MITRE Corporation awarded $97M contract for management consulting services by DHS

Contract Overview

Contract Amount: $97,019,196 ($97.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2005-03-28

End Date: 2010-03-19

Contract Duration: 1,817 days

Daily Burn Rate: $53.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MITRE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $97.0 million to THE MITRE CORPORATION for work described as: MITRE Key points: 1. Contract provides essential management consulting services to the Department of Homeland Security. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 1800 days, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 5. The services fall under 'Other Management Consulting Services', a broad category. 6. The contract was awarded to a single entity, THE MITRE CORPORATION. 7. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $97 million over approximately five years for management consulting services to a major federal agency like DHS appears reasonable. Benchmarking against similar large-scale consulting contracts for federal agencies suggests that this level of investment is within expected ranges for comprehensive support. The Cost Plus Fixed Fee (CPFF) contract type, while requiring careful oversight, is common for services where scope may evolve. Without specific details on the deliverables and the fixed fee percentage, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed openly suggests that the agency sought to maximize value and innovation by considering a wide range of potential contractors. The specific number of bidders is not provided, but the open competition is a positive indicator for price discovery.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and increases the likelihood of obtaining the best value for their investment. It ensures that the government is not limited to a single provider, which could lead to inflated prices or reduced service quality.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving critical management consulting support. Services delivered likely include strategic planning, operational efficiency improvements, policy analysis, and program management assistance. The geographic impact is primarily national, supporting DHS's nationwide mission. The contract supports a workforce of consultants and subject matter experts, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to manage costs effectively and prevent scope creep.
The broad 'Other Management Consulting Services' category could lead to ambiguity in deliverables if not clearly defined.
Reliance on a single contractor for a significant duration necessitates robust performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The MITRE Corporation is a well-established organization with a strong track record in government contracting, particularly in R&D and systems engineering.
The contract duration suggests a stable, long-term need that has been recognized and planned for by the agency.

Sector Analysis

This contract falls within the professional services sector, specifically management and consulting. The federal government is a significant consumer of these services, utilizing them for strategic planning, policy development, operational improvements, and technology integration across various agencies. The market for federal management consulting is substantial, with numerous firms competing for contracts. MITRE, as a federally funded research and development center (FFRDC) and a large contractor, operates within this competitive landscape, often focusing on complex, mission-critical areas.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, THE MITRE CORPORATION, is likely a large business. While there is no direct indication of small business subcontracting requirements in the provided data, large federal contracts often include provisions for small business participation. The absence of a small business set-aside suggests that the competition was open to all responsible sources, and the focus was on the best overall proposal rather than specifically promoting small business engagement for the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

DHS Management and Program Support Contracts
Federal Management Consulting Services
Other Professional Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Broad service category may require clear definition of work.
Long contract duration necessitates ongoing relevance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $97.0 million to THE MITRE CORPORATION. MITRE

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $97.0 million.

What is the period of performance?

Start: 2005-03-28. End: 2010-03-19.

What is the specific nature of the 'Other Management Consulting Services' provided under this contract?

The provided data categorizes the service under NAICS code 541618, 'Other Management Consulting Services.' This broad classification typically encompasses consulting services not elsewhere classified, which can include a wide range of activities such as strategic planning, organizational development, process improvement, program management support, policy analysis, and advisory services. For this specific contract with the Department of Homeland Security (DHS), these services likely support the agency's complex mission in areas like national security, border security, emergency management, or cybersecurity. Without access to the contract's statement of work (SOW), the precise nature of the consulting engagements remains general, but it implies support for high-level decision-making and operational effectiveness within DHS.

How does the $97 million contract value compare to similar management consulting contracts awarded by DHS or other large federal agencies?

The $97 million contract value for approximately five years of management consulting services to DHS is substantial but appears within the expected range for a large federal agency with complex operational needs. Large federal agencies frequently award multi-million dollar contracts for consulting services to support strategic initiatives, program management, and policy development. For instance, contracts for similar services can range from tens to hundreds of millions of dollars depending on the scope, duration, and specific agency requirements. Given that this contract was awarded through full and open competition to a reputable entity like MITRE, the pricing is likely competitive. However, a precise benchmark would require comparing the contract's specific deliverables, labor categories, and fee structure against other comparable contracts within the federal procurement database.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the government agrees to reimburse the contractor for allowable costs. While the fixed fee provides the contractor with an incentive to control costs (as the fee is fixed regardless of actual costs), there's still a risk that costs could escalate beyond initial estimates. This necessitates robust government oversight to ensure that all claimed costs are reasonable, allocable, and directly related to the contract's objectives. Another risk is scope creep, where the project's requirements expand beyond the original agreement, potentially leading to increased costs and delays if not managed properly through contract modifications. Ensuring clear definition of work and diligent monitoring of contractor performance are critical to mitigating these risks.

What is MITRE Corporation's track record with federal contracts, particularly with DHS?

MITRE Corporation has a long and extensive track record as a government contractor, operating multiple Federally Funded Research and Development Centers (FFRDCs) for various government agencies. They are well-regarded for their work in systems engineering, research, development, and technical advisory services. MITRE has a significant history of supporting the Department of Homeland Security (DHS) across various mission areas, including cybersecurity, critical infrastructure protection, and program management. Their involvement often centers on complex, high-impact technical and strategic challenges. This contract for management consulting services aligns with MITRE's capabilities in providing objective analysis and strategic guidance to government entities, building upon their established relationship and expertise with DHS.

How does the contract's duration (1817 days) impact the assessment of its value and risk?

The contract duration of 1817 days, approximately five years, indicates a long-term, strategic need for the management consulting services by the Department of Homeland Security. From a value perspective, a longer duration can allow for deeper integration of services, more significant impact on organizational improvements, and potentially better economies of scale for the contractor, which could translate to more stable pricing over time. However, it also increases the overall financial commitment and the potential impact of any inefficiencies or risks. For risk assessment, a longer duration necessitates sustained government oversight and adaptability. It requires ensuring that the services remain relevant and effective throughout the contract period, as agency needs and the threat landscape can evolve significantly over five years. Regular performance reviews and potential contract modifications are crucial to manage this extended engagement effectively.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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: $118,738,838

Exercised Options: $118,738,838

Current Obligation: $97,019,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TIRNO99D00005

IDV Type: IDC

Timeline