Department of Defense awards $92.7M contract to Institute for Defense Analyses for research and analysis support

Contract Overview

Contract Amount: $92,732,152 ($92.7M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2019-11-21

End Date: 2025-11-30

Contract Duration: 2,201 days

Daily Burn Rate: $42.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IDA FFRDC IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT TO THE OSD, THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFICES, AND OTHER USERS AS SPECIFIED IN THE SPONSORING AGREEMENT BETWEEN OSD AND THE FFRDC.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $92.7 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: IDA FFRDC IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT TO THE OSD, THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFICES, AND OTHER USERS AS SPECIFIED IN THE SPONSORING AGREEMENT BETWEEN OSD AND THE FFRDC. Key points: 1. Contract provides critical research and analysis support to various defense entities. 2. The contract is structured as a Cost Plus Fixed Fee, allowing for flexibility in research scope. 3. A long duration of 2201 days suggests a sustained need for these specialized services. 4. The single award indicates a specific need for the contractor's unique capabilities. 5. The value of the contract is substantial, reflecting the importance of the support provided.

Value Assessment

Rating: good

The contract value of $92.7 million over approximately six years represents a significant investment in specialized research and analysis. Benchmarking this against similar FFRDC contracts is challenging due to their unique nature and specific mission requirements. However, the Cost Plus Fixed Fee structure, while common for R&D and analysis, requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work. The absence of competition suggests the pricing is based on established rates for this specific FFRDC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, which is typical for Federally Funded Research and Development Centers (FFRDCs) like the Institute for Defense Analyses. These centers are established to provide objective, independent research and analysis to the government, often requiring specialized expertise and long-term relationships. The sole-source nature means there was no open competition for this specific award, as the government has pre-determined the need for the FFRDC's unique capabilities.

Taxpayer Impact: For taxpayers, a sole-source award for an FFRDC means the government is leveraging a trusted, established entity for critical support. While it bypasses competitive pricing benefits, it ensures access to specialized, unbiased analysis crucial for national security decision-making.

Public Impact

The primary beneficiaries are the Department of Defense, including the OSD, Joint Staff/Combatant Commands, and Defense Agencies, who receive vital research and analytical support. The services delivered are crucial for informing strategic planning, policy development, and operational decision-making within the defense sector. The geographic impact is national, supporting federal defense initiatives from Washington Headquarters Services. The contract supports a specialized workforce of researchers and analysts within the Institute for Defense Analyses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Lack of competition limits opportunities for exploring alternative solutions or cost efficiencies.
Dependence on a single contractor for critical research and analysis could pose a risk if capabilities degrade.

Positive Signals

Established relationship and proven track record of the Institute for Defense Analyses as an FFRDC.
The contract duration indicates a stable and predictable need for the services, allowing for long-term planning.
The FFRDC model is designed to provide objective and independent analysis, a significant positive signal for the quality of support.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector is vital for government operations, providing specialized expertise that agencies often cannot maintain in-house. The FFRDC model is a key component of this sector, enabling long-term, objective research and development support for critical government functions, particularly in defense. Comparable spending benchmarks are difficult to establish due to the unique nature of FFRDCs, but the overall federal spending on professional services is in the hundreds of billions annually.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. As a sole-source award to an FFRDC, the focus is on the specialized capabilities of the prime contractor rather than subcontracting opportunities for small businesses. While the FFRDC may engage subcontractors, it is not a primary mechanism for small business utilization in this context.

Oversight & Accountability

Oversight for this contract is likely managed by the sponsoring Department of Defense entities, particularly Washington Headquarters Services, which serves as the sponsor. As an FFRDC, the Institute for Defense Analyses operates under a charter that includes specific oversight mechanisms and reporting requirements to ensure objectivity and adherence to its mission. Transparency is generally maintained through regular reporting and reviews, though specific contract details might be subject to national security considerations. Inspector General jurisdiction would apply to ensure efficient and ethical use of funds.

Related Government Programs

Defense Research and Development
Federal Contract Research Centers
Strategic Planning Support
Policy Analysis Services
National Security Research

Risk Flags

Sole-source award may limit price competition.
Cost Plus Fixed Fee contracts require diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.7 million to INSTITUTE FOR DEFENSE ANALYSES. IDA FFRDC IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT TO THE OSD, THE JOINT STAFF/COMBATANT COMMANDS, DEFENSE AGENCIES, JOINT PROGRAM OFFICES, AND OTHER USERS AS SPECIFIED IN THE SPONSORING AGREEMENT BETWEEN OSD AND THE FFRDC.

Who is the contractor on this award?

The obligated recipient is INSTITUTE FOR DEFENSE ANALYSES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $92.7 million.

What is the period of performance?

Start: 2019-11-21. End: 2025-11-30.

What is the historical spending trend for the Institute for Defense Analyses with the Department of Defense?

Historical spending data for the Institute for Defense Analyses (IDA) with the Department of Defense (DoD) indicates a consistent and significant level of support over many years. As an FFRDC, IDA has a long-standing relationship with the DoD, providing critical research and analysis. While specific year-over-year figures fluctuate based on evolving defense priorities and specific task orders, the overall trend shows sustained funding. For instance, prior to this $92.7 million award, IDA has consistently received multi-million dollar contracts annually from the DoD for various research initiatives. This long-term financial relationship underscores the perceived value and indispensable nature of IDA's contributions to national security.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) structure in this contract allows the Institute for Defense Analyses (IDA) to be reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure is often used for research and development or services where the scope of work is not precisely defined at the outset, or where innovation and exploration are key. For value for money, CPFF can be beneficial if the fixed fee is reasonable and the government effectively monitors costs to prevent overruns. However, it carries a risk of higher overall costs compared to fixed-price contracts if cost control is weak. The government's oversight and IDA's adherence to its FFRDC charter for objective analysis are crucial for ensuring that the value derived from the research justifies the costs incurred.

What are the primary risks associated with a sole-source award to an FFRDC like IDA?

The primary risks associated with a sole-source award to a Federally Funded Research and Development Center (FFRDC) like the Institute for Defense Analyses (IDA) revolve around the lack of competitive pressure on pricing and innovation. Without competition, there's a reduced incentive for the contractor to minimize costs or explore the most cost-effective solutions, as the government is committed to reimbursing costs plus a fee. Furthermore, the absence of multiple bidders means the government doesn't benefit from a range of perspectives or potentially novel approaches that other organizations might offer. While FFRDCs are established for their unique capabilities and objectivity, over-reliance on a single source can also lead to potential complacency or a lack of agility if the contractor's internal processes become inefficient over time.

How does the duration of this contract (2201 days) influence the assessment of its performance context?

The contract duration of 2201 days (approximately six years) significantly shapes the performance context. Such a long-term commitment indicates that the Department of Defense foresees a sustained and critical need for the research and analysis services provided by the Institute for Defense Analyses. This extended period allows for in-depth, long-range research projects that might not be feasible under shorter contracts. It also implies a stable working relationship and a deep understanding between the government and IDA. From a performance assessment standpoint, this duration necessitates robust, ongoing oversight and regular reviews to ensure that IDA maintains its high standards of objectivity, relevance, and responsiveness throughout the contract's life, rather than just at the end.

What is the significance of the 'All Other Professional, Scientific, and Technical Services' NAICS code for this contract?

The assignment of NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' to this contract signifies that the services provided by the Institute for Defense Analyses (IDA) do not fit neatly into more specific categories like engineering, computer systems design, or research in specific fields (e.g., physical sciences). This broad classification highlights the diverse and often interdisciplinary nature of the support IDA offers to the Department of Defense. It encompasses a wide range of analytical, advisory, and research activities that are crucial for high-level decision-making but are not tied to a single, narrowly defined technical discipline. This flexibility allows IDA to address complex, evolving defense challenges.

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: HQ003418R0156

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4850 MARK CENTER DR, ALEXANDRIA, VA, 22311

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: $92,732,152

Exercised Options: $92,732,152

Current Obligation: $92,732,152

Actual Outlays: $18,644,057

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $78,480

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003419D0001

IDV Type: IDC

Timeline