The Department of Commerce awarded The MITRE Corporation $16.9M for advisory support, a sole-source contract

Contract Overview

Contract Amount: $16,930,568 ($16.9M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Commerce

Start Date: 2023-08-24

End Date: 2026-08-23

Contract Duration: 1,095 days

Daily Burn Rate: $15.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ADVISORY SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $16.9 million to THE MITRE CORPORATION for work described as: ADVISORY SUPPORT Key points: 1. The contract's value of $16.9M for advisory support over three years warrants scrutiny for cost-effectiveness. 2. As a sole-source award, the lack of competition raises concerns about potential overpricing and limited innovation. 3. The 'cost plus fixed fee' pricing structure can incentivize cost overruns, requiring robust oversight. 4. The duration of 1095 days suggests a long-term need for these advisory services. 5. The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. The absence of small business set-aside indicates limited direct opportunities for smaller firms in this specific award.

Value Assessment

Rating: questionable

Benchmarking this $16.9M contract for advisory support is challenging due to its sole-source nature and the broad service category. Without competitive bids, it's difficult to assess if the pricing reflects fair market value. The 'cost plus fixed fee' structure, while common for complex services, carries inherent risks of cost escalation. Compared to similar sole-source advisory contracts, the price appears substantial, necessitating a detailed review of the justification for the lack of competition and the specific deliverables to ensure value for money.

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 among multiple vendors. The justification for this approach is not provided but typically implies that only one vendor was deemed capable of meeting the requirement. The lack of competition means there was no direct price discovery through bidding, potentially leading to higher costs for the government than if multiple firms had competed.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs. The government did not leverage the market's full potential to secure the best possible price and service.

Public Impact

The primary beneficiary is the Department of Commerce's Office of the Secretary, receiving advisory support. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' likely encompassing strategic guidance, analysis, and technical consulting. The geographic impact is centered in the District of Columbia, where the Department of Commerce is headquartered. Workforce implications are primarily internal to The MITRE Corporation, though the advisory services may influence departmental strategies and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive opportunities and potentially increases costs.
Cost-plus-fixed-fee contract type can incentivize higher spending if not tightly managed.
Broad service category makes specific performance and value assessment more difficult.
Lack of small business participation in this specific award.

Positive Signals

The MITRE Corporation is a well-established organization with a history of government contracting.
The contract duration suggests a sustained need for the advisory services.
The award is for advisory support, which can be critical for strategic decision-making.

Sector Analysis

The professional, scientific, and technical services sector is vast, encompassing a wide range of expertise. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a catch-all for services not classified elsewhere. The market for such services is highly competitive, but sole-source awards bypass this dynamic. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the advisory support, but large federal contracts in this sector often range from millions to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. Consequently, there are no direct subcontracting requirements mandated for small businesses within this specific award. This means that opportunities for small businesses to participate in delivering these advisory services are limited unless The MITRE Corporation voluntarily includes them in its subcontracting plans, which is not a contractual obligation here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's contracting officers and program managers. The 'cost plus fixed fee' structure necessitates diligent monitoring of expenditures to ensure costs remain reasonable and aligned with the fixed fee. Transparency is dependent on the agency's reporting practices and the level of detail provided in contract performance reports. Inspector General jurisdiction would apply if any potential fraud, waste, or abuse is identified.

Related Government Programs

Department of Commerce Advisory Services
Professional and Technical Services Contracts
Sole-Source Federal Awards
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award lacks competitive transparency.
Cost-plus-fixed-fee structure carries risk of cost escalation.
Broad service category may obscure specific performance expectations.
Limited direct small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $16.9 million to THE MITRE CORPORATION. ADVISORY SUPPORT

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2023-08-24. End: 2026-08-23.

What is the specific nature of the 'advisory support' being provided by The MITRE Corporation to the Department of Commerce?

The provided data categorizes the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad classification. While the contract title is 'ADVISORY SUPPORT,' the specific deliverables, objectives, and areas of expertise are not detailed in the summary data. Typically, such advisory services could range from strategic planning, policy analysis, organizational effectiveness consulting, technology assessment, or program management support. Without further documentation, such as the contract statement of work (SOW) or performance work statement (PWS), the precise nature of the support remains undefined. This lack of specificity makes it challenging to assess the contract's true value and performance against defined goals.

What is the justification for awarding this contract on a sole-source basis to The MITRE Corporation?

The data indicates this contract was awarded as 'NOT COMPETED,' signifying a sole-source procurement. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. The MITRE Corporation, a federally funded research and development center (FFRDC), often performs work that requires unique capabilities or access. The specific justification for this sole-source award would typically be documented in a Justification for Other Than Full and Open Competition (JOFOC) filed with the government. Without access to this document, the precise rationale remains unknown, but it likely relates to MITRE's unique position or specialized expertise deemed essential by the Department of Commerce.

How does the 'cost plus fixed fee' (CPFF) contract type potentially impact the overall cost and risk for the government?

The 'cost plus fixed fee' (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or complex services where the scope is not precisely defined at the outset. For the government, the primary risk is that costs can exceed initial estimates, as the contractor is incentivized to incur costs to perform the work, while the fixed fee remains constant. Effective oversight, including rigorous cost monitoring and auditing, is crucial to manage this risk and ensure the government receives value. The fixed fee itself should be negotiated based on the anticipated effort and risk.

What is the historical spending pattern for advisory support services at the Department of Commerce, and how does this award compare?

The provided data only pertains to this single contract award of $16.9 million. To assess historical spending patterns, one would need to analyze the Department of Commerce's procurement history over several fiscal years, specifically looking for contracts categorized under similar NAICS codes (e.g., 541990) or with keywords like 'advisory,' 'consulting,' or 'support.' Without this broader dataset, it's impossible to determine if this $16.9 million award represents an increase, decrease, or is consistent with past spending levels for similar services. A comprehensive analysis would involve comparing the value, duration, and nature of this contract against a portfolio of previous awards to identify trends and anomalies.

What are the potential performance risks associated with this contract, given its broad service category and sole-source nature?

Performance risks for this contract are multifaceted. The broad 'All Other Professional, Scientific, and Technical Services' category means that the specific performance metrics and deliverables might be less clearly defined than in more specialized contracts, potentially leading to ambiguity in evaluating success. The sole-source nature removes the competitive pressure that often drives contractors to excel in performance to secure future work. Furthermore, the CPFF structure, while allowing flexibility, can sometimes lead to less focus on efficiency if oversight is not stringent. Key risks include potential scope creep, failure to meet undefined objectives, cost overruns due to lack of competitive efficiency, and challenges in holding the contractor accountable for specific outcomes without clearly delineated performance standards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $16,930,568

Exercised Options: $16,930,568

Current Obligation: $16,930,568

Actual Outlays: $12,654,430

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 1331L523D13OS0003

IDV Type: IDC

Timeline