DoD's $61.4M RAND FFRDC Contract for Research & Studies Faces Limited Competition
Contract Overview
Contract Amount: $61,358,776 ($61.4M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-06
End Date: 2025-12-19
Contract Duration: 1,808 days
Daily Burn Rate: $33.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RAND NDRI FFRDC RESEARCHES AND STUDIES
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $61.4 million to THE RAND CORPORATION for work described as: RAND NDRI FFRDC RESEARCHES AND STUDIES Key points: 1. Significant contract value awarded to a single entity, RAND Corporation. 2. Limited competition raises questions about cost-effectiveness and potential alternatives. 3. The contract's duration extends over several years, indicating ongoing reliance. 4. Focus on 'All Other Professional, Scientific, and Technical Services' suggests broad research scope.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with limited competition, makes a direct pricing assessment difficult. Benchmarking against similar FFRDC contracts is necessary to evaluate value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a Delivery Order under an existing agreement, this contract appears to leverage the RAND Corporation's Federally Funded Research and Development Center (FFRDC) status. This inherently limits competition, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are committed to a single provider for extensive research services, necessitating strong oversight to ensure value for money.
Public Impact
The Department of Defense relies on RAND for critical research and studies, impacting policy and strategic decisions. Long-term commitment to FFRDCs like RAND can foster deep expertise but may reduce market pressure on pricing. Transparency in how research outcomes are utilized and their impact on defense capabilities is crucial for public understanding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for FFRDC services
- Cost-plus contract type can lead to cost overruns
- Long contract duration may reduce flexibility
Positive Signals
- Leverages established FFRDC expertise
- Provides continuity for critical research needs
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically research and development. FFRDCs often receive significant funding due to their specialized capabilities and trusted advisor status.
Small Business Impact
The contract does not appear to involve small business participation, as it is awarded to the RAND Corporation, a large FFRDC. Opportunities for small businesses may lie in subcontracting, which is not detailed here.
Oversight & Accountability
Oversight is critical for FFRDC contracts to ensure that the unique relationship does not preclude competitive pressures and that costs remain reasonable for the services rendered. The Department of Defense must actively monitor performance and expenditures.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Limited competition
- Cost-plus contract type
- Long contract duration
- Reliance on a single FFRDC provider
- Lack of transparency on subcontracting opportunities
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.4 million to THE RAND CORPORATION. RAND NDRI FFRDC RESEARCHES AND STUDIES
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 $61.4 million.
What is the period of performance?
Start: 2021-01-06. End: 2025-12-19.
How does the cost of RAND's research compare to similar studies conducted by other government-funded or private research institutions?
A comprehensive comparison is challenging due to the unique FFRDC designation and the specialized nature of RAND's work. However, benchmarking against other FFRDCs and large-scale government research contracts, considering scope and deliverables, can provide insights. The CPFF structure necessitates close monitoring of indirect costs and fee to ensure alignment with market rates and prevent excessive profit.
What are the specific risks associated with relying on a single FFRDC for critical research and studies over an extended period?
The primary risks include a potential lack of innovative approaches due to reduced external stimulus, vendor lock-in, and the possibility of cost escalation without competitive pressure. Ensuring robust internal government review of RAND's findings and maintaining open dialogue with the broader research community can mitigate these risks.
How effectively are the research outcomes from this contract being translated into actionable defense strategies and policy improvements?
Effectiveness is measured by the tangible impact of RAND's research on DoD decision-making, operational improvements, and strategic planning. Regular reviews of research utilization, independent assessments of the quality and relevance of findings, and feedback loops from program managers are essential to gauge this effectiveness.
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: HQ003420R0238
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: $61,358,776
Exercised Options: $61,358,776
Current Obligation: $61,358,776
Actual Outlays: $769,558
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $2,230,695
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ003421D0006
IDV Type: IDC
Timeline
Start Date: 2021-01-06
Current End Date: 2025-12-19
Potential End Date: 2025-12-19 00:00:00
Last Modified: 2025-02-25
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