DoD Modifies MITRE Contract by $457.5M for Engineering Services, Awarded Sole-Source

Contract Overview

Contract Amount: $457,511,610 ($457.5M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2013-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $417.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: FUNDING MONDIFICATION FOR SYSTEMS ENGINEERING SERVICES ON MITRE CONTRACT BASE

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $457.5 million to THE MITRE CORPORATION for work described as: FUNDING MONDIFICATION FOR SYSTEMS ENGINEERING SERVICES ON MITRE CONTRACT BASE Key points: 1. Significant contract modification indicates ongoing need for specialized engineering services. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Long-term contract duration (1095 days) suggests a substantial and sustained requirement. 4. The $417,819 in base award value is dwarfed by the modification, highlighting the scale of this change.

Value Assessment

Rating: questionable

The modification amount of $457.5M is substantial. Without a competitive process, it's difficult to assess if this price represents fair value compared to market rates for similar engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive environment.

Taxpayer Impact: The substantial modification amount suggests a significant potential impact on taxpayer funds due to the lack of competition.

Public Impact

Taxpayers may be overpaying for engineering services due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inflated costs. Lack of transparency in sole-source awards can erode public trust in government contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High modification value

Positive Signals

Essential engineering services provided
Long-term relationship with a known entity

Sector Analysis

Engineering services are critical for complex government projects, particularly in defense. The $457.5M modification suggests a significant investment in specialized technical expertise, potentially aligning with or exceeding typical benchmarks for large-scale defense engineering contracts.

Small Business Impact

The data does not indicate any specific provisions or subcontracting opportunities for small businesses within this modification. The sole-source nature of the award further limits the potential for small business participation.

Oversight & Accountability

The sole-source nature of this significant contract modification warrants close oversight to ensure the pricing is justified and that future opportunities are competed where appropriate. Accountability for the justification of the sole-source award is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in cost justification
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $457.5 million to THE MITRE CORPORATION. FUNDING MONDIFICATION FOR SYSTEMS ENGINEERING SERVICES ON MITRE CONTRACT BASE

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 $457.5 million.

What is the period of performance?

Start: 2010-10-01. End: 2013-09-30.

What is the specific justification for awarding this substantial contract modification on a sole-source basis, and how does it align with federal procurement regulations for non-competitive awards?

The justification for a sole-source award typically rests on factors such as unique capabilities, urgent needs, or the unavailability of other sources. For a modification of this magnitude, the agency must provide detailed documentation demonstrating why competition was not feasible or advantageous. This often involves market research and a clear articulation of the necessity for the specific contractor's involvement, ensuring compliance with FAR Part 6.

How does the per-unit cost or overall pricing of these engineering services compare to industry benchmarks, given the lack of competitive bidding?

Without a competitive process, establishing a precise benchmark is challenging. However, the agency should have conducted internal cost analyses or referenced historical pricing for similar services. If the $457.5M modification significantly deviates from expected costs based on the original contract's scope or industry standards, it raises concerns about value for money and potential overspending.

What is the long-term strategic value and effectiveness of continuing this sole-source engineering support for the Department of the Army, and are there plans to transition to a competitive model?

The long-term value hinges on the criticality and uniqueness of MITRE's contributions to the Army's systems engineering. Effectiveness is measured by project success and technological advancement. Agencies should continuously assess the need for sole-source arrangements and develop transition plans to competitive procurements when feasible to foster innovation and ensure cost-effectiveness over time.

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: $457,511,610

Exercised Options: $457,511,610

Current Obligation: $457,511,610

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline