HHS awards $44.4M contract to MITRE Corp for technical services, extending through June 2025

Contract Overview

Contract Amount: $44,368,750 ($44.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2022-06-20

End Date: 2025-06-19

Contract Duration: 1,095 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: STATES AND TERRITORIES MUST DEMONSTRATE, THROUGH A COMBINATION OF TEST RESULTS, SYSTEM DEMONSTRATIONS AND OR METRICS REPORTING, THAT THEIR SYSTEMS CONTINUE TO ACHIEVE PLANNED OUTCOMES AND FUNCTION CORRECTLY TO RECEIVE ENHANCED FUNDING ON AN ONGOING B

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $44.4 million to THE MITRE CORPORATION for work described as: STATES AND TERRITORIES MUST DEMONSTRATE, THROUGH A COMBINATION OF TEST RESULTS, SYSTEM DEMONSTRATIONS AND OR METRICS REPORTING, THAT THEIR SYSTEMS CONTINUE TO ACHIEVE PLANNED OUTCOMES AND FUNCTION CORRECTLY TO RECEIVE ENHANCED FUNDING ON AN ONGOING B Key points: 1. Contract value of $44.4M over three years suggests a significant investment in specialized technical expertise. 2. The 'All Other Professional, Scientific, and Technical Services' category indicates a broad scope of potential work. 3. Full and open competition was utilized, implying a robust selection process. 4. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not closely managed. 5. The contract duration of 1095 days allows for sustained support and project development. 6. The award to The MITRE Corporation, a well-established research and development organization, suggests a focus on complex problem-solving.

Value Assessment

Rating: good

The contract value of $44.4 million over three years averages approximately $14.8 million annually. Benchmarking this against similar large-scale technical services contracts within the federal government is challenging without more specific service details. However, the CPFF structure requires careful monitoring to ensure costs remain aligned with the fixed fee and deliverable value. The MITRE Corporation's track record in government contracting suggests a capacity to manage such agreements effectively, but the inherent nature of CPFF contracts warrants scrutiny.

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 proposals. The number of bidders is not specified, but this method generally fosters a competitive environment, allowing the agency to select the offer that provides the best value. The open competition suggests that the agency sought a wide range of potential solutions and contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a level playing field, encourages competitive pricing, and increases the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), specifically the Centers for Medicare and Medicaid Services (CMS). The contract is expected to deliver essential professional, scientific, and technical services to support planned outcomes and system functionality. The geographic impact is likely concentrated in Maryland, where the contractor is based, but the services provided could have national implications for healthcare systems. The contract supports a workforce of technical experts and analysts, contributing to the federal government's capacity in healthcare IT and policy implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not meticulously managed and monitored.
The broad categorization of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess specific performance metrics and value for money without further detail.
Lack of specific performance metrics or deliverables in the provided data makes it hard to gauge the true success or efficiency of the services rendered.

Positive Signals

Awarded through full and open competition, suggesting a thorough evaluation process and potential for competitive pricing.
The contract is with The MITRE Corporation, a non-profit federally funded research and development center (FFRDC) with a strong reputation for technical expertise and objective analysis.
The contract duration of three years allows for sustained effort and the potential for significant project completion and impact.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This broad category encompasses a wide array of services, including research and development, consulting, and technical support. The federal government is a significant purchaser of these services, particularly within health-related agencies like HHS, to support complex policy implementation, system modernization, and data analysis. Comparable spending benchmarks would depend heavily on the specific nature of the technical services provided, but overall federal spending in this sector is substantial.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, The MITRE Corporation, is a large organization, and while they may engage small businesses as subcontractors for specific needs, this contract does not inherently prioritize or mandate small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) within HHS. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the contractor is meeting its obligations. Transparency would be enhanced through regular reporting requirements and potentially through the agency's contract management systems. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Centers for Medicare and Medicaid Services (CMS) IT Modernization Efforts
Federal Health IT Services
Healthcare Data Analytics Contracts
Research and Development Services for Health Agencies
Professional and Technical Services for HHS

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Broad service category may obscure specific performance metrics and value assessment.
Lack of detailed performance metrics in the provided data hinders a full assessment of efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $44.4 million to THE MITRE CORPORATION. STATES AND TERRITORIES MUST DEMONSTRATE, THROUGH A COMBINATION OF TEST RESULTS, SYSTEM DEMONSTRATIONS AND OR METRICS REPORTING, THAT THEIR SYSTEMS CONTINUE TO ACHIEVE PLANNED OUTCOMES AND FUNCTION CORRECTLY TO RECEIVE ENHANCED FUNDING ON AN ONGOING B

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 $44.4 million.

What is the period of performance?

Start: 2022-06-20. End: 2025-06-19.

What is The MITRE Corporation's track record with federal contracts, particularly within HHS?

The MITRE Corporation has an extensive history of working with federal agencies, including HHS. As a non-profit FFRDC, MITRE is known for providing objective, independent research and development, as well as systems engineering and integration support. They often tackle complex national challenges. Within HHS, MITRE has been involved in various initiatives related to healthcare policy, health IT, and program management. Their performance is generally well-regarded, characterized by technical expertise and a focus on mission outcomes. However, like any large contractor, specific contract performance can vary, and detailed reviews of past performance on similar contracts would be necessary for a comprehensive assessment.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved. It allows the contractor to recover all allowable costs plus a fixed fee representing profit. While it provides flexibility for the agency, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the risk of cost increases. For value for money, CPFF requires robust government oversight to ensure costs are reasonable and that the fixed fee adequately compensates the contractor for the defined effort. Fixed-price contracts, conversely, offer greater cost certainty for the government but may require more detailed upfront scope definition and can lead to contractor risk if estimates are inaccurate.

What are the potential risks associated with the broad 'All Other Professional, Scientific, and Technical Services' categorization?

The broad categorization of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) presents several potential risks. Firstly, it can obscure the specific nature of the services being procured, making it difficult to benchmark pricing or assess the true value for money. This lack of specificity can also hinder performance monitoring, as clear, measurable deliverables may not be as readily defined. Secondly, such broad categories might allow for a wider range of services than initially intended, potentially leading to scope creep or the procurement of services that could have been obtained more cost-effectively through more specialized contract vehicles. It necessitates strong contract management from the agency to ensure the services align with the intended purpose and budget.

What does the contract duration of 1095 days imply for program effectiveness?

A contract duration of 1095 days (three years) implies a commitment to sustained support and the potential for significant project development and implementation. This length suggests that the services required are not short-term or transactional but rather involve ongoing efforts, potentially including research, development, system integration, or long-term technical assistance. Such a duration allows the contractor to gain deep institutional knowledge, build strong working relationships with the agency, and see complex projects through to completion. For program effectiveness, this sustained engagement can lead to greater stability, continuity of expertise, and the ability to achieve more ambitious, long-term objectives compared to shorter-term engagements.

How does the use of 'full and open competition' impact the potential for cost savings for taxpayers?

The use of 'full and open competition' is a fundamental principle in federal procurement designed to maximize cost savings for taxpayers. By allowing all responsible sources to compete, the government broadens the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. This competitive pressure incentivizes contractors to offer their best pricing and most innovative solutions to win the contract. Furthermore, a robust competition allows the agency to evaluate proposals not just on technical merit but also on price, enabling the selection of the offer that represents the best overall value. While the specific savings depend on the market and the number of bidders, full and open competition is generally considered the most effective method for achieving competitive pricing and ensuring taxpayer dollars are used efficiently.

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

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: $44,944,045

Exercised Options: $44,368,750

Current Obligation: $44,368,750

Actual Outlays: $43,742,779

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