DoD awards $71.2M contract to RAND Corporation for R&D services, raising competition concerns
Contract Overview
Contract Amount: $71,216,127 ($71.2M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-27
End Date: 2027-05-27
Contract Duration: 1,308 days
Daily Burn Rate: $54.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
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 $71.2 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 for R&D. 2. Lack of competition raises questions about price discovery and value. 3. Potential for limited oversight on a large, non-competed award. 4. Focus on professional, scientific, and technical services within the defense sector.
Value Assessment
Rating: questionable
The contract value of $71.2M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the services provided by the RAND Corporation.
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 may not yield the best value for taxpayers.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The RAND Corporation, a well-established FFRDC, receives a significant sole-source award. The contract supports critical research and development for the Department of Defense. Long contract duration (2023-2027) suggests ongoing reliance on this specific provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Award to established FFRDC
- Supports critical R&D
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically for research and development. Spending in this area is crucial for defense innovation, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large research institute.
Oversight & Accountability
The non-competed nature of this award warrants close oversight to ensure the RAND Corporation is delivering on its objectives efficiently and at a reasonable cost.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Lack of competitive bidding may lead to inflated costs.
- Potential for reduced innovation due to absence of market competition.
- Risk of scope creep or inefficiencies in a non-competed contract.
- Limited transparency in pricing and resource allocation.
- Dependency on a single provider for critical research.
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 $71.2 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 $71.2 million.
What is the period of performance?
Start: 2023-10-27. End: 2027-05-27.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, specialized knowledge, or the absence of other qualified sources. For an FFRDC like RAND, there might be specific reasons related to their established role and expertise in supporting defense research. However, a thorough review is needed to confirm these reasons and ensure no viable competitive alternatives were overlooked.
How is the cost-effectiveness of this sole-source contract being monitored?
Monitoring cost-effectiveness for a sole-source contract, especially a Cost Plus Fixed Fee (CPFF) type, requires robust government oversight. This includes detailed review of cost proposals, regular audits, performance metrics, and ensuring that the fixed fee remains appropriate for the scope of work and the risks involved. Benchmarking against similar R&D efforts, where possible, can also provide insights.
What is the long-term strategic benefit of this sole-source R&D funding to the DoD?
The long-term strategic benefit likely lies in leveraging RAND's established expertise and institutional knowledge to address complex, long-term defense challenges. As an FFRDC, RAND is designed to provide objective analysis and research support. This contract aims to ensure continued access to that capability for critical national security issues, fostering innovation and informed decision-making within the DoD.
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: $71,216,127
Exercised Options: $71,216,127
Current Obligation: $71,216,127
Actual Outlays: $583,417
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,890,689
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: 2023-10-27
Current End Date: 2027-05-27
Potential End Date: 2027-05-27 00:00:00
Last Modified: 2025-12-15
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