DoD's $307.5M RAND FFRDC Contract: All Other Professional Services Lacked Competition
Contract Overview
Contract Amount: $307,540,447 ($307.5M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2005-12-05
End Date: 2016-05-30
Contract Duration: 3,829 days
Daily Burn Rate: $80.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FFRDC RAND NDRI
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $307.5 million to THE RAND CORPORATION for work described as: FFRDC RAND NDRI Key points: 1. Significant spending on 'All Other Professional, Scientific, and Technical Services' ($307.5M) raises questions about category definition. 2. The contract was not competed, indicating a lack of market research or a specific justification for sole-sourcing. 3. RAND Corporation, a Federally Funded Research and Development Center (FFRDC), is the sole awardee, suggesting a unique capability or relationship. 4. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed tightly.
Value Assessment
Rating: questionable
The $307.5M award value is substantial for a 'not competed' contract in a broad service category. Benchmarking is difficult without clearer service definitions and competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED' and awarded as a 'DEFINITIVE CONTRACT' to RAND Corporation. This sole-source approach limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are committed without exploring potentially more cost-effective solutions through competition.
Public Impact
Lack of competition may mean taxpayers are not getting the best value for these professional services. The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to assess the specific value and necessity of the work performed. FFRDCs are intended to provide objective advice; however, sole-source contracts can raise concerns about potential bias or lack of external validation. Long contract duration (2005-2016) suggests ongoing reliance on this specific provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Broad service category
- Cost-plus contract type
Positive Signals
- Award to FFRDC implies specialized, high-level expertise
- Long-term relationship suggests consistent need and performance
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Spending benchmarks are difficult to establish due to the 'All Other' classification and lack of competition, but FFRDC contracts are typically substantial.
Small Business Impact
The data indicates no small business participation (ss: false, sb: false). This contract likely involves large-scale, specialized services not typically subcontracted to small businesses.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-sourcing was robust and that the contract terms provided adequate value and accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of Competition
- Broad Service Category
- Potential for Cost Overruns (CPFF)
- Limited Transparency on Specific Services
- No Small Business Participation
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 $307.5 million to THE RAND CORPORATION. FFRDC RAND NDRI
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 $307.5 million.
What is the period of performance?
Start: 2005-12-05. End: 2016-05-30.
What specific services were procured under 'All Other Professional, Scientific, and Technical Services' to justify a $307.5M sole-source award?
The contract details do not specify the exact services. 'All Other Professional, Scientific, and Technical Services' is a broad NAICS code (541990) encompassing a wide range of activities. Without further documentation, it's impossible to determine the specific nature of the work performed for the Department of the Army by RAND Corporation under this large, non-competed contract.
What risks are associated with a sole-source, cost-plus fixed fee contract for FFRDC services?
Sole-source contracts eliminate competitive pressure, potentially leading to higher prices and reduced innovation. Cost-plus fixed fee contracts can incentivize contractors to increase costs to maximize their fee, especially if the fixed fee is a percentage of costs. This combination requires stringent oversight to ensure cost control and value for taxpayer money.
How effective was this contract in meeting the Department of the Army's needs given the lack of competition?
Effectiveness cannot be definitively assessed without knowing the specific outcomes and deliverables. However, the lack of competition raises concerns about whether alternative, potentially more cost-effective solutions were overlooked. The long duration suggests a sustained need, but the absence of competitive benchmarking makes it difficult to gauge optimal performance and value.
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: W74V8H05R0050
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: $309,969,532
Exercised Options: $309,969,532
Current Obligation: $307,540,447
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-12-05
Current End Date: 2016-05-30
Potential End Date: 2016-05-30 00:00:00
Last Modified: 2021-02-03
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 Arroyo — $328.2M (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)