VA awards $41.8M to MITRE for Systems Engineering Support, a sole-source contract

Contract Overview

Contract Amount: $41,847,259 ($41.8M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-28

End Date: 2023-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $38.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SYSTEMS ENGINEERING AND INTEGRATION SUPPORT SERVICES PERFORMED BY A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER FOR THE DEPARTMENT OF VETERANS AFFAIRS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $41.8 million to THE MITRE CORPORATION for work described as: SYSTEMS ENGINEERING AND INTEGRATION SUPPORT SERVICES PERFORMED BY A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER FOR THE DEPARTMENT OF VETERANS AFFAIRS Key points: 1. The Department of Veterans Affairs (VA) has awarded a significant contract to The MITRE Corporation for essential systems engineering and integration support. 2. This contract represents a substantial investment in technical services, highlighting the VA's reliance on specialized expertise. 3. The sole-source nature of this award raises questions about competition and potential cost efficiencies. 4. The sector is professional, scientific, and technical services, a broad category encompassing critical government support functions.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to costs exceeding initial estimates if not managed carefully. Benchmarking is difficult without specific deliverables, but the scale suggests a need for rigorous oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to The MITRE Corporation. This limits price discovery and competitive pressure, potentially leading to higher costs than if multiple vendors had bid.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition means there's a risk of overpayment compared to a competitive procurement.

Public Impact

Veterans may experience improved IT systems and services due to enhanced engineering and integration support. The reliance on a single, well-established FFRDC like MITRE suggests a focus on specialized, high-level technical expertise. The significant dollar amount indicates a critical need for these services within the VA's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Cost-plus contract type can inflate costs
Lack of transparency in pricing due to no-bid nature

Positive Signals

MITRE is a reputable FFRDC with proven expertise
Contract addresses critical systems engineering needs for the VA

Sector Analysis

This contract falls under professional, scientific, and technical services, a sector crucial for government operations. Spending benchmarks for similar large-scale, sole-source engineering support contracts can vary widely, but this award is substantial.

Small Business Impact

This contract was awarded to The MITRE Corporation, a Federally Funded Research and Development Center (FFRDC), not a small business. There is no indication of subcontracting opportunities for small businesses within this data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the contract objectives are being met efficiently. Accountability rests heavily on the VA's contract management team.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
Dependency on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41.8 million to THE MITRE CORPORATION. SYSTEMS ENGINEERING AND INTEGRATION SUPPORT SERVICES PERFORMED BY A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER FOR THE DEPARTMENT OF VETERANS AFFAIRS

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

Start: 2020-09-28. End: 2023-09-28.

What specific systems engineering and integration challenges is the VA facing that necessitate a sole-source award to MITRE?

The VA likely faces complex challenges in modernizing and integrating its vast array of IT systems, including electronic health records, claims processing, and veteran-facing portals. A sole-source award to an FFRDC like MITRE suggests these challenges require highly specialized, objective, and trusted technical expertise that is not readily available through traditional competitive procurement.

How will the VA ensure cost-effectiveness and prevent potential overruns with a Cost Plus Fixed Fee contract awarded on a sole-source basis?

The VA must implement robust contract surveillance and performance management. This includes detailed monitoring of MITRE's costs, regular reviews of progress against defined milestones, and ensuring that the fixed fee remains appropriate for the scope of work. Strong negotiation and clear definition of deliverables are crucial to mitigate risks associated with cost-plus contracts.

What is the long-term strategy for systems engineering support at the VA, and will future needs be addressed through competitive means?

The long-term strategy is unclear from this data alone. While MITRE's expertise may be critical for immediate, complex issues, the VA should evaluate whether future, less specialized needs can be met through competitive procurements to foster innovation and ensure better pricing. A transition plan towards more competition should be considered where feasible.

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) › MANAGEMENT SUPPORT 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: $41,847,259

Exercised Options: $41,847,259

Current Obligation: $41,847,259

Actual Outlays: $40,709,819

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 36C10A20D0004

IDV Type: IDC

Timeline