DOD Awards $412M R&D Contract to MIT for Air Force Research
Contract Overview
Contract Amount: $411,950,204 ($412.0M)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2015-04-28
End Date: 2030-02-28
Contract Duration: 5,420 days
Daily Burn Rate: $76.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::CT::IGF TASK ORDER 0001 FOR DOD LINE FUNDING
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $412.0 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: IGF::CT::IGF TASK ORDER 0001 FOR DOD LINE FUNDING Key points: 1. Significant investment in advanced R&D for the Air Force. 2. MIT is a leading research institution, suggesting high technical capability. 3. Long contract duration (2015-2030) indicates a sustained need. 4. Lack of competition raises questions about price discovery and value. 5. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract value of $412 million over 15 years is substantial. Without competitive bidding, it's difficult to assess if this represents fair pricing compared to other R&D contracts for similar services. Benchmarking is challenging due to the specialized nature of the research.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, likely due to specific research requirements or a sole-source justification. The absence of competition limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Taxpayer Impact: The lack of competition could lead to inflated costs, meaning taxpayers may be paying more than necessary for the research services provided.
Public Impact
Advancement of critical Air Force research capabilities. Potential for groundbreaking discoveries in physical, engineering, and life sciences. Long-term commitment to a single research institution. Impact on the broader R&D landscape and potential for spin-off technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
- Potential for cost overruns without oversight
Positive Signals
- Award to a reputable research institution
- Addresses a critical need for the Air Force
- Potential for significant technological advancements
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Federal spending in this sector is crucial for innovation but requires careful oversight to ensure value for money, especially when contracts are not competed.
Small Business Impact
This contract was awarded to a large research institution (MIT) and does not appear to include specific provisions for small business participation. The focus is on advanced research, which may not be conducive to subcontracting with small businesses.
Oversight & Accountability
The long duration and significant value of this contract necessitate robust oversight from the Department of Defense and the Air Force to ensure milestones are met, costs are controlled, and the research objectives are achieved effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in pricing
- Long-term commitment without performance review flexibility
- No clear small business participation
Tags
research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $412.0 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. IGF::CT::IGF TASK ORDER 0001 FOR DOD LINE FUNDING
Who is the contractor on this award?
The obligated recipient is MASSACHUSETTS INSTITUTE OF TECHNOLOGY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $412.0 million.
What is the period of performance?
Start: 2015-04-28. End: 2030-02-28.
What specific research objectives does this contract aim to achieve for the Air Force, and how will their successful completion be measured?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. Specific objectives are not detailed in the provided data but would typically involve advancing scientific knowledge and developing new technologies relevant to Air Force operations. Success measurement would rely on defined research milestones, deliverables, and final reports, subject to Air Force evaluation.
Given the lack of competition, what mechanisms are in place to ensure the cost-effectiveness and prevent potential cost overruns?
Without competition, cost-effectiveness relies heavily on the contract type (Cost No Fee) and rigorous oversight. The government must actively monitor expenditures, ensure adherence to the research plan, and validate the necessity of all costs incurred. Regular audits and performance reviews are critical to identify and mitigate potential cost overruns and ensure value.
How does this long-term, non-competed award align with the government's broader goals for fostering innovation and ensuring fair market competition in the R&D sector?
Long-term, non-competed awards can be justified for highly specialized or foundational research where only a few entities possess the unique capabilities. However, they can also stifle broader innovation and competition. Agencies must clearly document the rationale for such awards and explore opportunities for future competition or broader dissemination of research findings to balance these competing interests.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 244 WOOD ST, LEXINGTON, MA, 02421
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Higher Education (Public), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $673,422,779
Exercised Options: $665,480,656
Current Obligation: $411,950,204
Subaward Activity
Number of Subawards: 9244
Total Subaward Amount: $2,772,724,311
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA870215D0001
IDV Type: IDC
Timeline
Start Date: 2015-04-28
Current End Date: 2030-02-28
Potential End Date: 2030-02-28 00:00:00
Last Modified: 2026-01-09
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