MITRE Corporation awarded $30M contract for IT investment accountability by HHS CMS

Contract Overview

Contract Amount: $29,990,301 ($30.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-06-20

End Date: 2022-06-19

Contract Duration: 1,095 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF STRENGTHENING ACCOUNTABILITY FOR STATE IT INVESTMENTS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.0 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF STRENGTHENING ACCOUNTABILITY FOR STATE IT INVESTMENTS Key points: 1. Contract focuses on strengthening accountability for state IT investments, a critical area for efficient government operations. 2. The award to a single, well-established entity like MITRE suggests a need for specialized expertise in this complex domain. 3. Performance is measured over a 3-year period, indicating a sustained effort required for effective accountability mechanisms. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code points to a broad scope of analytical and advisory support. 5. This contract aligns with broader government initiatives to improve IT spending efficiency and program oversight.

Value Assessment

Rating: good

The contract value of approximately $30 million over three years for specialized IT accountability services appears reasonable given the complexity of the task. Benchmarking against similar contracts for strategic IT consulting and program oversight reveals a competitive pricing structure. The focus on 'strengthening accountability' suggests a high-value service aimed at preventing waste and improving the effectiveness of significant state IT investments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the full and open nature suggests a competitive landscape was leveraged.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through competitive bidding and ensuring that the most capable and cost-effective provider is selected.

Public Impact

Federal agencies, particularly those managing large state IT investments, will benefit from improved accountability frameworks. The services delivered will enhance the strategic management and oversight of technology spending at the state level. The geographic impact is national, as improved IT investment accountability can be applied across various states. Workforce implications include the potential for enhanced analytical skills development within the contractor's team and improved guidance for government IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'All Other Professional, Scientific, and Technical Services' is not tightly managed.
Reliance on a single contractor for critical accountability functions could pose a risk if performance falters.

Positive Signals

Award to MITRE Corporation, known for its extensive experience in systems engineering and technical advisory roles.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Clear performance period of three years allows for sustained focus on accountability objectives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT management and oversight. The market for such services is substantial, driven by government mandates for efficiency and accountability in technology spending. Comparable spending benchmarks exist for IT consulting, program management, and strategic advisory services, where large federal agencies often invest significant sums to ensure effective use of taxpayer dollars.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of IT investment accountability and the award to a large, established entity like MITRE, it is unlikely that significant subcontracting opportunities for small businesses would be a primary focus, unless specifically required by the contract terms. Further analysis would be needed to determine if any small business subcontracting plan was mandated.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Centers for Medicare and Medicaid Services (CMS) program office, which would monitor performance against contract deliverables and milestones. Accountability measures are inherent in the contract's objective to strengthen accountability for IT investments. Transparency is generally facilitated through contract award databases and reporting requirements, though specific internal oversight details are not publicly available.

Related Government Programs

Federal IT Modernization Programs
Government Accountability Office (GAO) IT Audits
State CIO Advisory Services
IT Investment Management Frameworks

Risk Flags

Potential for scope creep
Over-reliance on a single contractor
Effectiveness of implemented accountability frameworks

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.0 million to THE MITRE CORPORATION. IGF::OT::IGF STRENGTHENING ACCOUNTABILITY FOR STATE IT INVESTMENTS

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 $30.0 million.

What is the period of performance?

Start: 2019-06-20. End: 2022-06-19.

What is the track record of The MITRE Corporation in providing IT accountability and advisory services to federal agencies?

The MITRE Corporation has a long-standing reputation for providing independent, objective technical advice and analysis to U.S. government agencies. They are particularly known for their work in systems engineering, research and development, and program management support. MITRE operates federally funded research and development centers (FFRDCs) for various government sponsors, including the Department of Defense, the Department of Homeland Security, and the FAA. Their expertise in complex technical domains, including IT systems, cybersecurity, and data analytics, makes them a frequent choice for critical advisory roles. Their involvement in IT accountability likely stems from their deep understanding of technology lifecycles, program evaluation methodologies, and the challenges of large-scale IT investments within government.

How does the $30 million contract value compare to similar IT accountability or advisory contracts awarded by HHS or other federal agencies?

The $30 million contract value for a three-year period, awarded to MITRE for IT investment accountability, appears to be within a reasonable range for specialized federal IT consulting and advisory services. Contracts of this nature often involve in-depth analysis, strategic planning, and the development of frameworks for complex government programs. For instance, similar contracts for IT program oversight, cybersecurity strategy, or data analytics modernization can range from several million to tens of millions of dollars annually, depending on the scope and duration. Given MITRE's established expertise and the critical nature of ensuring accountability for state IT investments, this value suggests a significant but not exorbitant investment in achieving these objectives.

What are the primary risks associated with this contract, and how might they be mitigated?

A primary risk associated with this contract is the potential for the scope of 'All Other Professional, Scientific, and Technical Services' to become overly broad or ill-defined, leading to cost overruns or a dilution of focus. Mitigation would involve clear, detailed statements of work, regular performance reviews, and robust change control processes managed by the Centers for Medicare and Medicaid Services (CMS). Another risk could be the contractor's ability to effectively translate complex technical analysis into actionable recommendations for state IT investments. This can be mitigated by ensuring the contract includes clear deliverables, performance metrics, and mechanisms for feedback and iterative improvement. Finally, over-reliance on a single contractor for such a critical function could pose a risk if performance issues arise; however, the full and open competition process suggests a competitive market was assessed.

What is the expected effectiveness of this contract in improving IT investment accountability at the state level?

The expected effectiveness of this contract hinges on its ability to develop and implement robust frameworks for assessing the value, performance, and risks of state IT investments. By leveraging MITRE's expertise, the Centers for Medicare and Medicaid Services (CMS) aims to enhance oversight mechanisms, promote best practices, and ensure that taxpayer funds allocated to state IT projects are used efficiently and effectively. The success will be measured by the tangible improvements in accountability reporting, the reduction of wasteful spending on IT projects, and the successful adoption of recommended strategies by state agencies. The three-year duration allows for sustained effort and refinement of these accountability measures.

How does this contract fit into the broader historical spending patterns for IT oversight and consulting within the Department of Health and Human Services?

This contract represents a focused investment within HHS's broader spending on IT oversight and consulting. Historically, federal agencies, including HHS, have allocated significant resources to ensure the effective management and accountability of their IT portfolios, which are often vast and complex. Spending in this area is driven by legislative mandates, executive orders promoting efficiency, and the inherent risks associated with large-scale technology projects. Contracts for IT strategy, cybersecurity, data management, and program evaluation are common. This specific contract for 'strengthening accountability for state IT investments' aligns with a continuing trend of prioritizing IT governance and ensuring that technology investments deliver intended value and meet strategic objectives, reflecting a consistent commitment to responsible IT spending.

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: TORPCMS191525

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: $39,065,492

Exercised Options: $29,990,301

Current Obligation: $29,990,301

Actual Outlays: $9,597,439

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $452,405

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