VA Awards $4.8M to MITRE for EHR Modernization Services

Contract Overview

Contract Amount: $4,825,980 ($4.8M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-08

End Date: 2026-06-22

Contract Duration: 714 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE VA ELECTRONIC HEALTH RECORDS MODERNIZATION IO

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to THE MITRE CORPORATION for work described as: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE VA ELECTRONIC HEALTH RECORDS MODERNIZATION IO Key points: 1. MITRE Corporation, a well-known FFRDC, is the sole awardee. 2. The contract is for professional, scientific, and technical services related to EHR modernization. 3. The award is a delivery order under an existing contract. 4. The contract duration is 714 days, ending in June 2026.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. The total award amount is $4,825,980.11.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to MITRE Corporation. This limits price discovery and potentially reduces competitive pressure on pricing.

Taxpayer Impact: Taxpayer funds are being used for this sole-source award, with potential for higher costs due to lack of competition.

Public Impact

Impacts the VA's ongoing efforts to modernize its Electronic Health Records system. Ensures continued support from a specialized FFRDC for critical IT infrastructure. Potential for improved healthcare delivery for veterans through EHR modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
CPFF contract type carries inherent cost overrun risks.
Lack of competition may not yield the best value for taxpayer dollars.

Positive Signals

Leverages expertise of a Federally Funded Research and Development Center (FFRDC).
Supports a critical government modernization initiative (EHR).
Awarded to a trusted entity with a history of government service.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically supporting IT modernization within the healthcare sector. Benchmarks for similar FFRDC services can vary widely based on scope and complexity.

Small Business Impact

This contract was awarded to The MITRE Corporation, a large FFRDC, and does not appear to involve small business participation. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

As a sole-source award, oversight is crucial to ensure the fixed fee is justified and costs are controlled. The Department of Veterans Affairs is responsible for monitoring performance and expenditures.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited price competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to THE MITRE CORPORATION. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE VA ELECTRONIC HEALTH RECORDS MODERNIZATION IO

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 $4.8 million.

What is the period of performance?

Start: 2024-07-08. End: 2026-06-22.

What is the justification for the sole-source award to MITRE Corporation for these EHR modernization services?

The justification for a sole-source award typically stems from unique capabilities, existing knowledge, or specific requirements that only a particular entity can fulfill. For MITRE, as an FFRDC, this often relates to its objective, independent research and development capabilities and its established role in supporting government programs, potentially including deep institutional knowledge of the VA's systems and modernization goals.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract in this context?

The primary risks of a CPFF contract include potential cost overruns if the government does not effectively monitor and control the contractor's expenses, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can lead to the government paying more than initially anticipated if the scope or complexity increases, or if inefficiencies arise. Effective oversight is paramount to mitigate these risks.

How does the use of an FFRDC like MITRE impact the effectiveness and value of the EHR modernization effort?

Using an FFRDC like MITRE can enhance effectiveness by providing objective, unbiased technical expertise and strategic guidance, often crucial for complex, long-term initiatives like EHR modernization. Their FFRDC status allows them to work on sensitive government projects without direct competition, focusing on national interest. However, the value proposition must be continually assessed against the lack of competitive pricing.

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

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: $11,766,694

Exercised Options: $4,825,980

Current Obligation: $4,825,980

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