DHS awards $42.5M to MITRE for advanced computing R&D, raising questions on competition and value

Contract Overview

Contract Amount: $42,540,957 ($42.5M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-03

End Date: 2023-08-02

Contract Duration: 1,094 days

Daily Burn Rate: $38.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED COMPUTING RESEARCH AND DEVELOPMENT (ACRD)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.5 million to THE MITRE CORPORATION for work described as: ADVANCED COMPUTING RESEARCH AND DEVELOPMENT (ACRD) Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant duration of nearly three years suggests a substantial and ongoing need for these services. 3. The R&D focus in advanced computing aligns with critical national security and technological advancement goals. 4. MITRE's established role as a federally funded research and development center (FFRDC) provides deep domain expertise. 5. Lack of competition may obscure opportunities for innovative solutions from other market players. 6. Performance is categorized as 'good' relative to similar contracts, indicating satisfactory execution. 7. The contract's value, while substantial, needs benchmarking against similar sole-source R&D awards.

Value Assessment

Rating: good

The contract's value of $42.5 million over three years for advanced computing R&D appears reasonable given MITRE's FFRDC status and specialized expertise. Benchmarking against similar sole-source R&D contracts awarded to FFRDCs would provide a more precise assessment of value for money. The 'good' rating suggests performance has met expectations, but the lack of competitive bidding prevents a definitive conclusion on optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, The MITRE Corporation, was considered. This approach is often used for specialized R&D services where a specific entity possesses unique capabilities or is designated as an FFRDC. While this ensures access to MITRE's expertise, it bypasses the competitive process, which could lead to higher costs and limit the exploration of alternative solutions from the broader market.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of multiple bids means the government did not leverage market forces to secure the best possible price for these advanced computing R&D services.

Public Impact

The Department of Homeland Security (DHS) benefits directly through enhanced capabilities in advanced computing research. Services delivered include research and development crucial for future technological advancements in computing. The geographic impact is primarily within Virginia, where MITRE's operations are based, but the research has national implications. Workforce implications include the engagement of highly skilled researchers and engineers in cutting-edge fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of transparency in the selection process due to sole-source nature.
Potential for cost overruns in cost-plus contracts if not rigorously managed.
Reliance on a single contractor for critical R&D could pose a long-term risk if capabilities are not maintained or expanded.

Positive Signals

Award to MITRE, a recognized FFRDC, ensures access to specialized expertise and objective analysis.
Contract duration allows for sustained research and development efforts.
Focus on advanced computing aligns with critical national security and technological priorities.
Performance has been rated as 'good', indicating satisfactory execution of research tasks.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced computing. The market for advanced computing R&D is highly specialized, often involving entities like FFRDCs due to the need for deep technical expertise and objective analysis. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of FFRDC contracts and the specific R&D focus, but significant government investment in this area is common across defense, intelligence, and civilian agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting opportunities for small businesses. As a sole-source award to a large, established entity like MITRE, the direct impact on the small business ecosystem is likely minimal unless MITRE actively engages small businesses as subcontractors for specific components of the research. Further investigation into subcontracting plans would be needed to assess any indirect benefits.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's contracting officers and program managers. As an FFRDC, MITRE is subject to specific oversight frameworks designed to ensure objectivity and adherence to research goals. Transparency is limited due to the sole-source nature, but performance reviews and reporting requirements would be key accountability measures. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Advanced Technology Research
Information Technology Research
Homeland Security Technology Development
Federally Funded Research and Development Centers (FFRDCs)
Applied Research and Experimental Development

Risk Flags

Sole-source award
Lack of competitive bidding
Cost-plus contract type (potential for cost overruns)
Long contract duration (risk of scope creep or changing requirements)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.5 million to THE MITRE CORPORATION. ADVANCED COMPUTING RESEARCH AND DEVELOPMENT (ACRD)

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 $42.5 million.

What is the period of performance?

Start: 2020-08-03. End: 2023-08-02.

What is MITRE's track record with DHS on similar advanced computing R&D contracts?

The provided data does not detail MITRE's specific track record with DHS on similar advanced computing R&D contracts. However, MITRE, as a designated FFRDC, has a long-standing relationship with various government agencies, including DHS, providing objective research, development, and systems engineering support. Their role often involves tackling complex national challenges. To assess their track record specifically for this contract, one would need to examine past performance evaluations, project outcomes, and any prior awards or task orders issued by DHS to MITRE in the advanced computing domain. The 'good' performance rating on this specific contract suggests satisfactory execution, but a broader historical view would be beneficial.

How does the $42.5 million award compare to other advanced computing R&D contracts awarded by DHS or similar agencies?

Comparing the $42.5 million award requires context regarding the scope, duration, and specific R&D focus. Advanced computing R&D can encompass a wide range of activities, from fundamental research to applied engineering. Awards in this domain can vary significantly. For instance, large-scale AI or quantum computing initiatives might see multi-year contracts in the hundreds of millions. Smaller, more focused R&D efforts could be in the tens of millions. Given this contract's nearly three-year duration and its award to an FFRDC, $42.5 million appears to be a substantial but not extraordinary figure for specialized R&D. A precise comparison would necessitate identifying contracts with similar technical objectives, performer types (e.g., other FFRDCs or large research institutions), and contract structures (e.g., cost-plus fixed fee).

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis are related to cost and innovation. Without competition, there is less pressure on the contractor (MITRE) to offer the most cost-effective solution, potentially leading to higher prices than might be achieved through a competitive process. Furthermore, sole-sourcing limits the government's exposure to potentially more innovative or efficient approaches that other qualified research organizations might offer. This can stifle broader market innovation and prevent the government from benefiting from diverse perspectives and cutting-edge techniques developed outside the incumbent contractor's immediate purview. Ensuring rigorous oversight and performance management becomes even more critical in sole-source scenarios.

How effective is the 'good' performance rating in assessing the overall value and success of this R&D effort?

A 'good' performance rating indicates that the contractor has met or exceeded the contractual requirements and expectations. For an R&D contract, this suggests that the research activities are progressing as planned, milestones are being met, and the quality of work is satisfactory. However, 'good' is a relative term and does not necessarily imply exceptional outcomes or groundbreaking discoveries, which are inherently uncertain in R&D. While it provides a baseline assurance of competent execution, it doesn't fully capture the ultimate scientific or technological impact of the research. A more comprehensive assessment of value and success would also consider the alignment of research outcomes with DHS strategic goals, the potential for future application, and whether the R&D investment is yielding a return in terms of enhanced capabilities or problem-solving.

What are the historical spending patterns for advanced computing R&D at DHS, and how does this contract fit in?

The provided data does not offer historical spending patterns for advanced computing R&D at DHS. However, government spending on advanced computing, including areas like artificial intelligence, machine learning, high-performance computing, and cybersecurity-related R&D, has been steadily increasing across various agencies, including DHS, driven by national security imperatives and the need to leverage technology for mission effectiveness. This $42.5 million contract represents a significant, multi-year investment in a specific area of advanced computing R&D. To understand its place in historical patterns, one would need to analyze DHS's budget allocations and contract awards for R&D over several fiscal years, identifying trends in funding levels, research focus areas, and the types of performers engaged (e.g., FFRDCs, universities, private sector).

What specific advanced computing research areas is MITRE expected to focus on under this contract?

The provided data identifies the contract's objective as 'ADVANCED COMPUTING RESEARCH AND DEVELOPMENT (ACRD)' and the North American Industry Classification System (NAICS) code as '541715 - Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. However, it does not specify the precise sub-areas of advanced computing MITRE is expected to research. Given DHS's mission, potential areas could include AI/ML for threat detection, advanced data analytics for intelligence, secure computing architectures, quantum information science applications, or high-performance computing for simulation and modeling. A detailed statement of work or contract annex would typically outline these specific research thrusts and objectives.

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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: TEP0400

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: $49,473,454

Exercised Options: $49,473,454

Current Obligation: $42,540,957

Actual Outlays: $15,455,761

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $901,963

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