Department of Defense awards $186M contract for professional, scientific, and technical services to Institute for Defense Analyses

Contract Overview

Contract Amount: $186,276,408 ($186.3M)

Contractor: Institute for Defense Analyses

Awarding Agency: Department of Defense

Start Date: 2012-03-21

End Date: 2015-09-30

Contract Duration: 1,288 days

Daily Burn Rate: $144.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: H9126820450003000

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $186.3 million to INSTITUTE FOR DEFENSE ANALYSES for work described as: H9126820450003000 Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost efficiencies. 2. Long contract duration (1288 days) suggests a sustained need for specialized services. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns if not closely monitored. 4. Services provided are broad, encompassing 'All Other Professional, Scientific, and Technical Services,' making specific performance metrics crucial. 5. The contract's value is substantial, requiring robust oversight to ensure taxpayer value. 6. No indication of small business participation or set-asides, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The contract value of $186 million over approximately 3.5 years is significant. Without comparable contract data for similar broad professional services, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee structure, while allowing for flexibility, can lead to higher costs if not managed diligently. Benchmarking against industry standards for 'All Other Professional, Scientific, and Technical Services' would be necessary to determine if the pricing is competitive.

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 limits the opportunity for multiple vendors to bid, which typically drives down prices and fosters innovation. The rationale for a sole-source award needs to be clearly documented to ensure it was justified and that the public interest was served.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as competition is a key driver of cost savings.

Public Impact

The primary beneficiary is the Department of Defense, receiving specialized analytical and technical support. Services likely include research, analysis, and advisory support across various defense initiatives. The geographic impact is centered around Washington Headquarters Services, indicating a focus on national-level defense operations. Workforce implications are likely within the highly specialized scientific and technical fields, supporting government research and policy development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contract type carries inherent risk of cost escalation.
Broad service description makes performance monitoring and evaluation more complex.
Sole-source award requires strong justification to ensure fair value.

Positive Signals

Institute for Defense Analyses is a reputable organization with a history of providing defense-related research and analysis.
Long-term contract suggests a recognized and ongoing need for the contractor's expertise.
Definitive contract type provides a framework for services over a defined period.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is broad and encompasses a wide range of specialized support functions. The market for these services is diverse, with many firms offering expertise in areas like research, development, consulting, and technical assistance. The Department of Defense is a major consumer of such services, often requiring highly specialized knowledge and security clearances. This contract fits within the broader trend of government agencies outsourcing complex analytical and technical tasks to specialized entities.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss=false, sb=false). The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless specifically included by the prime. This could mean missed opportunities for small business growth and innovation within the defense sector.

Oversight & Accountability

Oversight for this contract would fall under Washington Headquarters Services within the Department of Defense. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are essential to ensure costs remain controlled and deliverables are met. Transparency would depend on the agency's reporting practices and the availability of contract performance reports. 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
Washington Headquarters Services Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Cost-plus-fixed-fee contract type carries risk of cost escalation.
Broad service description may complicate performance monitoring.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $186.3 million to INSTITUTE FOR DEFENSE ANALYSES. H9126820450003000

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $186.3 million.

What is the period of performance?

Start: 2012-03-21. End: 2015-09-30.

What is the historical spending pattern for the Institute for Defense Analyses with the Department of Defense?

Analyzing the historical spending patterns for the Institute for Defense Analyses (IDA) with the Department of Defense is crucial for understanding the scale and consistency of their engagement. While this specific contract (H9126820450003000) represents a significant award of $186.3 million, it's important to view it within the broader context of IDA's overall relationship with the DoD. IDA, as a federally funded research and development center (FFRDC), often holds multiple, long-term contracts and grants. Historical data would reveal if IDA consistently receives large-value contracts, if their services are concentrated in specific DoD agencies or program areas, and whether the types of contracts (e.g., cost-plus, fixed-price) have remained consistent. Understanding these patterns can help assess the contractor's established role, the agency's reliance on their expertise, and potential trends in spending that might indicate increasing or decreasing investment in the services IDA provides. Without access to comprehensive historical contract databases, a precise analysis is limited, but the nature of IDA as an FFRDC suggests a deep and ongoing partnership with the DoD.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry benchmarks for similar services?

The Cost Plus Fixed Fee (CPFF) pricing structure used in this $186.3 million Department of Defense contract with the Institute for Defense Analyses (IDA) is common for research and development or complex services where the scope may evolve. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While this structure offers flexibility, it can incentivize cost increases if not tightly managed, as the contractor's fee remains constant regardless of the final cost. Benchmarking CPFF contracts requires comparing the fixed fee percentage and the overall cost efficiency against similar services provided by other organizations. For 'All Other Professional, Scientific, and Technical Services,' industry benchmarks for the fee percentage typically range from 7% to 15% of the estimated cost. Without knowing the estimated cost and the fixed fee amount for this specific contract, a direct comparison is difficult. However, the substantial value suggests that robust cost controls and oversight are paramount to ensure that the final cost to the government is reasonable and reflects good value for the specialized services rendered by IDA.

What are the specific performance metrics and deliverables associated with this contract?

The performance metrics and deliverables for this $186.3 million Department of Defense contract are critical for assessing the value and effectiveness of the services provided by the Institute for Defense Analyses (IDA). Given the broad classification of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990), the contract likely includes a detailed statement of work (SOW) outlining specific tasks, milestones, and expected outcomes. These could range from analytical reports, research findings, policy recommendations, technical assessments, to advisory support for various defense initiatives. Performance would typically be evaluated based on timeliness, quality of work, adherence to scope, and achievement of defined objectives. The CPFF structure necessitates clear metrics to ensure the fixed fee is earned through satisfactory performance. Without access to the SOW and contract performance reports, it's challenging to detail the exact metrics, but effective oversight would rely on measurable and verifiable deliverables that align with the DoD's strategic goals and requirements.

What is the justification for the sole-source award, and were alternatives considered?

The justification for a sole-source award, as indicated for this $186.3 million Department of Defense contract to the Institute for Defense Analyses (IDA), is a critical aspect of procurement transparency and accountability. Sole-source awards are typically granted when only one responsible source can provide the required supplies or services, often due to unique capabilities, specialized knowledge, or urgent needs. For an organization like IDA, which operates as a Federally Funded Research and Development Center (FFRDC), the justification might stem from its established expertise, objectivity, and unique relationship with the government, making it the only entity capable of fulfilling specific, complex defense analysis requirements. However, regulations generally require agencies to explore alternatives and document why other sources were not considered suitable. The specific justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC) would detail the rationale, the market research conducted, and why competition was not feasible or in the government's best interest. Without access to this specific documentation, the precise reasons remain unconfirmed.

What is the potential impact of this contract on the broader defense research and analysis market?

This $186.3 million Department of Defense contract awarded to the Institute for Defense Analyses (IDA) has several potential impacts on the broader defense research and analysis market. Firstly, its sole-source nature means that a significant portion of funding and work in this domain is directed to a single entity, potentially limiting opportunities for other research organizations and think tanks that might compete for similar work. Secondly, the substantial value and long duration suggest a sustained demand for IDA's specialized analytical capabilities, reinforcing its position as a key player. This could influence market dynamics by setting expectations for the type and scale of support the DoD seeks. Conversely, it might also signal areas where the DoD perceives a gap in capabilities among other potential contractors, thereby shaping future market development. The contract's focus on 'All Other Professional, Scientific, and Technical Services' indicates a broad scope, potentially encompassing areas that other firms also serve, making the lack of competition particularly noteworthy.

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: $186,276,408

Exercised Options: $186,276,408

Current Obligation: $186,276,408

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline