Department of the Army's $475M R&D contract to The MITRE Corporation for FY16 project tracking

Contract Overview

Contract Amount: $475,022,261 ($475.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2016-10-01

End Date: 2018-09-30

Contract Duration: 729 days

Daily Burn Rate: $651.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS TO REFLECT THE FOLLOWING: 1. IN ACCORDANCE WITH DFARS 704.7001(C)(1), ADMINISTRATIVE CONTRACT NUMBER W56KGU-15-C-0010 HAS BEEN CREATED AND IS ASSOCIATED WITH BASE YEAR CONTRACT W15P7T-13-C-A802 FOR THE SOLE PURPOSE OF COLLECTING AND TRACKING FY 16 PROJECTS, FUNDING, AND EXPENDITURES IN OPTION YEAR TWO. 2. THE PERIOD OF PERFORMANCE FOR OPTION YEAR THREE IS FROM 01 OCTOBER 2016 TO 30 SEPTEMBER 2017. 3. ALL TERMS AND CONDITIONS OF CONTRACT W15P7T-13-C-A802 ARE IN FULL FORCE AND EFFECT ON CONTRACT W56KGU-16-C-0010.

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $475.0 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS TO REFLECT THE FOLLOWING: 1. IN ACCORDANCE WITH DFARS 704.7001(C)(1), ADMINISTRATIVE CONTRACT NUMBER W56KGU-15-C-0010 HAS BEEN CREATED AND IS ASSOCIATED WITH BASE YEAR CONTRACT W15P7T-13-C-A802 FOR THE SOLE PURPOSE OF COLLECTING AND TR… Key points: 1. Contract primarily serves administrative and financial tracking purposes for existing projects. 2. Performance period extends through FY17, indicating ongoing project management needs. 3. The contract's value reflects cumulative project expenditures rather than new work. 4. Research and Development in Physical, Engineering, and Life Sciences is the broad category. 5. No new competition was sought for this administrative contract modification.

Value Assessment

Rating: fair

This contract appears to be an administrative modification to an existing contract (W15P7T-13-C-A802) primarily for tracking FY16 projects and expenditures. The stated value of over $475 million represents cumulative funding and not necessarily new work or a direct cost for services rendered under this specific modification. Benchmarking value is difficult without understanding the scope of the underlying projects being tracked. However, the administrative nature suggests the cost is tied to the management of a significant portfolio of R&D activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, as it is an administrative modification to an existing base contract (W15P7T-13-C-A802). The purpose is to reflect project tracking and funding for FY16 projects within option year two. The lack of new competition is expected for administrative actions that continue the terms and conditions of an established agreement.

Taxpayer Impact: For taxpayers, a sole-source administrative modification means no opportunity for competitive bidding to potentially lower costs or improve terms for the ongoing R&D management.

Public Impact

The primary beneficiaries are the Department of the Army and its research and development initiatives. Services delivered include financial tracking, project management, and administrative support for R&D projects. The geographic impact is likely concentrated within the Army's R&D infrastructure and associated facilities. Workforce implications are tied to the administrative and project management personnel overseeing these R&D efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for administrative functions could mask inefficiencies.
The large dollar amount, while for tracking, may obscure the actual cost of managing R&D projects.

Positive Signals

Continuation of an existing contract suggests a stable and established working relationship.
Clear administrative purpose for tracking expenditures aids in financial accountability for R&D funds.

Sector Analysis

This contract falls under the Research and Development sector, specifically within 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. The Department of Defense, particularly the Army, is a major investor in R&D to maintain technological superiority. Comparable spending benchmarks would involve analyzing other large, multi-year R&D management contracts within the federal government, though this specific contract's administrative nature makes direct comparison challenging.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is an administrative modification to an existing contract and the primary contractor is The MITRE Corporation, a non-profit research and development organization. Subcontracting implications are not detailed but would likely follow the terms of the original contract.

Oversight & Accountability

Oversight is provided by the Department of the Army, which awarded and manages the contract. Accountability measures are inherent in the administrative tracking of funds and projects. Transparency is facilitated through contract reporting requirements, though the specific details of the underlying projects are not publicly detailed in this modification.

Related Government Programs

Department of Defense Research and Development Contracts
Army R&D Project Management
Fiscal Year Funding Tracking Contracts
Administrative Contract Modifications

Risk Flags

Sole-source award
Administrative modification without new competition
Large cumulative value without clear service breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $475.0 million to THE MITRE CORPORATION. IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS TO REFLECT THE FOLLOWING: 1. IN ACCORDANCE WITH DFARS 704.7001(C)(1), ADMINISTRATIVE CONTRACT NUMBER W56KGU-15-C-0010 HAS BEEN CREATED AND IS ASSOCIATED WITH BASE YEAR CONTRACT W15P7T-13-C-A802 FOR THE SOLE PURPOSE OF COLLECTING AND TRACKING FY 16 PROJECTS, FUNDING, AND EXPENDITURES IN OPTION YEAR TWO. 2. THE PERIOD OF PERFORMANCE FOR OPTION YEAR THREE IS FROM 01 OCTOBER 2016 TO 30 SEPTEMBER 2017. 3. ALL TERMS AND CONDITIONS OF CONTRACT W15P7T-13-C-A8

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 $475.0 million.

What is the period of performance?

Start: 2016-10-01. End: 2018-09-30.

What is the specific nature of the R&D projects being tracked under this contract?

The provided data indicates that this contract (W56KGU-16-C-0010) is an administrative modification to an existing base contract (W15P7T-13-C-A802) for the sole purpose of collecting and tracking FY16 projects, funding, and expenditures in Option Year Two. The contract falls under the North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. However, the specific R&D projects themselves are not detailed in this administrative contract information. These projects would likely span various technological and scientific domains relevant to the Department of the Army's mission, potentially including areas like advanced materials, cyber technologies, aerospace engineering, or biotechnological applications, but the exact scope remains unspecified in this data.

How does the $475 million value compare to similar administrative tracking contracts?

Direct comparison of the $475 million value to similar *administrative tracking* contracts is challenging because this figure likely represents the cumulative funding or expenditure of numerous underlying R&D projects managed under the base contract, rather than the cost of the administrative services themselves. Administrative modifications are typically low-cost actions to extend or track existing work. The substantial value suggests that the base contract, to which this modification is linked, manages a very large portfolio of R&D activities. Benchmarking would require understanding the total value and scope of the original contract and comparing it to other large-scale R&D program management vehicles within the Department of Defense or other federal agencies, rather than isolated administrative actions.

What are the key risks associated with a sole-source administrative contract of this magnitude?

The primary risk associated with a sole-source administrative contract of this magnitude is the lack of competitive pressure to ensure optimal value for taxpayer money. While this contract is for tracking and administrative purposes linked to an existing agreement, the substantial dollar amount tied to it means that any inefficiencies in the underlying R&D project management or administrative overhead are not subject to market-based cost discovery. There's also a risk that the administrative burden itself could become disproportionately expensive if not closely monitored. Furthermore, without competition, there's less opportunity for innovative approaches to project tracking or management that a new contract might bring. The reliance on a single entity (The MITRE Corporation) for this administrative function also carries inherent risks if that entity faces operational challenges.

What is The MITRE Corporation's track record with the Department of the Army?

The MITRE Corporation has a long-standing relationship with the Department of Defense and various federal agencies, operating as a federally funded research and development center (FFRDC). Their role often involves providing objective analysis, systems engineering, and research in areas critical to national security. Given that this contract is an administrative modification to an existing contract (W15P7T-13-C-A802), it implies a history of successful performance and trust between The MITRE Corporation and the Department of the Army. Their FFRDC status suggests a focus on mission-oriented research and development support rather than profit-driven commercial activities, aligning with the government's need for specialized technical expertise and objective advice.

How does this contract fit into the broader landscape of federal R&D spending?

This contract represents a component of the Department of the Army's significant investment in Research and Development, specifically within the physical, engineering, and life sciences. Federal R&D spending is a critical driver of technological advancement and national security. Contracts like this, even when administrative, are part of the mechanism through which the government manages and funds complex, long-term research initiatives. The total value of $475 million, while attributed to tracking, underscores the scale of the underlying R&D portfolio. It fits within the broader context of agencies like the DoD, NSF, and NIH being major sources of federal R&D funding, aiming to foster innovation, maintain a technological edge, and address national challenges.

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: $475,022,261

Exercised Options: $475,022,261

Current Obligation: $475,022,261

Actual Outlays: $1,075,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline