DOJ's FBI awarded $12.8M to MITRE for technical support, raising questions about competition and value

Contract Overview

Contract Amount: $12,851,740 ($12.9M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Justice

Start Date: 2019-09-27

End Date: 2021-03-29

Contract Duration: 549 days

Daily Burn Rate: $23.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FFRDC NSEC SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $12.9 million to THE MITRE CORPORATION for work described as: FFRDC NSEC SUPPORT SERVICES Key points: 1. Contract awarded via sole-source justification, limiting competitive pricing benefits. 2. Duration of 549 days suggests a need for ongoing, specialized support. 3. Cost-plus-fixed-fee structure may incentivize cost escalation. 4. Lack of competition raises concerns about achieving optimal value for taxpayer funds. 5. The FBI's reliance on a single contractor for technical services warrants scrutiny. 6. Performance period ended in March 2021, indicating a completed service delivery.

Value Assessment

Rating: questionable

The contract's value of $12.8 million for 549 days of support is difficult to benchmark without more detailed service descriptions. However, the sole-source award mechanism inherently limits the government's ability to secure the best possible pricing through competitive bidding. The cost-plus-fixed-fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. Without comparative data on similar FFRDC support services, assessing the true value-for-money is challenging, but the lack of competition is a significant red flag.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the FBI did not solicit bids from multiple vendors. The justification for this approach is not detailed in the provided data, but sole-source awards typically occur when a specific contractor possesses unique capabilities or when urgency precludes a competitive process. The absence of competition means that pricing was not tested against market alternatives, potentially leading to a higher cost for the government and taxpayers.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in less efficient use of taxpayer funds.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential technical support services. The services provided likely contributed to the FBI's operational capabilities and mission objectives. The contract supported specialized technical expertise, crucial for complex law enforcement and national security functions. The impact on the workforce is indirect, likely involving specialized technical personnel employed by MITRE.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Cost-plus-fixed-fee contract type can lead to cost overruns if not managed closely.
Lack of transparency in the sole-source justification hinders full assessment of necessity.
Performance period has ended, making future value assessment difficult without follow-on data.

Positive Signals

MITRE Corporation is a Federally Funded Research and Development Center (FFRDC) with a strong reputation for technical expertise.
The contract likely provided critical, specialized support that may not be readily available from other sources.
FFRDCs are designed to provide objective, independent advice and analysis to the government.
The contract duration suggests a sustained need for the services provided.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting government agencies with specialized expertise. The market for such services is broad, encompassing numerous firms capable of providing technical consulting, research, and development. However, FFRDCs like MITRE occupy a unique niche, often engaged for complex, long-term, and sensitive government projects where independence and deep technical knowledge are paramount. Benchmarking this specific contract is challenging without knowing the exact nature of the 'NSEC SUPPORT SERVICES,' but FFRDC support is generally considered a premium service.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. As a sole-source award to a large FFRDC, there are likely no direct subcontracting opportunities for small businesses stemming from this specific award. This means the direct economic benefit to the small business ecosystem from this particular contract is minimal.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Federal Bureau of Investigation (FBI) contracting officers and program managers. As a sole-source award, the justification and terms would have been subject to internal agency review and potentially higher-level procurement oversight. Transparency is limited due to the sole-source nature, and specific details on ongoing oversight mechanisms during the contract's performance period are not publicly available. Inspector General involvement would depend on any identified performance issues or allegations of fraud.

Related Government Programs

FFRDC Support Services
Professional, Scientific, and Technical Services
Department of Justice IT Support
FBI Technical Consulting
Government Technical Assistance Contracts

Risk Flags

Sole-source award limits competition.
Cost-plus-fixed-fee contract type may lead to higher costs.
Lack of detailed service description hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.9 million to THE MITRE CORPORATION. FFRDC NSEC 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 Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2019-09-27. End: 2021-03-29.

What specific 'NSEC SUPPORT SERVICES' were provided by The MITRE Corporation to the FBI under this contract?

The provided data does not specify the exact nature of the 'NSEC SUPPORT SERVICES.' However, as The MITRE Corporation is a Federally Funded Research and Development Center (FFRDC), these services likely involved highly specialized technical expertise, research, analysis, systems engineering, or program management support critical to the FBI's mission. Given MITRE's broad capabilities, this could range from cybersecurity analysis and threat intelligence to support for complex investigative technologies or data management systems. Without further details, the precise scope remains undefined in the public record.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The data indicates a sole-source award, meaning the FBI did not compete this contract. Sole-source justifications are typically required when only one responsible source can provide the required supplies or services. For FFRDCs like MITRE, this often stems from their unique capabilities, established relationship, and the government's need for objective, independent research and development support. The specific justification for this FBI contract is not detailed, but common reasons include the need for specialized expertise only MITRE possesses, urgency, or the continuation of an established program where switching contractors would be impractical or detrimental. This lack of competition limits the government's ability to explore alternative solutions and potentially achieve better pricing.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost and value for the FBI?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. While CPFF provides flexibility for contracts with uncertain scopes or evolving requirements, it carries inherent risks for the government. The fixed fee does not increase with cost overruns, but the contractor is incentivized to incur costs to perform the work, and the government bears the risk of cost escalation. Effective oversight is crucial to ensure costs are reasonable and allocable. For the FBI, this means diligent monitoring of expenditures and ensuring the fixed fee adequately compensates MITRE for the defined scope, while remaining vigilant against unnecessary cost growth.

What is the typical role of FFRDCs like MITRE in supporting federal agencies, and how does this contract align?

Federally Funded Research and Development Centers (FFRDCs), such as The MITRE Corporation, are unique entities established to meet specific long-term research and development needs of the government that cannot be met as effectively by the private sector or government laboratories alone. They provide objective, independent analysis, technical support, and systems engineering. This contract aligns with that role by providing specialized technical support services to the FBI. FFRDCs are often called upon for complex, strategic, or sensitive projects where impartiality and deep technical expertise are paramount, suggesting the FBI required such capabilities for its 'NSEC SUPPORT SERVICES'.

Given the contract ended in March 2021, what can be inferred about its success or the FBI's subsequent needs?

The contract's completion in March 2021 indicates that the defined period of performance concluded as scheduled. Without post-contract reviews or follow-on awards, it's difficult to definitively assess its success. However, the FBI's continued engagement with FFRDCs suggests an ongoing need for specialized technical support. If the services were critical and successfully delivered, the FBI might have sought similar support through subsequent contracts, potentially with MITRE or other qualified entities, possibly through competitive means if the justification for sole-source no longer applied. The lack of immediate follow-on data makes definitive conclusions about success or future needs speculative.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,926,245

Exercised Options: $14,926,245

Current Obligation: $12,851,740

Actual Outlays: $10,292,641

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 15F06719D0000649

IDV Type: IDC

Timeline