DoD spent $462.8M on 'All Other Professional Services' via sole-source contract from 2008-2013

Contract Overview

Contract Amount: $462,839,271 ($462.8M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2005-08-01

End Date: 2013-09-30

Contract Duration: 2,982 days

Daily Burn Rate: $155.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FISCAL YEAR 10/01/2008/ THRU 9/30/2013

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $462.8 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: FISCAL YEAR 10/01/2008/ THRU 9/30/2013 Key points: 1. Significant spending on a broad service category suggests potential for unoptimized costs. 2. Sole-source award limits price discovery and competitive pressure. 3. The contract duration of nearly 8 years raises questions about adaptability and ongoing need. 4. Lack of small business participation is noted.

Value Assessment

Rating: questionable

The total award of $462.8M over five years for 'All Other Professional, Scientific, and Technical Services' is substantial. Without competitive benchmarks or detailed cost breakdowns, assessing value is difficult. The fixed fee component provides some cost control, but the overall cost-effectiveness is uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits the government's ability to ensure the best possible price through market forces and negotiation.

Taxpayer Impact: The lack of competition likely resulted in higher costs for taxpayers than if the contract had been competitively bid.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The broad nature of 'All Other Professional Services' makes it difficult for the public to understand the specific value received. Long contract durations can lead to inertia and resistance to adopting more efficient solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Broad service category
Long contract duration
No small business participation

Positive Signals

Fixed fee component provides some cost certainty

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category is broad and often used for specialized needs. Spending benchmarks are difficult to establish due to its heterogeneity. The Department of Defense's reliance on such services is common for complex research and analysis.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to foster small business growth and potentially leverage innovative solutions they may offer.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny regarding the justification for not seeking competition. Oversight should focus on whether the fixed fee structure adequately controlled costs over the contract's long duration.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Broad and potentially undefined scope of services
Long contract duration without clear re-competition points
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $462.8 million to INSTITUTE FOR DEFENSE ANALYSES. FISCAL YEAR 10/01/2008/ THRU 9/30/2013

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $462.8 million.

What is the period of performance?

Start: 2005-08-01. End: 2013-09-30.

What specific services were procured under 'All Other Professional, Scientific, and Technical Services' to justify a sole-source award of this magnitude?

The specific services procured under this broad category are not detailed in the provided data. Typically, this classification encompasses a wide range of specialized scientific, technical, and professional support not covered by more specific NAICS codes. Justification for a sole-source award would likely involve unique capabilities, proprietary knowledge, or critical national security requirements possessed exclusively by the contractor, Institute for Defense Analyses.

How was the fixed fee determined, and what mechanisms were in place to ensure it represented fair market value without competition?

The determination of the fixed fee would typically involve detailed cost proposals from the contractor, followed by negotiation with the contracting agency. Without competition, the government relies heavily on its ability to audit costs and negotiate a reasonable profit margin. Mechanisms might include historical cost data, industry standards for similar services, and robust cost analysis by the Defense Contract Management Agency to validate the contractor's proposed costs.

What was the process for evaluating the ongoing necessity and performance of the Institute for Defense Analyses' services throughout the nearly 8-year contract period?

Oversight throughout the contract's duration would involve regular performance reviews, milestone tracking, and potentially periodic re-evaluations of the contract's necessity and scope. The contracting officer and technical monitors would be responsible for ensuring the contractor met performance standards and that the services remained aligned with evolving DoD requirements. However, the long duration and sole-source nature could reduce the impetus for proactive re-evaluation compared to a competitive contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4850 MARK CENTER DRIVE, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,789,636,975

Exercised Options: $462,839,271

Current Obligation: $462,839,271

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline