DoD's $221M Contract with Institute for Defense Analysis for Research and Analysis Support Services

Contract Overview

Contract Amount: $221,181,422 ($221.2M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2023-10-31

End Date: 2027-01-24

Contract Duration: 1,181 days

Daily Burn Rate: $187.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INSTITUTE FOR DEFENSE ANALYSIS, FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT SERVICES

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 $221.2 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: INSTITUTE FOR DEFENSE ANALYSIS, FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT SERVICES Key points: 1. The contract is for "All Other Professional, Scientific, and Technical Services" with a significant value of $221.18M. 2. The Institute for Defense Analyses (IDA), a Federally Funded Research and Development Center (FFRDC), is the sole awardee. 3. The contract is "NOT COMPETED", raising questions about price discovery and potential value for taxpayer dollars. 4. The sector is primarily professional services supporting the Department of Defense, with a focus on research and analysis.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the fixed fee represents a fair market price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price discovery and competition, potentially leading to higher costs than if the contract had been competed.

Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds, as alternative, potentially more cost-effective solutions may not have been explored.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding for critical research and analysis services. The sole-source nature of the award limits opportunities for smaller, innovative firms to contribute to defense research. The long duration of the contract (over 3 years) means potential inefficiencies could persist without regular re-evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus contract type
  • Lack of transparency in pricing

Positive Signals

  • Award to a specialized FFRDC
  • Support for critical defense research

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting defense research and analysis. Benchmarks for similar FFRDC contracts are often high due to specialized expertise, but the lack of competition here makes direct comparison difficult.

Small Business Impact

The contract is awarded to the Institute for Defense Analyses, a large FFRDC, and there is no indication that small businesses were involved in this specific award or subcontracting opportunities.

Oversight & Accountability

As a sole-source award to an FFRDC, oversight is crucial to ensure the fixed fee is reasonable and that the services provided align with the Department of Defense's needs and deliver value for money.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Washington Headquarters Services Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • Cost-plus contract type carries inherent risk of cost overruns.
  • Lack of transparency in the justification for sole-source award.
  • Potential for reduced value for taxpayer money due to non-competitive nature.

Tags

all-other-professional-scientific-and-te, department-of-defense, dc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $221.2 million to INSTITUTE FOR DEFENSE ANALYSES. INSTITUTE FOR DEFENSE ANALYSIS, FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER IS TO PROVIDE RESEARCH AND ANALYSIS SUPPORT SERVICES

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 $221.2 million.

What is the period of performance?

Start: 2023-10-31. End: 2027-01-24.

What is the justification for awarding this contract on a sole-source basis to the Institute for Defense Analyses?

The justification for a sole-source award typically involves unique capabilities, specialized knowledge, or a critical need that only the specific entity can fulfill. For an FFRDC like IDA, this often relates to their established role in providing objective, independent research and analysis to the government, particularly in sensitive defense matters where continuity and trust are paramount.

How can the Department of Defense ensure cost-effectiveness and value for money in a sole-source Cost Plus Fixed Fee contract?

The DoD can ensure cost-effectiveness through rigorous oversight, detailed performance metrics, and regular reviews of the fixed fee and incurred costs. Establishing clear deliverables, milestones, and independent cost analyses can help mitigate risks associated with cost-plus contracts. Benchmarking against similar FFRDC work, where possible, and ensuring the fixed fee is justified by the scope and complexity of the work are also critical.

What are the potential risks to national security or program effectiveness if the Institute for Defense Analyses fails to deliver on this contract?

Failure to deliver could pose significant risks, as the services provided are crucial for defense research and analysis. This could lead to delays in critical decision-making, flawed strategic planning, or a lack of objective insights into complex defense challenges. The reliance on a single entity for these specialized services means that any disruption or underperformance could have cascading negative effects on national security initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL 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: $221,293,422

Exercised Options: $221,293,422

Current Obligation: $221,181,422

Actual Outlays: $2,329,941

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $964,691

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

Start Date: 2023-10-31

Current End Date: 2027-01-24

Potential End Date: 2027-01-24 00:00:00

Last Modified: 2025-12-23

More Contracts from Institute for Defense Analyses

View all Institute for Defense Analyses federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending