DoD's $327.8M MITRE Engineering Services Option Exercised for 3 Years
Contract Overview
Contract Amount: $327,819,714 ($327.8M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2016-10-01
End Date: 2017-09-30
Contract Duration: 364 days
Daily Burn Rate: $900.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: IGF::OT::IGF EXCERCISE OF OPTION YEAR 3 FOR MITRE ENGINEERING SERVICES
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730
Plain-Language Summary
Department of Defense obligated $327.8 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF EXCERCISE OF OPTION YEAR 3 FOR MITRE ENGINEERING SERVICES Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term engagement with a single provider may limit innovation. 4. Services fall under a broad 'All Other Professional, Scientific, and Technical Services' NAICS code.
Value Assessment
Rating: questionable
The contract's cost-plus-no-fee structure for engineering services warrants scrutiny. Without a competitive bidding process, it's difficult to assess if the $327.8M price reflects optimal value compared to similar services in the market.
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 may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude suggests potential overspending and missed opportunities for cost efficiencies.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long-term reliance on one provider could stifle technological advancements. The broad service category makes it hard to pinpoint specific value delivered. Department of Defense continues significant investment in MITRE's specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus-no-fee structure
- Long-term engagement
Positive Signals
- Established relationship with MITRE
- Continued service delivery
Sector Analysis
The Department of Defense frequently procures professional, scientific, and technical services. Benchmarks for 'All Other Professional, Scientific, and Technical Services' can vary widely, but a $327.8M sole-source award for three years is substantial and warrants close examination.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as the prime contractor is The MITRE Corporation and the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight to ensure the services provided are necessary, effective, and that costs are reasonable, even without competitive pressure. Audits and performance reviews are critical.
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 limits competition.
- Potential for cost overruns due to cost-plus-no-fee structure.
- Lack of transparency in pricing without competitive bids.
- Risk of vendor lock-in and reduced innovation.
- Broad service category may obscure specific value.
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 $327.8 million to THE MITRE CORPORATION. IGF::OT::IGF EXCERCISE OF OPTION YEAR 3 FOR MITRE ENGINEERING SERVICES
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 $327.8 million.
What is the period of performance?
Start: 2016-10-01. End: 2017-09-30.
What specific engineering challenges does MITRE address for the Air Force that justify a sole-source, cost-plus-no-fee contract?
The contract details do not specify the exact engineering challenges. However, MITRE is known for its work in systems engineering, research and development, and program management, often supporting complex, long-term national security initiatives. The cost-plus-no-fee structure suggests the government is willing to cover all allowable costs plus a negotiated fee, implying a high degree of trust and a focus on achieving specific technical outcomes rather than strict cost adherence.
What are the potential risks associated with exercising a 3-year option on a sole-source contract for engineering services?
The primary risks include a lack of competitive pressure leading to inflated costs and reduced innovation. There's also a risk of vendor lock-in, where the government becomes overly reliant on MITRE's expertise, making it difficult and costly to switch providers or adopt alternative solutions. Furthermore, without clear performance metrics tied to competitive benchmarks, ensuring optimal value for taxpayer money becomes challenging.
How can the effectiveness of MITRE's engineering services be measured given the absence of a competitive baseline?
Effectiveness can be measured through rigorous performance metrics, milestone achievement tracking, and independent technical reviews. The government should establish clear deliverables, quality standards, and key performance indicators (KPIs) aligned with the Air Force's strategic objectives. Regular assessments of MITRE's contribution to mission success, adherence to technical specifications, and timely delivery of complex engineering solutions are crucial, even without direct price competition.
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: $333,737,659
Exercised Options: $333,737,659
Current Obligation: $327,819,714
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,123,299
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-10-01
Current End Date: 2017-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2024-09-30
More Contracts from THE Mitre Corporation
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (Department of Transportation)
- FY25 Task Order 7 - to Provide Systems Engineering Research and Development Services for the Department of Defense (DOD) and Other Federal Government Agencies — $753.9M (Department of Defense)
- FY24 Task Order 6 - Initial Funding and Updating PWS & DD254 — $735.3M (Department of Defense)
- Caasd Must Provide Essential Engineering, Research, and Analysis Capabilities to Support the FAA in the Performance of ITS Mission Through a Systems Approach That Addresses ALL Dimensions (E.G. Political, Operational, Economic, Technical) Required to — $700.5M (Department of Transportation)
- Initial Modification on Task Order 5 Nsec, Ffrdc to Incrementally Fund, Update PWS & DD254 — $687.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)