Department of Defense awards $63.8M contract to Institute for Defense Analyses for professional, scientific, and technical services

Contract Overview

Contract Amount: $63,874,731 ($63.9M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2025-08-30

Contract Duration: 1,794 days

Daily Burn Rate: $35.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

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 $63.9 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. Services are essential for strategic planning and operational effectiveness within the DoD. 3. The contract's duration spans nearly five years, indicating a long-term need for these specialized services. 4. The 'All Other Professional, Scientific, and Technical Services' category suggests a broad scope of support. 5. The 'Not Competed' award type raises questions about potential cost efficiencies and market engagement. 6. The contract is a delivery order under a larger indefinite-delivery contract, suggesting a phased approach to service delivery.

Value Assessment

Rating: fair

The contract value of $63.8 million over approximately five years for specialized research and analysis support appears reasonable given the critical nature of defense support. However, without direct comparable contracts for similar FFRDC services or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure means that while the fee is fixed, the government bears the risk of cost overruns, necessitating close monitoring of expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is often used for FFRDCs due to their unique capabilities and established relationships with government sponsors. While this can ensure access to specialized expertise, it limits the potential for price competition and may not always yield the most cost-effective solution compared to a fully competed contract.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefits of competitive bidding, which typically drives down prices, are not realized.

Public Impact

The primary beneficiaries are the Department of Defense, including the OSD, Joint Staff, Combatant Commands, and Defense Agencies, who receive essential analytical support. Services delivered include research, analysis, and technical support crucial for national security decision-making. The geographic impact is national, supporting defense operations and policy development across the United States. Workforce implications include the employment of highly skilled scientists, analysts, and technical experts within the Institute for Defense Analyses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competed contract.
Cost-plus-fixed-fee structure shifts cost overrun risk to the government.
The broad scope of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not managed carefully.

Positive Signals

Award to an FFRDC ensures access to specialized, objective research capabilities.
Long contract duration suggests a stable and ongoing need for critical support.
The contract supports high-level defense planning and decision-making, indicating strategic importance.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically supporting government research and development activities. The Federal Government spends billions annually on such services, with a significant portion dedicated to defense-related research and analysis. FFRDCs like the Institute for Defense Analyses play a unique role by providing objective, long-term research and analysis capabilities that government agencies cannot maintain in-house. Comparable spending benchmarks are difficult to establish due to the specialized nature of FFRDC work and the variety of services provided under broad categories.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor are there explicit indications of subcontracting requirements for small businesses. As a sole-source award to a large FFRDC, the direct impact on the small business ecosystem is likely minimal. However, the nature of FFRDC work often involves highly specialized expertise that may not be readily available from small businesses.

Oversight & Accountability

Oversight is likely managed by the sponsoring Department of Defense entities, particularly Washington Headquarters Services, which is listed as the servicing agency. As an FFRDC, the Institute for Defense Analyses operates under specific government oversight frameworks designed to ensure objectivity and adherence to research objectives. Transparency may be limited due to the sensitive nature of defense research, but reporting requirements are typically defined in the sponsoring agreement.

Related Government Programs

Defense Research and Development
Federal Contract Research Centers (FFRDCs)
Professional, Scientific, and Technical Services
National Security Analysis
Department of Defense Support Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of transparency in cost comparison

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.9 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 $63.9 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-08-30.

What is the track record of the Institute for Defense Analyses in supporting Department of Defense research and analysis needs?

The Institute for Defense Analyses (IDA) has a long-standing and well-established track record of providing high-quality research and analysis support to the Department of Defense (DoD) and other government agencies. As a Federally Funded Research and Development Center (FFRDC), IDA is specifically chartered to provide objective, rigorous analysis on complex national security issues. They have consistently delivered critical insights and recommendations on a wide range of topics, including strategic planning, force modernization, technology assessment, and policy development. Their work is often characterized by deep technical expertise, independent perspective, and a commitment to addressing the most challenging problems facing the defense community. The sustained relationship with the DoD, evidenced by contracts like this one, underscores their proven ability to meet the evolving analytical needs of the department.

How does the cost of this contract compare to similar FFRDC support contracts within the Department of Defense?

Directly comparing the cost of this $63.8 million contract to similar FFRDC support contracts within the Department of Defense (DoD) is challenging due to several factors. Firstly, FFRDC contracts are often tailored to specific, unique research needs, making direct apples-to-apples comparisons difficult. Secondly, the scope of work, duration, and the specific expertise required can vary significantly. However, the value of this contract, spread over nearly five years, suggests an average annual cost of approximately $12.7 million. This figure falls within a range that is not uncommon for major FFRDC engagements supporting significant government research and analysis functions. Without access to detailed cost breakdowns and specific statements of work for other comparable contracts, a precise benchmarking is not feasible, but the overall magnitude appears consistent with the scale of support provided by FFRDCs to large federal agencies.

What are the primary risks associated with this sole-source contract award?

The primary risks associated with this sole-source contract award stem from the lack of competition. Firstly, there is a risk of paying a higher price than might be achievable in a competitive bidding environment, as the government does not benefit from market forces driving down costs. Secondly, without multiple bidders, there's a reduced incentive for the contractor to optimize efficiency and innovation to secure future work, although FFRDCs often operate under different incentive structures. Thirdly, the cost-plus-fixed-fee (CPFF) pricing mechanism means the government bears the financial risk of cost overruns, necessitating robust oversight to manage expenditures effectively. Finally, a sole-source award can limit the government's exposure to new ideas or alternative approaches that might be brought forward by other potential contractors.

How effective is the Institute for Defense Analyses in delivering the research and analysis required by the DoD?

The effectiveness of the Institute for Defense Analyses (IDA) in delivering research and analysis for the DoD is generally considered high, given its status as an FFRDC and its long history of support. IDA is known for its rigorous methodologies, deep subject matter expertise, and its ability to provide objective, unbiased assessments. Its work directly informs critical decision-making processes within the DoD, contributing to strategic planning, policy formulation, and the development of defense capabilities. The sustained funding and contract awards from the DoD are indicative of the perceived value and effectiveness of IDA's contributions. While specific program effectiveness metrics are often classified or internal to the DoD, the continued reliance on IDA suggests that its analytical outputs are considered valuable and impactful in addressing complex defense challenges.

What are the historical spending patterns for professional, scientific, and technical services by the Department of Defense?

The Department of Defense (DoD) is a major consumer of professional, scientific, and technical services, with annual spending often reaching tens of billions of dollars. This category encompasses a vast array of support, including research and development, engineering services, management consulting, IT support, and specialized scientific analysis. Spending in this area fluctuates based on strategic priorities, technological advancements, and geopolitical events. FFRDCs, like the Institute for Defense Analyses, represent a significant, albeit specialized, portion of this spending, providing long-term, in-depth analytical capabilities. Historical data indicates a consistent and substantial investment in these services to maintain technological superiority, inform policy, and support operational readiness.

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: $63,874,731

Exercised Options: $63,874,731

Current Obligation: $63,874,731

Actual Outlays: $3,476,296

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $455,866

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