MITRE Corporation awarded $349M engineering services contract by Air Force, raising questions about competition
Contract Overview
Contract Amount: $349,254,326 ($349.3M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2018-10-01
End Date: 2019-09-30
Contract Duration: 364 days
Daily Burn Rate: $959.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF, ENGINEERING SERVICES
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730
Plain-Language Summary
Department of Defense obligated $349.3 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF, ENGINEERING SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Significant contract value suggests a critical need for engineering services within the Air Force. 3. The 'COST NO FEE' contract type shifts risk to the government, requiring robust oversight. 4. The duration of 364 days is standard for this type of service contract. 5. The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. The awarded amount is substantial, warranting a close look at value for money.
Value Assessment
Rating: questionable
The contract's value of $349 million for engineering services is substantial. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The 'COST NO FEE' (CNF) contract type, while sometimes used for specific R&D or advisory services, places all financial risk on the government. This necessitates strong justification for the pricing and a thorough review of the contractor's cost proposals to ensure reasonableness, especially given the lack of competitive pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Department of the Air Force did not solicit bids from multiple offerors. Sole-source awards typically occur when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of competition here means taxpayers did not benefit from the price discovery that typically occurs in a competitive bidding process, potentially leading to higher costs.
Taxpayer Impact: The absence of competition means the government may have paid a premium for these engineering services. Without competing offers, there's less assurance that the negotiated price represents the best value achievable in the market.
Public Impact
The Department of the Air Force is the primary beneficiary, receiving essential engineering services. These services likely support critical Air Force missions and technological development. The contract's impact is primarily national, supporting defense infrastructure and capabilities. The workforce implications are tied to the specialized engineering skills required for the services provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
- The 'COST NO FEE' structure places all financial risk on the government, requiring diligent oversight.
- Lack of transparency in the sole-source justification process can obscure potential alternatives.
- The broad nature of 'All Other Professional, Scientific, and Technical Services' can sometimes mask inefficiencies.
- The significant dollar value necessitates rigorous performance monitoring to ensure value.
Positive Signals
- The MITRE Corporation is a well-established entity with a history of supporting government engineering needs.
- The contract duration is standard, suggesting a well-defined scope of work.
- The award is for engineering services, a critical component of defense modernization.
- The contract is managed by the Department of the Air Force, a major defense agency with established procurement processes.
Sector Analysis
The engineering services sector is a vital component of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a diverse category. The federal government is a significant consumer of these services, particularly within the Department of Defense, for research, development, analysis, and program management. Benchmarking this contract's value is challenging without more specific service details, but its scale indicates a major program requirement.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, particularly with a 'COST NO FEE' structure, enhanced oversight is crucial to monitor costs, performance, and ensure the government's interests are protected. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Defense Engineering Services
- Air Force Research and Development Contracts
- Professional, Scientific, and Technical Services
- Sole-Source Defense Contracts
- Cost-Reimbursement Contracts
Risk Flags
- Sole-source award
- Cost-plus contract type (Cost No Fee)
- Lack of competitive bidding
- Significant contract value
Tags
defense, department-of-defense, air-force, engineering-services, sole-source, definitive-contract, cost-no-fee, professional-scientific-and-technical-services, massachusetts, mitre-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $349.3 million to THE MITRE CORPORATION. IGF::OT::IGF, 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 $349.3 million.
What is the period of performance?
Start: 2018-10-01. End: 2019-09-30.
What specific engineering services are being provided under this contract, and how do they align with Air Force strategic objectives?
The provided data indicates the contract is for 'ENGINEERING SERVICES' under NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'). While the specific nature of these services is not detailed, they are awarded by the Department of the Air Force. Given the contractor, The MITRE Corporation, which operates as a federally funded research and development center (FFRDC), these services likely involve complex technical analysis, systems engineering, research, development, and advisory support critical to Air Force modernization, operational readiness, or strategic planning. The alignment with strategic objectives would typically be documented in the contract's statement of work and justification for sole-source award, focusing on areas where MITRE's unique capabilities are deemed essential.
What is the justification for awarding this substantial contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source is capable of providing the required services, or when there is a compelling urgency or unique capability that precludes full and open competition. For The MITRE Corporation, its status as an FFRDC often serves as a basis for sole-source awards due to its unique relationship with the government, its independence, and its specialized expertise. The specific justification would likely detail why other contractors could not meet the Air Force's requirements, potentially citing national security interests, unique technical expertise, or the need for continuity of services provided by an established entity like MITRE.
How does the 'COST NO FEE' (CNF) contract type impact risk and oversight for this $349 million award?
The 'COST NO FEE' (CNF) contract type is unusual for a contract of this magnitude and type, as it typically means the contractor is reimbursed for allowable costs but receives no fee or profit. This structure places the entire financial risk on the government. For a $349 million contract, this necessitates extremely rigorous oversight to ensure that costs incurred are reasonable, allocable, and allowable, and that the services provided are necessary and effective. The government must meticulously track expenditures and performance to prevent cost overruns and ensure value, as there is no contractor incentive tied to profit to control costs.
What is The MITRE Corporation's track record with the federal government, particularly the Department of Defense?
The MITRE Corporation has a long and extensive track record of supporting the federal government, particularly the Department of Defense, through its FFRDCs. It operates several FFRDCs, including MITRE National Security, which focuses on defense and intelligence challenges. MITRE is known for providing objective analysis, systems engineering, and technical guidance across a wide range of defense programs. Its history involves advising on complex technological issues, program management, and policy development, making it a trusted partner for many government agencies seeking specialized expertise.
How does this contract's value compare to other engineering services contracts awarded by the Department of Defense?
A contract valued at $349 million for engineering services is substantial, even within the large budget of the Department of Defense. While the DoD awards numerous contracts for engineering support, the scale of this award suggests it pertains to a significant program or a broad range of critical services. Comparable contracts would likely involve major defense systems development, large-scale infrastructure projects, or extensive research and development initiatives. Without specific details on the services rendered, direct comparison is difficult, but this award ranks among the larger sole-source engineering service contracts.
What are the potential implications of this contract for future spending patterns in defense engineering services?
This contract, awarded on a sole-source basis to a prominent FFRDC, could signal a continued reliance on specialized, non-competitive sources for critical defense engineering needs. If MITRE's work proves highly effective and indispensable, it may reinforce the pattern of sole-source awards for similar complex challenges. However, it also highlights the ongoing need for robust justification and oversight when competition is bypassed. Future spending patterns may continue to see significant investment in engineering services, but the trend towards sole-sourcing for FFRDCs like MITRE is a key aspect to monitor for cost-effectiveness.
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: $403,761,286
Exercised Options: $396,590,786
Current Obligation: $349,254,326
Actual Outlays: $8,476
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $12,550,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-10-01
Current End Date: 2019-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-08-14
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