VA awards $14.5M to MITRE for technical support to VBA's business process integration

Contract Overview

Contract Amount: $14,487,622 ($14.5M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-10-01

End Date: 2010-09-30

Contract Duration: 364 days

Daily Burn Rate: $39.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FFRDC TECHNICAL SUPPORT FOR VBA OFFICE OF BUSINESS PROCESS INTEGRATION (OBPI)

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.5 million to THE MITRE CORPORATION for work described as: FFRDC TECHNICAL SUPPORT FOR VBA OFFICE OF BUSINESS PROCESS INTEGRATION (OBPI) Key points: 1. Contract awarded to a single FFRDC, raising questions about competition and potential cost efficiencies. 2. The contract's duration of one year suggests a focused scope for technical support. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs. 4. MITRE's role as an FFRDC implies a focus on objective, independent technical advice. 5. The specific technical support areas are not detailed, making performance assessment challenging. 6. This award represents a small fraction of the VA's overall IT and professional services spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without more specific details on the services provided and comparable FFRDC engagements. The award amount of $14.5 million for a one-year period for technical support to business process integration is not inherently high or low without context. However, the lack of competition means there's no market-driven price discovery to assess if this represents optimal value for money. The CPFF structure necessitates robust oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation, which operates as a Federally Funded Research and Development Center (FFRDC). FFRDCs are typically awarded contracts without full and open competition due to their unique capabilities and established relationships with government agencies. While this ensures access to specialized expertise, it limits the opportunity for other vendors to compete and potentially offer more cost-effective solutions.

Taxpayer Impact: Sole-source awards to FFRDCs, while often necessary for specialized support, mean taxpayers do not benefit from competitive bidding, which could drive down prices. The government relies on the FFRDC's established fee structure and its own oversight to ensure fair pricing.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, specifically the Office of Business Process Integration (OBPI) within the Veterans Benefits Administration (VBA). The contract aims to provide technical support to improve and integrate business processes within the VBA. The geographic impact is likely concentrated within the VA's operational centers, primarily in Virginia where MITRE has a significant presence. Workforce implications may involve specialized technical personnel from MITRE supporting VA staff in process analysis and technology implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
The CPFF structure requires diligent oversight to prevent cost overruns.
Limited public information on the specific technical services rendered makes independent performance evaluation difficult.

Positive Signals

Award to a reputable FFRDC (MITRE) suggests access to high-quality, objective technical expertise.
Focus on business process integration can lead to long-term efficiencies within the VBA.
The contract supports a critical government function aimed at improving services for veterans.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT and management consulting related to business process improvement. The market for such services is vast, with numerous large and small businesses offering expertise. However, the use of an FFRDC like MITRE is a specific strategy employed by the government for unique, often complex, and sensitive technical challenges where independence and deep institutional knowledge are paramount. Comparable spending benchmarks are difficult to establish due to the specialized nature of FFRDC support.

Small Business Impact

This contract was not competed and does not appear to have a small business set-aside component. As a sole-source award to MITRE, there are no direct subcontracting opportunities for small businesses mandated by this specific contract. The impact on the small business ecosystem is neutral, as this award does not displace or create opportunities for small businesses in the competitive market.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs incurred are reasonable and allocable to the contract, and that the fixed fee is earned appropriately. Transparency is limited due to the sole-source nature and the specific technical focus, but internal VA oversight mechanisms should be in place. There is no explicit mention of Inspector General jurisdiction for this specific award, but the VA OIG generally has oversight over VA contracts.

Related Government Programs

VA IT Modernization Programs
VBA Claims Processing Modernization
Federal IT Professional Services
FFRDC Support Contracts
Government Business Process Re-engineering

Risk Flags

Sole-source award
Cost Plus Fixed Fee pricing
Limited scope definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.5 million to THE MITRE CORPORATION. FFRDC TECHNICAL SUPPORT FOR VBA OFFICE OF BUSINESS PROCESS INTEGRATION (OBPI)

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2009-10-01. End: 2010-09-30.

What specific technical challenges was MITRE tasked with addressing for the VBA Office of Business Process Integration?

The provided data does not specify the exact technical challenges MITRE was contracted to address. However, the contract title 'FFRDC TECHNICAL SUPPORT FOR VBA OFFICE OF BUSINESS PROCESS INTEGRATION (OBPI)' suggests the scope likely involved analysis, design, and implementation support for improving how the VBA conducts its business operations. This could encompass areas such as claims processing, data management, workflow optimization, and the integration of new technologies or systems to enhance efficiency and effectiveness in serving veterans. The FFRDC designation implies a focus on complex, strategic, and potentially sensitive technical issues requiring objective, in-depth analysis.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar technical support services?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex technical services where the scope of work is not precisely defined at the outset, making a fixed-price contract impractical. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from firm-fixed-price (FFP) contracts, where the price is set regardless of actual costs, incentivizing efficiency but carrying higher risk for the contractor. Cost-reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) offer more flexibility in cost control and risk sharing. For technical support, CPFF can be appropriate when innovation or exploration is key, but it requires robust government oversight to manage costs effectively, unlike FFP contracts which place cost risk on the contractor.

What is the historical spending pattern for technical support services by the VA's VBA OBPI?

The provided data only includes a single award for $14.5 million to MITRE for the period of October 1, 2009, to September 30, 2010. This does not provide enough information to establish a historical spending pattern for the VBA OBPI's technical support services. To understand historical spending, one would need to analyze contract awards over multiple fiscal years, identify recurring needs for technical support, track spending trends, and compare spending across different contract vehicles and vendors. This single data point represents a snapshot in time and does not indicate whether spending has increased, decreased, or remained stable over longer periods.

What are the potential risks associated with awarding a sole-source contract to an FFRDC like MITRE for technical support?

The primary risk of a sole-source award to an FFRDC is the lack of competition, which can lead to higher costs than might be achieved through a competitive bidding process. Taxpayers may not receive the best possible value for their money if alternative solutions or more cost-effective providers exist. Additionally, sole-source awards can create a dependency on a single provider, potentially limiting innovation and flexibility. While FFRDCs like MITRE are intended to provide objective advice, the absence of competitive pressure could theoretically reduce the incentive for maximum efficiency. Robust government oversight and clear performance metrics are essential to mitigate these risks.

How does MITRE's performance as an FFRDC typically compare to other contractors in providing technical support to government agencies?

MITRE, as a leading FFRDC, is generally regarded as a high-performing entity that provides objective, independent technical advice and analysis to government agencies. FFRDCs are established to address complex national needs and often work on sensitive or strategic projects where a deep understanding of government operations and a commitment to public service are paramount. Compared to typical commercial contractors, FFRDCs may have less emphasis on profit maximization and more on mission accomplishment and unbiased recommendations. However, their unique status and lack of direct competition mean performance is often assessed through government program reviews and mission success rather than direct market comparisons. MITRE's track record suggests consistent delivery of high-quality technical support across various government sectors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,487,622

Exercised Options: $14,487,622

Current Obligation: $14,487,622

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: VA791P0032

IDV Type: IDC

Timeline