DOJ's $21.5M IT acquisition contract with MITRE Corporation awarded via sole-source, raising questions on competition and value

Contract Overview

Contract Amount: $21,488,032 ($21.5M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Justice

Start Date: 2014-04-14

End Date: 2019-09-29

Contract Duration: 1,994 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SERVICES TO PROVIDE GUIDANCE, OVERSIGHT, AND PROGRAM/PROJECT ACQUISITION&MANAGEMENT TO SUPPORT DEVELOPMENTAL INFORMATION TECHNOLOGY (IT) PROGRAMS AND PROJECTS.IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $21.5 million to THE MITRE CORPORATION for work described as: SERVICES TO PROVIDE GUIDANCE, OVERSIGHT, AND PROGRAM/PROJECT ACQUISITION&MANAGEMENT TO SUPPORT DEVELOPMENTAL INFORMATION TECHNOLOGY (IT) PROGRAMS AND PROJECTS.IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, limiting competitive pressure and potentially impacting price. 2. Significant duration of nearly 2000 days suggests a long-term need for IT guidance and management. 3. The contract's focus on developmental IT programs indicates support for innovation and emerging technologies. 4. High dollar value warrants scrutiny of cost-effectiveness and comparison to similar IT support services. 5. The absence of small business set-asides means limited direct opportunities for smaller IT firms. 6. Performance period spans over five years, requiring sustained oversight for effective delivery.

Value Assessment

Rating: fair

The contract's total value of approximately $21.5 million over nearly 2000 days averages to roughly $10,776 per day. Benchmarking this against similar IT support and acquisition management contracts is challenging without more granular data on specific services rendered. However, the sole-source nature of the award suggests that a competitive price discovery process was not utilized, which could lead to less favorable pricing compared to a fully competed contract. Further analysis would require comparing the specific deliverables and labor categories to industry standards.

Cost Per Unit: Approximately $10,776 per day (total contract value divided by duration in days).

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning the Federal Bureau of Investigation (FBI) did not conduct a competitive bidding process. This typically occurs when a specific contractor is deemed uniquely qualified or when only one source is capable of meeting the requirement. The lack of competition means that taxpayers did not benefit from the price reductions and innovations that often arise from a competitive environment.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no market pressure to drive down prices. It also limits opportunities for other qualified vendors to secure federal contracts.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving critical IT acquisition and management support. Services provided include guidance, oversight, and program/project acquisition management for developmental IT initiatives. The contract supports the modernization and advancement of the FBI's information technology infrastructure. Workforce implications are likely internal to the FBI, enhancing their program management capabilities. Geographic impact is centered around the FBI's operational areas, primarily in Virginia where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the justification for sole-source procurement.
Long contract duration without clear performance metrics in the provided data.
High dollar value without a competitive benchmark raises value-for-money concerns.

Positive Signals

Contract supports critical IT development for a key law enforcement agency.
The MITRE Corporation is a well-established entity with significant R&D capabilities.
Contract duration suggests a stable, long-term need being addressed.
Focus on developmental IT programs aligns with agency modernization efforts.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically supporting IT programs. The IT services market within the federal government is substantial, with agencies consistently investing in modernization and acquisition support. Contracts like this, focused on developmental IT, are crucial for agencies to leverage new technologies and improve operational efficiency. Comparable spending benchmarks would typically involve analyzing IT consulting and program management contracts awarded to similar organizations.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the provided data indicate any subcontracting requirements for small businesses. The sole-source nature further limits the likelihood of small business participation. This means that opportunities for small businesses to contribute to this specific IT development and acquisition support effort were not actively pursued through this contract vehicle.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of the Inspector General (OIG) and the contracting officers within the Federal Bureau of Investigation. Given it's a sole-source award, the justification and approval process would be subject to rigorous review. Transparency regarding the specific performance metrics and deliverables would be key to assessing accountability, which is not detailed in the provided summary data.

Related Government Programs

IT Acquisition Management Services
Research and Development Support
Information Technology Consulting
Program Management Support
Federal IT Modernization Programs

Risk Flags

Sole-source award
Lack of competition
High contract value
Long contract duration
Limited transparency on specific deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21.5 million to THE MITRE CORPORATION. SERVICES TO PROVIDE GUIDANCE, OVERSIGHT, AND PROGRAM/PROJECT ACQUISITION&MANAGEMENT TO SUPPORT DEVELOPMENTAL INFORMATION TECHNOLOGY (IT) PROGRAMS AND PROJECTS.IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2014-04-14. End: 2019-09-29.

What specific IT programs and projects did The MITRE Corporation support under this contract?

The provided data indicates the contract was for 'SERVICES TO PROVIDE GUIDANCE, OVERSIGHT, AND PROGRAM/PROJECT ACQUISITION&MANAGEMENT TO SUPPORT DEVELOPMENTAL INFORMATION TECHNOLOGY (IT) PROGRAMS AND PROJECTS.' However, it does not specify the exact IT programs or projects. The MITRE Corporation, as a federally funded research and development center (FFRDC), often works on complex, national-security-related, or highly specialized IT initiatives. For the FBI, this could range from cybersecurity enhancements, data analytics platforms, investigative software development, to infrastructure modernization projects. A deeper dive into FBI's IT strategic goals during the 2014-2019 period would likely reveal the types of developmental IT programs that benefited from MITRE's support.

How does the $10,776 daily average cost compare to similar IT acquisition management contracts?

The average daily cost of approximately $10,776 for this contract is a high-level figure that requires careful comparison. Without knowing the specific mix of labor (e.g., senior engineers, project managers, analysts), the level of expertise required, and the specific deliverables, a direct comparison is difficult. However, given that this was a sole-source award to The MITRE Corporation, a well-regarded FFRDC, the daily rate might reflect specialized knowledge and high-level strategic support rather than standard IT services. To benchmark effectively, one would need to compare it against other sole-source or competitively awarded contracts for similar FFRDCs or specialized IT consulting firms providing strategic guidance and oversight for complex developmental programs within large federal agencies.

What was the justification for awarding this contract on a sole-source basis to The MITRE Corporation?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or capable of providing the required services. For The MITRE Corporation, this often stems from its status as a Federally Funded Research and Development Center (FFRDC), which provides objective, independent research and analysis to the government. Agencies may justify sole-source awards to FFRDCs like MITRE when the work requires unique expertise, access to sensitive information, or a level of trust and continuity that is difficult to replicate through competitive bidding with commercial firms. The specific justification document would contain the detailed rationale.

What are the potential risks associated with a sole-source IT contract of this magnitude and duration?

A sole-source IT contract of this magnitude ($21.5 million) and duration (nearly 2000 days) carries several potential risks. Firstly, the lack of competition can lead to reduced price efficiency, meaning the government might pay more than it would in a competitive scenario. Secondly, without the pressure of competing for future work, the contractor might have less incentive to innovate or maintain the highest levels of performance throughout the contract period. Thirdly, there's a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult to switch or introduce alternative solutions later. Finally, sole-source awards can sometimes face public scrutiny regarding fairness and the optimal use of taxpayer funds, especially if the justification for uniqueness is not robust.

How does The MITRE Corporation's track record in IT support influence the assessment of this contract?

The MITRE Corporation has a long-standing reputation as a trusted advisor and operator of FFRDCs for the U.S. government. Their track record in providing technical guidance, systems engineering, and program management support across various domains, including IT, is extensive. This history generally lends credibility to their ability to fulfill complex requirements. For this specific contract, their established expertise in IT acquisition and management for developmental programs likely played a significant role in the FBI's decision to award it on a sole-source basis. However, a strong track record does not inherently guarantee optimal value for money, especially in the absence of competition.

What does the contract's classification (NAICS 541712) imply about the services provided?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' suggests that the core services procured under this contract involved research and development activities. While the description mentions 'guidance, oversight, and program/project acquisition&management,' the R&D classification indicates that these services were likely in support of developing new or significantly improved IT technologies, systems, or processes. This implies a focus on innovation, experimentation, and the advancement of scientific or technical knowledge within the IT domain, rather than routine IT operations or maintenance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $21,488,032

Exercised Options: $21,488,032

Current Obligation: $21,488,032

Actual Outlays: $445,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline