DoD's RAND Corp. Contract for Professional Studies Services Exceeds $62.9M, Awarded Sole-Source
Contract Overview
Contract Amount: $62,935,437 ($62.9M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-13
End Date: 2023-11-01
Contract Duration: 1,814 days
Daily Burn Rate: $34.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PROFESSIONAL STUDIES SERVICES
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $62.9 million to THE RAND CORPORATION for work described as: PROFESSIONAL STUDIES SERVICES Key points: 1. Significant contract value of over $62.9 million awarded to a single entity. 2. Sole-source award raises questions about competition and potential price discovery. 3. Contract duration spans nearly five years, indicating long-term reliance. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct comparisons difficult.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the fairness of the fixed fee is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs than a competitive process would yield.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore alternative pricing or service providers.
Public Impact
Citizens may question the justification for awarding a large contract without exploring competitive options. The RAND Corporation's extensive history with government contracts could influence future sole-source awards. Transparency regarding the specific services rendered under 'All Other Professional, Scientific, and Technical Services' is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Broad NAICS code
- CPFF contract type
Positive Signals
- Established contractor
- Long-term engagement
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Government spending in this sector often involves specialized research and analysis, but benchmarks vary widely depending on the specific services provided.
Small Business Impact
The contract was awarded to The RAND Corporation, a large, well-established research institution. There is no indication that small businesses were involved as subcontractors or partners in this award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and the services provided are essential and efficiently delivered. Documentation justifying the sole-source decision is crucial.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated costs due to CPFF and no competition
- Broad service category limits transparency and benchmarking
- Long contract duration without re-evaluation
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.9 million to THE RAND CORPORATION. PROFESSIONAL STUDIES SERVICES
Who is the contractor on this award?
The obligated recipient is THE RAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $62.9 million.
What is the period of performance?
Start: 2018-11-13. End: 2023-11-01.
What specific justification was provided for the sole-source award to The RAND Corporation, and how does it align with federal procurement regulations for non-competitive contracts?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would typically detail why other sources are not viable, citing factors like unique capabilities, urgent needs, or specific research requirements. A thorough review of the justification is necessary to ensure compliance and prevent potential misuse of taxpayer funds.
How does the Cost Plus Fixed Fee (CPFF) structure for this contract ensure cost control and prevent potential overruns, given the lack of competitive pressure?
The CPFF structure aims to control costs by establishing a fixed fee for the contractor's effort, independent of the actual costs incurred. However, without competition, the government relies heavily on robust cost estimation and monitoring. Effective oversight is critical to ensure the contractor's costs remain reasonable and that the fixed fee accurately reflects the value of the services provided, mitigating the risk of inflated expenses.
What is the measurable impact or value derived from the 'All Other Professional, Scientific, and Technical Services' provided by The RAND Corporation under this contract?
Assessing the measurable impact is challenging due to the broad nature of the NAICS code and the sole-source award. Value is typically demonstrated through the quality of research, policy recommendations, and their subsequent influence on decision-making within the Department of Defense. Specific deliverables and their utilization by the agency would be key indicators of effectiveness, though quantifying this without comparative data is difficult.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
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: HQ003415R0059
Pricing Type: COST PLUS FIXED FEE (U)
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: $62,935,437
Exercised Options: $62,935,437
Current Obligation: $62,935,437
Actual Outlays: $4,820,371
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $2,539,258
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ003416D0001
IDV Type: IDC
Timeline
Start Date: 2018-11-13
Current End Date: 2023-11-01
Potential End Date: 2023-11-01 00:00:00
Last Modified: 2024-03-13
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