RAND Corporation awarded $31.1M in FY22 for 'All Other Professional, Scientific, and Technical Services' by the Department of the Army

Contract Overview

Contract Amount: $31,087,000 ($31.1M)

Contractor: THE Rand Corporation

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2023-10-01

Contract Duration: 365 days

Daily Burn Rate: $85.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CORE WORK FY22

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to THE RAND CORPORATION for work described as: CORE WORK FY22 Key points: 1. Contract value represents a significant investment in specialized research and analysis. 2. Sole-source award suggests unique capabilities or a lack of readily available alternatives. 3. Performance period of one year indicates a focused scope of work. 4. The RAND Corporation is a well-established research institution with a history of government contracts. 5. The contract falls under a broad professional services category, making direct comparisons challenging. 6. The absence of competition may limit price discovery and potentially increase costs.

Value Assessment

Rating: fair

The contract value of $31.1 million for a one-year period for 'All Other Professional, Scientific, and Technical Services' is substantial. Benchmarking this specific award is difficult due to its broad NAICS code and sole-source nature. However, RAND Corporation's extensive experience and established reputation in providing similar analytical services to the government suggest a baseline level of expected value. Without competitive bids, it's challenging to definitively assess if the pricing is optimal compared to market rates for comparable, competed services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities, proprietary information, or is the only responsible source capable of meeting the government's needs. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or offered a wider range of technical solutions.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government relied on its assessment of fair and reasonable pricing without the benefit of market-driven alternatives.

Public Impact

The Department of the Army benefits from specialized research and analytical support. Services provided likely inform strategic decision-making, policy development, or operational planning. The geographic impact is primarily national, supporting federal government functions. Workforce implications are concentrated within the RAND Corporation's research staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other qualified firms.
Lack of competition may lead to higher costs than a competed contract.
Broad service category makes it difficult to assess specific performance metrics.

Positive Signals

Award to RAND Corporation leverages a highly reputable and experienced research institution.
The contract supports critical government functions requiring specialized expertise.
Clear performance period provides a defined timeframe for deliverables.

Sector Analysis

The professional, scientific, and technical services sector is vast, encompassing a wide array of specialized expertise. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a catch-all category. The RAND Corporation is a prominent player in this space, particularly in defense and national security research. Comparable spending in this broad category across the federal government is substantial, but specific benchmarks for sole-source awards of this nature are difficult to establish without more granular data on the services rendered.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The focus is on a large, established research organization, rather than fostering opportunities for smaller, specialized firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the broad classification of services. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Research and Development
Professional and Technical Services Contracts
RAND Corporation Federal Contracts
Sole Source Procurement

Risk Flags

Sole-source award
Broad NAICS code limits specificity
Cost-reimbursable contract type requires strong oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to THE RAND CORPORATION. CORE WORK FY22

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 $31.1 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-10-01.

What specific services does the RAND Corporation provide under this $31.1M contract?

The contract specifies 'All Other Professional, Scientific, and Technical Services' under NAICS code 541990. While the specific deliverables are not detailed in the provided data, the RAND Corporation is known for conducting research, analysis, and policy recommendations across a wide spectrum of national security, public policy, and science and technology issues. Given the Department of the Army as the awarding agency, these services likely involve in-depth studies, strategic assessments, threat analyses, or evaluations of military programs and policies. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that RAND will be reimbursed for its allowable costs plus a negotiated fixed fee representing profit. The exact nature of the 'CORE WORK FY22' would be detailed in the contract's statement of work, which is not publicly available in this dataset.

How does the $31.1M contract value compare to RAND Corporation's historical federal contract awards?

The $31.1 million awarded in FY22 represents a significant, but not unprecedented, contract value for the RAND Corporation. RAND consistently receives substantial funding from various federal agencies, particularly the Department of Defense, for its research and analysis services. Annual federal outlays to RAND often reach tens or hundreds of millions of dollars. This specific award falls within the typical range of large-scale research and development contracts RAND undertakes. To provide a precise comparison, one would need to analyze RAND's total federal contract obligations over several fiscal years, looking at the distribution of contract values and the agencies awarding them. However, this $31.1M award is indicative of RAND's ongoing role as a primary contractor for complex analytical tasks.

What are the risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $31.1 million is the potential for reduced value for money. Without competition, the government foregoes the opportunity to solicit bids from multiple contractors, which typically drives down prices and encourages innovation. This can lead to paying a premium for the services. Another risk is the potential for contractor complacency, as there is less pressure to perform exceptionally when there are no competitors vying for future work. Furthermore, a sole-source award can create a perception of favoritism or a lack of transparency, even if the award is justified. Ensuring fair and reasonable pricing and rigorous oversight becomes even more critical in sole-source situations to mitigate these risks.

How effective is the 'Cost Plus Fixed Fee' (CPFF) contract type for research and development services like those provided by RAND?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development (R&D) and complex services where the scope of work is not precisely defined at the outset, or where innovation and exploration are key. It allows the contractor to be reimbursed for all allowable costs incurred, plus a predetermined fixed fee that represents the contractor's profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. For R&D, it provides flexibility for the contractor to pursue necessary avenues of investigation without being penalized for unforeseen expenses. However, it places a significant burden on the government to accurately estimate costs and effectively monitor expenditures to ensure reasonableness and prevent cost overruns beyond the anticipated scope.

What is the significance of the $851,700 'br' value mentioned in the data?

The 'br' value, listed as 851700, likely represents the 'Base Year' cost or value associated with the contract. In a Cost Plus Fixed Fee (CPFF) contract structure, the total contract value is often composed of a base period and potential option periods. This $851,700 figure could represent the estimated cost plus the fixed fee for the initial base year of performance, which runs from October 1, 2022, to October 1, 2023. The total contract value of $31.1 million would then encompass this base year amount plus any additional costs and fees allocated for potential future option periods or task orders that might be exercised under the contract's authority, although the provided data indicates a 365-day duration, suggesting this might be the full value for the single year.

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: W91CRB21R0047

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: $34,693,003

Exercised Options: $34,693,003

Current Obligation: $31,087,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D0025

IDV Type: IDC

Timeline