MITRE Corporation awarded $3.4M for NCCOE IT Operations Support, a sole-source contract for R&D

Contract Overview

Contract Amount: $3,448,180 ($3.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Commerce

Start Date: 2019-09-30

End Date: 2020-09-29

Contract Duration: 365 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NCCOE FFRDC IT OPERATION SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $3.4 million to THE MITRE CORPORATION for work described as: NCCOE FFRDC IT OPERATION SUPPORT SERVICES Key points: 1. The contract leverages MITRE's established role as an FFRDC, ensuring specialized expertise for the National Cybersecurity Center of Excellence. 2. Pricing appears reasonable given the specialized nature of FFRDC support and the fixed-fee structure. 3. The sole-source award, while efficient, limits opportunities for broader market engagement and potential cost savings through competition. 4. Performance is tied to the critical mission of the NCCOE, focusing on cybersecurity research and development. 5. This contract positions MITRE as a key partner in advancing national cybersecurity initiatives. 6. The cost-plus-fixed-fee structure incentivizes efficient cost management within a defined scope.

Value Assessment

Rating: good

The contract value of $3.4 million for a one-year period is within a reasonable range for specialized IT operations support provided by a Federally Funded Research and Development Center (FFRDC). Given MITRE's unique position and expertise, direct cost comparisons to commercial contracts are difficult. However, the cost-plus-fixed-fee (CPFF) structure suggests that costs are monitored and a fixed fee provides a predictable profit margin for the contractor, which can be seen as a form of value control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source to The MITRE Corporation, leveraging its designation as a Federally Funded Research and Development Center (FFRDC). While this approach ensures access to specialized expertise and continuity of operations for the National Cybersecurity Center of Excellence (NCCOE), it bypasses the standard competitive bidding process. This means potential cost savings or innovative solutions that might arise from a broader competition were not explored.

Taxpayer Impact: For taxpayers, a sole-source award to an FFRDC means that the government is relying on a trusted, established entity. While this can ensure quality and mission alignment, it removes the downward price pressure that open competition typically provides.

Public Impact

The primary beneficiaries are the National Institute of Standards and Technology (NIST) and the broader cybersecurity community, which will benefit from the research and development facilitated by the NCCOE. Services delivered include IT operations support crucial for the functioning of the NCCOE, enabling its research and collaboration activities. The geographic impact is national, as the NCCOE's work on cybersecurity standards and best practices has wide-ranging implications. Workforce implications include the continued engagement of highly skilled technical personnel at MITRE, contributing to the nation's cybersecurity R&D capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Reliance on a single FFRDC may reduce opportunities for diverse technological approaches.
The CPFF contract type requires careful oversight to manage costs effectively.

Positive Signals

Leverages established expertise of MITRE as an FFRDC for critical cybersecurity R&D.
Ensures continuity of essential IT operations for the NCCOE.
Fixed fee provides a predictable profit margin, aiding in budget planning.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on IT operations supporting cybersecurity initiatives. The National Cybersecurity Center of Excellence (NCCOE) operates within a market characterized by rapid technological advancement and significant government investment in national security and economic resilience. Comparable spending benchmarks are difficult to establish due to the unique FFRDC model and the specialized nature of cybersecurity R&D support.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large FFRDC, the direct impact on the small business ecosystem is minimal, though MITRE may engage small businesses as subcontractors in ways not detailed here.

Oversight & Accountability

Oversight for this contract would typically reside with the National Institute of Standards and Technology (NIST), the contracting agency. As a sole-source award to an FFRDC, oversight likely focuses on performance against defined objectives and adherence to the cost-plus-fixed-fee structure. Transparency is generally high for FFRDC work, with reports and findings often made public, though specific operational details may be sensitive.

Related Government Programs

National Cybersecurity Center of Excellence (NCCOE) Operations
Federally Funded Research and Development Centers (FFRDCs)
Information Technology Support Services
Cybersecurity Research and Development

Risk Flags

Sole-source award
Cost-plus contract type requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.4 million to THE MITRE CORPORATION. NCCOE FFRDC IT OPERATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2019-09-30. End: 2020-09-29.

What is the track record of The MITRE Corporation in supporting FFRDC missions, particularly in cybersecurity?

The MITRE Corporation has a long and distinguished track record as a manager and operator of FFRDCs for the U.S. government. They manage several FFRDCs across various domains, including defense, cybersecurity, aviation, and healthcare. Their work in cybersecurity is particularly extensive, often involving research, development, and operational support for critical national infrastructure and government systems. MITRE's FFRDC role is characterized by objective analysis, technical expertise, and a commitment to public interest. Their involvement with the NCCOE specifically leverages this deep expertise to advance cybersecurity research and collaboration.

How does the pricing of this contract compare to similar IT support services, considering it's an FFRDC sole-source award?

Direct price comparison is challenging due to the unique nature of FFRDC contracts and sole-source awards. FFRDCs like MITRE are established to provide specialized, objective expertise that may not be readily available in the commercial market. The cost-plus-fixed-fee (CPFF) structure means that costs are reimbursed, plus a fixed fee representing profit. While this structure can lead to higher overall costs than a fixed-price commercial contract, it is often justified by the specialized knowledge, research capabilities, and independence required for the mission. The government's oversight and negotiation of the fee are key to ensuring value.

What are the primary risks associated with a sole-source award for critical IT operations support?

The primary risks associated with a sole-source award for critical IT operations support include a lack of competitive pressure, which can potentially lead to higher costs than might be achieved through open competition. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially stifling innovation or making it difficult to switch providers if performance issues arise. Furthermore, without a competitive process, there's a reduced opportunity to explore a wider range of technological solutions or service models that might be offered by other qualified vendors.

How effective is the CPFF contract type in managing costs for R&D support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development (R&D) services where the scope of work can be uncertain or evolve. It aims to balance cost control with flexibility. The government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee. This provides the contractor with an incentive to control costs, as the fee remains constant regardless of the final cost. However, effective management requires robust government oversight to ensure costs are reasonable and allocable to the contract. For R&D, where innovation is key, CPFF allows for necessary exploration without pre-defined cost ceilings that might stifle creativity.

What is the historical spending pattern for IT operations support at NIST or within the NCCOE program?

Historical spending data for IT operations support specifically at NIST or within the NCCOE program is not detailed in the provided snippet. However, the $3.45 million award for a 12-month period suggests a consistent level of investment in maintaining the operational infrastructure necessary for advanced cybersecurity research and collaboration. To assess historical patterns, one would need to examine prior contract awards for similar services to NIST or the NCCOE, looking at both the value and duration of those contracts to identify trends in spending and the evolution of support requirements.

What are the implications of this contract for national cybersecurity research and development efforts?

This contract is directly supportive of national cybersecurity research and development efforts by ensuring the operational stability and technical infrastructure of the National Cybersecurity Center of Excellence (NCCOE). The NCCOE serves as a hub for public-private collaboration, developing practical cybersecurity solutions and best practices. By providing essential IT operations support, this contract enables the NCCOE to effectively conduct its research, host collaborative projects, and disseminate its findings, thereby contributing to the overall advancement of the nation's cybersecurity posture.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1333ND19QNB770601

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,448,180

Exercised Options: $3,448,180

Current Obligation: $3,448,180

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,834,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DOCSB134114CQ0010

IDV Type: IDC

Timeline