DoD's $328M RAND FFRDC Contract for Technical Services: A Decade of Sole-Source Award
Contract Overview
Contract Amount: $328,233,612 ($328.2M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2005-12-09
End Date: 2015-11-25
Contract Duration: 3,638 days
Daily Burn Rate: $90.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FFRDC RAND ARROYO
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $328.2 million to THE RAND CORPORATION for work described as: FFRDC RAND ARROYO Key points: 1. Significant long-term investment in a single FFRDC provider. 2. Lack of competition raises questions about optimal pricing and innovation. 3. Potential for vendor lock-in and limited market exploration. 4. Focus on specialized technical services within the defense sector.
Value Assessment
Rating: questionable
The contract's value is substantial, spanning a decade. Without competitive bidding, it's difficult to assess if the pricing reflects market rates or if alternative, more cost-effective solutions were overlooked. Benchmarking against similar FFRDC contracts would be necessary for a true valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a deliberate choice to engage RAND FFRDC without seeking bids from other qualified entities. This approach bypasses the price discovery mechanisms inherent in competitive procurement, potentially leading to higher costs.
Taxpayer Impact: The sole-source nature of this large contract means taxpayers may not be receiving the best possible value, as competitive pressures that drive down costs are absent.
Public Impact
Long-term reliance on a single entity for critical research and analysis. Potential impact on the diversity of thought and approaches to defense challenges. Questions about the agility and responsiveness of a decade-long, sole-source relationship.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration may reduce flexibility.
- Lack of transparency in pricing without competition.
Positive Signals
- Established relationship with a known FFRDC.
- Consistent provider for specialized services.
Sector Analysis
This contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code, a broad category often encompassing specialized research and analysis. The spending benchmark for this sector can vary widely, but a decade-long, sole-source contract of this magnitude warrants scrutiny.
Small Business Impact
This contract does not appear to have specific provisions for small business participation, given its sole-source nature and FFRDC designation. The focus is on a large, established research institution rather than fostering competition among smaller firms.
Oversight & Accountability
The long duration and sole-source nature of this contract suggest a need for robust oversight to ensure continued value and alignment with evolving defense needs. Periodic reviews of performance and necessity would be crucial.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Long contract duration
- Potential for vendor lock-in
- Limited transparency on value for money
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $328.2 million to THE RAND CORPORATION. FFRDC RAND ARROYO
Who is the contractor on this award?
The obligated recipient is THE RAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $328.2 million.
What is the period of performance?
Start: 2005-12-09. End: 2015-11-25.
What specific capabilities does RAND FFRDC provide that are unique and justify a sole-source award over a decade?
RAND FFRDC is a Federally Funded Research and Development Center known for its deep expertise in national security, policy analysis, and systems engineering. Its unique value proposition often lies in its long-term, objective research capabilities, access to sensitive data, and established trust with government agencies, which can be difficult to replicate through competitive bidding for highly specialized, long-term needs.
How has the absence of competition impacted the cost-effectiveness of this contract over its 10-year duration?
Without competitive bidding, it's challenging to definitively assess cost-effectiveness. While RAND FFRDC may offer significant value, the lack of market comparison means potential savings or more innovative, lower-cost solutions might have been missed. The government relies on internal oversight and negotiation to manage costs in sole-source arrangements.
What mechanisms are in place to ensure the continued relevance and effectiveness of RAND FFRDC's services for the Department of the Army?
Typically, FFRDC contracts include regular performance reviews, milestone-based payments, and defined deliverables. For a sole-source contract, the government agency must actively manage the relationship, ensuring that the FFRDC's work remains aligned with evolving strategic priorities and that the services provided continue to meet the highest standards of quality and impact.
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: W74V8H05R0049
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1776 MAIN ST, SANTA MONICA, CA, 90401
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $329,108,984
Exercised Options: $329,108,984
Current Obligation: $328,233,612
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-12-09
Current End Date: 2015-11-25
Potential End Date: 2015-11-25 00:00:00
Last Modified: 2021-01-27
More Contracts from THE Rand Corporation
- 200610!000022!5700!fa7014!air Force DST of Washington !FA701406C0001 !A!N! !Y! !p00002!20051202!20100930!006914071!006914071!006914071!n!rand Corporation !1776 Main ST !santa Monica !ca!90401!70000!037!06!santa Monica !LOS Angeles !california!+000000500000!n!n!000000000000!az16!rdte/Other Research & Development-Mgmt Support !S1 !services !000 !NOT Discernable !541710!E! !3! ! !C! ! !99990909!B! ! !n!z!d!n!u!1!001!n!3a!z!n!z! ! !N!Z!N! ! ! ! ! !a!a!000!a!b!n! ! ! !y!5700!f1af1k!0001! ! — $466.8M (Department of Defense)
- Ffrdc Rand Ndri — $307.5M (Department of Defense)
- Project: AT&L 12-408 — $225.6M (Department of Defense)
- National Defense Research Institute Federally Funded Research and Development Center Operated by the Rand Corporation - FY16-20 Task Order 0001 — $192.3M (Department of Defense)
- Rand National Defense Research Institute Federally Funded Research and Development Center Research and Studies — $77.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)