DoD awards $460M to MITRE for engineering services, a Federally Funded R&D Center
Contract Overview
Contract Amount: $460,574,419 ($460.6M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2010-09-24
Contract Duration: 723 days
Daily Burn Rate: $637.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: INCREMENTALLY FUND ENGINEERING SERVICES FOR MITRE WHICH IS A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $460.6 million to THE MITRE CORPORATION for work described as: INCREMENTALLY FUND ENGINEERING SERVICES FOR MITRE WHICH IS A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER Key points: 1. Significant contract value awarded to a single entity. 2. MITRE's status as an FFRDC may limit direct competition. 3. Potential for cost efficiencies given FFRDC structure. 4. Engineering services are critical for defense modernization.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition for these essential engineering services.
Public Impact
Award supports critical engineering functions for the Department of Defense. FFRDC status suggests specialized expertise is being leveraged. Long-term nature of the contract implies ongoing need for these services. Lack of competition raises questions about best value for taxpayer dollars.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Award to a recognized FFRDC
- Supports critical defense needs
Sector Analysis
This contract falls under engineering services, a broad category often supporting complex government projects. Spending in this area is substantial, especially within defense, where specialized R&D centers like MITRE play a key role.
Small Business Impact
The awardee, MITRE, is a large FFRDC and not a small business. There is no indication that small businesses were subcontracted for this specific award.
Oversight & Accountability
The 'COST NO FEE' contract type requires robust oversight from the Department of the Army to ensure costs are reasonable and allocable. The lack of competition warrants increased scrutiny.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-reimbursement contract type requires strong oversight.
- Potential for cost creep without profit incentive.
- Lack of transparency in FFRDC cost structures.
- Dependency on a single provider for critical services.
Tags
engineering-services, department-of-defense, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $460.6 million to THE MITRE CORPORATION. INCREMENTALLY FUND ENGINEERING SERVICES FOR MITRE WHICH IS A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER
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 $460.6 million.
What is the period of performance?
Start: 2008-10-01. End: 2010-09-24.
What is the justification for the sole-source award to MITRE for these engineering services?
The justification for a sole-source award typically centers on unique capabilities, specialized knowledge, or the critical nature of the work that only the specific entity can provide. As a Federally Funded Research and Development Center (FFRDC), MITRE possesses unique expertise and infrastructure tailored to government needs, which may have led the Department of Defense to determine that competition was not feasible or advantageous for these specific engineering services.
How does the 'COST NO FEE' contract type impact cost control and taxpayer value?
The 'COST NO FEE' contract type means the government reimburses the contractor for all allowable costs but pays no fee or profit. While this can reduce the overall cost to the government compared to cost-plus-fee contracts, it removes the contractor's profit incentive to control costs. This necessitates strong government oversight to ensure costs remain reasonable and allocable to the contract, otherwise, it can lead to inefficient spending.
What are the potential risks associated with awarding a large contract to an FFRDC without competition?
The primary risk is the potential for inflated costs due to the absence of competitive pressure to offer the best price. There's also a risk of reduced innovation if alternative approaches from other potential contractors are not explored. Furthermore, reliance on a single FFRDC for critical services could create vendor lock-in and limit the government's flexibility in the future.
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, 22102
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,460,505,825
Exercised Options: $460,574,419
Current Obligation: $460,574,419
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-10-01
Current End Date: 2010-09-24
Potential End Date: 2010-09-24 00:00:00
Last Modified: 2015-05-14
More Contracts from THE Mitre Corporation
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (Department of Transportation)
- FY25 Task Order 7 - to Provide Systems Engineering Research and Development Services for the Department of Defense (DOD) and Other Federal Government Agencies — $753.9M (Department of Defense)
- FY24 Task Order 6 - Initial Funding and Updating PWS & DD254 — $735.3M (Department of Defense)
- Caasd Must Provide Essential Engineering, Research, and Analysis Capabilities to Support the FAA in the Performance of ITS Mission Through a Systems Approach That Addresses ALL Dimensions (E.G. Political, Operational, Economic, Technical) Required to — $700.5M (Department of Transportation)
- Initial Modification on Task Order 5 Nsec, Ffrdc to Incrementally Fund, Update PWS & DD254 — $687.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)