Department of Defense awards $361M contract to Institute for Defense Analyses for research and analysis support

Contract Overview

Contract Amount: $361,282,870 ($361.3M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2019-11-21

End Date: 2024-12-31

Contract Duration: 1,867 days

Daily Burn Rate: $193.5K/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 $361.3 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, including OSD and Joint Staff. 2. The FFRDC model ensures long-term, objective support for complex defense challenges. 3. A significant portion of the contract value is allocated to personnel and direct costs for analytical services. 4. The contract's duration and scope suggest a sustained need for specialized expertise within the DoD. 5. Performance is benchmarked against similar FFRDC contracts for research and development support. 6. The absence of competition indicates a reliance on the unique capabilities of the Institute for Defense Analyses.

Value Assessment

Rating: good

The contract value of $361M over its period of performance appears reasonable for the specialized research and analysis services provided by an FFRDC. Benchmarking against other FFRDC contracts for similar support reveals comparable cost structures, often driven by highly skilled personnel. The Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility while maintaining cost control, though it requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the Institute for Defense Analyses (IDA), a Federally Funded Research and Development Center (FFRDC). FFRDCs are specifically established to provide unique, long-term research and development capabilities to the government that cannot be effectively provided by the private sector. The sole-source nature reflects the government's reliance on IDA's established expertise and infrastructure for critical, objective analysis.

Taxpayer Impact: While sole-source awards can limit price competition, the FFRDC model is designed to provide specialized, non-commercial services where competition is not the primary driver of value. Taxpayers benefit from the deep, objective analysis provided by a trusted entity.

Public Impact

The Department of Defense benefits from objective, in-depth research and analysis to inform strategic decision-making. Key defense agencies, including the OSD and Joint Staff, receive support for complex policy and operational challenges. The contract supports a highly skilled workforce of researchers, analysts, and scientists. Geographic impact is primarily centered around the Washington D.C. metropolitan area, where the primary operations are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other highly qualified research institutions to compete for this significant funding.
Cost-plus contracts require robust oversight to ensure costs remain reasonable and aligned with objectives.
The long-term nature of FFRDC support may create a dependency that could be difficult to unwind.

Positive Signals

IDA is a well-established FFRDC with a proven track record of providing high-quality, objective analysis to the DoD.
The contract supports critical national security functions, ensuring the DoD has access to essential expertise.
The CPFF structure, when managed effectively, can incentivize efficient performance while allowing for necessary research flexibility.

Sector Analysis

The Institute for Defense Analyses operates within the professional, scientific, and technical services sector, specifically focusing on defense-related research and analysis. This sector is characterized by high barriers to entry due to specialized knowledge requirements and security clearances. The contract aligns with the government's strategy to leverage FFRDCs for unique, long-term research needs that are not readily available in the commercial market. Comparable spending in this area often involves significant investments in R&D and specialized consulting services.

Small Business Impact

This contract is not directly subject to small business set-aside provisions as it is awarded to a Federally Funded Research and Development Center (FFRDC). However, the FFRDC model often involves subcontracting opportunities for specialized services. The extent to which IDA utilizes small businesses for support services would be a key factor in assessing its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the Department of Defense, likely through specific program offices and contracting officers. As an FFRDC, IDA operates under a charter that includes specific government oversight mechanisms. Transparency is generally maintained through regular reporting and review processes. The Inspector General of the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Scientific and Technical Services
Policy Analysis Support
Federally Funded Research and Development Centers (FFRDCs)
National Security Research

Risk Flags

Sole-source award
Cost-plus contract type
Reliance on FFRDC model

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $361.3 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 $361.3 million.

What is the period of performance?

Start: 2019-11-21. End: 2024-12-31.

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 shows a consistent and significant level of engagement. Over the past several years, IDA has received substantial funding through various contracts and task orders, reflecting its role as a key Federally Funded Research and Development Center (FFRDC). While the specific annual figures fluctuate based on evolving defense priorities and research needs, the overall trend indicates a sustained reliance on IDA's analytical capabilities. For instance, prior to this current award, IDA has consistently been awarded contracts in the hundreds of millions of dollars annually from the DoD. This pattern suggests a long-term strategic partnership where the DoD depends on IDA for objective, in-depth research and analysis to support critical decision-making processes across a wide range of defense issues.

How does the pricing structure of this Cost Plus Fixed Fee (CPFF) contract compare to other FFRDC contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure for this contract is a common and often preferred method for FFRDC engagements. CPFF contracts allow the government to reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is well-suited for research and development efforts where the scope may evolve or unforeseen challenges arise, providing flexibility. When benchmarked against similar FFRDC contracts for research and analysis support, the CPFF structure is standard. The 'fixed fee' component is negotiated and generally represents a smaller percentage of the total contract value compared to the cost reimbursement. This fee is intended to incentivize efficient performance. The key to value-for-money in CPFF contracts lies in robust government oversight of allowable costs and the negotiation of a fair and reasonable fixed fee.

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 direct price competition and potential for contractor inertia. Without a competitive bidding process, there is a reduced incentive for the contractor to aggressively minimize costs, although the FFRDC's charter and government oversight aim to mitigate this. There's also a risk that the government may become overly reliant on a single source, potentially stifling innovation from other entities or making it difficult to transition capabilities if needed. Furthermore, ensuring that the fixed fee negotiated remains competitive and reflective of the market for similar expertise is crucial. Robust government oversight of cost accounting and performance is essential to manage these risks effectively and ensure taxpayer value.

What is the typical performance period and value range for similar FFRDC research and analysis contracts?

Federally Funded Research and Development Center (FFRDC) contracts for research and analysis support, particularly within the Department of Defense, typically have long performance periods and substantial values. Performance periods often span multiple years, frequently with options to extend, reflecting the long-term nature of the research and strategic support required. Values can range widely depending on the scope and complexity of the research, but multi-year contracts in the hundreds of millions of dollars are common. For example, contracts supporting major defense analysis, policy development, or advanced technology research can easily exceed $100 million annually. The $361 million award to IDA over approximately five years falls within this typical range, indicating a significant but not unusual investment for comprehensive research and analysis support.

How does the Institute for Defense Analyses ensure objectivity and independence in its research?

The Institute for Defense Analyses (IDA) is structured as a Federally Funded Research and Development Center (FFRDC) specifically to ensure objectivity and independence. Its charter mandates that it operate in the public interest, free from conflicts of interest that might arise from commercial relationships. IDA's governance structure, including its Board of Trustees, provides oversight to maintain this independence. They are prohibited from manufacturing or selling products and from competing with industry. This separation allows IDA to provide unbiased analysis and recommendations to the government, even when those findings may be politically sensitive or challenge existing programs. Their funding model, primarily through government contracts, reinforces their commitment to serving government needs without commercial pressures.

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: $361,282,870

Exercised Options: $361,282,870

Current Obligation: $361,282,870

Actual Outlays: $24,461,915

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $1,954,020

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