MITRE Corporation awarded $30.9M for strategic research and critical analysis for HHS Administrator

Contract Overview

Contract Amount: $30,913,923 ($30.9M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-03

End Date: 2024-11-30

Contract Duration: 1,915 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: STRATEGIC RESEARCH AND CRITICAL ANALYSIS FOR THE OFFICE OF THE ADMINISTRATOR

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.9 million to THE MITRE CORPORATION for work described as: STRATEGIC RESEARCH AND CRITICAL ANALYSIS FOR THE OFFICE OF THE ADMINISTRATOR Key points: 1. Contract value appears reasonable for a 5-year duration supporting critical administrative functions. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract type (Cost Plus Fixed Fee) may present some cost control challenges. 4. Performance is contextually situated within the Centers for Medicare and Medicaid Services (CMS). 5. The contractor, MITRE Corporation, is a well-established entity in government contracting. 6. The broad service category indicates a wide range of potential analytical support.

Value Assessment

Rating: good

The contract value of $30.9 million over approximately five years for strategic research and critical analysis appears to be within a reasonable range for the scope of services. Benchmarking against similar contracts for high-level administrative support and research within federal agencies suggests this is a fair price. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, necessitates careful oversight to ensure cost efficiency. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and nature of the work align with typical federal spending for such specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the competitive nature of the award process suggests that multiple organizations likely vied for this opportunity. This approach is generally expected to foster price discovery and encourage competitive pricing among potential contractors, leading to a more favorable outcome for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment and ensuring the government receives the best value.

Public Impact

The Office of the Administrator within HHS is the primary beneficiary, receiving critical analytical support. Services delivered include strategic research and critical analysis, aiding in high-level decision-making. The geographic impact is primarily national, supporting federal-level administration. Workforce implications are likely internal to the contractor and the specific HHS office receiving support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not clearly defined.
Reliance on a single large contractor for critical strategic analysis may limit diverse perspectives.

Positive Signals

The contractor, MITRE Corporation, has a strong track record in providing technical and management support to government agencies.
Full and open competition suggests a robust procurement process was followed.
The long-term nature of the contract (nearly 5 years) indicates a stable and ongoing need for these services.
The contract supports a critical function within the Office of the Administrator, suggesting high-level strategic importance.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). This broad category encompasses a wide array of specialized services. The market for such services is substantial, with numerous firms capable of providing strategic analysis and research. MITRE Corporation, as a federally funded research and development center (FFRDC) and a large government contractor, is a significant player in this space. Comparable spending benchmarks for strategic advisory and research services to federal agencies can vary widely based on scope and duration, but this contract's value appears aligned with specialized, long-term support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The primary contractor, The MITRE Corporation, is a large organization. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless MITRE voluntarily engages small businesses for specialized support not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain within the fixed fee and that the services delivered meet the strategic objectives. Transparency is facilitated through contract reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, the HHS OIG generally has oversight over HHS spending and contracts.

Related Government Programs

HHS Strategic Planning and Analysis
CMS Program Evaluation Services
Federal Research and Development Support
Government Administrative Support Services
Management and Consulting Services for Federal Agencies

Risk Flags

Potential for cost overruns due to CPFF contract type.
Broad scope under NAICS 541990 requires diligent oversight to prevent scope creep.
Lack of specific competition details (number of bidders) limits full assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.9 million to THE MITRE CORPORATION. STRATEGIC RESEARCH AND CRITICAL ANALYSIS FOR THE OFFICE OF THE ADMINISTRATOR

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 $30.9 million.

What is the period of performance?

Start: 2019-09-03. End: 2024-11-30.

What is The MITRE Corporation's track record with the federal government, particularly with HHS and CMS?

The MITRE Corporation has an extensive and well-established track record of serving federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the Centers for Medicare and Medicaid Services (CMS). As a federally funded research and development center (FFRDC), MITRE is known for its objective, independent research and analysis. They have historically provided a wide range of services, including systems engineering, research, development, and program management support across various government sectors. Their long-standing presence and numerous contracts with agencies like HHS indicate a deep understanding of federal operations and a capacity to handle complex, strategic initiatives. Specific contract history with CMS would likely detail support in areas such as healthcare policy analysis, IT modernization, and operational efficiency improvements, aligning with the nature of the current award.

How does the $30.9 million contract value compare to similar strategic research contracts within HHS or other federal agencies?

The $30.9 million contract value for strategic research and critical analysis awarded to The MITRE Corporation over approximately five years (September 2019 to November 2024) appears to be within a reasonable range for high-level, specialized support. Federal agencies frequently award multi-million dollar contracts for strategic advisory, research, and analytical services. For instance, contracts supporting agency-wide strategic planning, policy development, or complex program analysis can easily reach tens of millions of dollars over several years. Given that this contract supports the Office of the Administrator, a critical leadership function, and involves ongoing research and analysis, the value is commensurate with the scope and duration. Benchmarking against contracts for similar FFRDCs or large consulting firms providing equivalent strategic support to agencies like the Department of Defense or the National Science Foundation would likely show comparable investment levels.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, such as the one awarded to The MITRE Corporation, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee incentivizes efficiency to some extent, it does not directly tie the contractor's profit to cost savings. This can lead to less stringent cost control by the contractor compared to fixed-price contracts. For the government, the risk is that the total costs could exceed initial estimates, even though the fee is fixed. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value.

How effective is 'full and open competition' in ensuring value for money for strategic research services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for strategic research services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. This competitive pressure encourages bidders to offer their best pricing and technical solutions to win the contract. For strategic research, where innovation and expertise are key, a broad competition can surface a wider range of approaches and capabilities. While the specific number of bidders isn't detailed here, the process itself is designed to foster price discovery and ensure that the selected contractor offers a strong balance of cost and technical merit, ultimately benefiting taxpayers.

What are the implications of the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') for the scope and oversight of this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' signifies a broad and diverse category that encompasses services not specifically classified under other, more specialized NAICS codes. For this contract, it implies that the scope of 'strategic research and critical analysis' could be quite wide-ranging, potentially covering policy analysis, program evaluation, organizational assessment, and various other analytical tasks supporting the Office of the Administrator. The broadness necessitates robust oversight from the government. Contracting officers and program managers must ensure that the Statement of Work (SOW) is exceptionally clear, well-defined, and that performance metrics are specific and measurable to prevent scope creep and ensure the services delivered align precisely with the agency's needs. Without precise definitions, oversight can become challenging.

What is the significance of The MITRE Corporation being a federally funded research and development center (FFRDC) in the context of this contract?

The MITRE Corporation operates as a federally funded research and development center (FFRDC), which carries specific implications for its role in government contracts like this one. FFRDCs are established to meet long-term research and development needs of the government that cannot be effectively met by the private sector alone. They are characterized by their objectivity, independence, and deep technical expertise. For this contract, MITRE's FFRDC status suggests it provides high-level, unbiased analysis and strategic advice to the HHS Administrator. This status often allows FFRDCs to access sensitive information and engage in complex problem-solving that might be restricted for other types of contractors, ensuring the government receives trusted, expert guidance.

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: $30,913,923

Exercised Options: $30,913,923

Current Obligation: $30,913,923

Actual Outlays: $24,661,631

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $3,351,339

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