MITRE Corporation awarded $21.6M for Health Services R&D, focusing on basic research

Contract Overview

Contract Amount: $21,572,537 ($21.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-27

End Date: 2014-09-24

Contract Duration: 727 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::CL::IGF R&D- MEDICAL: HEALTH SERVICES (BASIC RESEARCH)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.6 million to THE MITRE CORPORATION for work described as: IGF::CL::IGF R&D- MEDICAL: HEALTH SERVICES (BASIC RESEARCH) Key points: 1. Contract value appears reasonable for specialized R&D services. 2. Full and open competition suggests a competitive bidding process. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee structure. 4. Contract duration of two years provides a defined period for research. 5. Services align with the broader mission of advancing health services. 6. Geographic concentration in Maryland may limit broader regional impact.

Value Assessment

Rating: good

The contract value of $21.6 million over two years for R&D services is within a typical range for complex projects of this nature. Benchmarking against similar basic research contracts in health services is challenging without more specific service details, but the price per year ($10.8 million) seems aligned with specialized scientific and technical services. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, carries inherent risks of cost escalation if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, likely leading to a more competitive price discovery process. The number of bidders is not specified, but the method of competition implies that multiple entities vied for this award, potentially driving down costs and ensuring the selection of a highly qualified contractor.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds by encouraging multiple firms to offer their best pricing and technical solutions.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and the broader healthcare sector through advancements in health services research. The contract delivers essential basic research services aimed at improving healthcare delivery and policy. The primary geographic impact is concentrated in Maryland, where the contractor is located. Workforce implications include the employment of specialized scientific and technical personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not meticulously monitored.
The specific deliverables and success metrics for basic research can be difficult to define and measure, posing a risk to performance evaluation.
Concentration of R&D activities in a single geographic location may limit broader collaboration and diverse perspectives.

Positive Signals

Award to a reputable contractor like The MITRE Corporation suggests a high likelihood of technical competence.
Full and open competition indicates a thorough vetting process and potential for competitive pricing.
The contract's focus on basic research aligns with long-term strategic goals for healthcare improvement.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on health services research. The market for such specialized R&D is often dominated by a few key research institutions and government contractors. Comparable spending benchmarks are difficult to establish without knowing the precise research area, but the annual value suggests a significant, focused project. The MITRE Corporation is a well-known entity in this space, often undertaking complex, mission-oriented research for government agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though large R&D projects can sometimes indirectly stimulate innovation within smaller firms through partnerships or knowledge spillover.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services, likely through the Centers for Medicare and Medicaid Services (CMS). Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract award databases and public reporting requirements, though the specifics of the research may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Agency for Healthcare Research and Quality (AHRQ) Programs
Department of Veterans Affairs (VA) Health Research
Centers for Disease Control and Prevention (CDC) Research Initiatives

Risk Flags

Cost Overrun Risk (CPFF)
Uncertainty in R&D Outcomes
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.6 million to THE MITRE CORPORATION. IGF::CL::IGF R&D- MEDICAL: HEALTH SERVICES (BASIC RESEARCH)

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2012-09-27. End: 2014-09-24.

What is The MITRE Corporation's track record with government R&D contracts, particularly in healthcare?

The MITRE Corporation has a long and extensive history of performing research and development for various U.S. government agencies, including significant work within the healthcare domain. As a federally funded research and development center (FFRDC), MITRE is known for its objective analysis and technical expertise across a wide range of complex problems. Their healthcare-related work often involves areas such as health IT, healthcare policy analysis, public health preparedness, and improving healthcare delivery systems. While specific performance metrics for individual contracts are not always publicly detailed, MITRE's continued selection for critical R&D projects by agencies like HHS suggests a consistent record of successful performance and trusted advisory capabilities. Their work often focuses on systems engineering, analysis, and strategic planning to address national challenges in healthcare.

How does the $21.6 million contract value compare to similar basic research initiatives in health services?

Directly comparing the $21.6 million contract value to 'similar' basic research initiatives in health services is challenging due to the highly specialized nature of R&D and the variability in project scope, duration, and objectives. However, for a two-year project focused on basic research by a reputable organization like MITRE, this value is not unusual. Larger federal agencies like the National Institutes of Health (NIH) fund basic research grants that can range from hundreds of thousands to millions of dollars annually, depending on the research area and phase. Contracts for complex systems analysis or technology development within healthcare can easily reach tens of millions over several years. The value here suggests a significant, focused effort rather than broad, exploratory research, and it is likely competitive within its specific niche.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for basic research, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For basic research, where the outcomes and necessary steps can be uncertain and evolve, it can be difficult to accurately estimate the total costs upfront. This uncertainty increases the risk that actual costs will exceed initial projections. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), the government bears the primary financial risk of cost escalation. Effective oversight, clear milestones, and rigorous cost tracking are crucial to mitigate these risks.

How effective are full and open competitions in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including specialized R&D. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals based on clearly defined requirements and evaluate them not only on price but also on technical merit, past performance, and other factors. For R&D, this means the government is more likely to select a contractor offering the best combination of technical capability and cost-effectiveness. While the complexity of R&D can make direct price comparisons difficult, the competitive process itself is a strong indicator of potential value.

What historical spending patterns exist for similar 'All Other Professional, Scientific, and Technical Services' contracts within HHS?

Historical spending patterns for the 'All Other Professional, Scientific, and Technical Services' (NAICS code 541990) category within the Department of Health and Human Services (HHS) show significant and consistent investment. This broad category encompasses a wide array of services, including research, consulting, and specialized technical support. HHS, through its various agencies like CMS and NIH, frequently utilizes these services for policy analysis, program evaluation, scientific research support, and technical consulting. Annual spending within this NAICS code at HHS often runs into the hundreds of millions, reflecting the agency's reliance on external expertise to fulfill its mission. Contracts can vary widely in value, from smaller task orders to multi-million dollar awards like the one to MITRE, indicating a dynamic market for these services.

What are the implications of the contract's duration (727 days) on the research outcomes?

A contract duration of approximately two years (727 days) for basic research implies a focused, yet substantial, period for investigation. Basic research, by its nature, aims to expand fundamental knowledge and understanding, and outcomes may not be immediately applicable or easily quantifiable. A two-year timeframe is often sufficient to conduct significant experiments, gather preliminary data, perform analyses, and potentially publish initial findings or develop foundational concepts. However, it may be insufficient for translating basic discoveries into practical applications or completing extensive validation studies. The duration suggests the project is designed to achieve specific research milestones within this period, rather than encompassing the entire lifecycle from discovery to implementation.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20110021

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 22102

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: $91,785,933

Exercised Options: $21,572,537

Current Obligation: $21,572,537

Actual Outlays: $151,985

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,508,976

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201200008I

IDV Type: IDC

Timeline