VA awards $35M+ to MITRE for enterprise integration, leveraging FFRDC expertise

Contract Overview

Contract Amount: $35,014,469 ($35.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-05

End Date: 2024-08-30

Contract Duration: 1,029 days

Daily Burn Rate: $34.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EO14042 FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) SERVICES TO THE OFFICE OF ENTERPRISE INTEGRATION (OEI) FOR DEPARTMENT OF VETERANS AFFAIRS (VA) ENTERPRISE STRATEGIC TRANSFORMATION SUPPORT.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.0 million to THE MITRE CORPORATION for work described as: EO14042 FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) SERVICES TO THE OFFICE OF ENTERPRISE INTEGRATION (OEI) FOR DEPARTMENT OF VETERANS AFFAIRS (VA) ENTERPRISE STRATEGIC TRANSFORMATION SUPPORT. Key points: 1. Contract leverages a Federally Funded Research and Development Center (FFRDC) for specialized expertise. 2. Sole-source award suggests unique capabilities or a pre-existing relationship with MITRE. 3. Long-term contract duration indicates a sustained need for strategic transformation support. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful cost oversight. 5. Focus on enterprise strategic transformation highlights a critical area for the VA. 6. The award represents a significant investment in enhancing VA's operational efficiency.

Value Assessment

Rating: good

The contract value of over $35 million for a period of approximately 3 years (November 2021 to August 2024) appears reasonable for specialized FFRDC services. MITRE, as an FFRDC, is expected to provide objective, non-commercial advice and analysis. Benchmarking against similar FFRDC engagements for strategic transformation support would provide a more precise value assessment, but the scale of the award aligns with the complexity of enterprise-wide initiatives within a large federal agency like the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of Veterans Affairs identified MITRE Corporation as the only responsible source capable of meeting the specific requirements. This is common for FFRDCs, which are established to provide unique, objective, and often long-term research and development capabilities to the government. While this approach ensures access to specialized expertise, it bypasses the competitive bidding process, potentially limiting price discovery.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding environment. However, the value proposition for taxpayers lies in the specialized, unbiased expertise that FFRDCs like MITRE provide for complex strategic initiatives.

Public Impact

Veterans will benefit from improved VA enterprise integration and strategic transformation, leading to potentially more efficient and effective services. The Office of Enterprise Integration (OEI) within the VA receives critical support for its strategic planning and execution. The contract supports the VA's overarching mission to provide comprehensive care and benefits to America's veterans. The workforce within the VA may see improvements in processes and systems, indirectly impacting their ability to serve veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract requires robust oversight to manage costs effectively.
Long-term nature of the contract may not adapt quickly to rapidly changing technological landscapes without modification.

Positive Signals

Leverages a trusted FFRDC (MITRE) with a proven track record in government R&D and systems engineering.
Focus on strategic transformation addresses critical needs for modernization and efficiency within a large agency.
The contract duration suggests a commitment to achieving meaningful, long-term improvements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and strategy consulting for a federal agency. The IT and management consulting market for the federal government is substantial, with agencies continually seeking external expertise to navigate complex transformations and improve operational efficiency. FFRDCs like MITRE play a unique role in this sector by providing objective, government-focused analysis and solutions, often in areas requiring deep technical understanding and long-term strategic vision.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it is a sole-source award to MITRE Corporation. MITRE, as an FFRDC, operates under specific government guidelines and typically does not subcontract in a manner that would involve typical small business set-asides. The focus is on MITRE's direct capabilities rather than broader subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Veterans Affairs, specifically the Office of Enterprise Integration (OEI) and relevant contracting officers. As a sole-source award to an FFRDC, the oversight may also involve specific government program managers who work closely with MITRE. Transparency is generally high for FFRDC work due to their public service mission, but detailed public reporting on specific project deliverables might vary. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

VA Strategic Acquisition
Federal IT Consulting Services
FFRDC Support Services
Enterprise Resource Planning (ERP) Modernization
Government Management Consulting

Risk Flags

Sole-source award requires strong justification and oversight.
Cost-plus-fixed-fee contracts necessitate diligent cost monitoring.
FFRDC engagement implies unique capabilities, but competition is forgone.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.0 million to THE MITRE CORPORATION. EO14042 FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) SERVICES TO THE OFFICE OF ENTERPRISE INTEGRATION (OEI) FOR DEPARTMENT OF VETERANS AFFAIRS (VA) ENTERPRISE STRATEGIC TRANSFORMATION 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 $35.0 million.

What is the period of performance?

Start: 2021-11-05. End: 2024-08-30.

What is MITRE Corporation's specific track record with the Department of Veterans Affairs prior to this award?

MITRE Corporation has a long-standing relationship with the Department of Veterans Affairs, often providing critical research, development, and systems engineering support through various FFRDC contracts. Prior to this specific $35M+ award for enterprise strategic transformation, MITRE has been involved in numerous VA initiatives, including areas like health IT modernization, data analytics, cybersecurity, and process improvement. Their role as an FFRDC allows them to engage in complex, long-term projects that require objective analysis and technical expertise, often acting as a trusted advisor to the VA leadership on strategic direction and technological advancements. This existing relationship and demonstrated capability likely contributed to the sole-source nature of the current contract, as the VA could rely on MITRE's established understanding of VA's unique challenges and mission.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar FFRDC strategic support services?

The Cost-Plus-Fixed-Fee (CPFF) contract structure is common for FFRDC engagements, particularly those involving research, development, and strategic advisory services 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 upfront, and from cost-plus-incentive-fee contracts, which include mechanisms to adjust the fee based on performance against targets. For strategic transformation support, CPFF offers flexibility, allowing the VA to adapt the scope as the project progresses and new insights emerge, which is crucial for complex, long-term initiatives. While it provides flexibility, it necessitates robust government oversight to ensure costs remain reasonable and that the fixed fee adequately compensates MITRE for its services without excessive profit.

What are the primary risks associated with a sole-source award for complex strategic transformation initiatives?

The primary risks associated with a sole-source award for complex strategic transformation initiatives include a lack of competitive pressure on pricing, potentially leading to higher costs for taxpayers. Without multiple bidders, there's less opportunity for innovative solutions to emerge from a broader market. Furthermore, there's a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, potentially hindering future flexibility or the adoption of alternative technologies or approaches. For FFRDCs like MITRE, while objectivity is a core tenet, the absence of competition means the government must rely heavily on its internal expertise and oversight mechanisms to ensure the best value and optimal outcomes are achieved. The VA must diligently manage the contract to mitigate these risks.

What specific performance metrics or key performance indicators (KPIs) are likely being used to measure the success of this strategic transformation support?

While specific KPIs are not detailed in the provided data, success for this contract likely hinges on metrics related to the VA's enterprise integration and strategic transformation goals. These could include improvements in operational efficiency (e.g., reduced processing times for veteran services, streamlined workflows), enhanced data accessibility and utilization across departments, successful implementation of new strategic initiatives, and measurable progress towards modernization objectives. Key Performance Indicators (KPIs) might also focus on the quality and timeliness of MITRE's deliverables, such as strategic plans, analysis reports, and recommendations. The effectiveness of the transformation itself, measured by improved veteran outcomes or agency performance, would be the ultimate indicator of success, though these are often longer-term and influenced by factors beyond MITRE's direct control.

How does the $35M+ award compare to historical federal spending on similar enterprise transformation or strategic consulting services?

The $35 million award to MITRE for enterprise strategic transformation support at the VA is a significant investment, but it aligns with the scale of spending for major federal IT and strategic consulting projects. Large federal agencies like the VA often engage in multi-year, multi-million dollar contracts for enterprise-wide initiatives, especially those involving complex systems integration, modernization, and strategic planning. For context, federal spending on IT services alone runs into the tens of billions annually, and major consulting engagements for strategic transformation can easily reach tens or hundreds of millions of dollars over their lifecycle. Given MITRE's FFRDC status and the critical nature of enterprise transformation for a department serving millions of veterans, this award appears to be within the expected range for such specialized, high-impact services.

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

Solicitation ID: 36C10A22N0005

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: $35,014,469

Exercised Options: $35,014,469

Current Obligation: $35,014,469

Actual Outlays: $19,304,042

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $30,000

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