DoD's $70.4M RAND FFRDC Contract for Research Services Lacks Competition
Contract Overview
Contract Amount: $70,448,067 ($70.4M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2019-11-13
End Date: 2023-07-02
Contract Duration: 1,327 days
Daily Burn Rate: $53.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: RAND FFRDC PROFESSIONAL STUDIES&RESEARCH SERVICES
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $70.4 million to THE RAND CORPORATION for work described as: RAND FFRDC PROFESSIONAL STUDIES&RESEARCH SERVICES Key points: 1. Significant spending on professional and technical services through a sole-source contract. 2. The RAND Corporation, a well-known FFRDC, is the sole awardee. 3. High contract value raises questions about cost-effectiveness and potential for competition. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad.
Value Assessment
Rating: questionable
The contract's total value is substantial at over $70 million. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar research services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The RAND Corporation. This limits price discovery and may not yield the best value for taxpayer dollars.
Taxpayer Impact: The lack of competition for a large contract raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Taxpayers are funding extensive research and professional services without a competitive process. The RAND Corporation, as a Federally Funded Research and Development Center (FFRDC), has a unique relationship with the government, but this still warrants scrutiny. The broad nature of the NAICS code could obscure the specific services rendered and their true market cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of transparency in pricing
- Broad NAICS code
Positive Signals
- Award to a reputable FFRDC
- Services align with DoD needs
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarks for FFRDC research services can vary widely, but the sole-source nature here is a key concern.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to The RAND Corporation, a large FFRDC.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the services are necessary, effectively performed, and priced reasonably, despite the absence of competition.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Limited transparency
- Broad service category
- Long contract duration
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 $70.4 million to THE RAND CORPORATION. RAND FFRDC PROFESSIONAL STUDIES&RESEARCH 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 $70.4 million.
What is the period of performance?
Start: 2019-11-13. End: 2023-07-02.
What specific research and professional services are being procured under this contract, and how do they align with DoD's strategic objectives?
The contract covers 'All Other Professional, Scientific, and Technical Services' for the RAND FFRDC. While RAND provides a wide range of research, the broad NAICS code necessitates a deeper dive into the specific deliverables to understand their strategic alignment and justify the sole-source award.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award to an FFRDC typically relates to unique capabilities or established relationships. However, for a contract of this magnitude, rigorous justification and independent cost analysis are crucial to ensure fair pricing and prevent potential overruns, especially given the absence of competitive pressure.
How is the effectiveness and impact of the research and professional services being measured and evaluated?
Measuring the effectiveness of research and professional services can be challenging. The Department of Defense should have clear performance metrics and evaluation frameworks in place to assess the quality, timeliness, and impact of RAND's contributions against the contract's objectives and overall mission success.
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: $70,448,067
Exercised Options: $70,448,067
Current Obligation: $70,448,067
Actual Outlays: $10,589,591
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,789,887
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: 2019-11-13
Current End Date: 2023-07-02
Potential End Date: 2023-07-02 00:00:00
Last Modified: 2025-05-01
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