Department of Defense awarded $157.5M to Institute for Defense Analyses for professional, scientific, and technical services

Contract Overview

Contract Amount: $157,450,112 ($157.5M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2011-09-07

End Date: 2013-09-30

Contract Duration: 754 days

Daily Burn Rate: $208.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HQ004212200001000

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $157.5 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: HQ004212200001000 Key points: 1. Contract value of $157.5M over 754 days suggests a significant investment in specialized services. 2. The 'All Other Professional, Scientific, and Technical Services' category is broad, indicating diverse support needs. 3. Awarded as 'Not Available for Competition,' this contract raises questions about the justification for limited sourcing. 4. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost overruns if not closely managed. 5. Performance period of approximately two years requires ongoing monitoring to ensure value delivery. 6. The contractor, Institute for Defense Analyses, is a well-established entity in defense research and analysis. 7. The contract's value places it in the upper tier for professional services within the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this $157.5M contract is challenging without specific service details. However, the duration of 754 days (approx. 2 years) suggests a substantial, ongoing need. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex R&D or services where costs are uncertain, carries inherent risks of cost escalation. Without comparable contracts for identical services, assessing true value-for-money is difficult, but the significant award amount implies critical support functions are being fulfilled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'Not Available for Competition,' indicating a sole-source or limited competition scenario. The specific justification for this approach is not provided but typically involves unique capabilities, urgent needs, or the unavailability of other sources. The lack of broad competition means potential savings from a wider bidding process were likely forgone, and the government may not have received the most competitive pricing.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government lacks the leverage of multiple bidders to drive down prices.

Public Impact

The Department of Defense benefits from specialized analytical and technical expertise to support its mission. Services likely encompass research, analysis, and technical consulting crucial for defense planning and operations. The geographic impact is primarily tied to the Department of Defense's operational footprint, likely nationwide or global. Workforce implications may involve highly skilled scientists, engineers, and analysts, potentially augmenting government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not rigorously managed.
Sole-source award limits competitive pressure, potentially resulting in less favorable pricing for the government.
The broad nature of 'All Other Professional, Scientific, and Technical Services' makes specific performance monitoring challenging without detailed task orders.
Lack of competition raises concerns about the government's ability to secure the best possible value.
The contract's significant value necessitates robust oversight to ensure funds are used effectively and efficiently.

Positive Signals

Institute for Defense Analyses is a reputable organization with a history of providing defense-related research and analysis.
The substantial contract value suggests a critical and ongoing need for the services provided.
The definitive contract award indicates a clear agreement on terms and scope for the service period.
The contract duration of over two years allows for sustained support and project continuity.

Sector Analysis

The professional, scientific, and technical services sector is a vast and critical component of government contracting. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which encompasses a wide array of specialized support. The Department of Defense is a major consumer of these services, utilizing them for research, development, analysis, and program management. Comparable spending in this sector for defense agencies often runs into billions annually, reflecting the diverse and complex needs of national security.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were mandated or actively sought through a competitive process. This limits the direct impact on the small business ecosystem for this specific contract, although the prime contractor may engage small businesses independently.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of the Army and the Department of Defense. Given the Cost Plus Fixed Fee structure and sole-source nature, rigorous oversight is crucial. This includes detailed review of incurred costs, justification of fixed fees, monitoring of performance against objectives, and ensuring compliance with contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Professional and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Broad service category ('All Other...') requires careful task order management and oversight.
Lack of transparency regarding the justification for 'Not Available for Competition'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $157.5 million to INSTITUTE FOR DEFENSE ANALYSES. HQ004212200001000

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $157.5 million.

What is the period of performance?

Start: 2011-09-07. End: 2013-09-30.

What specific services were rendered under this contract, and how were they critical to the Department of Defense's mission?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the specific services are not detailed in the provided data, this category typically includes activities such as research and development in the social sciences and humanities, research and development in nanotechnology, research and development in biotechnology (except medical and pharmaceutical), consumer market research, and general business consulting. For the Department of Defense, these services could range from strategic analysis and policy development to technical assessments of emerging technologies, operational research, or program management support. The criticality would depend on the specific tasks performed, but generally, such services aim to enhance decision-making, improve operational effectiveness, and advance technological capabilities for national security.

What is the typical cost structure and risk profile associated with Cost Plus Fixed Fee (CPFF) contracts in the defense sector?

Cost Plus Fixed Fee (CPFF) contracts are common in the defense sector, particularly for research, development, and complex services where the scope or cost is uncertain at the outset. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred plus a predetermined fixed fee, which represents the contractor's profit. The primary risk for the government is cost overrun; if costs exceed projections, the government still pays the actual costs plus the fixed fee. The contractor's incentive is to control costs to maximize their profit margin, as the fee is fixed. However, the government bears the risk of cost uncertainty. Effective oversight, detailed cost accounting, and clear performance metrics are essential to mitigate these risks and ensure value for money.

What are the implications of awarding a contract as 'Not Available for Competition' for price discovery and taxpayer value?

Awarding a contract as 'Not Available for Competition' (often referred to as sole-source) means that the government did not conduct a full and open competition among multiple potential bidders. This typically occurs when only one source is capable of meeting the requirement, or in cases of urgent need or national security. The primary implication for price discovery is the absence of competitive pressure. Without multiple bids, the government loses the opportunity to leverage market forces to obtain the lowest possible price. This can lead to higher costs for taxpayers, as the contractor may not feel compelled to offer their most competitive rates. While sole-source awards are sometimes necessary, they require strong justification and rigorous negotiation to ensure the government receives fair value.

How does the Institute for Defense Analyses (IDA) typically perform on contracts, and what is their track record with the Department of Defense?

The Institute for Defense Analyses (IDA) is a federally funded research and development center (FFRDC) that operates under the sponsorship of the Department of Defense. IDA has a long-standing reputation for providing objective, rigorous analysis and advice to the government, particularly on complex national security issues. Their track record with the DoD is extensive, involving numerous studies, analyses, and technical support across various defense domains. As an FFRDC, IDA is expected to maintain high standards of quality, independence, and technical expertise. While specific performance metrics for individual contracts are not publicly available, IDA's continued engagement and significant funding from the DoD suggest a generally positive and valued performance history.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' by the Department of the Army?

Historical spending by the Department of the Army (and the broader Department of Defense) on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) is substantial, reflecting the diverse analytical and support needs of the military. While precise figures fluctuate annually based on strategic priorities and budget allocations, this category consistently represents a significant portion of the services acquisition budget. Spending often increases during periods of heightened geopolitical activity or when the military is investing in new technologies or strategic planning initiatives. Analyzing trends requires access to detailed historical contract databases, but it's evident that the Army relies heavily on external expertise in this broad service area to supplement its organic capabilities and address specialized requirements.

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,250,698,648

Exercised Options: $1,250,698,648

Current Obligation: $157,450,112

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline