Mitre Corporation awarded $28.8M for Vulnerability Program Management by HHS

Contract Overview

Contract Amount: $28,787,325 ($28.8M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-27

End Date: 2022-10-26

Contract Duration: 1,125 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: VULNERABILITY PROGRAM MANAGEMENT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.8 million to THE MITRE CORPORATION for work described as: VULNERABILITY PROGRAM MANAGEMENT Key points: 1. Contract focuses on program management for a critical government function. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed tightly. 4. The duration of the contract (over 3 years) indicates a long-term need for these services. 5. The specific NAICS code (541990) covers a broad range of professional services, making direct cost comparisons challenging without more detail. 6. The contractor, MITRE Corporation, is a well-established entity in government contracting, often managing complex programs.

Value Assessment

Rating: good

The contract value of $28.8 million over approximately three years for program management services appears reasonable given the contractor's expertise and the nature of the work. Benchmarking against similar large-scale program management contracts within federal agencies is difficult without more specific service details. However, MITRE's role as a federally funded research and development center (FFRDC) often implies a certain level of cost efficiency and technical proficiency, suggesting value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method of procurement generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these specialized program management services.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through competitive bidding and ensures the government receives the most advantageous terms and pricing.

Public Impact

The primary beneficiary is the Centers for Medicare and Medicaid Services (CMS), which receives program management support. The services delivered are crucial for managing vulnerabilities within CMS systems, contributing to data security and operational integrity. The geographic impact is primarily federal, supporting a national agency's operational needs. Workforce implications include the potential for specialized program management roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require careful monitoring to prevent scope creep and ensure cost containment.
The broad NAICS code may obscure the specific nature of the services, making detailed performance evaluation more complex.

Positive Signals

Award to a reputable contractor like MITRE Corporation suggests a high likelihood of successful program execution.
Full and open competition indicates a structured procurement process that should yield competitive pricing.
The contract duration suggests a stable and predictable need for these essential program management services.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under professional, scientific, and technical services, a broad category encompassing program management, consulting, and technical support. The market for such services is substantial, with numerous firms capable of supporting federal agencies. Comparable spending benchmarks are difficult to establish without granular data on the specific program management functions being performed, but large federal agencies like HHS consistently invest in program management to ensure the effective delivery of complex IT and operational initiatives.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the work and the contractor, it is likely that larger firms were the primary focus of the competition. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Transparency is generally maintained through contract reporting mechanisms. The Inspector General for the Department of Health and Human Services (HHS) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS IT Modernization Initiatives
CMS Program Management Support
Federal Cybersecurity Vulnerability Management
Government IT Services Procurement

Risk Flags

Contract Type Risk (CPFF)
Broad Service Category (NAICS 541990)
Cybersecurity Threat Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.8 million to THE MITRE CORPORATION. VULNERABILITY PROGRAM MANAGEMENT

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 $28.8 million.

What is the period of performance?

Start: 2019-09-27. End: 2022-10-26.

What is the track record of The MITRE Corporation in managing similar government contracts?

The MITRE Corporation has a long and extensive track record of managing complex government contracts, particularly as a Federally Funded Research and Development Center (FFRDC). They are known for their work in areas such as systems engineering, research and development, and program management across various federal agencies, including the Department of Defense, Department of Homeland Security, and the FAA, in addition to HHS. Their experience often involves providing objective analysis and technical guidance on critical national programs. While specific performance metrics for individual contracts are often proprietary or not publicly detailed, MITRE's consistent engagement with the federal government on high-stakes projects suggests a generally positive performance history and a deep understanding of government procurement and program execution.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset, or when there is a high degree of uncertainty in the costs. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the actual costs incurred, and cost-reimbursement contracts without a fixed fee. While CPFF can provide flexibility and encourage innovation, it also carries a risk of cost overruns if the government does not maintain strong oversight and control over the scope and expenditures. For program management services, CPFF can be suitable if the nature of the program management evolves, but it requires diligent monitoring by the agency to ensure costs remain reasonable and aligned with the program's objectives.

What are the primary risks associated with this 'Vulnerability Program Management' contract?

The primary risks associated with this 'Vulnerability Program Management' contract revolve around the effective identification, assessment, and mitigation of vulnerabilities within the Centers for Medicare and Medicaid Services (CMS) systems. A key risk is the potential for inadequate or delayed identification of critical vulnerabilities, which could expose sensitive beneficiary data or disrupt essential healthcare services. Another risk stems from the CPFF contract type; if not managed with rigorous oversight, there's a possibility of cost inefficiencies or scope creep, leading to expenditures exceeding initial expectations without a commensurate increase in value. Furthermore, the complexity of CMS's IT infrastructure presents a constant challenge, and any lapse in program management could lead to a failure to prioritize and address the most significant threats effectively, impacting national healthcare security.

What is the historical spending pattern for Vulnerability Program Management at CMS or HHS?

Analyzing historical spending patterns for 'Vulnerability Program Management' specifically at CMS or HHS requires access to detailed contract databases and budget allocations. However, it is reasonable to infer that spending in this area has likely increased over time, reflecting the growing importance of cybersecurity and data protection in healthcare. Federal agencies, including HHS, have been dedicating more resources to managing IT vulnerabilities due to the escalating threat landscape and regulatory requirements. While this specific $28.8 million contract represents a significant investment over its duration, it should be viewed within the broader context of HHS's overall IT security budget, which encompasses a wide array of cybersecurity measures, personnel, and technologies. Without specific historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment compared to prior periods.

How does the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') impact the analysis of this contract?

The classification under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' indicates that this contract covers a broad spectrum of services that do not fit into more specific categories. This broadness can make direct comparisons to other contracts challenging, as the specific services rendered under 'Vulnerability Program Management' could vary significantly even within this code. It implies that the contract might encompass a diverse set of activities, potentially including strategic planning, risk assessment, policy development, and coordination across different technical teams, rather than a single, narrowly defined technical task. For analysis, this means focusing on the program management aspects and the contractor's ability to integrate various technical and administrative functions effectively, rather than benchmarking against highly specialized IT service contracts.

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: $29,473,394

Exercised Options: $28,787,325

Current Obligation: $28,787,325

Actual Outlays: $12,032,217

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