DoD awards $1B+ MIT contract for unspecified professional services, raising oversight questions
Contract Overview
Contract Amount: $1,009,861,024 ($1.0B)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2011-12-06
End Date: 2012-08-06
Contract Duration: 244 days
Daily Burn Rate: $4.1M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: MIT LL CONTINUATION CONTRACT
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $1.01 billion to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: MIT LL CONTINUATION CONTRACT Key points: 1. Significant award value of over $1 billion. 2. Contract awarded to a single entity, MIT, with no competition. 3. Lack of competition and unclear service scope present potential risks. 4. Services fall under 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: questionable
The contract value is exceptionally high for 'All Other Professional, Scientific, and Technical Services'. Without detailed service descriptions or benchmarks, assessing pricing reasonableness is difficult. The 'COST NO FEE' contract type suggests costs are reimbursed, but the fee structure is absent.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning no competition was sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The justification for a sole-source award is not provided.
Taxpayer Impact: The sole-source nature of this large award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Taxpayers are funding a substantial contract without competitive bidding. The broad service category makes it difficult for the public to understand the specific work performed. Lack of transparency in sole-source awards can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Broad service category
- Lack of competition
Positive Signals
- Awarded to a reputable institution (MIT)
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is broad and can encompass diverse activities. Spending benchmarks are difficult to establish due to this lack of specificity. The award to MIT suggests a focus on research or specialized technical expertise.
Small Business Impact
This contract was awarded directly to MIT and does not indicate any subcontracting or participation by small businesses. The sole-source nature likely precluded small business set-asides.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure the services provided are necessary and that costs are reasonable. The lack of competition makes independent verification of value challenging.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- High dollar value
- Vague service description
- Potential for cost overruns
- Limited public transparency
Tags
all-other-professional-scientific-and-te, department-of-defense, ma, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.01 billion to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. MIT LL CONTINUATION CONTRACT
Who is the contractor on this award?
The obligated recipient is MASSACHUSETTS INSTITUTE OF TECHNOLOGY.
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 $1.01 billion.
What is the period of performance?
Start: 2011-12-06. End: 2012-08-06.
What specific services were procured under this $1B+ contract, and how do they align with the Air Force's mission?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is extremely broad. Without a detailed statement of work or justification for the sole-source award, it is impossible to determine the specific services procured. This lack of clarity makes it difficult to assess the necessity and alignment of these services with the Department of the Air Force's strategic objectives.
What is the justification for awarding over $1 billion to MIT on a sole-source basis without competition?
The provided data does not include the justification for this sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. For a contract of this magnitude and broad service category, a robust justification, likely involving unique capabilities or critical national security needs, would be expected but is absent here.
How can the effectiveness and value for money of this contract be assessed given its sole-source nature and broad service description?
Assessing effectiveness and value for money is significantly hampered by the sole-source award and the vague service description. Without competitive bids to establish a market price, and without knowing the specific deliverables, it's challenging to benchmark performance or cost. Post-award reviews and detailed audits would be crucial for any meaningful evaluation of the contract's success.
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 › C – National Defense R&D 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: 244 WOOD ST, LEXINGTON, MA, 02421
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: $1,009,861,024
Exercised Options: $1,009,861,024
Current Obligation: $1,009,861,024
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-06
Current End Date: 2012-08-06
Potential End Date: 2012-08-06 00:00:00
Last Modified: 2018-10-29
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