MITRE Corporation awarded $26.7M for VA technical support, a sole-source contract

Contract Overview

Contract Amount: $26,703,632 ($26.7M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-03-23

End Date: 2017-06-14

Contract Duration: 3,005 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FFRDC TECHNICAL SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS (VA) TECHNOLOGY ACQUISITION CENTER (TAC) - FT. MONMOUTH INTEGRATION

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.7 million to THE MITRE CORPORATION for work described as: FFRDC TECHNICAL SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS (VA) TECHNOLOGY ACQUISITION CENTER (TAC) - FT. MONMOUTH INTEGRATION Key points: 1. Contract awarded via sole-source justification, limiting price competition. 2. Long contract duration of over 8 years suggests sustained need. 3. Cost-plus-fixed-fee structure may incentivize cost increases. 4. FFRDC designation implies specialized, non-commercial technical expertise. 5. Focus on VA technology acquisition indicates critical IT infrastructure support. 6. No small business set-aside, potentially limiting broader market participation.

Value Assessment

Rating: fair

The contract value of $26.7 million over approximately 8 years averages to about $3.3 million annually. Benchmarking this against similar FFRDC support contracts for large federal agencies is challenging due to the unique nature of FFRDCs and specific agency needs. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common for complex R&D and technical services, can lead to higher overall costs if not carefully managed, as it allows for the reimbursement of costs plus a fixed fee. Without detailed cost breakdowns or comparisons to commercial equivalents, assessing the precise value-for-money is difficult, but the sole-source nature raises concerns about optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, The MITRE Corporation, was solicited. This approach is typically justified when a unique capability or specialized knowledge is required that only a specific entity possesses, such as Federally Funded Research and Development Centers (FFRDCs). The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. The government relies on the FFRDC's established fee structure and oversight to ensure fair pricing, rather than market-driven negotiation.

Public Impact

The Department of Veterans Affairs (VA) benefits from specialized technical support for its Technology Acquisition Center (TAC). This contract ensures continuity in critical IT acquisition processes for the VA. The services provided likely impact the efficiency and effectiveness of VA technology procurements. The workforce implications are primarily within the VA's IT acquisition and management functions, supported by MITRE's expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee structure can incentivize higher costs if not rigorously managed.
Long contract duration without clear performance metrics could mask inefficiencies.

Positive Signals

FFRDC designation ensures access to highly specialized, objective technical expertise.
Long-term contract suggests a stable, ongoing need for critical support services.
MITRE's established track record as an FFRDC provides a level of assurance in capability.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on IT acquisition support for a major federal agency. The market for such specialized technical advisory services is often dominated by a few key players, including FFRDCs like MITRE, particularly for government-specific, complex needs. Comparable spending benchmarks are difficult to establish precisely due to the unique FFRDC model and the specific mission of the VA's TAC, but FFRDC contracts represent a significant portion of federal spending on R&D and technical services.

Small Business Impact

This contract was not competed and did not include a small business set-aside. As a sole-source award to an FFRDC, it is unlikely to involve subcontracting opportunities for small businesses in a significant way, unless MITRE independently identifies specific needs that align with small business capabilities. The focus is on specialized FFRDC support rather than broad market engagement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As an FFRDC, MITRE operates under specific government oversight frameworks designed to ensure objectivity and responsible use of funds. Transparency is generally maintained through contract reporting requirements, though detailed cost justifications for sole-source awards are often internal. The VA's Office of Inspector General would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

VA IT Modernization Programs
Federal IT Acquisition Support Services
Defense Advanced Research Projects Agency (DARPA) FFRDC Contracts
National Science Foundation (NSF) FFRDC Management

Risk Flags

Sole-source award lacks competitive pricing.
CPFF structure requires diligent cost oversight.
Long duration may obscure performance issues without clear metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.7 million to THE MITRE CORPORATION. FFRDC TECHNICAL SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS (VA) TECHNOLOGY ACQUISITION CENTER (TAC) - FT. MONMOUTH INTEGRATION

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 $26.7 million.

What is the period of performance?

Start: 2009-03-23. End: 2017-06-14.

What is the specific technical expertise provided by MITRE under this contract?

Under this contract, The MITRE Corporation provides technical support to the Department of Veterans Affairs (VA) Technology Acquisition Center (TAC). This likely includes a range of services such as strategic planning for IT investments, acquisition strategy development, technical evaluations of proposed solutions, cybersecurity assessments, program management support, and policy development related to technology acquisition. As an FFRDC, MITRE's role is to provide objective, independent advice and analysis to the government, helping to ensure that the VA acquires the most effective and efficient technology solutions to meet its mission needs. The specific technical domains would align with the VA's IT infrastructure, healthcare IT systems, and data management requirements.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing structures for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is common for complex research, development, and technical services where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the final costs, offering greater cost certainty to the government but potentially higher risk for the contractor. It also differs from cost-plus-incentive-fee (CPIF) contracts, which include mechanisms to adjust the fee based on performance against targets. For specialized technical support, CPFF can be advantageous when innovation and flexibility are paramount, but it requires robust government oversight to control costs and ensure value, as there is less direct incentive for the contractor to minimize expenses compared to a fixed-price arrangement.

What are the implications of awarding this contract solely to an FFRDC like MITRE?

Awarding this contract solely to an FFRDC like MITRE has several implications. Firstly, it ensures access to a unique, objective, and highly specialized technical resource that is government-sponsored and operated. FFRDCs are designed to address long-term, complex national needs without the conflicts of interest inherent in commercial firms. However, the sole-source nature bypasses the competitive bidding process, meaning the government does not benefit from price discovery through market competition. While FFRDCs are expected to provide fair pricing, the absence of multiple bids means potential cost savings from competition are foregone. This approach is justified when the specific capabilities and independence of an FFRDC are deemed essential and not readily available elsewhere in the commercial market.

What is MITRE Corporation's track record with the Department of Veterans Affairs?

The MITRE Corporation has a long-standing relationship with the Department of Veterans Affairs (VA), providing critical technical support and advisory services across various initiatives. As a designated FFRDC, MITRE has been instrumental in helping the VA navigate complex technological challenges, including IT modernization, electronic health record systems (like VistA), data analytics, and cybersecurity. Their work often involves strategic planning, system integration, policy development, and independent technical assessments. This specific contract, focusing on the VA's Technology Acquisition Center (TAC), builds upon that established relationship, leveraging MITRE's deep understanding of the VA's mission, systems, and acquisition processes to ensure effective technology procurement and implementation.

How does this contract's spending compare to overall VA IT spending?

This contract represents approximately $3.3 million annually in spending for specialized technical support to the VA's Technology Acquisition Center (TAC). While significant for the specific function it supports, it is a relatively small portion of the VA's overall IT budget. The VA's total IT spending encompasses a vast array of initiatives, including electronic health records, network infrastructure, cybersecurity, data centers, cloud migration, and numerous application development projects. Annual IT spending for the VA typically runs into the billions of dollars. Therefore, this $26.7 million contract over eight years, while important for TAC operations, constitutes a minor fraction of the VA's total technology investment, highlighting the scale and breadth of the department's IT landscape.

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: ONLY ONE SOURCE

Solicitation ID: VA-798A-09-RP-0007

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: $26,703,632

Exercised Options: $26,703,632

Current Obligation: $26,703,632

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: VA791P0042

IDV Type: IDC

Timeline