DoD awards $77.8M contract to RAND Corporation for R&D services, with no competition
Contract Overview
Contract Amount: $77,833,237 ($77.8M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2022-11-21
End Date: 2027-01-25
Contract Duration: 1,526 days
Daily Burn Rate: $51.0K/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 $77.8 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 concerns about price discovery. 3. RAND Corporation is a well-established FFRDC. 4. Contract duration extends over 4 years, indicating long-term need.
Value Assessment
Rating: questionable
The contract is a cost-plus-fixed-fee type, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar services.
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 the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the research and development services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract suggests a sustained reliance on RAND's expertise. The specific services provided are broad, encompassing 'All Other Professional, Scientific, and Technical Services'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of transparency in pricing
Positive Signals
- Award to a reputable FFRDC
- Long contract duration indicates sustained need
Sector Analysis
The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Spending in this sector can vary widely, but FFRDCs often command premium pricing due to specialized expertise.
Small Business Impact
This contract does not appear to involve small businesses, as it is awarded directly to the RAND Corporation, a large research institute. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services are necessary, performed efficiently, and that costs are reasonable. Robust performance metrics and regular reviews are crucial.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for overpricing due to lack of competition.
- Cost-plus-fixed-fee structure may incentivize higher costs.
- Broad service description lacks specificity.
- No small business participation noted.
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 $77.8 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 $77.8 million.
What is the period of performance?
Start: 2022-11-21. End: 2027-01-25.
What specific research and development tasks are included under 'All Other Professional, Scientific, and Technical Services' for this contract?
The contract description is very broad. Detailed task orders and statements of work would be necessary to understand the specific R&D activities. Without this granularity, it's challenging to assess the true value and necessity of the services being procured beyond the general mandate of the RAND FFRDC.
How does the Department of Defense ensure cost-effectiveness and value for money in sole-source FFRDC contracts?
DoD typically relies on established fee structures, historical cost data, and rigorous negotiation processes for FFRDC contracts. However, the absence of direct competition means that value is assessed against internal benchmarks and the unique capabilities of the FFRDC, rather than market-driven pricing.
What is the strategic importance of RAND's FFRDC role that justifies a sole-source, long-term contract?
RAND's FFRDC status implies a unique, long-term relationship with the government, providing objective analysis and research critical to national security. This contract likely supports ongoing strategic initiatives where RAND's specialized, unbiased expertise is deemed indispensable and difficult to replicate through competitive means.
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: $77,833,237
Exercised Options: $77,833,237
Current Obligation: $77,833,237
Actual Outlays: $1,185,217
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $871,815
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: 2022-11-21
Current End Date: 2027-01-25
Potential End Date: 2027-01-25 00:00:00
Last Modified: 2025-07-21
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