DoD's $393M MITRE Corp. contract for Engineering Services shows no small business participation

Contract Overview

Contract Amount: $393,393,820 ($393.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2021-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.1M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $393.4 million to THE MITRE CORPORATION for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Significant contract value of $393.4 million awarded to a single entity. 2. MITRE Corporation, a federally funded research and development center, is the sole awardee. 3. Contract focuses on engineering services, a critical area for defense operations. 4. Lack of small business involvement raises questions about broader economic impact.

Value Assessment

Rating: questionable

The contract's 'COST NO FEE' structure suggests a focus on achieving specific research and development outcomes rather than profit. Benchmarking is difficult due to the unique nature of FFRDCs and the 'no fee' structure, but the overall value is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was sole-sourced, likely due to MITRE's unique position as a federally funded research and development center (FFRDC). This limits price discovery and competition, as FFRDCs often have specific mandates and expertise.

Taxpayer Impact: Taxpayer funds are directed to a single entity for specialized engineering services, with limited opportunity for competitive cost reduction.

Public Impact

Essential engineering services for the Department of the Air Force are secured. Potential for innovation and technological advancement through MITRE's R&D capabilities. Lack of competition may limit opportunities for other specialized engineering firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
No small business participation.
Cost-plus contract type (implied by 'COST NO FEE' for R&D) can lead to cost overruns if not managed tightly.

Positive Signals

Award to a reputable FFRDC ensures specialized expertise.
Contract supports critical defense research and development needs.

Sector Analysis

This contract falls under Engineering Services within the Research and Development sector. Spending in this area is crucial for maintaining technological superiority in defense. Benchmarks for R&D contracts vary widely based on scope and complexity.

Small Business Impact

The contract explicitly states no small business participation (ss: false, sb: false). This indicates that opportunities for small businesses in this specific procurement were not pursued or available, potentially missing out on economic benefits and diverse solutions.

Oversight & Accountability

As a sole-source award to an FFRDC, oversight may focus on performance metrics and adherence to the research scope rather than competitive pricing. The 'COST NO FEE' structure requires careful monitoring of expenditures to ensure efficiency.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
No small business participation.
Potential for cost overruns in R&D contracts.
Lack of transparency in pricing due to sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $393.4 million to THE MITRE CORPORATION. RESEARCH AND DEVELOPMENT

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 $393.4 million.

What is the period of performance?

Start: 2020-10-01. End: 2021-09-30.

What is the justification for the sole-source award to MITRE Corporation for these engineering services, and how does it align with the government's strategy for fostering innovation and competition i

The sole-source award to MITRE Corporation is likely justified by its status as a Federally Funded Research and Development Center (FFRDC), possessing unique expertise and capabilities essential for specific national security objectives. While FFRDCs are crucial for objective research, reliance on sole-source contracts can limit broader innovation and competition among private sector firms. The government aims to balance the need for specialized FFRDC support with fostering a competitive R&D ecosystem through various other contracting mechanisms and initiatives.

Given the 'COST NO FEE' contract type and the substantial value, what mechanisms are in place to ensure cost efficiency and prevent potential overspending on these engineering services?

The 'COST NO FEE' structure implies that MITRE is reimbursed for its allowable costs but does not earn a profit margin. Oversight would focus on rigorous auditing of incurred costs, ensuring they are reasonable, allocable, and allowable per the contract terms. Performance metrics and milestones are critical to track progress and value realization, allowing the government to intervene if costs escalate without commensurate progress or if the project deviates from its intended scope.

How does the absence of small business participation in this significant R&D contract impact the government's ability to leverage diverse technological solutions and support small business growth in t

The exclusion of small businesses from this $393 million contract represents a missed opportunity to tap into innovative solutions and foster growth within the small business defense industrial base. While MITRE's specialized role is acknowledged, a sole-source award of this magnitude limits the exposure of emerging technologies and entrepreneurial ventures. Future strategies could explore subcontracting opportunities or set-aside procurements for similar services to ensure broader participation and economic benefit.

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: $463,002,033

Exercised Options: $463,002,033

Current Obligation: $393,393,820

Actual Outlays: $23,462,359

Subaward Activity

Number of Subawards: 123

Total Subaward Amount: $15,114,061

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline