MIT awarded $2.5M for Web Accessibility Initiative, raising questions on competition and value

Contract Overview

Contract Amount: $2,498,373 ($2.5M)

Contractor: Massachusetts Institute of Technology

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-28

End Date: 2025-09-28

Contract Duration: 1,826 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WEB ACCESSIBILITY INITIATIVE (WAI) CORE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.5 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: WEB ACCESSIBILITY INITIATIVE (WAI) CORE Key points: 1. Contract awarded via purchase order, indicating a less formal procurement process. 2. The contract duration of 1826 days (5 years) is substantial for administrative management services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The absence of competition raises concerns about potential overpayment and limited market engagement. 5. The specific services under 'Administrative Management and General Management Consulting Services' require further clarification regarding their direct link to web accessibility. 6. The contract's value, while not exceptionally large, warrants scrutiny due to the procurement method.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable data for the specific 'Web Accessibility Initiative (WAI) Core' services under a sole-source or not-competed award. The fixed-price nature suggests a defined scope, but without competitive bids, it's difficult to ascertain if the $2.5 million represents a fair market price. The duration of five years for administrative management services also warrants a closer look at the necessity and efficiency of such a long-term, non-competitive engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED' via a purchase order. This indicates that the agency identified a specific source, MIT, and did not solicit bids from other potential contractors. While sole-source awards can be justified under certain circumstances (e.g., unique capabilities), the lack of competition typically leads to less favorable pricing and reduced opportunities for innovation compared to fully competed contracts. The absence of multiple bidders means there was no direct price discovery through market forces.

Taxpayer Impact: Taxpayers may not be receiving the best value for their money when contracts are not competed. The lack of competitive pressure can lead to higher costs and potentially less efficient service delivery, as there is no incentive for the contractor to offer the lowest possible price or the most innovative solution.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration, in managing the Web Accessibility Initiative. The services delivered are related to administrative management and general management consulting, presumably to support the WAI Core. The geographic impact is primarily within Maryland, where the contract is administered. Workforce implications are likely internal to MIT and potentially within HHS, related to project management and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract duration raises concerns about price reasonableness.
The broad categorization of 'Administrative Management and General Management Consulting Services' may obscure the specific deliverables related to web accessibility.
The five-year term for a non-competed award could indicate a lack of proactive planning or a missed opportunity for market engagement.
The use of a purchase order for a contract of this value and duration might bypass more rigorous procurement controls.

Positive Signals

MIT is a reputable institution with a strong track record in research and development, potentially bringing significant expertise.
The fixed-price contract type provides cost predictability for the agency.
The contract is intended to support the critical function of web accessibility, aligning with federal mandates.

Sector Analysis

The IT services sector, particularly in areas related to digital accessibility and compliance, is a growing market. Federal agencies are increasingly focused on ensuring their digital platforms are accessible to all users, driving demand for related consulting and management services. While specific market size data for 'Web Accessibility Initiative Core' management is not readily available, the broader IT consulting market is substantial. Comparable spending benchmarks for administrative management consulting services vary widely based on scope and provider, but non-competed awards often command a premium.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the award to a large research institution like MIT, it is unlikely that small businesses were directly involved as prime contractors. Subcontracting opportunities for small businesses are not specified in the provided data, and the nature of the services might not lend itself to extensive subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. As a purchase order, the level of formal oversight might be less than for a full-fledged contract. Transparency is limited due to the non-competed nature and the lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Accessibility Mandates
Section 508 Compliance
Digital Services Modernization
Administrative Management Consulting

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Long Contract Duration for Non-Competed Award

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.5 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. WEB ACCESSIBILITY INITIATIVE (WAI) CORE

Who is the contractor on this award?

The obligated recipient is MASSACHUSETTS INSTITUTE OF TECHNOLOGY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2020-09-28. End: 2025-09-28.

What specific deliverables are expected under the 'Web Accessibility Initiative (WAI) Core' for MIT's administrative management services?

The provided data categorizes the services under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' While the contract name mentions 'Web Accessibility Initiative (WAI) Core,' the specific deliverables are not detailed. Typically, such services could include project management, strategic planning, policy development, coordination of efforts, and reporting related to the WAI. However, without further documentation, it's unclear if these services directly involve technical web accessibility implementation, auditing, or training, or if they are purely supportive administrative functions for a larger initiative managed by HHS.

Why was this contract not competed, and what justification was provided?

The data explicitly states the contract was 'NOT COMPETED.' Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one source possesses the unique capability or when it's in the government's best interest due to urgency or specific program needs. However, the justification for this specific award to MIT is not provided in the data. A sole-source award to a large institution like MIT for administrative services, even for a specialized initiative, often raises questions about whether alternative solutions or providers were adequately considered. Further investigation into the justification document (e.g., a Justification and Approval - J&A) would be necessary to understand the rationale.

How does the $2.5 million price compare to similar administrative management consulting contracts for web accessibility initiatives?

Direct comparison is difficult without more specific details on the scope of work and the nature of the 'WAI Core' services. The $2.5 million over five years equates to approximately $500,000 annually. This figure can vary significantly based on the complexity of the initiative, the level of expertise required, and the specific tasks performed. For broad administrative support, this might be reasonable. However, if the services involve highly specialized technical consulting or extensive program management for a large-scale initiative, it could be on the lower end. The lack of competition prevents a direct market-based valuation.

What is MIT's track record with federal contracts, particularly in administrative management and web accessibility?

Massachusetts Institute of Technology (MIT) is a world-renowned research university with extensive experience in receiving federal funding and contracts across various scientific, technological, and administrative domains. While specific details on their track record solely in 'administrative management and general management consulting services' for web accessibility initiatives are not provided, MIT consistently secures large federal grants and contracts, particularly in research and development. Their reputation suggests a high level of capability, but the focus here is on administrative support rather than direct technical web development or accessibility auditing, which might be a different area of their expertise.

What are the potential risks associated with a five-year, non-competed contract for administrative services?

The primary risks include potential lack of cost-effectiveness, as the absence of competition removes the incentive for the contractor to offer the lowest price. There's also a risk of complacency or reduced innovation from the contractor over the long term. Furthermore, the government might be locked into a solution that becomes outdated or less suitable as needs evolve, without the opportunity to re-evaluate the market. Finally, the lack of transparency inherent in non-competed awards can lead to public perception issues and scrutiny regarding fairness and value for taxpayer money.

How does this contract align with broader federal efforts in digital accessibility and IT modernization?

This contract directly supports federal efforts by funding the 'Web Accessibility Initiative (WAI) Core,' managed by HHS. Federal agencies are mandated by laws like the Rehabilitation Act (Section 508) to ensure their digital information and technology are accessible to people with disabilities. Contracts like this, even if focused on administrative support, are crucial for the operationalization and management of these initiatives. They contribute to the overall goal of creating an inclusive digital government. The success of this contract would ideally lead to improved accessibility standards and practices within HHS and potentially influence broader federal approaches.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75P00120Q00121

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 77 MASSACHUSETTS AVE, CAMBRIDGE, MA, 02139

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,498,373

Exercised Options: $2,498,373

Current Obligation: $2,498,373

Actual Outlays: $2,136,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline