VA awards $54.2M contract to MITRE for strategic support, raising questions about competition and value

Contract Overview

Contract Amount: $54,195,760 ($54.2M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-29

End Date: 2024-08-28

Contract Duration: 699 days

Daily Burn Rate: $77.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE VETERANS BENEFITS ADMINISTRATION STRATEGIC PROGRAM MANAGEMENT OFFICE FOR MISSION, ENGINEERING, INTEGRATION, AND OPTIMIZATION STRATEGIC SUPPORT

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54.2 million to THE MITRE CORPORATION for work described as: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE VETERANS BENEFITS ADMINISTRATION STRATEGIC PROGRAM MANAGEMENT OFFICE FOR MISSION, ENGINEERING, INTEGRATION, AND OPTIMIZATION STRATEGIC SUPPORT Key points: 1. Contract awarded to a Federally Funded Research and Development Center (FFRDC) for specialized strategic support. 2. Sole-source award to MITRE Corporation suggests limited market availability for these specific services. 3. Cost-plus-fixed-fee contract type may incentivize cost increases, requiring close oversight. 4. Contract duration of nearly two years indicates a significant, ongoing need for these services. 5. The award falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's value of $54.2 million over approximately two years for strategic support services is substantial. Benchmarking against similar FFRDC contracts is challenging due to their unique nature and specific mission focus. The cost-plus-fixed-fee structure necessitates careful monitoring to ensure costs remain reasonable and that the fixed fee adequately compensates for the services rendered without excessive profit. Without more granular data on the specific deliverables and their market rates, a definitive value-for-money assessment is difficult, but the FFRDC's role often implies a need for specialized, objective expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation, a Federally Funded Research and Development Center (FFRDC). This indicates that the Department of Veterans Affairs determined that MITRE possessed unique capabilities or was the only source capable of meeting the specialized requirements for mission, engineering, integration, and optimization strategic support. Sole-source awards limit the opportunity for other companies to bid, potentially impacting price discovery and the potential for competitive pricing.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive bidding, which typically drives down costs. The justification for a sole-source award must be robust to ensure public funds are used efficiently.

Public Impact

Veterans Benefits Administration (VBA) strategic program management office benefits from enhanced engineering, integration, and optimization support. Improved strategic planning and execution within the VBA could lead to better service delivery for veterans. The contract supports critical functions related to the modernization and efficiency of veteran benefit programs. Workforce implications are likely internal to the VBA, focusing on how strategic guidance impacts program managers and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to cost overruns if not managed diligently.
Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
The broad nature of 'strategic support' requires clear performance metrics to ensure accountability.
Reliance on a single FFRDC may limit the agency's exposure to diverse innovative solutions.

Positive Signals

Award to MITRE, an FFRDC, suggests access to high-level, objective technical expertise.
Focus on engineering, integration, and optimization indicates a commitment to improving VBA operations.
The contract aims to enhance strategic program management, potentially leading to more efficient veteran services.
Long-term engagement allows for deep understanding and sustained support for complex initiatives.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector encompasses a wide range of services, including research and development, consulting, and specialized technical support. FFRDCs like MITRE often play a crucial role in government projects requiring deep technical expertise and objective analysis, particularly in complex areas like defense, healthcare, and IT modernization. Comparable spending in this broad category can vary significantly, but government reliance on FFRDCs for strategic advice and complex problem-solving is a consistent trend.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large FFRDC, it does not directly create opportunities for small businesses through prime contracting. However, MITRE may engage small businesses as subcontractors for specific components of the work, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs program office responsible for the Veterans Benefits Administration's strategic initiatives. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure the contractor is not incurring unnecessary costs. Transparency will depend on the VA's reporting practices regarding FFRDC engagements and the specific terms of the contract regarding deliverables and performance reviews. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Veterans Affairs IT Modernization Programs
Federal Strategic Planning and Consulting Services
Federally Funded Research and Development Center (FFRDC) Engagements
Program Management Support Services

Risk Flags

Sole-source award may limit cost savings achievable through competition.
Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Broad service category ('All Other Professional, Scientific, and Technical Services') could obscure specific performance metrics.
Lack of small business set-aside may reduce opportunities for smaller, innovative firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54.2 million to THE MITRE CORPORATION. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE VETERANS BENEFITS ADMINISTRATION STRATEGIC PROGRAM MANAGEMENT OFFICE FOR MISSION, ENGINEERING, INTEGRATION, AND OPTIMIZATION STRATEGIC SUPPORT

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $54.2 million.

What is the period of performance?

Start: 2022-09-29. End: 2024-08-28.

What is the specific justification for awarding this contract on a sole-source basis to The MITRE Corporation?

The justification for a sole-source award typically rests on the unique capabilities, specialized knowledge, or proprietary technology possessed by the contractor that cannot be readily replicated by other sources. For FFRDCs like MITRE, their designation often implies a unique relationship with the government, providing objective, independent research and analysis. The VA likely determined that MITRE's specific expertise in mission engineering, integration, and optimization for the Veterans Benefits Administration was essential and not available through a competitive process within the required timeframe or to the required standard. This could involve deep institutional knowledge of VA systems, specific methodologies developed by MITRE, or a mandate for unbiased FFRDC support in critical strategic areas.

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

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are uncertain, or when the government wants to incentivize the contractor to control costs while ensuring a specific level of effort. In this CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers less cost certainty for the government but can be more flexible for evolving requirements. Compared to cost-plus-incentive-fee (CPIF) contracts, CPFF lacks a direct mechanism to reward the contractor for exceeding cost targets, potentially reducing the incentive for aggressive cost management. For strategic support, CPFF can be appropriate if the nature of the strategic advice and analysis is difficult to scope precisely upfront.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

While the provided data does not detail specific Key Performance Indicators (KPIs) or deliverables, contracts for 'mission, engineering, integration, and optimization strategic support' typically involve the development of strategic plans, process improvement recommendations, system integration roadmaps, engineering analyses, and optimization studies. Deliverables might include comprehensive reports, presentations, workshops, feasibility studies, and architectural designs. KPIs would likely focus on the quality, timeliness, and impact of these deliverables, such as the successful integration of new systems, measurable improvements in operational efficiency, the achievement of strategic objectives outlined in plans, and the clarity and actionability of recommendations provided to the VBA.

What is the historical spending trend for similar strategic support services within the VA or comparable agencies?

Historical spending on strategic support services within the VA and comparable agencies has generally trended upwards, driven by the increasing complexity of government operations, the need for digital transformation, and the demand for improved efficiency and effectiveness. Agencies frequently engage FFRDCs or specialized consulting firms for high-level strategic advice, program management support, and technical integration services. While specific figures for 'mission, engineering, integration, and optimization strategic support' are not readily available without deeper analysis, the overall market for professional and technical services supporting federal program management is substantial, often running into billions of dollars annually across various agencies. The VA, in particular, has invested heavily in modernizing its systems and processes to better serve veterans, necessitating significant spending in these areas.

What is MITRE Corporation's track record with the Department of Veterans Affairs and in providing similar strategic support?

The MITRE Corporation has a long-standing relationship with the Department of Veterans Affairs, operating as a key FFRDC partner. MITRE has been instrumental in supporting the VA's modernization efforts, including initiatives related to electronic health records, IT infrastructure, and data analytics. Their track record typically involves providing objective, data-driven analysis and recommendations to address complex challenges. For strategic support specifically, MITRE has a history of assisting government agencies in defining mission objectives, engineering solutions, integrating disparate systems, and optimizing operational processes. Their work with the VA often focuses on improving the efficiency and effectiveness of services delivered to veterans, aligning with the agency's core mission.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DRAFT TO 36C10A22N0034

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: $54,195,760

Exercised Options: $54,195,760

Current Obligation: $54,195,760

Actual Outlays: $54,196,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 36C10A20D0004

IDV Type: IDC

Timeline