DoD's Air Force awards RAND Corporation $31.7M for R&D in Social Sciences and Humanities

Contract Overview

Contract Amount: $31,667,350 ($31.7M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $87.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: RAND FY25 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 $31.7 million to THE RAND CORPORATION for work described as: RAND FY25 CORE PLAN Key points: 1. Contract focuses on research and development, a critical area for long-term strategic advantage. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. The duration of the contract (364 days) suggests a focused, project-based engagement. 4. RAND Corporation's established reputation in research may justify a sole-source award, but requires scrutiny. 5. Spending is concentrated in the District of Columbia, indicating a specific geographic focus for the research. 6. The contract type (Cost No Fee) implies that the government will reimburse allowable costs without a fixed profit margin, requiring careful cost oversight.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and focus on research and development, which often have less standardized pricing. The 'Cost No Fee' contract type means the government reimburses RAND for its incurred costs. While this can be appropriate for R&D where outcomes are uncertain, it necessitates rigorous cost monitoring to ensure reasonableness and prevent overspending. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money compared to potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Air Force did not conduct a competitive bidding process. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of competition limits the government's ability to leverage market forces to drive down costs and potentially explore innovative solutions from a wider range of providers.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the most cost-effective solution is selected. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive research and development services to inform policy and strategy. Services delivered include research and analysis in social sciences and humanities, potentially impacting strategic planning, force readiness, and national security. The geographic impact is concentrated in the District of Columbia, where RAND's operations are likely based for this contract. Workforce implications may involve RAND's researchers and analysts, contributing to specialized expertise within the federal research ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost No Fee contract type requires robust government oversight of incurred expenses.
Lack of public detail on specific research objectives makes independent value assessment difficult.

Positive Signals

RAND Corporation is a well-established research institution with a strong track record.
Focus on R&D aligns with long-term strategic needs of the Department of Defense.
Contract duration is relatively short, suggesting a defined scope of work.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on social sciences and humanities. This is a niche but critical area for government agencies, particularly defense, that require deep analysis of societal trends, geopolitical factors, and human behavior to inform policy and strategy. The market for such specialized R&D is often dominated by a few highly reputable think tanks and research organizations like RAND. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D services and the sole-source award.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. Given the sole-source nature and the specialized research focus, it is unlikely that subcontracting opportunities for small businesses would be a significant component unless RAND specifically identifies such needs for specialized support. The primary focus is on RAND's internal research capabilities.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting officers and program managers. As a 'Cost No Fee' contract, rigorous monitoring of RAND's incurred costs will be essential to ensure they are reasonable, allocable, and allowable. Transparency is limited due to the sole-source nature, but reporting requirements within the contract should provide insights into research progress and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Strategic Planning and Analysis
Social Science Research Grants
Think Tank Research Contracts

Risk Flags

Sole-source award
Cost-reimbursement contract type requires strong oversight
Limited public information on specific research objectives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to THE RAND CORPORATION. RAND FY25 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 $31.7 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is RAND Corporation's track record with the Department of Defense and specifically the Air Force?

RAND Corporation has a long-standing and extensive history of conducting research for the Department of Defense (DoD) and its various branches, including the Air Force. They are a federally funded research and development center (FFRDC) with a mission to assist the DoD in addressing national security challenges through objective analysis and effective solutions. Their work spans a wide array of topics, from strategic planning and force modernization to intelligence analysis and policy development. Historically, RAND has received substantial funding from the DoD across numerous contracts and grants, reflecting a deep and continuous relationship built on perceived expertise and reliability in providing high-quality research and analysis.

How does the 'Cost No Fee' contract type compare to other R&D contract structures in terms of value for money?

The 'Cost No Fee' (CNF) contract type is less common for R&D compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts. In a CNF contract, the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used when the contractor is a non-profit organization or an FFRDC, like RAND, where the primary motivation is mission accomplishment rather than profit. While it can potentially reduce overall costs by eliminating profit margins, it places a significant burden on the government to meticulously monitor and control costs to ensure they are reasonable and necessary. Value for money is thus heavily dependent on the government's oversight capabilities and the contractor's cost management practices, rather than competitive pricing.

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

The primary risks associated with a sole-source R&D contract include a lack of competitive pressure, which can lead to inflated costs and potentially less innovative solutions. Without competing bids, the government cannot be certain it is receiving the best possible price or the most suitable approach. There's also a risk of vendor lock-in, where the agency becomes overly reliant on a single contractor. For R&D, the inherent uncertainty of outcomes means that a sole-source award might not explore alternative methodologies or theoretical frameworks that other research entities might offer. Furthermore, the absence of competition can reduce transparency and make it harder to justify the expenditure to stakeholders.

What historical spending patterns exist for similar R&D services provided to the Department of the Air Force?

Historical spending patterns for R&D services provided to the Department of the Air Force (and DoD broadly) show significant investment in areas like advanced technology, systems engineering, and strategic analysis. While specific figures for 'Research and Development in the Social Sciences and Humanities' are often aggregated within broader R&D categories, agencies like the Air Force consistently allocate substantial budgets to research aimed at understanding complex operational environments, human factors, and geopolitical dynamics. Spending often involves contracts with FFRDCs, universities, and specialized research firms. The RAND Corporation, in particular, has historically been a major recipient of DoD R&D funding, indicating a consistent demand for their expertise in these domains.

How does the classification 'Research and Development in the Social Sciences and Humanities' typically translate into tangible outcomes or benefits for the Air Force?

Research and Development in the Social Sciences and Humanities for the Air Force can translate into tangible benefits across various strategic and operational domains. This includes improved understanding of adversary motivations and societal resilience, enhanced human-machine teaming strategies, more effective cultural engagement in complex operational environments, and better-informed policy recommendations regarding international relations, public opinion, and ethical considerations in warfare. For instance, research might inform strategies for information operations, aid in developing more effective training programs by understanding learning psychology, or provide insights into the socio-political landscape of regions where the Air Force operates. Ultimately, it supports more nuanced decision-making and a deeper comprehension of the human element in national security.

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: FA701421R0011

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: $31,667,350

Exercised Options: $31,667,350

Current Obligation: $31,667,350

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