DHS awards $34.6M R&D contract to MITRE Corporation for research in physical, engineering, and life sciences

Contract Overview

Contract Amount: $34,624,105 ($34.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2022-04-16

End Date: 2023-04-15

Contract Duration: 364 days

Daily Burn Rate: $95.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MITRE ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.6 million to THE MITRE CORPORATION for work described as: MITRE ORDER Key points: 1. Contract awarded to a single, highly specialized entity, raising questions about competitive pricing. 2. The contract's duration of one year suggests a focused scope of work. 3. Research and Development in Physical, Engineering, and Life Sciences is a broad category, making specific performance benchmarks difficult to ascertain without further detail. 4. The 'Not Competed' award type indicates a lack of market exploration for this specific requirement. 5. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored. 6. The contract value is significant, requiring robust oversight to ensure taxpayer value.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. Without comparable contracts or a competitive bidding process, it's difficult to definitively assess if the pricing is optimal. The CPFF structure necessitates close monitoring of costs to ensure efficiency and prevent potential overruns. The fixed fee component provides some cost certainty for the contractor's profit, but the overall cost is variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition means that market forces were not leveraged to drive down prices or explore alternative solutions, potentially leading to a higher cost for the government.

Taxpayer Impact: The absence of competition means taxpayers may not have received the benefit of a lower price that could have been achieved through a bidding process. This also limits the opportunity for new or smaller businesses to compete for this work.

Public Impact

The primary beneficiary is the Department of Homeland Security, which will receive research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved methodologies. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications are likely concentrated within the specialized R&D personnel employed by The MITRE Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
CPFF contract type carries inherent risk of cost escalation if not managed diligently.
Lack of transparency in the justification for sole-source award.
Broad R&D category makes it difficult to assess specific deliverables and their impact.
Limited opportunity for small businesses to participate in this specialized research.

Positive Signals

Award to The MITRE Corporation, a well-established R&D organization with a strong track record.
Contract addresses critical R&D needs for the Department of Homeland Security.
Clear contract duration provides a defined period for research activities.
Fixed fee component offers some predictability in contractor profit.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing a wide range of scientific inquiry. The market for such specialized R&D services is often dominated by a few highly capable organizations. Comparable spending benchmarks are difficult to establish without knowing the specific research objectives, but R&D contracts can range from millions to billions of dollars depending on the scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of R&D and the sole-source award to The MITRE Corporation, it is unlikely that small businesses would have been directly involved as prime contractors. Subcontracting opportunities for small businesses are not explicitly detailed but would depend on The MITRE Corporation's procurement practices and the specific needs of the research.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. Given the CPFF structure, rigorous financial oversight and performance monitoring are crucial to ensure that funds are used efficiently and effectively towards the research objectives. Transparency would be enhanced through regular reporting requirements and potential reviews by DHS oversight bodies or the Inspector General.

Related Government Programs

Department of Homeland Security Research and Development Programs
Federal R&D Spending
Science and Technology Contracts
Applied Research and Development

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Broad R&D classification lacks specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.6 million to THE MITRE CORPORATION. MITRE ORDER

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $34.6 million.

What is the period of performance?

Start: 2022-04-16. End: 2023-04-15.

What is The MITRE Corporation's track record with federal R&D contracts, particularly with DHS?

The MITRE Corporation has a long-standing history of supporting government agencies, including the Department of Homeland Security, with research and development services. As a federally funded research and development center (FFRDC), MITRE is known for its objective analysis and technical expertise across a wide range of scientific and engineering disciplines. Their work often involves complex problem-solving, systems engineering, and the development of innovative solutions. While specific details of past DHS contracts would require deeper data analysis, MITRE's general reputation suggests a capable partner for R&D initiatives. Their FFRDC status often lends itself to sole-source or limited competition awards due to their unique mission and government-sponsored nature.

How does the $34.6 million value compare to similar R&D contracts in the physical, engineering, and life sciences sector?

The $34.6 million value for this one-year R&D contract is substantial but falls within a common range for specialized research projects. Federal R&D spending is vast, with individual contracts varying significantly based on the complexity, duration, and specific scientific domain. Contracts in areas like advanced engineering, complex physical sciences, or cutting-edge life sciences can easily reach tens or hundreds of millions of dollars. Without knowing the precise R&D focus within the broad 'physical, engineering, and life sciences' category, a direct comparison is difficult. However, for a single-year effort by a specialized entity like MITRE, this value suggests a project of significant scope and technical depth.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a sole-source, CPFF contract for R&D are twofold. Firstly, the sole-source nature means the government foregoes the benefits of competition, potentially leading to a higher price than if multiple vendors had bid. There's less market pressure to optimize costs. Secondly, the CPFF structure, while providing incentives for the contractor to control costs (through the fixed fee), still allows for the reimbursement of actual costs incurred. This can lead to cost overruns if the project scope expands, unforeseen technical challenges arise, or if the contractor's cost estimation is inaccurate. Robust government oversight is critical to manage these risks, ensuring that costs are reasonable and directly related to the contract's objectives.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' classification imply about the contract's objectives?

This classification indicates that the contract's objectives are focused on scientific and technological advancement within broad scientific domains. 'Physical sciences' could encompass areas like physics, chemistry, and materials science. 'Engineering sciences' might involve mechanical, electrical, civil, or systems engineering. 'Life sciences' could include biology, medicine, and environmental science. The exclusion of 'Nanotechnology and Biotechnology' suggests the research is not focused on these specific, rapidly evolving fields, but rather on more established or foundational scientific principles and applications within the other mentioned areas. The contract likely aims to generate new knowledge, develop prototypes, improve existing technologies, or solve complex technical problems relevant to DHS's mission.

What are the implications of the contract's one-year duration for the R&D outcomes?

A one-year duration for an R&D contract suggests a focused, potentially phased, or exploratory project rather than a long-term, comprehensive development effort. It implies that the objectives are achievable within this timeframe, possibly involving feasibility studies, proof-of-concept demonstrations, initial design phases, or the development of specific components or methodologies. While significant breakthroughs are possible, the limited duration may constrain the depth of investigation or the extent of validation and testing. It could also indicate that this contract is part of a larger, multi-year R&D initiative, with this year focusing on a specific milestone or phase.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: $48,831,251

Exercised Options: $48,831,251

Current Obligation: $34,624,105

Actual Outlays: $29,510,286

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $902,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70RSAT20D00000001

IDV Type: IDC

Timeline