DoD Awards $35.3M Cost-Plus Contract to RAND Corp for Technical Services
Contract Overview
Contract Amount: $35,312,275 ($35.3M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2023-11-02
End Date: 2026-05-09
Contract Duration: 919 days
Daily Burn Rate: $38.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CORE WORK - BASIC ORDERING PERIOD
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $35.3 million to THE RAND CORPORATION for work described as: CORE WORK - BASIC ORDERING PERIOD Key points: 1. Contract awarded to a single, well-known research organization. 2. Focus on professional, scientific, and technical services. 3. Long duration suggests ongoing or complex support needs. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not carefully managed. Benchmarking is difficult without specific deliverables and comparable contracts for similar research services.
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 potentially reduces competitive pressure to achieve the best value for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a competitively awarded contract.
Public Impact
Citizens may question the lack of competition for a significant contract. Transparency regarding the specific services and outcomes is important for public trust. The long contract duration raises questions about sustained need and potential for future competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- No small business participation
Positive Signals
- Award to a reputable research institution
- Clear contract end date
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Spending in this sector can vary widely depending on agency needs, but a $35.3M award for a single order is substantial.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could be a point of concern for federal contracting goals.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the services provided align with the Department of Defense's needs.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to suboptimal pricing.
- Cost-plus contracts carry inherent risk of cost overruns.
- Absence of small business involvement.
- Broad service category lacks specificity, potentially obscuring true value.
- Long contract duration could indicate a lack of flexibility or planning.
Tags
all-other-professional-scientific-and-te, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.3 million to THE RAND CORPORATION. CORE WORK - BASIC ORDERING PERIOD
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 $35.3 million.
What is the period of performance?
Start: 2023-11-02. End: 2026-05-09.
What specific technical services are being procured under this contract, and how do they align with the Department of the Army's strategic objectives?
The contract is for 'All Other Professional, Scientific, and Technical Services.' Without further details on the specific tasks, it's difficult to assess alignment. However, RAND Corporation's expertise typically lies in research, analysis, and policy development, suggesting the services likely involve complex problem-solving and strategic advice for the Department of Defense.
Given the sole-source nature, what justification was provided for not competing this requirement, and how was the fixed fee determined?
Sole-source awards typically require a justification, such as unique capabilities or urgency. The justification for this contract is not provided. The fixed fee in a Cost Plus Fixed Fee contract is negotiated upfront and represents the contractor's profit, intended to incentivize efficiency while covering overhead.
What mechanisms are in place to ensure the value received for the $35.3 million expenditure, especially considering the cost-plus nature of the contract?
Value is typically ensured through detailed performance metrics, regular reporting requirements, and government oversight. For cost-plus contracts, the government must diligently track costs and ensure they are reasonable and allocable to the contract. The fixed fee provides a ceiling on profit, but overall cost control remains a key oversight function.
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: $37,078,000
Exercised Options: $37,078,000
Current Obligation: $35,312,275
Actual Outlays: $4,883,773
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
Start Date: 2023-11-02
Current End Date: 2026-05-09
Potential End Date: 2026-05-09 00:00:00
Last Modified: 2025-03-06
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