentive for cost control compared to fixed-price contracts. Further analysis would require understanding the specific deliverables and comparing them to similar, competitively awarded R&D efforts in social sciences and humanities, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Defense did not solicit bids from multiple potential contractors. This approach is typically justified when only one source is capable of meeting the requirement, often due to unique expertise or proprietary technology. However, the lack of competition means that taxpayers did not benefit from the price reductions that can arise from a competitive bidding process. The RAND Corporation is a well-established research institution, but the absence of other bidders prevents an assessment of market alternatives.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium compared to what might have been achieved through a competitive process. Without competing bids, there is less assurance of obtaining the best possible value for the government's investment.

Public Impact

The primary beneficiary is the Department of Defense, which will receive research and development services in social sciences and humanities. The research is expected to inform policy, strategy, or operational decisions within the Air Force and potentially broader DoD. The geographic impact is primarily within the District of Columbia, where The RAND Corporation is headquartered, though the research findings could have national implications. The contract supports specialized research roles within The RAND Corporation, contributing to the knowledge economy in social sciences.

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 to secure government contracts.
Cost-plus-no-fee contract type offers limited incentive for contractor cost efficiency.
No small business participation identified, missing opportunities to support smaller entities.

Positive Signals

The RAND Corporation is a highly reputable research organization with extensive experience in defense-related social science research.
The contract duration suggests a commitment to addressing complex, long-term research needs.
Delivery orders allow for phased funding and oversight of research progress.
The research focus on social sciences and humanities can provide critical insights for national security and policy.

Sector Analysis

The 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. The total federal spending on R&D is substantial, but contracts for social science research are a smaller subset. The RAND Corporation is a prominent player in this niche, often holding significant contracts with government agencies due to its established expertise and track record. Benchmarking this specific contract's value is difficult without comparable sole-source R&D awards in the same domain.

Small Business Impact

This contract does not appear to have any small business set-aside provisions, nor is there any indication of subcontracting opportunities for small businesses. The RAND Corporation, as a large, established research institution, is likely to perform the work in-house. This represents a missed opportunity to engage the small business ecosystem in specialized research and development, which could foster innovation and economic growth among smaller firms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Performance will be monitored through the delivery order process, with progress reports and deliverables reviewed against the contract's research objectives. Transparency is generally moderate for R&D contracts, with findings often classified or subject to policy review before public release. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Social Sciences and Humanities Research Grants
Think Tank and Policy Research Contracts
Air Force Research Laboratory Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to THE RAND CORPORATION. PKH: WESTON/TEIXEIRA FY24 CORE PLAN

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 $31.1 million.

What is the period of performance?

Start: 2023-10-14. End: 2025-03-31.

What is The RAND Corporation's track record with the Department of Defense, particularly in social science R&D?

The RAND Corporation has a long and extensive history of working with the Department of Defense (DoD) and its various branches, including the Air Force. They are renowned for their expertise in defense policy, national security strategy, and social science research relevant to military operations and societal impacts. RAND has consistently secured significant federal contracts over decades, often in areas requiring deep analytical capabilities and objective research. Their track record includes numerous studies on topics such as international security, force structure, personnel policy, and the socio-economic effects of conflict. This specific contract aligns with their core competencies and historical engagement with the DoD, suggesting a strong existing relationship and proven capability.

How does the $31 million value compare to similar R&D contracts in social sciences and humanities?

Directly comparing the $31 million value to similar R&D contracts in social sciences and humanities is challenging due to the specialized nature of the work and the sole-source award. Federal spending data often aggregates R&D broadly, making it difficult to isolate specific sub-disciplines like social sciences and humanities, especially when awarded to non-traditional R&D firms like think tanks. However, for large-scale, multi-year research initiatives requiring significant analytical depth and policy relevance, $31 million is a substantial investment. Without competitive bids, it's impossible to establish a market benchmark. If this were a competitively bid contract, one would expect multiple proposals to establish a clearer range of expected costs. The absence of such competition makes a definitive value comparison difficult without access to internal DoD cost analyses or more granular public data.

What are the primary risks associated with a sole-source award for this type of research?

The primary risks associated with a sole-source award for this type of research include potential overpayment due to a lack of competitive pressure, reduced incentive for the contractor to innovate or optimize costs, and a missed opportunity to foster broader market participation. Taxpayers may not receive the best possible value for their investment if alternative, potentially more cost-effective, solutions were available but not explored. Furthermore, sole-source awards can sometimes indicate a lack of planning or a failure to identify potential sources early in the acquisition process. While The RAND Corporation is a highly capable entity, the absence of competition inherently limits the government's ability to explore a wider range of approaches and pricing structures, potentially leading to suboptimal outcomes or higher expenditures than necessary.

What are the expected outcomes or program effectiveness indicators for this contract?

The expected outcomes for this contract revolve around the delivery of high-quality research and analysis in social sciences and humanities that informs Department of Defense decision-making. Program effectiveness indicators would likely include the timely delivery of research reports, the relevance and applicability of findings to current defense challenges, and the impact of the research on policy or strategic planning. The RAND Corporation's reputation suggests a high likelihood of producing credible and insightful work. However, measuring the 'effectiveness' of social science research can be subjective and long-term, often depending on how the findings are integrated into policy and practice. The contract's success will ultimately be judged by the actionable insights provided to the Air Force and DoD.

How does this contract fit into the broader landscape of federal spending on research and development?

This contract represents a small but significant portion of the federal government's overall Research and Development (R&D) spending. Federal R&D is a vast category encompassing scientific, engineering, and social science research across numerous agencies. While defense R&D often constitutes a large share, specific allocations for social sciences and humanities research within defense agencies are more targeted. This $31 million award to The RAND Corporation for R&D in social sciences and humanities fits within the niche of policy-relevant research aimed at enhancing national security and strategic understanding. It highlights the government's continued investment in non-traditional R&D areas that provide critical context and analysis for complex geopolitical and societal issues impacting defense.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: $31,059,000

Exercised Options: $31,059,000

Current Obligation: $31,059,000

Actual Outlays: $12,800,000

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