HHS awards $414M R&D contract to MITRE Corporation for policy task order

Contract Overview

Contract Amount: $4,144,199 ($4.1M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-20

End Date: 2026-09-19

Contract Duration: 729 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: UC POLICY TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.1 million to THE MITRE CORPORATION for work described as: UC POLICY TASK ORDER Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. MITRE Corporation, a well-established entity, is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The R&D sector is critical for innovation but can have uncertain outcomes.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee structure for a $414M contract warrants scrutiny. While it allows for flexibility in R&D, it lacks the cost control inherent in fixed-price contracts and requires robust oversight to manage expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and competitive pressure, potentially leading to higher costs than if multiple vendors had bid.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the R&D services provided.

Public Impact

Policy development and research impacting public health initiatives. Potential for advancements in physical, engineering, and life sciences. MITRE's role suggests a focus on complex, non-commercial R&D challenges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost Plus Fixed Fee structure can inflate costs.
Lack of clear performance metrics for R&D outcomes.

Positive Signals

Award to a reputable R&D organization.
Focus on critical policy development.
Long-term contract duration allows for sustained effort.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but often involves high risk and long development cycles, making cost-effectiveness challenging to benchmark.

Small Business Impact

The award to The MITRE Corporation, a large research organization, does not appear to include specific provisions for small business participation. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

The sole-source nature of this award necessitates strong oversight from HHS to ensure the Cost Plus Fixed Fee structure is managed effectively and that the R&D objectives are met efficiently.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee contract type poses risk of cost overruns.
Lack of transparency on specific R&D objectives and expected outcomes.
Potential for inefficient resource allocation without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.1 million to THE MITRE CORPORATION. UC POLICY TASK ORDER

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-09-20. End: 2026-09-19.

What specific policy areas will this R&D funding address, and what are the expected tangible outcomes?

The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' for a 'UC POLICY TASK ORDER'. While the specific policy areas are not detailed, the broad R&D scope suggests potential applications in areas like public health infrastructure, scientific research methodologies, or technological advancements supporting health policy. Tangible outcomes could include research reports, policy recommendations, prototype development, or new analytical frameworks.

Given the sole-source nature and CPFF contract type, what mechanisms are in place to mitigate cost overruns and ensure value for money?

The Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, requires robust government oversight. Mechanisms to mitigate cost overruns include detailed cost monitoring, regular audits, strict adherence to the fixed fee, and clear performance milestones. The government must actively manage the scope and ensure that all expenditures are reasonable, allocable, and necessary for achieving the contract's objectives.

How will the effectiveness of the R&D conducted under this contract be measured, particularly given the inherent uncertainties in research?

Measuring R&D effectiveness is challenging. Success will likely be evaluated based on the achievement of pre-defined research objectives, the quality and rigor of the research conducted, the relevance of findings to policy needs, and the successful completion of deliverables such as reports or prototypes. Key Performance Indicators (KPIs) should be established to track progress against milestones and assess the impact of the research on policy decisions or scientific understanding.

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: $4,953,257

Exercised Options: $4,144,199

Current Obligation: $4,144,199

Actual Outlays: $1,918,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC23D0004

IDV Type: IDC

Timeline