DoD's $296M MITRE Corp contract for R&D services awarded on a sole-source basis
Contract Overview
Contract Amount: $296,100,809 ($296.1M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2005-10-01
End Date: 2006-10-01
Contract Duration: 365 days
Daily Burn Rate: $811.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200605!000097!5700!FA8721!ESC/XPK !FA872106C0001 !A!N! !Y! ! !20051001!20061001!007872690!007872690!007872690!N!THE MITRE CORPORATION !202 BURLINGTON RD !BEDFORD !MA!01730!04650!017!25!BEDFORD !MIDDLESEX !MASS !+000000280000!Y!N!000327957984!AZ14!RDTE/OTHER RESEARCH & DEVELOPMENT-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541990!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!U!U!1!001!N!3A!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730
Plain-Language Summary
Department of Defense obligated $296.1 million to THE MITRE CORPORATION for work described as: 200605!000097!5700!FA8721!ESC/XPK !FA872106C0001 !A!N! !Y! ! !20051001!20061001!007872690!007872690!007872690!N!THE MITRE CORPORATION !202 BURLINGTON RD !BEDFORD !MA!01730!04650!017!25!BEDFORD !MIDD… Key points: 1. The contract was awarded to THE MITRE CORPORATION for $296,100,809.18. 2. The period of performance is from 2005-10-01 to 2006-10-01, a duration of 365 days. 3. The contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code. 4. This appears to be a sole-source award, raising questions about competition and potential cost savings.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without a competitive bidding process, it's difficult to assess if the $296M price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude could mean taxpayers are not receiving the best possible value.
Public Impact
Taxpayers may be overpaying due to the absence of a competitive bidding process. The MITRE Corporation, a non-profit, receives significant funding for research and development. The specific nature of the R&D services is not detailed, making public understanding of the value proposition challenging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of detailed service description
Positive Signals
- Award to a known entity (MITRE Corporation)
- Funding for R&D, potentially leading to innovation
Sector Analysis
This contract is in the Research and Development sector, specifically for 'All Other Professional, Scientific, and Technical Services'. Spending in this area is crucial for innovation but requires careful oversight to ensure value.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in subcontracting opportunities for this contract.
Oversight & Accountability
The sole-source nature of this award warrants further investigation into the justification for not competing the contract and the oversight mechanisms in place to manage the Cost Plus Fixed Fee structure.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Lack of transparency regarding specific R&D services and outcomes.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Absence of competitive pressure may reduce efficiency.
Tags
all-other-professional-scientific-and-te, department-of-defense, ma, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $296.1 million to THE MITRE CORPORATION. 200605!000097!5700!FA8721!ESC/XPK !FA872106C0001 !A!N! !Y! ! !20051001!20061001!007872690!007872690!007872690!N!THE MITRE CORPORATION !202 BURLINGTON RD !BEDFORD !MA!01730!04650!017!25!BEDFORD !MIDDLESEX !MASS !+000000280000!Y!N!000327957984!AZ14!RDTE/OTHER RESEARCH & DEVELOPMENT-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541990!E! !3! ! ! ! ! !999
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 $296.1 million.
What is the period of performance?
Start: 2005-10-01. End: 2006-10-01.
What was the justification for awarding this significant contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to determine the exact reason. However, for a contract of this size, a thorough justification and review process should have been in place to ensure it was truly necessary and in the government's best interest.
How was the 'fair and reasonable' price determined for this sole-source contract?
Determining a fair and reasonable price for a sole-source contract often relies on historical pricing, cost analysis, and market research for similar services. Agencies must conduct rigorous price negotiations and cost evaluations to ensure the government is not overpaying. The Cost Plus Fixed Fee structure adds complexity, requiring close monitoring of costs against the fixed fee.
What specific research and development outcomes were achieved with this $296M contract?
The provided data does not detail the specific outcomes or deliverables of the research and development services funded by this contract. Understanding the tangible results and their impact is crucial for assessing the overall value and effectiveness of the expenditure. Further analysis would require access to performance reports and project documentation.
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 PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 202 BURLINGTON RD, BEDFORD, MA, 06
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $656,045,968
Exercised Options: $296,230,809
Current Obligation: $296,100,809
Timeline
Start Date: 2005-10-01
Current End Date: 2006-10-01
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-03-13
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