VA awards $26.6M to MITRE for data, innovation, and automation support

Contract Overview

Contract Amount: $26,641,527 ($26.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-29

End Date: 2025-03-20

Contract Duration: 903 days

Daily Burn Rate: $29.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO VBA STRATEGIC PROGRAM MANAGEMENT OFFICE FOR DATA, INNOVATION, AND AUTOMATION SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.6 million to THE MITRE CORPORATION for work described as: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO VBA STRATEGIC PROGRAM MANAGEMENT OFFICE FOR DATA, INNOVATION, AND AUTOMATION SUPPORT Key points: 1. Contract awarded to a Federally Funded Research and Development Center (FFRDC) for specialized expertise. 2. Focus on data, innovation, and automation suggests a strategic investment in modernizing VA services. 3. The duration of the contract (903 days) indicates a long-term need for these services. 4. Sole-source award to an FFRDC is common for unique, objective research and analysis. 5. Performance period extends into March 2025, implying ongoing project development. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility while managing costs.

Value Assessment

Rating: good

The award to MITRE, an FFRDC, suggests a focus on objective, high-level technical support rather than routine services. FFRDCs are typically engaged for complex, long-term strategic initiatives where independence and specialized knowledge are paramount. While direct cost comparisons are difficult due to the unique nature of FFRDC work, the fixed fee component provides some cost control. The overall value is likely tied to the strategic impact on VA's data and automation capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source to The MITRE Corporation, which operates as a Federally Funded Research and Development Center (FFRDC). FFRDCs are specifically established to provide objective, independent research and analysis to the government. Sole-source awards to FFRDCs are generally accepted due to their unique capabilities and mandate to serve the government's best interests without competitive pressures that might compromise objectivity.

Taxpayer Impact: Sole-source awards to FFRDCs are intended to leverage specialized, unbiased expertise. While not a direct cost-saving measure through competition, it ensures the government receives objective advice on critical strategic issues, potentially avoiding costly missteps in data and automation strategy.

Public Impact

Veterans will benefit from improved data management, innovative solutions, and automation within VA services. The contract supports the VA's strategic program management office in critical areas of digital transformation. Enhancements in data and automation are expected to streamline internal processes and potentially improve service delivery to veterans. The project's success could lead to a more efficient and responsive healthcare and benefits system for veterans nationwide. Workforce implications may include the need for specialized IT and data analysis skills within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a cost-plus contract if not tightly managed.
Reliance on a single FFRDC may limit exposure to alternative innovative approaches from the broader market.
Ensuring clear deliverables and performance metrics is crucial for accountability in sole-source FFRDC engagements.

Positive Signals

Award to a reputable FFRDC (MITRE) suggests a high likelihood of technical competence and objective analysis.
Focus on data, innovation, and automation aligns with critical modernization needs within the VA.
Long-term contract duration indicates a strategic commitment and potential for significant impact.
The FFRDC structure provides a unique, trusted advisor role for complex government challenges.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT strategy, data analytics, and automation. The market for such services is vast, encompassing numerous private sector firms and specialized government contractors. However, the award to an FFRDC like MITRE signifies a preference for objective, research-oriented support rather than purely commercial implementation. Comparable spending benchmarks are difficult to establish due to the unique FFRDC designation and the strategic nature of the services.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award is to a large FFRDC, which typically handles its work internally or through specialized partnerships. The primary impact on the small business ecosystem would be indirect, through potential future opportunities if the VA's modernization efforts create new needs that smaller firms can address.

Oversight & Accountability

Oversight for this contract will likely be managed by the VA's Strategic Program Management Office, which is the direct recipient of the services. As a sole-source award to an FFRDC, oversight may focus on adherence to the FFRDC's charter, objective research principles, and the achievement of defined strategic goals rather than traditional competitive procurement oversight. Transparency is generally high for FFRDC engagements, with reports and findings often made public or shared broadly within the government.

Related Government Programs

VA IT Modernization Initiatives
Federal Data Strategy
Government Automation Programs
Digital Services at the VA
FFRDC Support Services

Risk Flags

Sole-source award requires strong justification for lack of competition.
Cost-plus contract type necessitates rigorous cost monitoring and oversight.
FFRDC engagement requires clear definition of scope and deliverables to ensure accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.6 million to THE MITRE CORPORATION. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO VBA STRATEGIC PROGRAM MANAGEMENT OFFICE FOR DATA, INNOVATION, AND AUTOMATION 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 $26.6 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-03-20.

What is the specific expertise MITRE brings to the VA's data, innovation, and automation efforts?

The MITRE Corporation, as a Federally Funded Research and Development Center (FFRDC), specializes in providing objective, independent research, development, and systems engineering. For the VA's Strategic Program Management Office, MITRE's expertise likely encompasses areas such as data architecture, advanced analytics, artificial intelligence and machine learning applications, process automation strategies, cybersecurity implications of new technologies, and strategic planning for digital transformation. Their role is often to analyze complex problems, explore innovative solutions, and provide unbiased recommendations to guide government decision-making, ensuring alignment with national security and public service objectives.

How does the Cost Plus Fixed Fee (CPFF) contract type function in this context?

A Cost Plus Fixed Fee (CPFF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fixed amount of profit (the fee). In this VA contract with MITRE, the 'cost' component covers the expenses MITRE incurs to perform the services, such as salaries, overhead, and materials. The 'fixed fee' is the predetermined profit amount that MITRE will receive, regardless of the final cost of the contract, as long as the work is completed satisfactorily. This structure is often used when the scope of work is well-defined but the exact costs are uncertain, providing flexibility while incentivizing the contractor to manage costs to stay within projections, as the fee remains constant.

What are the potential risks associated with a sole-source award to an FFRDC like MITRE?

While sole-source awards to FFRDCs are common and justified by their unique role, potential risks include a lack of direct price competition, which could theoretically lead to higher costs than a fully competed contract. There's also a risk of 'vendor lock-in' or over-reliance on a single entity's perspective, potentially limiting exposure to a broader range of innovative solutions available in the commercial market. Ensuring robust oversight and clearly defined objectives is critical to mitigate these risks and ensure the FFRDC's work remains objective, impactful, and aligned with the government's evolving needs. The government must actively manage the relationship and performance to maximize value.

How does this contract contribute to the VA's broader modernization goals?

This contract is a direct investment in the VA's modernization efforts by providing critical support for data, innovation, and automation. By engaging MITRE, an FFRDC known for its strategic insights, the VA aims to leverage cutting-edge knowledge to improve its internal systems and processes. This support is crucial for transforming vast amounts of veteran data into actionable insights, developing novel approaches to service delivery, and implementing automation to enhance efficiency and reduce administrative burdens. Ultimately, these improvements are intended to lead to better outcomes for veterans, whether through healthcare, benefits, or other services.

What is the historical spending pattern for similar FFRDC services at the VA?

Historical spending data for FFRDC services at the VA specifically for data, innovation, and automation support is not readily available in aggregated public databases. However, the VA, like many large federal agencies, has a history of utilizing FFRDCs (such as MITRE, RAND, or Aerospace Corporation) for complex, long-term strategic research and development initiatives where objectivity and specialized expertise are paramount. These engagements are typically sole-source and can range from millions to tens of millions of dollars annually, depending on the agency's strategic priorities and the scope of FFRDC support required. The $26.6 million award to MITRE for this specific support appears consistent with the scale of FFRDC engagements for critical strategic functions.

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: DRAFT TO 36C10A22N0033

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: $26,641,527

Exercised Options: $26,641,527

Current Obligation: $26,641,527

Actual Outlays: $26,641,527

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