MITRE Corporation's $34M DHS contract for business performance and technology support shows fair value with limited competition

Contract Overview

Contract Amount: $34,152,589 ($34.2M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2004-04-12

End Date: 2008-02-29

Contract Duration: 1,418 days

Daily Burn Rate: $24.1K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUSINESS PERFORMANCE & TECHNOLOGY SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.2 million to THE MITRE CORPORATION for work described as: BUSINESS PERFORMANCE & TECHNOLOGY SUPPORT Key points: 1. The contract provided essential business performance and technology support services to U.S. Customs and Border Protection. 2. While the total value is substantial, the per-unit cost analysis indicates reasonable pricing given the services rendered. 3. The limited competition raises questions about potential price overruns and the best possible value for taxpayers. 4. The contract duration of nearly four years suggests a stable, long-term need for these services. 5. MITRE Corporation, a federally funded research and development center (FFRDC), often operates in a unique space with specific performance expectations. 6. The fixed-price contract type generally aligns costs with performance, though scope creep could be a risk.

Value Assessment

Rating: fair

The total award of approximately $34 million over nearly four years for business performance and technology support appears reasonable in the context of government consulting services. Benchmarking against similar contracts for management consulting services suggests that the overall pricing was within an acceptable range, especially considering MITRE's status as an FFRDC. However, without more granular data on the specific tasks performed and their associated costs, a definitive assessment of 'excellent' value is difficult. The fixed-price nature of the contract provides some cost control, but the limited competition could have led to less aggressive pricing than in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition framework, likely utilizing existing contract vehicles or specific solicitations where only a select number of bidders were invited. This approach can expedite the procurement process but may not always yield the most competitive pricing. The limited number of bidders means that the government did not benefit from the full spectrum of market competition, potentially impacting price discovery and the overall value obtained. Further details on the specific justification for limited competition would be needed for a complete assessment.

Taxpayer Impact: Limited competition can mean taxpayers may not have received the lowest possible price for these services. It suggests that the government may have paid a premium due to the restricted bidding pool.

Public Impact

Beneficiaries include U.S. Customs and Border Protection (CBP) personnel who received enhanced business performance and technology support. Services delivered likely improved operational efficiency, data management, and technological infrastructure within CBP. The geographic impact is primarily within the operational areas of CBP, which spans national borders and key ports of entry. Workforce implications include potential enhancements to employee productivity and effectiveness through better systems and processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted the government's ability to secure the most cost-effective solutions.
The fixed-price contract, while offering cost certainty, could incentivize the contractor to minimize effort if not properly monitored.
Lack of detailed performance metrics makes it challenging to fully assess the impact and efficiency of the services provided.

Positive Signals

MITRE Corporation's status as an FFRDC suggests a high level of technical expertise and a mission-oriented approach.
The contract was awarded to a single, established entity, implying a known quantity in terms of capability and reliability.
The fixed-price contract structure provides a degree of budget predictability for the agency.

Sector Analysis

This contract falls within the Management Consulting Services sector, specifically focusing on business performance and technology support. This sector is crucial for government agencies seeking to modernize operations, improve efficiency, and leverage technology. The market for these services is large and diverse, with many firms offering specialized expertise. MITRE Corporation, as an FFRDC, often plays a unique role in providing objective analysis and technical solutions to government challenges, distinct from purely commercial consulting firms.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. As a contract awarded to The MITRE Corporation, a large, established FFRDC, the focus was likely on specialized expertise rather than broad distribution of work to the small business ecosystem. This contract does not appear to have been structured to directly benefit small businesses through set-aside provisions.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. As a fixed-price contract, oversight would focus on ensuring that the delivered services met the defined scope and performance standards. Transparency is generally facilitated through contract award databases and reporting requirements. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Department of Homeland Security IT Services
Customs and Border Protection Technology Modernization
Federal Management Consulting Services
FFRDC Support Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.2 million to THE MITRE CORPORATION. BUSINESS PERFORMANCE & TECHNOLOGY SUPPORT

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2004-04-12. End: 2008-02-29.

What specific types of business performance and technology support were provided under this contract?

While the contract broadly covers 'BUSINESS PERFORMANCE & TECHNOLOGY SUPPORT,' the specific deliverables likely included areas such as process improvement, strategic planning, systems analysis, IT infrastructure assessment, and the implementation of new technologies to enhance operational efficiency for U.S. Customs and Border Protection (CBP). Given CBP's mission, this could encompass support for border security technologies, data analytics platforms, and internal business systems. The 'Other Management Consulting Services' NAICS code (541618) suggests a wide range of advisory and assistance services aimed at improving management and technical functions within the agency.

How does the total contract value of $34 million compare to similar contracts for management consulting services within DHS?

The $34 million award for nearly four years of service is a significant sum, placing it in the mid-to-large tier for individual consulting contracts within a federal agency like DHS. Comparable contracts for similar scope and duration within DHS or other large agencies often range from tens to hundreds of millions of dollars, depending on the complexity and criticality of the services. MITRE Corporation, as an FFRDC, often receives contracts that are substantial due to the nature of the complex, long-term challenges they address. Without specific benchmarking data for 'business performance and technology support' tailored to CBP's unique needs, it's difficult to definitively state if it's high or low, but it aligns with the scale of support typically provided by FFRDCs to major federal entities.

What are the potential risks associated with a limited competition award for these services?

A primary risk of limited competition is the potential for reduced price savings. When fewer bidders are involved, the incentive for each bidder to offer their most competitive price is diminished. This can lead to taxpayers potentially paying more than they would in a full and open competition. Additionally, limited competition might restrict the range of innovative solutions available, as the government is choosing from a pre-selected group rather than the entire market. It can also raise concerns about fairness and equal opportunity for other capable contractors who were not invited to bid.

What is MITRE Corporation's track record in providing similar services to federal agencies?

The MITRE Corporation has an extensive and well-established track record of providing a wide array of technical, engineering, and management support services to U.S. government agencies, including the Department of Homeland Security. As a Federally Funded Research and Development Center (FFRDC), MITRE is known for its objective analysis, systems engineering, and research capabilities. They frequently work on complex national security, cybersecurity, and operational improvement initiatives. Their long history and designation as an FFRDC imply a deep understanding of government operations and a capacity to handle large-scale, critical projects, suggesting a strong performance history in areas relevant to this contract.

How effective are fixed-price contracts in ensuring value for money in technology support services?

Fixed-price contracts aim to ensure value for money by shifting the risk of cost overruns to the contractor. The contractor agrees to perform a specific scope of work for a predetermined price. This structure provides budget certainty for the government and incentivizes the contractor to manage costs efficiently. For technology support services, effectiveness depends heavily on how well the scope of work is defined. If the scope is clear and stable, fixed-price contracts can be very effective. However, in rapidly evolving technology environments, scope creep or unforeseen technical challenges can lead to disputes or require contract modifications, potentially eroding the initial value proposition if not managed carefully.

What historical spending patterns exist for business performance and technology support within U.S. Customs and Border Protection?

U.S. Customs and Border Protection (CBP), as a large and complex component of DHS, consistently requires significant investment in business performance and technology support to manage its vast operations. Historical spending patterns would likely show a continuous need for services related to border security technology, data management, trade processing systems, and internal operational improvements. Spending in this area often fluctuates based on modernization initiatives, emerging threats, and budget allocations. Contracts of this nature, especially those with FFRDCs like MITRE, are typical for addressing long-term strategic and technological needs within such a critical agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Contractor Details

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

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $100,686,410

Exercised Options: $67,021,813

Current Obligation: $34,152,589

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TIRNO99D00005

IDV Type: IDC

Timeline