DoD Awards $15.9M Option to MITRE Corp for Engineering Services, Extending Contract to December 2018
Contract Overview
Contract Amount: $507,898,625 ($507.9M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2017-10-01
End Date: 2018-12-31
Contract Duration: 456 days
Daily Burn Rate: $1.1M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: IGF::OT::IGF EXERCISING OF OPTION FOUR AND ADDING CLINS IN THE AMOUNT OF $15,917,636 AND ADDED PWS AND DD 254 FOR SEVERAL PROJECTS
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $507.9 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF EXERCISING OF OPTION FOUR AND ADDING CLINS IN THE AMOUNT OF $15,917,636 AND ADDED PWS AND DD 254 FOR SEVERAL PROJECTS Key points: 1. The contract extension adds $15.9 million to the total value, bringing it to over $507 million. 2. MITRE Corporation, a federally funded research and development center (FFRDC), is the sole awardee. 3. The contract is for engineering services, a broad category with potential for competition. 4. The 'NOT COMPETED' status raises questions about the procurement process and potential for better pricing.
Value Assessment
Rating: questionable
The total award value exceeds $507 million. Without specific per-unit cost data or benchmarks for similar engineering services contracts, it's difficult to definitively assess value for money. The lack of competition is a primary concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The MITRE Corporation. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for a significant contract value may result in suboptimal pricing, impacting taxpayer funds.
Public Impact
The Department of Defense continues to rely on MITRE Corporation for critical engineering services. Taxpayers may be paying a premium due to the absence of competitive bidding. The extension of services without re-competition warrants scrutiny regarding long-term cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
Positive Signals
- Established Relationship with FFRDC
- Continued Service Delivery
Sector Analysis
Engineering Services (NAICS 541330) is a broad sector encompassing various technical and consulting services. Spending in this area can vary significantly based on project complexity and agency needs. Benchmarks are difficult without specific service details.
Small Business Impact
This contract was awarded to The MITRE Corporation, a non-profit FFRDC, and was not competed. Therefore, there is no indication of small business participation in this specific award action.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in oversight regarding competitive procurement practices. Further review is needed to understand the justification for not seeking other offers.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of Competition
- Sole-Source Award
- Potential for Inflated Pricing
- Limited Transparency in Procurement
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $507.9 million to THE MITRE CORPORATION. IGF::OT::IGF EXERCISING OF OPTION FOUR AND ADDING CLINS IN THE AMOUNT OF $15,917,636 AND ADDED PWS AND DD 254 FOR SEVERAL PROJECTS
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 $507.9 million.
What is the period of performance?
Start: 2017-10-01. End: 2018-12-31.
What is the specific justification for exercising this option as a sole-source award rather than re-competing the requirement?
The provided data indicates the contract was 'NOT COMPETED.' A sole-source award typically requires a justification, such as unique capabilities possessed only by the contractor or urgent and compelling needs. Without this justification, it's unclear why competitive procedures were bypassed, potentially impacting value for money.
How does the pricing of this contract compare to similar engineering services contracts awarded competitively?
Direct comparison is challenging without detailed cost breakdowns and specific service scopes. However, sole-source contracts generally carry a higher risk of inflated pricing due to the absence of competitive pressure. Benchmarking against competitively awarded contracts for similar services would be necessary to assess potential overpricing.
What is the long-term strategy for acquiring these engineering services, and will future requirements be competed?
The data only reflects an option exercise for a specific period. The long-term strategy is not evident. Agencies should ideally plan for competitive procurements to ensure fair pricing and access to innovation. A review of the contract's history and future plans would clarify the agency's approach to competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: $705,629,525
Exercised Options: $705,629,525
Current Obligation: $507,898,625
Actual Outlays: $558,289
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $1,880,140
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-10-01
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 12:12:00
Last Modified: 2024-09-06
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