MITRE Corporation awarded $13M contract for FFRDC NSEC support to FBI, raising questions on competition

Contract Overview

Contract Amount: $12,957,536 ($13.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Justice

Start Date: 2019-11-16

End Date: 2024-07-14

Contract Duration: 1,702 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FFRDC NSEC SUPPORT SERVICES FOR EDAS ACQUISITION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $13.0 million to THE MITRE CORPORATION for work described as: FFRDC NSEC SUPPORT SERVICES FOR EDAS ACQUISITION Key points: 1. Contract awarded to a Federally Funded Research and Development Center (FFRDC) for specialized technical support. 2. Sole-source award to MITRE Corporation suggests unique capabilities or a lack of readily available alternatives. 3. The contract duration of over 1700 days indicates a long-term need for these services. 4. Cost-plus-fixed-fee contract type allows for reimbursement of costs plus a fixed fee, potentially leading to cost overruns if not managed carefully. 5. The absence of small business participation raises concerns about broader economic impact. 6. The contract's focus on acquisition support for EDAS suggests a critical role in the FBI's technological infrastructure.

Value Assessment

Rating: fair

The contract value of approximately $13 million over five years for specialized FFRDC support services is difficult to benchmark without more detailed cost breakdowns. As a sole-source award to MITRE, a well-established FFRDC, the pricing is likely influenced by its unique position and established relationship with the government. However, the lack of competitive bidding prevents a direct comparison to market rates or other potential providers, making a definitive value-for-money assessment challenging. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation. As an FFRDC, MITRE is specifically chartered to provide research, development, and systems engineering support to the government. Sole-source awards to FFRDCs are common when the required services are highly specialized and unique, or when the FFRDC's specific expertise and infrastructure are deemed essential. The lack of competition means that the government did not explore alternative solutions or pricing from other potential contractors.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive bidding. While the specialized nature of FFRDC work can justify sole-source awards, it limits opportunities for price discovery and potentially higher costs compared to a competed contract.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving critical acquisition support services for its Enterprise Data Analytics System (EDAS). This contract ensures the continued development and enhancement of the EDAS, which is vital for the FBI's data analysis and operational capabilities. The services delivered are highly technical, focusing on research, development, and systems engineering within the acquisition lifecycle. The geographic impact is primarily within the District of Columbia, where the FBI headquarters and relevant operational units are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost-plus-fixed-fee contract type can incentivize higher costs if not rigorously managed.
Lack of small business participation means missed opportunities for small business growth and innovation.
The long contract duration (over 4.5 years) requires sustained oversight to ensure continued relevance and value.

Positive Signals

Award to MITRE Corporation, a reputable FFRDC with a proven track record in government support.
Contract supports a critical system (EDAS) for the FBI, indicating a strategic need.
The FFRDC model is designed for long-term, complex government challenges, suggesting a strategic fit.
The fixed fee component of the contract provides some cost predictability.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector is characterized by a wide range of specialized services, including research and development, engineering, and consulting. The market for FFRDC support services is relatively niche, dominated by a few established organizations like MITRE, RAND, and Aerospace Corporation, which are uniquely structured to serve government needs. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source awards common in this sub-sector.

Small Business Impact

This contract does not appear to include any small business set-asides, as indicated by the 'sb': false field. The award to MITRE Corporation, a large FFRDC, means that direct subcontracting opportunities for small businesses under this specific contract are unlikely unless MITRE proactively engages them. This represents a missed opportunity to leverage the small business ecosystem for specialized support services, potentially limiting the broader economic impact on small businesses within this domain.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Federal Bureau of Investigation (FBI), and the Department of Justice. As a sole-source award, the oversight would focus on ensuring that MITRE fulfills the contract requirements within the agreed-upon cost and schedule, and that the fixed fee remains appropriate. Transparency is limited due to the non-competitive nature, but contract performance data and financial reporting would be subject to standard government oversight mechanisms. There is no specific mention of an Inspector General's direct jurisdiction over this particular contract, but the DOJ OIG would have general oversight responsibilities.

Related Government Programs

FBI IT Modernization Programs
Federal Data Analytics Initiatives
FFRDC Support Services
Acquisition Support Contracts
Enterprise Data Systems

Risk Flags

Sole-source award
Lack of competition
Cost-plus-fixed-fee contract type
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13.0 million to THE MITRE CORPORATION. FFRDC NSEC SUPPORT SERVICES FOR EDAS ACQUISITION

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2019-11-16. End: 2024-07-14.

What is the specific nature of the 'NSEC SUPPORT SERVICES FOR EDAS ACQUISITION' provided by MITRE?

The 'NSEC SUPPORT SERVICES FOR EDAS ACQUISITION' contract likely entails a range of specialized technical and programmatic support for the FBI's Enterprise Data Analytics System (EDAS). This could include systems engineering, requirements analysis, technology research, acquisition strategy development, risk management, and potentially cybersecurity considerations related to the EDAS platform. As an FFRDC, MITRE's role often involves providing objective, independent analysis and recommendations to the government, particularly in complex technology acquisition programs. The 'NSEC' acronym might refer to a specific program or division within the FBI or a broader national security context related to data analytics.

How does the cost-plus-fixed-fee (CPFF) contract structure compare to other contract types for similar FFRDC services?

The Cost-Plus-Fixed-Fee (CPFF) structure is common for FFRDC contracts, especially those involving research, development, and complex systems engineering where the scope may evolve. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure provides flexibility for evolving requirements but carries a risk of cost overruns if costs are not well-controlled. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but allows for greater adaptability. Compared to Cost-Plus-Incentive-Fee (CPIF), CPFF offers less incentive for the contractor to control costs beyond the fixed fee.

What are the potential risks associated with a sole-source award to an FFRDC like MITRE for acquisition support?

The primary risk of a sole-source award to an FFRDC is the lack of price competition, which can lead to higher costs for the government compared to a competitively awarded contract. Without multiple bids, there is less pressure on the contractor to offer the most cost-effective solution. Additionally, it limits the government's exposure to innovative approaches or alternative solutions that might be offered by other contractors. While FFRDCs are intended to provide unique, objective support, a sole-source award necessitates robust government oversight to ensure the services are necessary, performed efficiently, and deliver value commensurate with the cost.

What is the historical spending pattern for FFRDC support services at the FBI or within the Department of Justice?

Historical spending data for FFRDC support services at the FBI or the broader Department of Justice (DOJ) is not readily available in the provided data. However, FFRDCs like MITRE are frequently engaged by various government agencies for complex technical and research needs. The FBI, in particular, relies on advanced technology and data analytics, making it a likely candidate for FFRDC support in areas like acquisition, cybersecurity, and systems engineering. Analyzing past contracts awarded to MITRE or other FFRDCs by the DOJ would provide context on the scale and nature of such engagements, but this specific contract's value of $13 million over five years suggests a significant, long-term commitment.

How does the FBI ensure accountability and performance for long-term sole-source FFRDC contracts?

The FBI ensures accountability and performance for long-term sole-source FFRDC contracts through rigorous contract management and oversight processes. This includes establishing clear performance metrics and deliverables in the contract, conducting regular progress reviews, and monitoring cost expenditures closely, especially with CPFF contracts. The FBI's contracting officers and technical representatives play a crucial role in evaluating MITRE's performance against the Statement of Work (SOW). For FFRDCs, there's an inherent expectation of objective analysis and adherence to ethical standards, often reinforced by government-wide FFRDC oversight policies. Periodic reviews and potential re-competition or review of the need for continued sole-source support are also mechanisms for ensuring ongoing accountability.

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,778,088

Exercised Options: $14,347,607

Current Obligation: $12,957,536

Actual Outlays: $12,836,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 15F06719D0000649

IDV Type: IDC

Timeline