DoD's $424.5M Contract with Institute for Defense Analyses Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $424,533,192 ($424.5M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2008-10-28

End Date: 2014-03-31

Contract Duration: 1,980 days

Daily Burn Rate: $214.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: H91268-8262-0001-000

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $424.5 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: H91268-8262-0001-000 Key points: 1. Significant spending of $424.5M on 'All Other Professional, Scientific, and Technical Services'. 2. Lack of competition raises concerns about price discovery and potential overpayment. 3. Long contract duration (1980 days) may indicate a need for ongoing, specialized support. 4. The 'VA' contract type suggests a focus on value, but the lack of competition limits benchmarking.

Value Assessment

Rating: questionable

The contract value of $424.5M is substantial. Without a competitive bidding process, it is difficult to assess if this represents fair market value or if taxpayers received the best possible price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to leverage market forces to achieve lower prices and potentially better terms.

Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about potential overspending and the efficient use of taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long duration of the contract could mean sustained, but potentially unoptimized, spending. Lack of transparency in the sole-source award process can erode public trust in government procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Long contract duration
Lack of clear justification for sole-source

Positive Signals

Contract awarded to a specialized entity (IDA)
Potential for unique expertise

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Benchmarking is difficult without knowing the specific services, but large sole-source contracts in this area often warrant close examination for efficiency.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this large contract necessitates robust oversight to ensure the government is receiving adequate value and that the justification for non-competition remains valid throughout the contract's life.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated costs
Limited transparency
No small business participation evident
Long contract duration without clear performance benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $424.5 million to INSTITUTE FOR DEFENSE ANALYSES. H91268-8262-0001-000

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 $424.5 million.

What is the period of performance?

Start: 2008-10-28. End: 2014-03-31.

What specific technical services were provided under this contract, and why was a sole-source award deemed necessary?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' The specific services are not detailed in the provided data. A sole-source award typically requires a justification demonstrating that only one responsible source can provide the required services, often due to unique capabilities, urgency, or national security concerns. Without this justification, the necessity remains unclear.

How was the fixed fee determined in this Cost Plus Fixed Fee (CPFF) contract to ensure fair pricing?

For CPFF contracts, the fixed fee is negotiated separately from the estimated cost. The government aims to set a fee that is fair and reasonable, incentivizing the contractor to control costs while ensuring adequate profit for the work performed. However, without competition, the negotiation process is critical, and the government must rely heavily on its own cost analysis and market research to validate the fee.

What mechanisms were in place to ensure the effectiveness and efficiency of the Institute for Defense Analyses' work over the contract's nearly 6-year duration?

Effectiveness and efficiency in CPFF contracts are typically managed through performance metrics, regular progress reviews, and milestone achievements. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring performance. However, the lack of competitive pressure means that the contractor may have less incentive to innovate or find cost savings beyond what is contractually required.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,086,213,042

Exercised Options: $1,086,213,042

Current Obligation: $424,533,192

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline