Mitre Systems Engineering Services Contract Awarded to the Mitre Corporation for Over $432 Million

Contract Overview

Contract Amount: $432,494,259 ($432.5M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2007-10-18

End Date: 2009-09-30

Contract Duration: 713 days

Daily Burn Rate: $606.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: MITRE SYSTEM ENGINEERING SERVICES

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $432.5 million to THE MITRE CORPORATION for work described as: MITRE SYSTEM ENGINEERING SERVICES Key points: 1. Contract awarded to a single, non-profit research and development organization with a long history of government support. 2. Significant contract value suggests a critical and ongoing need for systems engineering expertise within the Department of Defense. 3. The 'NOT COMPETED' status indicates a sole-source award, raising questions about potential price efficiencies and market engagement. 4. Contract duration of 713 days (approx. 2 years) points to a substantial, long-term requirement. 5. The contract's primary focus on engineering services aligns with the specialized nature of the awarded entity. 6. Awarding agency is the Department of the Army, indicating a specific military application for these services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the unique position of THE MITRE CORPORATION. As a federally funded research and development center (FFRDC), MITRE often operates under specific agreements that may not directly align with typical commercial pricing models. The absence of competition makes it difficult to assess if the pricing reflects market rates or represents optimal value for the government. Further analysis would require understanding the specific cost structure and profit margins negotiated under the FFRDC agreement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. THE MITRE CORPORATION is a unique entity, often designated as a Federally Funded Research and Development Center (FFRDC), which can justify sole-source awards for specialized, long-term research and development needs. However, the lack of competition limits the government's ability to explore alternative solutions or leverage competitive pricing.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified companies to secure government contracts.

Public Impact

The Department of the Army benefits from specialized systems engineering expertise to support its complex technological requirements. Services delivered likely involve the design, integration, and testing of advanced military systems. The geographic impact is primarily within the Department of the Army's operational and research facilities. Workforce implications include the engagement of highly skilled engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can limit innovation by not exposing the government to a wider range of solutions.
Reliance on a single contractor for critical systems engineering could pose a risk if performance degrades.

Positive Signals

THE MITRE CORPORATION is a well-established FFRDC with a proven track record in government R&D.
The contract's long duration suggests a stable and reliable partnership for critical engineering needs.
The specialized nature of MITRE's work may be essential for national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader IT and Defense industries. The market for specialized systems engineering is often dominated by a few key players, including FFRDCs like MITRE, due to the high level of expertise and security clearances required. Comparable spending in this area can vary widely depending on the complexity and scale of the systems being developed, but multi-million dollar contracts for engineering services are common within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the specialized expertise of THE MITRE CORPORATION, it is unlikely that subcontracting opportunities for small businesses would be a primary focus or requirement of this specific award. The impact on the small business ecosystem is therefore minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of the Army. As THE MITRE CORPORATION is an FFRDC, there are often specific oversight mechanisms in place through its sponsoring agency agreements. Transparency may be limited due to the sole-source nature, but performance metrics and deliverables are usually subject to review. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Systems Engineering Support Services
Federally Funded Research and Development Centers (FFRDCs)
Military Technology Development

Risk Flags

Sole-source award limits competitive pricing.
Lack of transparency in competition process.
Potential for cost overruns in 'Cost No Fee' contracts without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $432.5 million to THE MITRE CORPORATION. MITRE SYSTEM ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $432.5 million.

What is the period of performance?

Start: 2007-10-18. End: 2009-09-30.

What is the specific nature of the systems engineering services provided under this contract?

While the data indicates 'Engineering Services' (NAICS 541330), the specific nature of the systems engineering services provided under this contract to the Department of the Army is not detailed in the provided data. Typically, for an entity like THE MITRE CORPORATION, these services would encompass a broad range of activities including requirements definition, system design and architecture, integration, testing, verification, validation, and lifecycle support for complex defense systems. This could involve areas such as command and control systems, intelligence, surveillance, and reconnaissance (ISR) platforms, cybersecurity engineering, or advanced weapon systems development. The 'COST NO FEE' (PT) award type suggests that MITRE's compensation is primarily for its direct costs, with no additional profit margin, which is common for FFRDCs performing research and development.

How does the 'COST NO FEE' award type impact the overall value and risk for the government?

The 'COST NO FEE' (PT) award type signifies that THE MITRE CORPORATION is reimbursed for its allowable costs incurred in performing the contract, but does not receive any additional profit. This structure is often used for research and development contracts, particularly with FFRDCs, where the primary goal is to leverage the contractor's expertise for the public good rather than to generate profit. For the government, this can potentially lead to lower overall costs compared to a fixed-price or cost-plus-incentive-fee contract that includes profit. However, it also means that the government bears the full financial risk if costs exceed initial estimates. Effective oversight of allowable costs becomes crucial to ensure that taxpayer funds are used efficiently and appropriately.

What is the historical spending pattern for MITRE SYSTEMS ENGINEERING SERVICES with the Department of the Army?

The provided data represents a single contract awarded from October 18, 2007, to September 30, 2009, with a total value of $432,494,259.37. This specific contract, 'MITRE SYSTEM ENGINEERING SERVICES,' was a sole-source award. To understand the historical spending pattern, one would need to examine other contracts awarded to THE MITRE CORPORATION by the Department of the Army, or other agencies, for similar systems engineering services over a longer period. Analyzing multiple contracts would reveal trends in award types (competed vs. sole-source), contract values, durations, and the specific services rendered, providing a more comprehensive view of the government's historical reliance on MITRE for these capabilities.

What are the implications of THE MITRE CORPORATION being a Federally Funded Research and Development Center (FFRDC) for this contract?

THE MITRE CORPORATION's designation as an FFRDC has significant implications for this contract. FFRDCs are unique entities established to meet specific long-term research and development needs of the government that cannot be met as effectively by the private sector or government laboratories alone. They operate in the public interest, free from conflicts of interest, and often have special access to government and industry information. For this contract, being an FFRDC likely justified the sole-source award, as MITRE possesses unique capabilities and institutional knowledge critical to the Department of the Army's systems engineering requirements. The 'COST NO FEE' award type is also characteristic of FFRDC engagements, focusing on cost recovery rather than profit.

How does the contract's duration and value compare to typical systems engineering contracts?

This contract, valued at over $432 million and spanning approximately two years (713 days), is substantial in both duration and value. Typical systems engineering contracts can vary widely. However, for large-scale defense systems development and integration, contracts of this magnitude are not uncommon, especially when awarded to established FFRDCs like THE MITRE CORPORATION. The duration suggests a complex, multi-phase project requiring sustained effort. When compared to smaller, more focused engineering support contracts, this award indicates a significant, long-term commitment by the Department of the Army to a particular set of systems engineering challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,101,106,596

Exercised Options: $2,213,219,499

Current Obligation: $432,494,259

Contract Characteristics

Cost or Pricing Data: YES

Timeline