DoD awards $552M R&D task order to MITRE Corporation for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $552,072,435 ($552.1M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2019-12-31

Contract Duration: 456 days

Daily Burn Rate: $1.2M/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: AWARD OF TASK ORDER 0001

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $552.1 million to THE MITRE CORPORATION for work described as: AWARD OF TASK ORDER 0001 Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Research and Development in Physical, Engineering, and Life Sciences is a broad category with significant government investment. 3. The contract duration of 456 days suggests a focused research effort. 4. The Cost No Fee contract type shifts risk to the government. 5. MITRE Corporation is a well-established entity in government contracting, particularly in R&D. 6. The specific NAICS code (541715) indicates a focus on non-nanotech/biotech physical and engineering sciences.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more detailed scope information. However, the total award amount of over $552 million for a 456-day period for R&D services suggests a significant investment. The Cost No Fee (CNF) contract type means the government bears the financial risk if costs exceed estimates, which can sometimes lead to higher overall outlays compared to fixed-price contracts. Without comparable sole-source R&D contracts of similar scope and duration, a precise value-for-money assessment is difficult, but the scale indicates substantial resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process. The justification for a sole-source award would need to be robust to ensure fair pricing and optimal use of taxpayer funds.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not leverage competitive pressures to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The Department of the Army is the primary beneficiary, receiving research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved processes. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment for researchers, scientists, and support staff at The MITRE Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings for taxpayers.
Cost No Fee contract type places financial risk on the government.
Lack of detailed scope makes independent value assessment difficult.

Positive Signals

Award to a reputable contractor (MITRE Corporation) with a history of government R&D support.
Focus on critical R&D areas within physical, engineering, and life sciences.
Task order structure implies a defined project with specific objectives.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically within the broad category of physical, engineering, and life sciences (excluding nanotechnology and biotechnology). This sector is characterized by significant government investment aimed at fostering innovation and technological advancement. Comparable spending benchmarks in this area are vast, as federal agencies across various departments fund extensive R&D initiatives. The market for R&D services is competitive, though specific niche areas can lead to sole-source awards if unique expertise is required. MITRE Corporation operates within this ecosystem as a federally funded research and development center (FFRDC), often bridging government needs with technological solutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the 'ss: false' flag suggests it is not a small business prime award. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The focus is on a large, sole-source award to a major research organization, rather than on fostering small business participation through set-asides or subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. As a sole-source award, the justification and approval process would have undergone scrutiny. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The Cost No Fee structure necessitates careful monitoring of expenditures to ensure costs remain reasonable and within the government's allocated budget.

Related Government Programs

Department of Defense Research and Development
Army Research Laboratory Contracts
Federal R&D Spending
Science and Technology Research Contracts

Risk Flags

Sole-source award
Cost-reimbursement contract type (Cost No Fee)
Large dollar value task order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $552.1 million to THE MITRE CORPORATION. AWARD OF TASK ORDER 0001

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 $552.1 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-12-31.

What is The MITRE Corporation's track record with sole-source R&D contracts from the Department of Defense?

The MITRE Corporation has a long history of working with the Department of Defense (DoD) and other federal agencies, often through sole-source arrangements due to its status as a Federally Funded Research and Development Center (FFRDC). As an FFRDC, MITRE is uniquely positioned to provide objective, independent research and analysis to the government. While specific data on all sole-source R&D contracts is not publicly detailed in this format, MITRE's core mission involves tackling complex national security and technological challenges for its government sponsors. Their extensive experience in areas like systems engineering, research, and development makes them a frequent choice for critical, non-competitive procurements where specialized expertise and trusted partnership are paramount. This particular award of over $552 million reflects a significant, albeit sole-source, investment in their capabilities by the Department of the Army.

How does the Cost No Fee (CNF) contract type compare to other pricing arrangements in R&D, and what are the implications for value?

The Cost No Fee (CNF) contract type is a variation of a cost-reimbursement contract where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used for R&D efforts where the scope is highly uncertain, and the government wants to encourage exploration without the contractor bearing financial risk for unsuccessful outcomes. Compared to fixed-price contracts, CNF shifts the financial risk entirely to the government. While it can foster innovation by removing profit motive and encouraging thorough research, it can also lead to higher overall government spending if costs are not meticulously managed, as there's no contractor incentive to control expenses beyond what's necessary for the research itself. For value assessment, it means the government pays for the effort and costs incurred, rather than a pre-defined outcome or profit margin, making direct value-for-money comparisons with other contract types challenging without deep insight into the research's ultimate impact and efficiency.

What are the potential risks associated with a sole-source award of this magnitude for R&D services?

A sole-source award of this magnitude, exceeding $552 million, carries several potential risks. Firstly, the lack of competition means the government may not achieve the most favorable pricing, as competitive pressures that typically drive down costs are absent. This could result in taxpayers paying more than necessary. Secondly, without multiple bidders, there's a reduced opportunity to explore a wider range of innovative solutions or approaches that different contractors might offer. Thirdly, reliance on a single source can create dependency and potential vulnerabilities if the contractor faces performance issues, financial instability, or strategic shifts. Finally, the justification for a sole-source award must be rigorously documented and defended to ensure it aligns with procurement regulations and serves the best interests of the government, otherwise, it could be perceived as an inefficient use of public funds.

Can the $552 million award be benchmarked against other federal R&D spending in similar categories?

Benchmarking this $552 million award requires context within the broader federal R&D landscape. The NAICS code 541715 covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' Federal agencies, particularly the Department of Defense, Department of Energy, and National Science Foundation, collectively spend billions annually on R&D within these broad categories. For instance, the DoD's own R&D budget often runs into the tens of billions of dollars. A single task order of $552 million, while substantial, represents a portion of this larger ecosystem. To provide a precise benchmark, one would need to compare it to other task orders or contracts awarded under the same NAICS code, for similar types of research (e.g., basic research vs. applied research vs. development), and ideally, with similar contract types and durations. However, given its sole-source nature and the broad R&D scope, it signifies a significant, targeted investment by the Department of the Army.

What is the significance of the 'Research and Development in the Physical, Engineering, and Life Sciences' category for federal spending?

The 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) represents a critical area of federal investment, underpinning technological advancement, national security, economic competitiveness, and public well-being. Federal agencies fund R&D in these fields to push the boundaries of scientific knowledge, develop innovative solutions to complex problems, and maintain a technological edge. This includes advancements in materials science, energy, aerospace, computing, environmental science, and various aspects of health and biology (excluding specialized nano/biotech). The scale of federal spending in this broad area is immense, reflecting its strategic importance. Contracts within this category can range from fundamental scientific inquiry to the development of prototypes and technologies with direct application, making it a cornerstone of the government's innovation ecosystem.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $552,384,265

Exercised Options: $552,384,265

Current Obligation: $552,072,435

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $4,055,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W56KGU18D0004

IDV Type: IDC

Timeline