DoD awards $371M engineering services contract to MITRE Corporation, a sole-source award
Contract Overview
Contract Amount: $371,160,823 ($371.2M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2019-10-01
End Date: 2020-09-30
Contract Duration: 365 days
Daily Burn Rate: $1.0M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: MITRE PROFESSIONAL ENGINEERING SERVICES
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730
Plain-Language Summary
Department of Defense obligated $371.2 million to THE MITRE CORPORATION for work described as: MITRE PROFESSIONAL ENGINEERING SERVICES Key points: 1. Significant contract value of $371M for engineering services. 2. Sole-source award to The MITRE Corporation raises questions about competition. 3. Contract duration of 365 days with a Cost No Fee pricing structure. 4. The award falls under the Engineering Services NAICS code 541330.
Value Assessment
Rating: questionable
The contract is a Cost No Fee type, which can make direct pricing comparisons difficult. The total award value of $371M over one year suggests a high per-unit cost, but without detailed cost breakdowns, a precise benchmark is challenging.
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 taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Taxpayers funded a significant $371M contract without competitive bidding. The MITRE Corporation, a non-profit, received this sole-source award. The Department of the Air Force awarded this contract for engineering services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost No Fee pricing structure can obscure true costs.
- High contract value without clear justification for sole-sourcing.
Positive Signals
- MITRE Corporation is a well-established entity in engineering services.
- Contract awarded by a major agency (Department of Defense).
Sector Analysis
This contract falls under Engineering Services (NAICS 541330). Spending in this sector can vary widely based on project complexity and agency needs. The $371M award is substantial for a single-year contract in this category.
Small Business Impact
The contract was awarded to The MITRE Corporation, a non-profit organization, and there is no indication of small business subcontracting. This award does not appear to benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price was fair and reasonable, and that competition was appropriately waived.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated costs due to sole-sourcing
- Cost No Fee structure requires strong government oversight
- Absence of small business participation noted
Tags
engineering-services, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $371.2 million to THE MITRE CORPORATION. MITRE PROFESSIONAL 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 $371.2 million.
What is the period of performance?
Start: 2019-10-01. End: 2020-09-30.
What was the justification for awarding this significant contract on a sole-source basis, and was a full and open competition truly not feasible?
The provided data indicates a sole-source award, meaning full and open competition was not utilized. The specific justification for this decision is not detailed in the data. Typically, sole-source awards require a compelling reason, such as unique capabilities or urgent needs, which should be documented by the agency to ensure taxpayer value.
How does the Cost No Fee pricing structure impact the government's ability to control costs and ensure value for money on this $371M contract?
A Cost No Fee (CNF) contract reimburses the contractor for allowable costs but provides no fee or profit. While this structure aims to limit contractor profit, it places the burden of cost control entirely on the government. Without a fee incentive, the contractor may have less motivation to minimize expenses, potentially leading to higher overall costs if not rigorously monitored.
What specific engineering services were provided under this contract, and how do they align with the Department of the Air Force's mission requirements?
The data identifies the contract as being for 'Engineering Services' under NAICS code 541330. However, it does not specify the exact nature of these services. Understanding the specific technical tasks, deliverables, and their direct contribution to the Department of the Air Force's operational or strategic goals would be crucial for assessing the effectiveness and necessity of this substantial sole-source award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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 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: $454,345,707
Exercised Options: $386,966,590
Current Obligation: $371,160,823
Actual Outlays: $72,746,773
Subaward Activity
Number of Subawards: 122
Total Subaward Amount: $16,573,112
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-01
Current End Date: 2020-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-04-15
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