DoD awards $76.1M contract to RAND Corporation for R&D services, raising competition concerns
Contract Overview
Contract Amount: $76,129,007 ($76.1M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2021-11-22
End Date: 2027-01-31
Contract Duration: 1,896 days
Daily Burn Rate: $40.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: RAND NATIONAL DEFENSE RESEARCH INSTITUTE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER RESEARCH AND STUDIES
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $76.1 million to THE RAND CORPORATION for work described as: RAND NATIONAL DEFENSE RESEARCH INSTITUTE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER RESEARCH AND STUDIES Key points: 1. Significant contract value awarded to a single entity. 2. Lack of competition raises questions about price discovery. 3. FFRDC status may justify sole-source, but requires scrutiny. 4. Services fall under broad 'Other Professional, Scientific, and Technical Services' category.
Value Assessment
Rating: questionable
The contract's value is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal or if taxpayers are receiving the best value for the services provided by RAND.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition. This method limits price discovery and may not result in the most cost-effective outcome for the government.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a scenario with multiple bidders vying for the contract.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The RAND Corporation, as an FFRDC, provides critical research, but the sole-source nature warrants oversight. The broad service category makes it hard to benchmark specific deliverables against market rates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Broad service category
Positive Signals
- Award to established FFRDC
- Long-term contract duration
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarking is challenging without specific service details, but FFRDCs often command premium rates for specialized expertise.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. Given the sole-source nature and the nature of the performing organization (RAND Corporation), it is unlikely small businesses were involved in this specific award.
Oversight & Accountability
As a sole-source award to an FFRDC, this contract warrants close oversight to ensure the services are necessary, performed efficiently, and priced appropriately. The Department of Defense should have robust internal controls in place.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Limited transparency into specific deliverables and their value.
- Risk of vendor lock-in with FFRDC.
- Broad service category hinders performance evaluation.
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 $76.1 million to THE RAND CORPORATION. RAND NATIONAL DEFENSE RESEARCH INSTITUTE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER RESEARCH 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 $76.1 million.
What is the period of performance?
Start: 2021-11-22. End: 2027-01-31.
What specific research and studies are being conducted under this contract, and how do they align with DoD priorities?
The contract covers 'All Other Professional, Scientific, and Technical Services' provided by the RAND Corporation's FFRDC. While RAND conducts vital research for national security, the broad description necessitates a review of specific task orders to ensure alignment with current DoD strategic objectives and to verify the necessity of these services.
What is the justification for the sole-source award, and has it been reviewed for potential competitive alternatives?
FFRDCs like RAND are often awarded sole-source contracts due to their unique capabilities and long-standing relationship with the government. However, agencies must still document the justification and periodically assess if any portion of the work could be opened to competition to ensure cost-effectiveness and leverage broader market innovation.
How is the effectiveness and value of RAND's research measured and validated under this contract?
Effectiveness is typically measured through the impact and utility of RAND's research findings in informing DoD decision-making. Value is assessed through periodic reviews of deliverables, adherence to cost-plus-fixed-fee terms, and potentially through independent evaluations of the research's contribution to national security goals.
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: $76,129,007
Exercised Options: $76,129,007
Current Obligation: $76,129,007
Actual Outlays: $4,888,346
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,096,199
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: 2021-11-22
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-09-30
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