HHS Awards $25M to MITRE for Healthcare Innovation R&D

Contract Overview

Contract Amount: $25,075,874 ($25.1M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2024-06-26

End Date: 2029-06-20

Contract Duration: 1,820 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TITLE IS 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 $25.1 million to THE MITRE CORPORATION for work described as: TITLE IS SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE Key points: 1. Significant investment in R&D for healthcare affordability and quality. 2. MITRE Corporation, a well-established research organization, is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Focus on physical, engineering, and life sciences R&D aligns with healthcare challenges.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee structure allows for cost reimbursement plus a fixed fee, which can be less predictable than fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure to achieve the lowest possible cost.

Taxpayer Impact: Taxpayer funds are being used for a sole-source R&D contract, raising questions about whether the best value was secured through competition.

Public Impact

Potential for advancements in affordable and improved healthcare services. MITRE's expertise may lead to breakthroughs in medical technology and processes. Lack of competition could mean higher costs for taxpayers. Long-term contract duration suggests a strategic, ongoing research initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its often intangible outcomes and complex cost structures.

Small Business Impact

There is no indication of small business participation in this sole-source award to The MITRE Corporation. Future contracts should explore opportunities for small business involvement in R&D.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that project milestones are met efficiently. Regular reporting on R&D progress and cost adherence is essential.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, 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 $25.1 million to THE MITRE CORPORATION. TITLE IS 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 $25.1 million.

What is the period of performance?

Start: 2024-06-26. End: 2029-06-20.

How will the effectiveness of the R&D be measured and validated, especially given the long-term nature of the contract?

Effectiveness will likely be measured through a series of defined milestones and deliverables outlined in the contract. The Centers for Medicare and Medicaid Services (CMS) should establish clear performance metrics and conduct regular reviews to assess progress towards achieving affordable and better healthcare solutions. Independent validation of research outcomes may also be necessary.

What is the justification for awarding this contract sole-source, and how does it ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or circumstances. Without this information, it's difficult to assess fair pricing. However, the Cost Plus Fixed Fee structure implies that while the fee is fixed, the underlying costs are reimbursed. Robust negotiation and ongoing cost monitoring by HHS are critical to ensure fair pricing in the absence of competition.

What specific innovations are anticipated, and what is the projected return on investment for taxpayers?

Specific innovations are not detailed in the provided data, but the contract aims to support affordable and better healthcare. Projected ROI is challenging for R&D, as outcomes are uncertain. Success would be measured by tangible improvements in healthcare efficiency, cost reduction, or quality of care, which could yield significant long-term benefits outweighing the initial investment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTN – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $41,306,699

Exercised Options: $25,075,874

Current Obligation: $25,075,874

Actual Outlays: $18,044,589

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $9,515,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC23D0004

IDV Type: IDC

Timeline

Start Date: 2024-06-26

Current End Date: 2029-06-20

Potential End Date: 2029-06-20 00:00:00

Last Modified: 2026-03-25

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