Commerce Department awards $4.2M contract to MITRE for strategic tech and PM support

Contract Overview

Contract Amount: $4,210,682 ($4.2M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Commerce

Start Date: 2024-09-20

End Date: 2026-01-31

Contract Duration: 498 days

Daily Burn Rate: $8.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: STRATEGIC TECH AND PM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $4.2 million to THE MITRE CORPORATION for work described as: STRATEGIC TECH AND PM SUPPORT Key points: 1. Contract awarded to a single, highly specialized entity, raising questions about competitive pricing. 2. The duration of the contract suggests a need for ongoing, complex support. 3. Focus on 'All Other Professional, Scientific, and Technical Services' indicates broad applicability. 4. The 'Cost Plus Fixed Fee' structure may incentivize cost overruns. 5. Performance period extends into 2026, indicating long-term strategic importance. 6. The contract is a delivery order, suggesting it's part of a larger framework agreement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar strategic technology and program management support. The 'Cost Plus Fixed Fee' pricing structure, while common for complex services, can lead to costs exceeding initial estimates if not closely managed. Without competition, it's difficult to ascertain if the fixed fee represents a fair market rate for the services rendered. Further analysis would require understanding the specific deliverables and the estimated labor hours involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Commerce did not solicit bids from multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a full and open competition. The lack of competition means that price discovery through market forces was bypassed, potentially leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as the government did not benefit from potential cost savings that could arise from multiple offers.

Public Impact

The Department of Commerce benefits from specialized technical and program management expertise. Services delivered are likely to enhance strategic planning and technology adoption within the agency. The contract's impact is primarily within the District of Columbia, where the Department of Commerce is headquartered. Workforce implications are likely internal to the contractor, MITRE, and potentially involve specialized technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost Plus Fixed Fee structure carries inherent risk of cost escalation if not rigorously managed.
Lack of transparency in the sole-source justification requires scrutiny.
The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to assess specific value without detailed SOW.
Limited public information on the specific strategic objectives being supported.

Positive Signals

Award to MITRE, a well-established organization known for its technical expertise and public service mission.
Contract duration suggests a stable, long-term need for critical support.
Focus on strategic technology and program management indicates alignment with agency modernization efforts.
Delivery order structure implies potential for task-specific oversight and management.

Sector Analysis

The professional, scientific, and technical services sector is a significant part of federal spending, encompassing a wide range of support functions from research and development to management consulting. This contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990), which is broad. Comparable spending in this category often involves specialized expertise for complex government initiatives. The market for such services is competitive, but sole-source awards are typically justified by unique capabilities or specific circumstances.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, The MITRE Corporation, is a large, non-profit organization. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, this contract is unlikely to directly benefit the small business ecosystem or provide subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Commerce's contracting and program management offices. As a sole-source award, the justification and terms would be subject to internal agency review and potentially oversight from bodies like the Government Accountability Office (GAO) if a protest were filed or specific inquiries made. Transparency is limited due to the sole-source nature, but the contract details and performance should be accessible through federal procurement databases.

Related Government Programs

Strategic Planning Support Services
Technology Modernization Contracts
Program Management Support
Federal IT Consulting Services
Professional and Technical Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee pricing
Broad service category (541990)

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.2 million to THE MITRE CORPORATION. STRATEGIC TECH AND PM SUPPORT

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2024-09-20. End: 2026-01-31.

What is The MITRE Corporation's track record with the Department of Commerce and other federal agencies for similar services?

The MITRE Corporation has a long-standing history of supporting federal agencies across various domains, including technology, defense, and infrastructure. They are known for their work as a federally funded research and development center (FFRDC). Their track record with the Department of Commerce likely includes numerous engagements, though specific details on 'strategic tech and PM support' would require a deeper dive into their contract history. Generally, MITRE is regarded as a highly capable organization, often brought in for complex, mission-critical challenges where deep technical expertise and objective analysis are required. Their performance is typically evaluated positively, but like any large contractor, specific contract performance can vary. Accessing detailed performance reports for past contracts would provide a more granular view.

How does the 'Cost Plus Fixed Fee' pricing structure compare to other contract types for similar services?

The 'Cost Plus Fixed Fee' (CPFF) contract type is used when the scope of work is well-defined but the exact costs are uncertain. The government agrees to pay the contractor's actual costs plus a fixed fee, which represents the contractor's profit. This structure is common for research and development or complex services where innovation and adaptation are key. Compared to 'Fixed Price' contracts, CPFF offers more flexibility for the contractor to adapt to changing requirements but can lead to higher costs for the government if cost controls are not stringent. 'Cost Plus Incentive Fee' (CPIF) contracts, which adjust the fee based on performance against targets, or 'Time and Materials' (T&M) contracts, which pay for labor hours and materials, are other alternatives. CPFF balances risk between the government and contractor but requires robust oversight to manage costs effectively.

What are the specific risks associated with a sole-source award for strategic technology and program management support?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a higher price than if multiple bids were solicited. This bypasses the market's natural price discovery mechanism. Another risk is that the government may not benefit from the innovative solutions or efficiencies that could be brought forth by a wider range of potential contractors. Furthermore, without the vetting process of a competitive bid, there's a potential, albeit often mitigated by contractor reputation, for the selected vendor to be less capable or a poorer fit than alternatives. Ensuring the justification for sole-source is robust and that the contractor's proposed costs are thoroughly scrutinized becomes paramount to mitigate these risks.

What are the potential performance challenges or indicators of success for this type of contract?

Performance challenges for this contract could include scope creep, where the project's objectives expand beyond the initial agreement, leading to increased costs and delays. Difficulty in defining clear, measurable objectives for 'strategic technology and PM support' can also be a challenge. Success indicators would likely revolve around the timely delivery of strategic recommendations, successful implementation of new technologies or processes, improved program management efficiency, and positive feedback from internal stakeholders within the Department of Commerce. Key Performance Indicators (KPIs) should be established early, focusing on measurable outcomes related to strategic goals, project milestones, and budget adherence. Regular progress reviews and clear communication channels are crucial for monitoring performance.

How does this contract's value and duration compare to historical spending patterns for similar services at the Department of Commerce?

Without access to specific historical spending data for 'strategic tech and PM support' at the Department of Commerce, a direct comparison is difficult. However, $4.2 million over approximately 1.5 years (from Sept 2024 to Jan 2026) represents a moderate-sized contract for specialized professional services. Federal agencies frequently engage contractors for strategic planning and technology support, with contract values varying widely based on scope and duration. The fact that this is a sole-source delivery order suggests it might be addressing a specific, identified need rather than a broad, recurring requirement that would typically be competed. Historical analysis would involve examining past sole-source justifications and competitive procurements within the agency for similar service categories to establish benchmarks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $6,949,395

Exercised Options: $4,210,682

Current Obligation: $4,210,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 1331L523D13OS0003

IDV Type: IDC

Timeline