VA awards $31.6M FFRDC contract to MITRE for VBA modernization and analysis support

Contract Overview

Contract Amount: $31,564,531 ($31.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-29

End Date: 2026-07-31

Contract Duration: 701 days

Daily Burn Rate: $45.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: FFRDC SERVICES TO VBA SPMO FOR INTEGRATION, MODERNIZATION, AND ANALYSIS SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.6 million to THE MITRE CORPORATION for work described as: FFRDC SERVICES TO VBA SPMO FOR INTEGRATION, MODERNIZATION, AND ANALYSIS SUPPORT Key points: 1. The contract leverages MITRE's FFRDC status for specialized technical support. 2. This award represents a significant investment in the Veterans Benefits Administration's (VBA) IT infrastructure. 3. The 'Not Competed' award raises questions about potential competition and cost-effectiveness. 4. The sector is professional, scientific, and technical services, with a focus on IT modernization.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar FFRDC contracts for IT modernization is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to MITRE. While FFRDCs are often used for unique, long-term strategic needs, the lack of competition limits price discovery and potentially reduces the incentive for the contractor to offer the most cost-effective solution.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price, as competitive pressures were absent.

Public Impact

Veterans may experience improved services through modernized VBA systems. The use of an FFRDC suggests a focus on complex, long-term technical challenges. Transparency in how taxpayer funds are utilized for this modernization effort is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns

Positive Signals

Leverages FFRDC expertise
Supports critical modernization efforts

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on IT integration and modernization. Spending in this area is substantial across government, with FFRDCs often engaged for high-level, objective analysis and research.

Small Business Impact

This contract was awarded to MITRE Corporation, a Federally Funded Research and Development Center (FFRDC), and was not competed. Therefore, there is no direct analysis of small business participation in this specific award.

Oversight & Accountability

The use of an FFRDC often implies a high level of oversight due to their unique relationship with the government. However, the 'Not Competed' status warrants close monitoring of contract performance and expenditures to ensure accountability.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for cost escalation
Limited transparency on specific deliverables
Dependency on a single FFRDC provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.6 million to THE MITRE CORPORATION. FFRDC SERVICES TO VBA SPMO FOR INTEGRATION, MODERNIZATION, AND ANALYSIS 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 $31.6 million.

What is the period of performance?

Start: 2024-08-29. End: 2026-07-31.

What specific metrics will be used to evaluate the success of the VBA modernization and analysis support provided by MITRE?

Success metrics should focus on tangible improvements in VBA's operational efficiency, data accuracy, and veteran service delivery timelines. Key Performance Indicators (KPIs) could include reduced processing times for claims, increased accuracy rates in benefit calculations, enhanced system uptime, and improved user satisfaction scores from both VBA staff and veterans. Regular performance reviews should track progress against these defined metrics.

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

The VA must implement rigorous cost tracking and oversight mechanisms, including detailed reviews of MITRE's incurred costs and fixed fee calculations. Establishing clear milestones and deliverables tied to payments, along with regular performance reviews, will help manage scope and prevent creep. Benchmarking against similar FFRDC engagements and seeking independent cost estimates where feasible can also provide valuable insights into reasonableness.

What is the long-term strategy for transitioning capabilities or knowledge gained from MITRE back to the VA or other government entities to reduce future reliance on sole-source FFRDC support?

A clear knowledge transfer plan should be integrated into the contract from the outset. This plan should outline specific activities for documentation, training, and mentorship to build internal VA capabilities. Periodic reviews should assess the progress of knowledge transfer and identify any gaps. The goal is to foster self-sufficiency within the VA for ongoing IT modernization and analysis, potentially reducing the need for sole-source FFRDC support on future projects.

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 36C10A24N0032

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: $36,246,301

Exercised Options: $31,564,531

Current Obligation: $31,564,531

Actual Outlays: $24,597,650

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