HHS awards MITRE Corporation $9.39M for strategic research and critical analysis, extending current contract

Contract Overview

Contract Amount: $9,392,066 ($9.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-26

End Date: 2026-09-25

Contract Duration: 729 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRATEGIC RESEARCH AND CRITICAL ANALYSIS (SRCA) 2.0

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.4 million to THE MITRE CORPORATION for work described as: STRATEGIC RESEARCH AND CRITICAL ANALYSIS (SRCA) 2.0 Key points: 1. Contract value of $9.39M for a 2-year period suggests a moderate investment in specialized research services. 2. Sole-source award to MITRE Corporation, a federally funded research and development center (FFRDC), indicates a reliance on their unique capabilities. 3. The contract's cost-plus-fixed-fee structure allows for flexibility in research scope but requires careful monitoring of costs. 4. Performance period of 729 days aligns with typical project timelines for complex research and analysis. 5. The contract falls under R&D in Physical, Engineering, and Life Sciences, a critical area for healthcare innovation. 6. Awarding agency is HHS, specifically CMS, highlighting the focus on healthcare policy and operations research.

Value Assessment

Rating: good

The contract value of $9.39M over two years for specialized research and analysis appears reasonable, especially given the sole-source nature and the unique capabilities of MITRE Corporation as an FFRDC. Benchmarking against similar R&D contracts is challenging due to the specialized nature of the work and MITRE's unique position. However, the fixed fee component suggests a degree of cost control. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are difficult to predict, but it necessitates robust oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation. As a federally funded research and development center (FFRDC), MITRE is often selected for its unique expertise, objectivity, and established role in supporting government research initiatives. The lack of a competitive bidding process means that price discovery through market competition was not utilized. This approach is typically justified when a specific entity possesses unique qualifications or capabilities essential for the government's needs.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not leverage competitive pressures to potentially lower costs. However, the justification for a sole-source award often centers on obtaining specialized expertise that might not be available through other means, potentially leading to higher quality outcomes or more effective solutions.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) is the primary beneficiary, receiving critical research and analytical support. The contract aims to deliver strategic insights and analysis to inform policy decisions and operational improvements within CMS. The geographic impact is national, as CMS programs affect healthcare access and delivery across the United States. Workforce implications are likely internal to CMS, as the research findings will guide strategic planning and resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Cost-plus-fixed-fee contracts require diligent oversight to manage potential cost overruns.
Reliance on a single FFRDC may limit exposure to diverse innovative approaches from the broader market.

Positive Signals

Award to MITRE Corporation, an FFRDC, ensures access to highly specialized and objective research capabilities.
The contract duration of two years allows for in-depth strategic analysis and development of actionable recommendations.
Focus on R&D in physical, engineering, and life sciences supports critical advancements in healthcare.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This sector is characterized by innovation and scientific advancement, often involving long-term projects and specialized expertise. Spending in this area by government agencies like HHS is crucial for driving progress in healthcare, technology, and scientific understanding. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of FFRDCs and specialized research, but significant government investment is typical for critical R&D initiatives.

Small Business Impact

This contract was awarded on a sole-source basis and does not appear to include specific small business set-aside provisions. As MITRE Corporation is a large organization, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the nature of the research may indirectly lead to opportunities for small businesses if MITRE chooses to engage them as subcontractors for specific tasks, though this is not mandated by the contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. As a sole-source award to an FFRDC, the oversight may focus on ensuring the research aligns with strategic objectives and that the fixed fee is justified by the work performed. Transparency is generally high for FFRDC work, with reports and findings often made public or shared widely within the government. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Strategic Research and Critical Analysis (SRCA) 1.0
Department of Health and Human Services Research Contracts
Centers for Medicare and Medicaid Services (CMS) Support Services
Federally Funded Research and Development Centers (FFRDCs)

Risk Flags

Sole-source award may limit cost savings achievable through competition.
Cost-plus-fixed-fee structure requires diligent oversight to ensure cost control and value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.4 million to THE MITRE CORPORATION. STRATEGIC RESEARCH AND CRITICAL ANALYSIS (SRCA) 2.0

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 $9.4 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-09-25.

What is the historical spending pattern for Strategic Research and Critical Analysis (SRCA) contracts with The MITRE Corporation by HHS?

Analyzing historical spending for SRCA contracts with The MITRE Corporation by HHS requires access to detailed contract databases. However, it's common for agencies like HHS to engage FFRDCs like MITRE for ongoing strategic research and analysis due to their established expertise and objectivity. The current award of $9.39M for SRCA 2.0 suggests a continuation or evolution of previous efforts. Without specific historical data, we can infer that HHS likely has a long-standing relationship with MITRE for such services, with spending varying based on project scope, duration, and specific research needs. Previous iterations of SRCA or similar research initiatives would have established a baseline for annual or project-based expenditures, which this new award builds upon or replaces.

How does the value of this $9.39M contract compare to other R&D contracts awarded by CMS in the last fiscal year?

Comparing the $9.39M value of this contract to other R&D contracts awarded by CMS requires specific data on CMS's R&D spending portfolio. However, $9.39M over two years for specialized research is a moderate-sized award. CMS, as a major health agency, funds a wide range of R&D activities, from health services research to technology development and policy analysis. Some R&D contracts could be significantly larger, especially those involving large-scale clinical trials, major system development, or extensive data analytics initiatives. Conversely, smaller, more focused research grants or studies might be valued at less than $1 million. Therefore, this contract's value appears to be within a typical range for specialized, strategic research support provided by an FFRDC.

What specific types of 'critical analysis' are expected under this SRCA 2.0 contract?

The 'critical analysis' expected under the SRCA 2.0 contract likely encompasses a broad range of activities supporting the Centers for Medicare and Medicaid Services (CMS). This could include analyzing the effectiveness and efficiency of existing healthcare programs (like Medicare and Medicaid), evaluating proposed policy changes, assessing market dynamics within the healthcare sector, identifying emerging trends and risks, and providing data-driven recommendations for strategic planning. Given MITRE's role as an FFRDC, the analysis is expected to be objective, rigorous, and focused on providing actionable insights to help CMS navigate complex healthcare challenges and improve healthcare delivery and affordability for beneficiaries.

What are the key performance indicators (KPIs) or deliverables for this contract?

While the specific Key Performance Indicators (KPIs) and deliverables are not detailed in the provided data, contracts for strategic research and critical analysis typically involve the delivery of comprehensive reports, white papers, policy briefs, presentations, and potentially prototypes or analytical models. For SRCA 2.0, CMS would likely expect regular progress reports, interim analytical findings, and a final comprehensive report detailing research outcomes, strategic recommendations, and justifications based on data analysis. Performance would be assessed based on the quality, timeliness, and relevance of these deliverables, and their ability to inform CMS decision-making processes. The fixed fee component suggests that meeting these defined deliverables is crucial for contractor compensation.

What is MITRE Corporation's track record in supporting the Department of Health and Human Services (HHS)?

The MITRE Corporation has a long and extensive track record of supporting the Department of Health and Human Services (HHS) and its various agencies, including the Centers for Medicare and Medicaid Services (CMS). As a designated Federally Funded Research and Development Center (FFRDC), MITRE provides objective, independent research and analysis to address complex national challenges. Their work for HHS often involves areas such as healthcare policy analysis, health IT modernization, public health preparedness, healthcare fraud detection, and improving the efficiency and effectiveness of healthcare programs. The continuation of contracts like SRCA 2.0 underscores MITRE's sustained value and trusted partnership with HHS in tackling critical issues within the healthcare domain.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › N – 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: $9,392,066

Exercised Options: $9,392,066

Current Obligation: $9,392,066

Actual Outlays: $3,426,024

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $420,000

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