VA's $18.8M contract with MITRE for strategic planning highlights sole-source awards for FFRDCs

Contract Overview

Contract Amount: $18,865,839 ($18.9M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-28

End Date: 2024-12-06

Contract Duration: 1,500 days

Daily Burn Rate: $12.6K/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 OFFICE OF COMMUNITY CARE FOR NATIONAL CARE STRATEGIC AND FUTURE PLANNING SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.9 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 OFFICE OF COMMUNITY CARE FOR NATIONAL CARE STRATEGIC AND FUTURE PLANNING SUPPORT. Key points: 1. This contract represents a significant investment in specialized FFRDC support for strategic planning. 2. The sole-source nature of the award warrants scrutiny regarding potential cost efficiencies and market alternatives. 3. Performance is tied to critical national care strategic and future planning for the VA's Office of Community Care. 4. The duration of the contract (over 3 years) suggests a long-term need for these specialized services. 5. The cost-plus-fixed-fee structure requires careful monitoring to ensure alignment with project objectives and budget. 6. The absence of small business participation is noted, as expected for FFRDC contracts.

Value Assessment

Rating: fair

Benchmarking the value of FFRDC services is complex due to their unique mission and cost structures. While the total award is substantial, the 'cost plus fixed fee' pricing model necessitates close oversight to ensure costs remain reasonable and aligned with the value delivered. Without comparable sole-source FFRDC contracts for similar strategic planning services, a direct price comparison is difficult. However, the VA's reliance on MITRE suggests a perceived value and necessity for their specialized expertise in this area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation, a Federally Funded Research and Development Center (FFRDC). FFRDCs are typically awarded sole-source contracts due to their unique capabilities, objectivity, and long-term strategic relationship with the government. This approach bypasses traditional competitive bidding processes, relying on the established trust and expertise of the FFRDC.

Taxpayer Impact: Sole-source awards to FFRDCs, while ensuring access to specialized expertise, limit opportunities for taxpayer savings that could arise from competitive bidding. The government relies on the FFRDC's commitment to fair pricing and efficient operations.

Public Impact

Veterans will benefit from improved strategic planning and future-oriented initiatives within the VA's community care programs. The services delivered will support national care strategies, potentially impacting the delivery and accessibility of healthcare services. The primary geographic impact is national, focusing on the strategic direction of VA healthcare nationwide. The contract supports a highly specialized workforce within MITRE, contributing to the national pool of expertise in systems engineering and strategic planning for public sector challenges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs effectively.
Lack of transparency in FFRDC sole-source justifications can obscure true value for money.

Positive Signals

Leverages unique, objective expertise of an FFRDC for critical strategic planning.
Long-term engagement suggests a recognized and sustained need for MITRE's capabilities.
Focus on national strategic planning aligns with high-level government objectives.

Sector Analysis

This contract falls within the 'Professional, Scientific, and Technical Services' sector, specifically focusing on systems engineering and integration support. The market for FFRDC services is specialized, with a limited number of entities capable of performing such high-level strategic analysis for government agencies. The VA's spending on FFRDCs for strategic planning is part of a broader government trend to leverage these unique organizations for complex, long-term challenges.

Small Business Impact

As this contract was awarded sole-source to an FFRDC (MITRE Corporation), there are no small business set-aside provisions or subcontracting requirements directly associated with this award. FFRDCs operate under specific government agreements that do not typically include small business subcontracting goals in the same manner as traditional competitive contracts.

Oversight & Accountability

Oversight for this contract is managed by the Department of Veterans Affairs. As a sole-source award to an FFRDC, the primary oversight focuses on performance monitoring, adherence to the cost-plus-fixed-fee agreement, and ensuring the strategic objectives are met. Transparency is maintained through regular reporting and program reviews, though the competitive aspect is absent. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Initiatives
Department of Defense FFRDC Support Contracts
Strategic Planning Services for Federal Agencies
Healthcare Systems Engineering Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
FFRDC engagement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.9 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 OFFICE OF COMMUNITY CARE FOR NATIONAL CARE STRATEGIC AND FUTURE PLANNING SUPPORT.

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 $18.9 million.

What is the period of performance?

Start: 2020-10-28. End: 2024-12-06.

What is the historical spending pattern of the VA with The MITRE Corporation for similar services?

Historical data indicates a consistent and long-standing relationship between the Department of Veterans Affairs (VA) and The MITRE Corporation, particularly for systems engineering, technical assistance, and strategic planning support. MITRE, as an FFRDC, is often engaged through sole-source contracts for its objective analysis and specialized expertise. While specific dollar amounts for past 'strategic planning' contracts may vary, the VA has historically relied on MITRE for critical support across various healthcare and IT initiatives. This $18.8M contract for national care strategic and future planning appears to be a continuation and expansion of this established relationship, reflecting the VA's ongoing need for MITRE's unique capabilities in addressing complex, long-term healthcare challenges and policy development.

How does the 'cost plus fixed fee' structure compare to other contract types for FFRDC services?

The 'cost plus fixed fee' (CPFF) structure is common for FFRDC contracts, especially those involving research, development, and strategic planning where the scope may evolve. In a CPFF contract, the contractor (MITRE) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of costs, and cost-reimbursement contracts without a fixed fee. For FFRDCs, CPFF provides flexibility to adapt to evolving requirements while incentivizing cost control through the fixed fee. However, it necessitates robust government oversight to ensure costs remain reasonable and the fee is commensurate with the effort and risk involved. Compared to other FFRDC contract types, CPFF balances flexibility with a degree of cost predictability for the government.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

While specific Key Performance Indicators (KPIs) are not detailed in the publicly available award data, contracts of this nature typically focus on the quality, timeliness, and impact of the strategic planning deliverables. For this VA contract with MITRE, performance measurement would likely involve assessing the thoroughness of analyses, the clarity and actionability of strategic recommendations, the adherence to project timelines, and the overall contribution to the VA's future planning objectives for community care. The 'fixed fee' component of the CPFF structure often implies that achieving defined milestones or delivering specific outputs is crucial for earning the full fee. The VA's Office of Community Care would be responsible for monitoring MITRE's progress against agreed-upon objectives and deliverables.

What is the potential risk associated with a sole-source award to an FFRDC for strategic planning?

The primary risk associated with a sole-source award to an FFRDC for strategic planning is the potential lack of robust price competition, which could lead to higher costs than might be achieved through a competitive process. While FFRDCs are expected to operate with objectivity and provide best-value solutions, the absence of multiple bidders means the government cannot directly compare alternative proposals or pricing. Another risk is ensuring that the FFRDC's recommendations remain objective and free from undue influence, although their FFRDC status is designed to mitigate this. Furthermore, over-reliance on a single FFRDC for critical strategic functions could create institutional dependencies. The government mitigates these risks through careful contract oversight, regular performance reviews, and ensuring clear statements of work.

How does this contract align with the VA's broader goals for community care modernization?

This contract directly supports the VA's broader goals for community care modernization by providing essential strategic and future planning capabilities. The Office of Community Care is undergoing significant transformation to better serve veterans, and strategic foresight is crucial for navigating these changes. MITRE's role in providing systems engineering and integration support for national care strategies will help the VA anticipate future needs, identify potential challenges, and develop innovative solutions. This includes planning for evolving healthcare delivery models, technological advancements, and changing veteran demographics. The insights generated from this contract are intended to inform policy decisions, resource allocation, and program development, ultimately aiming to improve the efficiency, effectiveness, and accessibility of community care services for veterans nationwide.

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: $18,865,839

Exercised Options: $18,865,839

Current Obligation: $18,865,839

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