DoD awards MITRE Corporation $303M for technical services, exercising option year 2
Contract Overview
Contract Amount: $303,401,041 ($303.4M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2015-10-01
End Date: 2016-09-30
Contract Duration: 365 days
Daily Burn Rate: $831.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: IGF::OT::IGF MITRE EXERCISE OF OPTION YEAR 2
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730
Plain-Language Summary
Department of Defense obligated $303.4 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF MITRE EXERCISE OF OPTION YEAR 2 Key points: 1. Significant contract value for specialized technical services. 2. MITRE Corporation is the sole provider, raising competition concerns. 3. Potential for cost overruns due to lack of competitive bidding. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure with no fee specified warrants scrutiny. Without a clear fee, it's difficult to assess if the government is receiving optimal value compared to similar service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The MITRE Corporation. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for a $303M contract raises concerns about taxpayer money being spent efficiently.
Public Impact
Taxpayers may be overpaying for services due to the sole-source nature of the contract. Lack of transparency in pricing could mask inefficiencies. Reliance on a single contractor may limit innovation and service quality improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Option year exercised, indicating continued need for services
- Established contractor with a history of performance
Sector Analysis
This contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). Spending in this broad category can vary significantly, but large sole-source awards like this warrant close examination for efficiency.
Small Business Impact
The contract was awarded to The MITRE Corporation, a non-profit research and development organization, and there is no indication of small business subcontracting. This award does not appear to support small business goals.
Oversight & Accountability
The sole-source nature of this large contract necessitates robust oversight to ensure the government receives fair value and that the contractor's performance meets all requirements. Accountability is crucial given the lack of competitive pressure.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited price discovery
- No fee structure requires careful cost scrutiny
Tags
all-other-professional-scientific-and-te, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $303.4 million to THE MITRE CORPORATION. IGF::OT::IGF MITRE EXERCISE OF OPTION YEAR 2
Who is the contractor on this award?
The obligated recipient is THE MITRE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $303.4 million.
What is the period of performance?
Start: 2015-10-01. End: 2016-09-30.
What is the justification for awarding this contract as sole-source, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves unique capabilities or circumstances. Without further details on the justification, it's difficult to assess the necessity. However, the absence of competition inherently limits price discovery, making it imperative for the contracting officer to conduct thorough market research and cost analyses to ensure the pricing is fair and reasonable, even without competitive bids.
What are the risks associated with a sole-source, cost-plus contract of this magnitude, and how are they being mitigated?
The primary risks include potential cost overruns, lack of incentive for efficiency, and reduced innovation. Mitigation strategies should involve stringent performance monitoring, detailed cost audits, and clear deliverables. The government must actively manage the contract to ensure the contractor remains focused on delivering value within the agreed-upon scope and budget, despite the absence of competitive pressure.
How does the government ensure the effectiveness and value of services provided under this sole-source contract, especially given the 'cost no fee' structure?
Effectiveness and value are ensured through rigorous performance metrics, regular progress reviews, and independent assessments of the delivered services. The 'cost no fee' structure, while unusual, implies the contractor is reimbursed for costs but receives no profit. This necessitates a focus on the quality and necessity of the costs incurred, ensuring they directly support the contract's objectives and provide tangible benefits to the government.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 202 BURLINGTON RD, BEDFORD, MA, 01730
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: $375,314,285
Exercised Options: $311,281,527
Current Obligation: $303,401,041
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $3,305,307
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2023-08-28
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