DoD's $898M MIT R&D Contract: Long-Term, Non-Competed Research with Potential Value Concerns
Contract Overview
Contract Amount: $898,033,664 ($898.0M)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2015-05-20
End Date: 2030-02-28
Contract Duration: 5,398 days
Daily Burn Rate: $166.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF TASK ORDER 0002
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $898.0 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: IGF::OT::IGF TASK ORDER 0002 Key points: 1. Significant long-term investment in advanced R&D by the Air Force. 2. Sole-source award to MIT raises questions about competition and price discovery. 3. High contract value suggests critical but potentially costly research. 4. Focus on physical, engineering, and life sciences R&D aligns with defense needs.
Value Assessment
Rating: questionable
The contract's 'COST NO FEE' structure with a $0 fee for MIT suggests the primary value is in research advancement rather than profit. However, the lack of competition makes it difficult to assess if the costs incurred are reasonable or if a better price could have been achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best value.
Taxpayer Impact: The lack of competition for an $898 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Advancement of critical R&D in physical, engineering, and life sciences for national security. Potential for groundbreaking discoveries and technological innovations benefiting the public. Long contract duration (2015-2030) indicates sustained focus on complex research challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- High total value
- Cost-plus contract type (implied by 'COST NO FEE' and lack of fixed price)
Positive Signals
- Award to a leading research institution (MIT)
- Focus on critical R&D areas
- Potential for significant technological advancements
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be prone to cost overruns due to the inherent uncertainties of research. Benchmarks are difficult due to the specialized nature of R&D.
Small Business Impact
The contract was awarded directly to the Massachusetts Institute of Technology and does not indicate any subcontracting or set-asides for small businesses. This suggests a focus on specialized research capabilities not typically found in smaller firms.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure that costs are reasonable and that the research objectives are being met effectively. Transparency in reporting research progress and expenditures is crucial.
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
- High total contract value
- Long contract duration (15 years)
- Potential for cost creep in R&D
- Limited transparency on specific research outcomes
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 $898.0 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. IGF::OT::IGF TASK ORDER 0002
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 $898.0 million.
What is the period of performance?
Start: 2015-05-20. End: 2030-02-28.
What specific research objectives does this contract aim to achieve, and how do they align with current Department of Defense priorities?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific objectives are not detailed, this broad category suggests research into areas like advanced materials, AI, quantum computing, or novel sensor technologies that are critical for maintaining military technological superiority. Alignment with DoD priorities would be assessed through strategic planning documents and threat assessments.
Given the sole-source nature, what mechanisms are in place to ensure the cost-effectiveness and prevent potential cost overruns?
The 'COST NO FEE' structure implies that MIT is not profiting from this contract, focusing instead on research advancement. However, without competition, cost-effectiveness is harder to guarantee. Oversight likely involves rigorous review of incurred costs, milestone tracking, and potentially independent cost analysis to ensure funds are used efficiently towards research goals.
How will the effectiveness and impact of the research conducted under this long-term contract be measured and evaluated?
Effectiveness will likely be measured through the achievement of specific research milestones, publications, patents, and the successful transition of developed technologies into operational systems or further development. Regular technical reviews and final reports assessing the scientific and practical impact of the research will be key evaluation tools.
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: $1,355,142,773
Exercised Options: $1,331,256,532
Current Obligation: $898,033,664
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: 2015-05-20
Current End Date: 2030-02-28
Potential End Date: 2030-02-28 00:00:00
Last Modified: 2026-01-13
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