Department of the Army awards $457M contract to MITRE Corporation for R&D support, with $30.8M incrementally funded

Contract Overview

Contract Amount: $457,011,143 ($457.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2017-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $417.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::OT::IGF MITRE FFRDC CONTRACT - ADMINISTRATIVE CONTRACT NUMBER FOR YEAR ONE OPTION. INCREMENTAL FUNDING IN THE AMOUNT OF $30,780,814.50, DD 254'S AND PWS'S ATTACHED.

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $457.0 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF MITRE FFRDC CONTRACT - ADMINISTRATIVE CONTRACT NUMBER FOR YEAR ONE OPTION. INCREMENTAL FUNDING IN THE AMOUNT OF $30,780,814.50, DD 254'S AND PWS'S ATTACHED. Key points: 1. Contract awarded to a Federally Funded Research and Development Center (FFRDC) for specialized research and development services. 2. The contract's value of $457 million over its period of performance suggests a significant investment in long-term R&D capabilities. 3. Incremental funding of $30.8 million indicates a phased approach to resource allocation, potentially allowing for adjustments based on project milestones. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' classification points to a focus on advanced scientific and technical challenges. 5. Awarded as a definitive contract, it implies a clear scope of work and established terms for a substantial period. 6. The absence of small business set-asides suggests the nature of the work requires specialized expertise not typically met by smaller firms.

Value Assessment

Rating: good

The total contract value of $457 million over approximately three years represents a substantial investment. Benchmarking this against similar FFRDC contracts is challenging without more specific service details. However, MITRE's role as an FFRDC implies a unique value proposition for the government, providing objective, independent research and analysis. The 'Cost No Fee' pricing structure suggests that the government reimburses the contractor's allowable costs, with no additional profit margin, which can be cost-effective for complex, long-term R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, which is common for Federally Funded Research and Development Centers (FFRDCs) like MITRE. FFRDCs are established to meet specific long-term research and development needs of the government that cannot be met as effectively by the private sector. The sole-source nature ensures access to MITRE's unique capabilities and objective analysis, but it bypasses the competitive bidding process.

Taxpayer Impact: Sole-source awards to FFRDCs like MITRE are intended to provide the government with specialized, objective expertise. While this means taxpayers do not benefit from price competition, the value is derived from the unique, trusted advisory role FFRDCs play in critical national security and technology development areas.

Public Impact

The Department of the Army benefits from advanced research and development support, enhancing its technological capabilities. Services delivered likely include strategic analysis, systems engineering, and research into physical, engineering, and life sciences relevant to defense. The contract's impact is primarily national, supporting defense modernization and innovation across various scientific and technical domains. Workforce implications include the engagement of highly skilled scientists, engineers, and researchers at MITRE.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits potential for cost savings through bidding.
Sole-source award means direct price comparison to market alternatives is not feasible.
Incremental funding requires careful monitoring to ensure funds are used effectively towards defined objectives.

Positive Signals

Award to a recognized FFRDC (MITRE) suggests access to high-quality, objective research and analysis.
Definitive contract structure provides clarity on scope and terms for a defined period.
Focus on R&D in physical, engineering, and life sciences aligns with critical national security needs.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long-term investment, and the development of cutting-edge technologies. MITRE Corporation, as an FFRDC, operates within this space to provide objective analysis and technical support to government agencies. Comparable spending in this area often involves significant investments in areas like advanced materials, artificial intelligence, cybersecurity, and complex systems engineering, reflecting the strategic importance of R&D for national security and technological advancement.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The nature of FFRDC work often involves highly specialized, advanced research and development that may not be readily divisible into smaller contract packages suitable for small business participation. However, MITRE, as a large organization, may engage small businesses as subcontractors for specific support services outside its core R&D mission.

Oversight & Accountability

As a definitive contract, oversight is typically managed through contract administration by the Department of the Army. The incremental funding mechanism necessitates regular reviews of progress and expenditures. MITRE's FFRDC status also implies a level of inherent oversight due to its charter and relationship with the government, focusing on objectivity and mission accomplishment. Transparency would be enhanced by public reporting on research outcomes and program milestones, though specific details may be classified.

Related Government Programs

Federally Funded Research and Development Centers (FFRDCs)
Department of Defense Research and Development Programs
Systems Engineering and Technical Assistance (SETA) Contracts
Advanced Technology Development Contracts

Risk Flags

Sole-source award
Incremental funding
FFRDC contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $457.0 million to THE MITRE CORPORATION. IGF::OT::IGF MITRE FFRDC CONTRACT - ADMINISTRATIVE CONTRACT NUMBER FOR YEAR ONE OPTION. INCREMENTAL FUNDING IN THE AMOUNT OF $30,780,814.50, DD 254'S AND PWS'S ATTACHED.

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 $457.0 million.

What is the period of performance?

Start: 2014-10-01. End: 2017-09-30.

What is MITRE Corporation's track record with the Department of the Army and other federal agencies for similar R&D contracts?

MITRE Corporation has a long-standing and extensive track record of supporting the Department of the Army and numerous other federal agencies through its FFRDC designation. They are known for providing objective, independent research, development, and analysis across a wide spectrum of technical domains. Their work often involves complex systems engineering, strategic planning, and the development of innovative solutions to challenging national security problems. Historically, MITRE has been instrumental in advancing technologies and providing critical insights that inform government policy and acquisition decisions. Their performance is generally characterized by high technical competence and a commitment to serving the government's best interests, often acting as a trusted advisor.

How does the value of this contract compare to other R&D contracts awarded by the Department of the Army or similar agencies?

The total contract value of $457 million over approximately three years is substantial, placing it among significant R&D investments. However, direct comparisons are complex due to the specialized nature of FFRDC work and the broad scope of R&D. The Department of the Army and other defense agencies frequently award large contracts for R&D, particularly in areas like advanced weapon systems, cybersecurity, and emerging technologies. Contracts for basic research, applied research, and advanced technology development can range from tens of millions to billions of dollars. MITRE's FFRDC status often means its contracts are for unique, long-term strategic support rather than specific product development, making direct dollar-value comparisons with competitively bid development contracts less meaningful. The value is often measured in the quality of analysis and strategic guidance provided.

What are the primary risks associated with this sole-source R&D contract, and how are they mitigated?

The primary risks associated with this sole-source R&D contract stem from the lack of competition and the inherent uncertainties in research and development. Without competition, there's a risk of suboptimal pricing or a lack of innovative approaches that might emerge from a competitive environment. R&D itself carries risks of technical failure, schedule delays, and cost overruns. Mitigation strategies include MITRE's FFRDC status, which implies a commitment to objective, mission-focused work and adherence to strict government oversight. The 'Cost No Fee' pricing structure helps control costs by reimbursing only allowable expenses without profit. The Department of the Army's contract administration, performance monitoring, and the phased incremental funding approach are crucial for managing risks, ensuring progress, and allowing for adjustments based on R&D outcomes.

What is the expected impact of this contract on the advancement of physical, engineering, and life sciences relevant to national security?

This contract is expected to significantly impact the advancement of physical, engineering, and life sciences relevant to national security by providing MITRE Corporation with resources to conduct critical research and analysis. MITRE's FFRDC role allows them to tackle complex, long-term challenges that may not be addressed by commercial entities. This could include developing new scientific insights, engineering novel systems, or exploring the application of life sciences to defense challenges. The outcomes are likely to inform strategic decision-making, guide future R&D investments, and contribute to the development of advanced technologies that enhance national security capabilities. The focus on these specific scientific domains suggests an intent to push the boundaries of knowledge and application in areas vital to maintaining a technological edge.

How has federal spending on R&D, particularly through FFRDCs like MITRE, evolved over the past decade?

Federal spending on R&D, including through FFRDCs like MITRE, has generally seen fluctuations but has remained a significant component of the federal budget, especially within defense and science agencies. Over the past decade, there has been a continued emphasis on R&D to maintain technological superiority, address emerging threats, and foster economic competitiveness. FFRDCs have consistently played a crucial role in providing objective analysis and long-term research support, often receiving substantial funding. While specific figures vary annually and by agency, the overall trend indicates a sustained commitment to leveraging FFRDCs for complex, strategic R&D needs. Budgetary pressures and shifting national priorities can influence the allocation of funds, but the unique value proposition of FFRDCs ensures their continued relevance and funding.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

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: $3,439,138,414

Exercised Options: $457,011,143

Current Obligation: $457,011,143

Actual Outlays: $-21,629

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $8,765,199

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline