DoD's $17.7M contract with Institute for Defense Analyses for R&A support faces scrutiny over competition

Contract Overview

Contract Amount: $17,725,829 ($17.7M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2020-10-20

End Date: 2025-02-28

Contract Duration: 1,592 days

Daily Burn Rate: $11.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE 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 $17.7 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: THE 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. The contract provides crucial research and analysis support to various defense entities. 2. Competition is limited, raising questions about price discovery and potential overspending. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially masking specific service costs. 4. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost escalation.

Value Assessment

Rating: questionable

The CPFF contract type, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar contracts. Without competitive bids, it's hard to ascertain if the $17.7M is a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for this significant contract raises concerns about whether taxpayer funds are being used most efficiently.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The broad scope of 'All Other Professional, Scientific, and Technical Services' could obscure the true cost drivers. The long duration of the contract (over 4 years) means potential cost inefficiencies persist.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Cost Plus Fixed Fee
Broad NAICS Code

Positive Signals

Provides essential R&A support
Long-term engagement with a known entity

Sector Analysis

This contract falls under professional, scientific, and technical services, a broad category. Benchmarking is challenging without more specific service details, but defense-related R&A contracts can be substantial and require careful oversight.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The focus appears to be on a large FFRDC.

Oversight & Accountability

The 'not competed' status warrants closer oversight to ensure the necessity of the sole-source award and the reasonableness of costs. Transparency regarding the justification for not competing 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 transparency.
CPFF contract type can inflate costs.
Broad NAICS code obscures service details.
Potential for inefficient use of taxpayer funds.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to INSTITUTE FOR DEFENSE ANALYSES. THE 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 $17.7 million.

What is the period of performance?

Start: 2020-10-20. End: 2025-02-28.

What is the specific breakdown of services provided under this contract, and how does their cost compare to industry benchmarks for similar specialized research and analysis?

The contract data lacks a granular breakdown of services, falling under the broad NAICS code 541990. Without this detail, a precise cost comparison to industry benchmarks is impossible. However, given the sole-source nature and CPFF structure, there's a heightened risk that costs may not be optimized compared to a competitively bid contract for well-defined services.

What are the documented justifications for awarding this contract on a sole-source basis, and what measures are in place to mitigate potential cost overruns inherent in a CPFF structure?

The justification for a sole-source award is not provided in the data. For CPFF contracts, agencies typically implement robust monitoring, regular audits, and detailed reviews of incurred costs to manage risks. However, the effectiveness of these measures depends heavily on the agency's diligence and the specific terms negotiated.

How does the FFRDC's performance and cost-effectiveness compare to alternative providers or internal government capabilities for the research and analysis tasks outlined?

Comparing the FFRDC's performance and cost-effectiveness against alternatives is difficult without specific performance metrics and cost data beyond the total award amount. FFRDCs are often chosen for unique capabilities or long-term strategic needs. However, the lack of competition means direct cost-effectiveness comparisons are limited, and the value proposition relies on the FFRDC's specialized expertise and institutional knowledge.

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: $17,725,829

Exercised Options: $17,725,829

Current Obligation: $17,725,829

Actual Outlays: $897,842

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $258,376

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