Department of Defense awards $74.4M contract to Institute for Defense Analyses for research and analysis support

Contract Overview

Contract Amount: $74,377,100 ($74.4M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2021-11-30

End Date: 2026-05-30

Contract Duration: 1,642 days

Daily Burn Rate: $45.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE INSTITUTE FOR DEFENSE ANALYSES FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT TO THE OFFICE OF THE SECRETARY OF DEFENSE, AND OTHER USERS, AS SPECIFIED IN THE SPONSORING AGREEMENT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $74.4 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: THE INSTITUTE FOR DEFENSE ANALYSES FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT TO THE OFFICE OF THE SECRETARY OF DEFENSE, AND OTHER USERS, AS SPECIFIED IN THE SPONSORING AGREEMENT Key points: 1. Contract provides essential research and analysis support to the Office of the Secretary of Defense. 2. The contract is structured as a Cost Plus Fixed Fee, indicating potential for cost overruns. 3. A long duration of 1642 days suggests a sustained need for these specialized services. 4. The contract was not competed, raising questions about potential cost savings and best value. 5. The value of the contract is substantial, reflecting the critical nature of the support provided. 6. The Institute for Defense Analyses is a Federally Funded Research and Development Center (FFRDC), implying a unique relationship and specialized capabilities. 7. The contract is a delivery order under a larger agreement, suggesting a phased approach to funding and execution.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable FFRDC contracts. However, the total award of $74.4 million over approximately 4.5 years suggests a significant investment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, can lead to higher costs compared to fixed-price contracts if not managed carefully. The absence of competition makes it difficult to assess if this represents the best possible value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating it was awarded directly to the Institute for Defense Analyses. As an FFRDC, IDA has a unique relationship with the government, often established to provide specialized, long-term research and development capabilities that may not be readily available in the private sector. The lack of competition means that price discovery through market forces was not utilized, and the government relied on its established relationship and negotiated terms with IDA.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that can arise from a competitive bidding process. The government accepted the negotiated price without market validation.

Public Impact

The Office of the Secretary of Defense directly benefits from the specialized research and analysis provided. The contract supports critical decision-making processes within the Department of Defense. The geographic impact is primarily within the Washington D.C. metropolitan area, where the Department of Defense headquarters is located. The contract supports a highly specialized workforce of researchers and analysts at the Institute for Defense Analyses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure may lead to higher than anticipated costs if not closely monitored.
Lack of competition limits the government's ability to secure potentially lower prices through market forces.
Long contract duration could present risks if strategic priorities shift significantly during its term.

Positive Signals

Award to an FFRDC like IDA suggests access to unique, high-level expertise essential for national security.
The sustained nature of the contract indicates a recognized and ongoing need for IDA's specialized services.
The contract is a delivery order under a sponsoring agreement, implying a structured and managed relationship.

Sector Analysis

The Institute for Defense Analyses operates within the professional, scientific, and technical services sector, specifically focusing on research and development for defense applications. This sector is characterized by high barriers to entry due to specialized knowledge, security clearances, and established relationships with government agencies. The market size for defense-related R&D is substantial, with significant government investment annually. This contract fits within the broader category of defense research and analysis support, a critical component of national security.

Small Business Impact

This contract does not appear to involve small business set-asides. As a sole-source award to a Federally Funded Research and Development Center (FFRDC), the primary focus is on specialized capabilities rather than broad market competition. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but would likely be minimal given the nature of the award and the FFRDC's internal capabilities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. As a delivery order under a sponsoring agreement for an FFRDC, there are likely established reporting requirements and review processes. Transparency may be limited due to the classified or sensitive nature of the research, but accountability is expected through performance metrics and adherence to the fixed fee and cost principles outlined in the contract.

Related Government Programs

Defense Research and Development
Federally Funded Research and Development Centers (FFRDCs)
Office of the Secretary of Defense Support Contracts
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award
Cost-plus contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.4 million to INSTITUTE FOR DEFENSE ANALYSES. THE INSTITUTE FOR DEFENSE ANALYSES FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT TO THE OFFICE OF THE SECRETARY OF DEFENSE, AND OTHER USERS, AS SPECIFIED IN THE SPONSORING AGREEMENT

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 $74.4 million.

What is the period of performance?

Start: 2021-11-30. End: 2026-05-30.

What is the specific nature of the research and analysis support provided under this contract?

The contract specifies that the Institute for Defense Analyses (IDA) will provide research and analysis support to the Office of the Secretary of Defense (OSD) and other users as defined in the sponsoring agreement. While the exact nature of the research is not detailed in the provided data, IDA, as a Federally Funded Research and Development Center (FFRDC), typically conducts studies, analyses, and evaluations on complex defense issues. This can include areas such as strategic planning, force modernization, technology assessment, acquisition policy, and operational effectiveness. The support is crucial for informing high-level decision-making within the DoD.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar R&D services?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development contracts where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the government reimburses the contractor for allowable costs incurred and pays a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the final cost, incentivizing efficiency. While CPFF offers flexibility for complex R&D, it carries a higher risk of cost overruns for the government compared to fixed-price contracts. Benchmarking CPFF contracts requires comparing the fixed fee percentage and the total cost relative to the scope and complexity of the work performed.

What are the implications of awarding this contract on a sole-source basis to the Institute for Defense Analyses?

Awarding this contract on a sole-source basis to the Institute for Defense Analyses (IDA) means that the Department of Defense (DoD) did not conduct a competitive bidding process. This is often justified for Federally Funded Research and Development Centers (FFRDCs) like IDA due to their unique capabilities, established infrastructure, and long-standing relationship with the government, which are difficult to replicate. However, the lack of competition means the DoD did not benefit from potential price reductions or innovative solutions that might have emerged from a competitive environment. The government relies on negotiation and its oversight capabilities to ensure fair pricing and value.

What is the historical spending pattern for research and analysis support provided by the Institute for Defense Analyses to the Department of Defense?

The provided data only reflects a single contract award of $74.4 million with an end date of May 30, 2026. To understand historical spending patterns, one would need to examine prior contracts awarded to the Institute for Defense Analyses (IDA) by the Department of Defense (DoD) or other federal agencies. As an FFRDC, IDA has historically received significant funding from the DoD for research and analysis. Analyzing past contract values, durations, and the types of services rendered would provide a clearer picture of the trends and the scale of IDA's ongoing support to the DoD.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to assess the success of this contract. However, for a contract of this nature, typical KPIs would likely focus on the quality and timeliness of research reports, the impact of analyses on decision-making, adherence to project milestones, and the effective utilization of allocated funds. As a CPFF contract, performance would also be evaluated against the agreed-upon fixed fee and the allowability and reasonableness of incurred costs. The sponsoring agreement and specific task orders would likely detail these performance expectations.

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: $77,369,457

Exercised Options: $77,369,457

Current Obligation: $74,377,100

Actual Outlays: $921,606

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $585,792

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