Department of Defense awards $101M contract to Institute for Defense Analyses for research and analysis support

Contract Overview

Contract Amount: $101,079,494 ($101.1M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2022-10-26

End Date: 2026-09-30

Contract Duration: 1,435 days

Daily Burn Rate: $70.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

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: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $101.1 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. The contract's duration spans over three years, indicating a long-term need for these services. 3. The award mechanism is a delivery order, suggesting it's part of a larger framework agreement. 4. The contractor, Institute for Defense Analyses, is an FFRDC, implying specialized expertise. 5. The contract is not competed, raising questions about potential cost efficiencies and market alternatives. 6. The primary service area is professional, scientific, and technical services, a broad category.

Value Assessment

Rating: fair

The contract value of $101 million over approximately three years suggests a significant investment in specialized research and analysis. Without direct comparable contracts for similar FFRDC support, a precise value-for-money assessment is challenging. However, the cost-plus-fixed-fee (CPFF) pricing structure means the government pays the actual costs plus a fixed fee, which can incentivize cost control by the contractor. Benchmarking against other FFRDC contracts would be necessary for a more robust evaluation of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, as it is a delivery order under a contract with an FFRDC. FFRDCs are typically established to provide long-term, special-source, research and development capabilities to the government that cannot be effectively provided by the private sector. The lack of competition is inherent to the FFRDC model, which relies on a trusted, long-term relationship.

Taxpayer Impact: While sole-source awards generally limit price negotiation opportunities, the FFRDC model is intended to provide unique capabilities and objective analysis that may outweigh the benefits of open competition in this specific context.

Public Impact

The Department of Defense and its various components (OSD, Joint Staff, Combatant Commands, Defense Agencies) are the primary beneficiaries, receiving essential research and analytical support. Services delivered include research, analysis, and technical support crucial for defense planning, strategy, and operations. The contract's administrative location is Washington D.C., suggesting a focus on national-level defense policy and operations. The specialized nature of the services supports the defense workforce by providing them with critical data and insights for decision-making.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits opportunities for potentially more cost-effective solutions from other providers.
Cost-plus-fixed-fee contracts can sometimes lead to higher overall costs if not carefully managed and monitored.
Reliance on a single FFRDC for critical analysis may create dependency and limit access to diverse perspectives.

Positive Signals

The contractor is an FFRDC, indicating a high level of trust, specialized expertise, and objectivity.
The long-term nature of the contract suggests a stable and reliable source of critical support for the DoD.
The fixed-fee component of the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

The Institute for Defense Analyses (IDA) operates within the Research and Development (R&D) and Professional, Scientific, and Technical Services sectors. FFRDCs like IDA are unique entities established to meet specific long-term government needs for research, analysis, and development that are in the national interest. Spending in this category is often characterized by long-term engagements, specialized expertise, and a focus on objective, independent analysis. The market for such services is relatively small and highly specialized, with a limited number of qualified organizations.

Small Business Impact

This contract does not appear to involve small business set-asides, nor is the primary contractor a small business. As an FFRDC, the Institute for Defense Analyses is a federally funded research and development center, typically a large, specialized organization. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though it is possible they could be engaged for specific tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense, specifically the sponsoring agreement between OSD and the FFRDC. As a delivery order under an existing FFRDC contract, the oversight mechanisms are likely integrated into the established FFRDC governance structure. Transparency is generally maintained through regular reporting and review processes inherent to FFRDC operations. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Federally Funded Research and Development Centers (FFRDCs)
Defense Research and Analysis Support
Professional, Scientific, and Technical Services
Department of Defense Research Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing structure
Potential for cost overruns without strict oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.1 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 $101.1 million.

What is the period of performance?

Start: 2022-10-26. End: 2026-09-30.

What is the historical spending trend for the Institute for Defense Analyses with the Department of Defense?

Historical spending data for the Institute for Defense Analyses (IDA) with the Department of Defense (DoD) indicates a consistent and significant relationship. As an FFRDC, IDA has been a long-standing partner, providing critical research and analysis support. While specific annual figures for this particular contract are not detailed in the provided data, the overall value of $101 million awarded for a period of approximately three years (2022-2026) suggests a substantial, ongoing commitment. Past awards to IDA by the DoD have typically been in the tens to hundreds of millions of dollars annually, reflecting the broad scope of its support across various defense agencies and initiatives. This sustained funding underscores the DoD's reliance on IDA's specialized expertise for complex strategic and technical challenges.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar research and analysis services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development, and complex services where the scope of work may evolve or is difficult to define precisely upfront. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of actual costs, incentivizing the contractor to control expenses. CPFF can be advantageous when innovation and flexibility are paramount, as it allows for adaptation without constant renegotiation. However, it carries a risk of cost overruns if not managed diligently. For highly defined, routine services, Fixed Price contracts might offer better value. For specialized, evolving research like that provided by an FFRDC, CPFF is often considered appropriate, balancing flexibility with a defined profit margin.

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

Key Performance Indicators (KPIs) for a contract like this, supporting research and analysis for the Department of Defense (DoD) through an FFRDC, are typically qualitative and outcome-based rather than strictly quantitative. While specific KPIs are not detailed in the award data, they would likely include factors such as the timeliness and relevance of research reports, the accuracy and objectivity of analyses provided, the impact of recommendations on policy or operational decisions, and the contractor's responsiveness to DoD requests. Adherence to the FFRDC's charter of providing independent, objective advice is also a critical measure. Performance is often assessed through regular reviews, stakeholder feedback from the various DoD entities served, and the successful completion of defined research tasks and analytical projects within agreed-upon timelines and budgets.

What is the track record of the Institute for Defense Analyses in delivering similar research and analysis support?

The Institute for Defense Analyses (IDA) has an extensive and highly regarded track record in delivering 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. Its work spans a wide range of critical areas, including strategic planning, force modernization, technology assessment, and policy development. IDA is known for its deep technical expertise, its ability to attract top scientific and analytical talent, and its commitment to independence and objectivity. The long-standing relationship with the DoD, evidenced by numerous contracts and task orders over decades, attests to its consistent performance and the value it provides in informing high-level decision-making.

What are the potential risks associated with relying on a sole-source FFRDC for critical defense analysis?

Relying on a sole-source Federally Funded Research and Development Center (FFRDC) like the Institute for Defense Analyses (IDA) for critical defense analysis presents several potential risks. Firstly, the lack of competition can limit opportunities for exploring alternative approaches or potentially more cost-effective solutions that might be offered by other organizations. Secondly, there's a risk of 'groupthink' or a lack of diverse perspectives if the FFRDC's analytical framework becomes too entrenched. Thirdly, dependency on a single entity for crucial insights could be a vulnerability if the FFRDC's capabilities diminish or its relationship with the government sours. Finally, while FFRDCs are designed for objectivity, maintaining that independence and avoiding undue influence requires continuous vigilance and robust oversight from the sponsoring agency.

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: $101,079,494

Exercised Options: $101,079,494

Current Obligation: $101,079,494

Actual Outlays: $1,136,829

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $864,106

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