MITRE Corp Awarded $82.7M for Health Care Innovation Support by HHS CMS
Contract Overview
Contract Amount: $82,670,819 ($82.7M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2019-04-10
End Date: 2024-06-30
Contract Duration: 1,908 days
Daily Burn Rate: $43.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $82.7 million to THE MITRE CORPORATION for work described as: SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE Key points: 1. Significant contract value for professional, scientific, and technical services. 2. MITRE Corporation, a federally funded research and development center, is the sole awardee. 3. Potential for high impact on affordable and better health care. 4. Contract spans five years, indicating a long-term strategic investment.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar R&D support contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the awardee is The MITRE Corporation, which operates as a FFRDC, potentially influencing the competitive landscape.
Taxpayer Impact: The contract aims to improve health care affordability and quality, which could lead to significant taxpayer savings and improved public health outcomes if successful.
Public Impact
Enhances the pursuit of more affordable health care options for citizens. Supports innovation in critical areas of health and medical services. Potential for improved patient outcomes and access to care. Leverages expertise to address complex healthcare challenges. Long-term investment in the future of healthcare delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep in Cost Plus Fixed Fee contracts.
- Reliance on a single FFRDC may limit diverse perspectives.
- Measuring the direct impact of innovation support can be challenging.
Positive Signals
- Focus on improving health care affordability and quality.
- Long-term commitment to innovation.
- Leverages established expertise of The MITRE Corporation.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Spending in this sector is often driven by government needs for specialized research, development, and advisory services, with benchmarks varying widely based on the specific technical domain.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not explicitly mention small business participation. The awardee, MITRE, is a large organization, suggesting limited direct opportunities for small businesses as prime contractors on this specific award.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Oversight would focus on ensuring the innovation pursued aligns with CMS goals for affordability and quality, and that funds are used efficiently.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Sole awardee is an FFRDC.
- Measuring innovation impact can be subjective.
- Long contract duration requires sustained oversight.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $82.7 million to THE MITRE CORPORATION. SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE
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 (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $82.7 million.
What is the period of performance?
Start: 2019-04-10. End: 2024-06-30.
How will the success of 'innovation support' be measured to ensure value for money?
Success will likely be measured through defined milestones, the successful development and implementation of innovative solutions, and quantifiable improvements in health care affordability and quality metrics. CMS will need to establish clear KPIs and track progress against these objectives throughout the contract's duration to ensure taxpayer funds are yielding desired outcomes.
What are the primary risks associated with relying on a single FFRDC for innovation support?
The primary risks include a potential lack of diverse perspectives and a reduced incentive for groundbreaking innovation if the FFRDC becomes complacent. There's also a risk of vendor lock-in and potentially higher costs compared to a more competitive market. Mitigation strategies could involve robust oversight and encouraging collaboration with external entities.
What is the expected effectiveness of this contract in achieving 'affordable and better health care'?
The effectiveness hinges on MITRE's ability to identify, develop, and facilitate the adoption of truly impactful innovations. If successful, it could lead to significant cost savings within Medicare and Medicaid, improve patient outcomes, and streamline healthcare delivery. However, the complex nature of healthcare systems means realizing these benefits may take time and require strong government-industry partnerships.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HHSM5002017RFP0020
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: $82,670,819
Exercised Options: $82,670,819
Current Obligation: $82,670,819
Actual Outlays: $26,345,751
Subaward Activity
Number of Subawards: 78
Total Subaward Amount: $84,507,345
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC18D0047
IDV Type: IDC
Timeline
Start Date: 2019-04-10
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2025-07-23
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