VA awards $15M to MITRE for veteran care strategy and planning, with no competition

Contract Overview

Contract Amount: $14,982,254 ($15.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-07

End Date: 2026-12-01

Contract Duration: 724 days

Daily Burn Rate: $20.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FFRDC SERVICES TO THE OFFICE OF INTEGRATED VETERAN CARE (IVC) FOR NATIONAL CARE STRATEGIC AND FUTURE PLANNING SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.0 million to THE MITRE CORPORATION for work described as: FFRDC SERVICES TO THE OFFICE OF INTEGRATED VETERAN CARE (IVC) FOR NATIONAL CARE STRATEGIC AND FUTURE PLANNING SUPPORT Key points: 1. Contract awarded to a Federally Funded Research and Development Center (FFRDC) for specialized strategic support. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term contract duration (724 days) suggests a need for sustained strategic input. 4. Focus on national care strategy and future planning indicates a high-level advisory role. 5. Performance-based contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. No small business set-aside, indicating the primary contractor is not a small business.

Value Assessment

Rating: fair

The contract value of approximately $15 million for FFRDC services is within a typical range for specialized strategic planning support to federal agencies. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or assess if this represents the best value for the government. The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation, which operates as a Federally Funded Research and Development Center (FFRDC). FFRDCs are typically awarded contracts without full and open competition due to their unique capabilities and government-sponsored nature. While this ensures access to specialized expertise, it limits the opportunity for other qualified contractors to bid and potentially offer alternative solutions or pricing.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price discovery that occurs in a competitive environment, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

Veterans will benefit from improved national care strategies and future planning, potentially leading to more effective and efficient healthcare services. The Office of Integrated Veteran Care (IVC) will receive critical strategic guidance to shape its long-term direction. The contract supports the development of national-level policies and initiatives impacting veteran healthcare across the country. The engagement of an FFRDC like MITRE suggests a focus on complex, long-term challenges in veteran care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Sole-source nature of FFRDC awards can reduce market pressure on pricing.
CPFF contract type requires diligent oversight to manage costs effectively.

Positive Signals

Award to an FFRDC ensures access to highly specialized, objective expertise for complex strategic issues.
Focus on national strategy and future planning addresses critical long-term needs for veteran care.
Long-term contract duration allows for sustained, in-depth support and development of strategic initiatives.

Sector Analysis

The professional, scientific, and technical services sector, particularly within government consulting and strategic planning, is characterized by a mix of large corporations, specialized firms, and FFRDCs. The Department of Veterans Affairs (VA) frequently engages such entities for high-level analysis and planning. Spending in this category often reflects the complexity of policy development and the need for objective, research-driven insights. Benchmarks for similar strategic support contracts can vary widely based on scope and duration, but FFRDC engagements typically represent significant investments due to their unique role.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to The MITRE Corporation, a large FFRDC, there are no direct subcontracting opportunities mandated for small businesses through this specific award mechanism. The primary focus is on leveraging the specialized capabilities of the FFRDC.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs, specifically the Office of Integrated Veteran Care (IVC). As a sole-source award to an FFRDC, the oversight may focus more on the quality and relevance of the strategic advice provided rather than on competitive pricing. The CPFF contract type necessitates rigorous monitoring of costs and adherence to the fixed fee. Transparency will depend on the VA's policies regarding the release of FFRDC deliverables and strategic planning documents.

Related Government Programs

VA Strategic Planning Initiatives
Veteran Healthcare Modernization Programs
Federal IT and Technical Services
Research and Development Support Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.0 million to THE MITRE CORPORATION. FFRDC SERVICES TO THE OFFICE OF INTEGRATED VETERAN CARE (IVC) FOR NATIONAL CARE STRATEGIC AND FUTURE PLANNING 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 $15.0 million.

What is the period of performance?

Start: 2024-12-07. End: 2026-12-01.

What is the historical spending by the VA on FFRDC services for strategic planning?

Analyzing historical VA spending on FFRDC services for strategic planning requires a deep dive into contract databases and agency budget reports. While specific figures for 'strategic planning' are not readily available without granular data extraction, the VA, like other large federal agencies, utilizes FFRDCs for a range of complex analytical and advisory tasks. These engagements are often long-term and substantial in value, reflecting the specialized nature of FFRDC support. For instance, MITRE itself holds numerous contracts across various federal agencies, including the VA, for technical guidance and research. To provide a precise historical spending figure, one would need to query contract award databases (like FPDS or USASpending) for keywords related to FFRDC, strategic planning, and the VA, filtering by contract type and fiscal years. This would likely reveal a consistent, albeit potentially fluctuating, investment in such services to address evolving policy and operational challenges.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing structures for similar strategic services?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee, which represents profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. Compared to a Firm-Fixed-Price (FFP) contract, CPFF offers more flexibility for the government if the scope changes, but it carries more cost risk for the government as final costs can exceed initial estimates. Compared to a Cost-Plus-Incentive-Fee (CPIF) contract, CPFF offers less incentive for the contractor to aggressively reduce costs beyond what is necessary to stay within budget, as the fee is fixed. For strategic services, CPFF provides a balance between flexibility and cost control, provided robust oversight is in place.

What are the potential risks associated with a sole-source award to an FFRDC for strategic planning?

A 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. Taxpayers may not receive the best possible value if alternative vendors could have offered similar services at a lower price or with innovative approaches. Furthermore, relying solely on one FFRDC, even with its unique advantages, might limit the exposure to a broader range of perspectives and solutions that could emerge from a competitive environment. There's also a potential risk of vendor lock-in, where the agency becomes highly dependent on the FFRDC's specific methodologies and expertise, making it difficult to transition to other providers in the future. Effective oversight is crucial to mitigate these risks by ensuring the FFRDC's work is necessary, efficient, and aligned with government objectives.

What is MITRE's track record in providing strategic planning support to federal agencies, particularly the VA?

The MITRE Corporation has a well-established track record as a Federally Funded Research and Development Center (FFRDC) providing technical, strategic, and systems engineering support to numerous U.S. government agencies, including the Department of Veterans Affairs (VA). MITRE's role often involves tackling complex national challenges, developing innovative solutions, and providing objective analysis. For the VA, MITRE has historically supported initiatives related to healthcare modernization, IT systems, and policy development. Their work often involves long-range planning, assessing emerging technologies, and advising on the implementation of large-scale programs. Given their FFRDC status, they are expected to provide unbiased, high-impact guidance. Specific details on their past performance for the VA in strategic planning would be found in internal VA performance reviews and contract close-out reports, but their general reputation is one of providing critical, high-level advisory services.

How does this contract align with the VA's broader goals for veteran care modernization?

This contract directly aligns with the VA's broader goals for veteran care modernization by providing essential strategic and future planning support. Modernizing veteran care involves not only technological upgrades and process improvements but also a forward-looking vision for how services will evolve to meet changing veteran needs and healthcare landscapes. By engaging MITRE, an FFRDC known for its strategic foresight, the VA aims to ensure its modernization efforts are guided by comprehensive, long-term planning. This includes anticipating future healthcare trends, identifying potential challenges and opportunities, and developing robust strategies to enhance the quality, accessibility, and efficiency of care for all veterans. The focus on 'national care strategic and future planning' suggests an effort to create a cohesive, sustainable vision across the entire VA healthcare system.

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: $16,838,383

Exercised Options: $14,982,254

Current Obligation: $14,982,254

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