DHS awards $25.2M to MITRE for critical functions framework support, raising questions on competition

Contract Overview

Contract Amount: $25,185,169 ($25.2M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2025-09-01

Contract Duration: 1,067 days

Daily Burn Rate: $23.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NATIONAL CRITICAL FUNCTIONS FRAMEWORK IMPLEMENTATION SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.2 million to THE MITRE CORPORATION for work described as: NATIONAL CRITICAL FUNCTIONS FRAMEWORK IMPLEMENTATION SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Significant duration of over three years suggests a long-term need for specialized support. 3. The contract's focus on a critical national framework highlights its strategic importance. 4. Research and Development in Physical, Engineering, and Life Sciences is a broad category, requiring specific justification for sole-source awards. 5. The use of a Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely managed. 6. The award value is substantial, necessitating robust oversight to ensure value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. However, the duration and cost-plus fixed-fee structure warrant close monitoring for cost efficiency. Comparing it to similar R&D support contracts for critical national functions would be ideal, but such data is often proprietary or not publicly available. The fixed fee component provides some cost control, but the overall cost is subject to the actual costs incurred by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that the Department of Homeland Security did not solicit bids from multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when there is an urgent need that cannot be met through competitive bidding. The lack of competition means that the government did not benefit from price discovery that typically occurs in a competitive bidding process.

Taxpayer Impact: The absence of competition for this $25.2 million contract means taxpayers may not have received the lowest possible price for the services rendered. Without competing offers, it is difficult to ascertain if the negotiated price represents fair market value.

Public Impact

The primary beneficiary is the Department of Homeland Security, which will receive support in implementing the National Critical Functions Framework. The services delivered will likely enhance the nation's resilience and security by strengthening the understanding and application of critical functions. The geographic impact is national, as the National Critical Functions Framework applies across various sectors and agencies. Workforce implications may include the need for specialized personnel within DHS to manage and leverage the framework, as well as potential indirect impacts on critical infrastructure sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus fixed-fee structure can incentivize higher costs if not managed stringently.
Lack of public details on the specific R&D activities makes independent value assessment difficult.

Positive Signals

MITRE Corporation is a federally funded research and development center (FFRDC) with a strong track record in national security and critical infrastructure.
The contract supports a critical national initiative, suggesting a high level of importance and potential for significant positive impact.
The long-term nature of the contract (over three years) indicates a sustained commitment to addressing complex challenges.

Sector Analysis

This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This is a broad category encompassing a wide range of scientific and technical services. The market for R&D support, particularly for government agencies focused on national security and critical infrastructure, is substantial. MITRE, as an FFRDC, often plays a unique role in these areas, providing objective analysis and technical support that may not be readily available from commercial entities, thus justifying sole-source awards in certain circumstances.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, The MITRE Corporation, is a large organization. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary focus of this award is on MITRE's direct capabilities, and the impact on the small business ecosystem may be minimal unless MITRE voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's procurement and program management offices. As a sole-source award, there is a heightened need for rigorous oversight to ensure that the contractor is performing effectively and that costs are reasonable. Transparency regarding the specific deliverables and progress reports would be crucial. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Critical Functions Framework
Department of Homeland Security R&D Spending
Federal Support for Critical Infrastructure Protection
Research and Development Services Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.2 million to THE MITRE CORPORATION. NATIONAL CRITICAL FUNCTIONS FRAMEWORK IMPLEMENTATION SUPPORT

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 $25.2 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-09-01.

What is the specific expertise The MITRE Corporation brings to the National Critical Functions Framework Implementation Support that justifies a sole-source award?

The MITRE Corporation is a federally funded research and development center (FFRDC) with a long history of supporting government agencies, particularly in areas of national security, critical infrastructure, and complex systems engineering. Their expertise often lies in providing objective, independent analysis and technical guidance that is not readily available from commercial vendors. For the National Critical Functions Framework, MITRE's deep understanding of interdependencies between critical infrastructure sectors, threat landscapes, and national security priorities likely makes them uniquely qualified. Their FFRDC status allows them to operate in the public interest, free from commercial conflicts of interest, which can be crucial for sensitive national initiatives. This unique position and specialized knowledge are often cited as justification for sole-source awards to FFRDCs.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of cost control for the government?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D where the scope of work can be uncertain, and precise cost estimation is difficult. In a CPFF contract, the government agrees to pay the contractor's actual allowable costs plus a fixed fee, which represents the contractor's profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it differs from fixed-price contracts where the contractor bears more risk for cost overruns. Compared to Cost-Plus-Incentive-Fee (CPIF) contracts, CPFF offers less direct incentive for cost reduction beyond the initial fee negotiation. For the government, effective oversight and clear definition of allowable costs are critical to managing expenditures under a CPFF arrangement.

What are the potential risks associated with a sole-source award for a contract valued at over $25 million?

The primary risk associated with a sole-source award, especially for a contract of this magnitude, is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the most cost-effective solution. There's also a risk that the chosen contractor might not be the absolute best fit if other capable vendors were not considered. Furthermore, sole-source awards can sometimes lead to perceptions of favoritism or a lack of transparency, potentially undermining public trust. Robust justification and rigorous negotiation are essential to mitigate these risks, ensuring that the selected contractor offers fair pricing and exceptional value despite the absence of competition.

What is the historical spending pattern for similar 'Research and Development in the Physical, Engineering, and Life Sciences' contracts at DHS?

Analyzing historical spending patterns for NAICS code 541715 at DHS requires access to detailed federal procurement databases. Generally, R&D spending within DHS can fluctuate based on evolving threats, technological advancements, and national priorities. Contracts in this category can range from highly specialized, multi-year research projects to shorter-term technical support. The average value and duration can vary significantly depending on the specific research area and the nature of the work (e.g., basic research vs. applied development). Without specific data on comparable R&D contracts at DHS, it's difficult to benchmark this $25.2 million award. However, significant R&D investments are typical for agencies focused on national security and technological innovation.

How will the success of the National Critical Functions Framework implementation be measured under this contract?

The success of the National Critical Functions Framework implementation under this contract will likely be measured through a combination of performance metrics and deliverables defined in the contract's Statement of Work (SOW). These could include the development and refinement of framework documentation, the successful integration of the framework into relevant DHS processes and systems, the delivery of training or guidance materials, and the achievement of specific milestones related to framework adoption across critical sectors. Performance will likely be assessed through regular progress reports, technical reviews, and potentially independent evaluations. The fixed fee component suggests that the contractor is expected to achieve defined objectives within the agreed-upon cost structure.

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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RCSA22Q00000091

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: $25,185,169

Exercised Options: $25,185,169

Current Obligation: $25,185,169

Actual Outlays: $23,347,377

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