DOT awards $700M+ engineering contract to MITRE Corp. for FAA mission support through 2030

Contract Overview

Contract Amount: $700,487,399 ($700.5M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Transportation

Start Date: 2021-10-20

End Date: 2030-03-31

Contract Duration: 3,084 days

Daily Burn Rate: $227.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CAASD MUST PROVIDE ESSENTIAL ENGINEERING, RESEARCH, AND ANALYSIS CAPABILITIES TO SUPPORT THE FAA IN THE PERFORMANCE OF ITS MISSION THROUGH A SYSTEMS APPROACH THAT ADDRESSES ALL DIMENSIONS (E.G. POLITICAL, OPERATIONAL, ECONOMIC, TECHNICAL) REQUIRED TO

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $700.5 million to THE MITRE CORPORATION for work described as: CAASD MUST PROVIDE ESSENTIAL ENGINEERING, RESEARCH, AND ANALYSIS CAPABILITIES TO SUPPORT THE FAA IN THE PERFORMANCE OF ITS MISSION THROUGH A SYSTEMS APPROACH THAT ADDRESSES ALL DIMENSIONS (E.G. POLITICAL, OPERATIONAL, ECONOMIC, TECHNICAL) REQUIRED TO Key points: 1. Contract leverages MITRE's established role in government-sponsored research and development. 2. Long-term nature of the contract suggests a need for sustained, specialized engineering expertise. 3. Cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor. 4. The contract's broad scope indicates potential for significant impact on aviation system modernization. 5. Performance period extends over a decade, requiring robust program management and oversight. 6. Focus on a 'systems approach' implies integration of technical, operational, and policy considerations.

Value Assessment

Rating: good

The contract value of over $700 million over approximately 9.5 years is substantial, reflecting the critical and long-term nature of the FAA's engineering and analysis needs. Benchmarking this against similar large-scale, sole-source or limited-competition engineering support contracts for federal agencies, the pricing appears to be within a reasonable range given the specialized expertise required. The cost-plus-fixed-fee (CPFF) structure, while potentially leading to higher total costs if not managed well, is common for complex R&D and engineering services where scope can evolve. Detailed cost breakdowns and audits would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive process suggests that the FAA sought the best value through a structured evaluation. Full and open competition is generally expected to drive more competitive pricing and innovative solutions by allowing a wide range of qualified contractors to participate.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of securing services at a competitive price and encourages a broader pool of talent, potentially leading to better outcomes.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential engineering, research, and analysis capabilities. The contract supports the FAA's mission to ensure the safety and efficiency of the U.S. airspace system. Services delivered are expected to encompass all dimensions of aviation system support, including political, operational, economic, and technical aspects. The contract's impact is national, affecting the entire U.S. aviation infrastructure and its users. Workforce implications include the potential for highly skilled engineering and analysis jobs, likely concentrated in areas where MITRE operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (over 9 years) could lead to potential cost overruns if not closely managed.
The CPFF contract type requires diligent oversight to ensure costs remain reasonable and aligned with the fixed fee.
Reliance on a single contractor for such critical, long-term support may raise concerns about vendor lock-in and future flexibility.
The broad scope could lead to scope creep if not clearly defined and managed throughout the contract lifecycle.

Positive Signals

MITRE Corporation is a federally funded research and development center (FFRDC) with a long history of supporting government missions, suggesting deep institutional knowledge and expertise.
The contract's full and open competition award indicates a robust selection process, likely resulting in a highly qualified contractor.
The long-term nature of the contract provides stability for the FAA in securing essential services, enabling strategic planning.
The focus on a 'systems approach' suggests a comprehensive and integrated strategy for addressing complex aviation challenges.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the aerospace and aviation sub-sector. The market for specialized engineering and analysis services for federal agencies, particularly those with complex operational mandates like the FAA, is significant. MITRE Corporation, as an FFRDC, occupies a unique position, often serving as a neutral, objective advisor and technical integrator. Comparable spending benchmarks would involve other large, long-term engineering support contracts awarded to FFRDCs or major defense/aerospace contractors for similar government functions.

Small Business Impact

The provided data does not indicate any specific small business set-asides for this contract. As a large contract awarded to a single entity (MITRE Corporation), it is unlikely to have direct small business set-aside components. However, MITRE, like many large organizations, may engage subcontractors, potentially creating opportunities for small businesses to participate in specific aspects of the work. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation and the Federal Aviation Administration. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing are expected to ensure that costs are reasonable and allocable. The long-term nature necessitates continuous program management oversight to track performance against objectives and manage scope. Transparency would be facilitated through contract reporting requirements and potential public disclosures related to FAA's mission-critical activities.

Related Government Programs

FAA Air Traffic Control modernization programs
Department of Transportation research and development initiatives
Federal Aviation Systems Engineering Support
Aerospace Engineering Services Contracts
Government-Sponsored Research and Development

Risk Flags

Long-term contract duration requires sustained oversight.
CPFF contract type necessitates careful cost monitoring.
Potential for vendor lock-in due to specialized, long-term support.
Scope definition and management are critical for success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $700.5 million to THE MITRE CORPORATION. CAASD MUST PROVIDE ESSENTIAL ENGINEERING, RESEARCH, AND ANALYSIS CAPABILITIES TO SUPPORT THE FAA IN THE PERFORMANCE OF ITS MISSION THROUGH A SYSTEMS APPROACH THAT ADDRESSES ALL DIMENSIONS (E.G. POLITICAL, OPERATIONAL, ECONOMIC, TECHNICAL) REQUIRED TO

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $700.5 million.

What is the period of performance?

Start: 2021-10-20. End: 2030-03-31.

What is MITRE Corporation's track record with the FAA and DOT?

MITRE Corporation has a long-standing and extensive track record of supporting the Federal Aviation Administration (FAA) and the Department of Transportation (DOT). As a federally funded research and development center (FFRDC), MITRE operates under government sponsorship to provide objective, independent research and development, systems engineering, and technical assistance. For the FAA, MITRE has historically played a crucial role in areas such as air traffic control system modernization (e.g., NextGen), safety analysis, cybersecurity, and the development of operational concepts and requirements. Their deep involvement often spans decades, providing continuity and institutional knowledge that is invaluable for complex, long-term government missions. This contract represents a continuation and formalization of that established relationship, leveraging their proven capabilities and understanding of the FAA's unique challenges and objectives.

How does the value of this contract compare to similar engineering support contracts for federal agencies?

The contract value of over $700 million, spanning approximately 9.5 years, positions it as a significant award for engineering and analysis services. When compared to similar large-scale, long-term support contracts for federal agencies, particularly those involving specialized R&D and systems engineering for critical infrastructure like aviation, this value appears substantial but not necessarily out of line. For instance, other FFRDCs or large aerospace/defense contractors often hold multi-billion dollar contracts for comparable support to agencies like the Department of Defense or NASA. The FAA's need for continuous, high-level technical expertise in areas like air traffic management modernization justifies a considerable investment. The key comparison points would be the scope of work, duration, and the criticality of the services provided, rather than just the raw dollar amount.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract for the government revolve around cost control, performance, and potential over-reliance on a single entity. Given the Cost Plus Fixed Fee (CPFF) structure, there is a risk of cost escalation if the contractor's expenses exceed initial projections, although the fixed fee provides some budgetary certainty. Performance risk exists if MITRE fails to deliver the required engineering, research, and analysis capabilities effectively, potentially delaying critical FAA modernization efforts. A significant risk is vendor lock-in; the long duration and specialized nature of the support could make it difficult and costly for the FAA to transition to alternative providers in the future. Ensuring continuous innovation and preventing complacency within the contractor team over such a long period also presents a management challenge.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often employed for complex research, development, and engineering services where the scope of work may not be precisely defined at the outset, or where innovation and exploration are key components. For the FAA's need for "essential engineering, research, and analysis capabilities" using a "systems approach," CPFF can be effective because it allows flexibility to adapt to evolving technical challenges and requirements. The 'cost-plus' element enables the contractor to incur necessary costs while pursuing solutions, and the 'fixed fee' provides the contractor with an incentive to control costs to maximize their profit margin (which is based on the fee, not a percentage of costs). For the government, it offers a degree of cost predictability regarding the contractor's profit, but requires robust oversight to ensure that the 'cost' portion is reasonable and allowable. It balances the need for flexibility with some level of cost control.

What are the historical spending patterns for engineering and analysis support at the FAA?

Historical spending patterns for engineering and analysis support at the FAA have consistently been substantial, reflecting the agency's continuous need for technical expertise to manage and modernize complex air traffic control systems and aviation infrastructure. The FAA relies heavily on specialized support, often through large, long-term contracts, to drive initiatives like the Next Generation Air Transportation System (NextGen). Spending in this category typically includes significant investments in systems engineering, research and development, safety analysis, and operational concept development. Contracts awarded to entities like MITRE Corporation, as well as other large aerospace and technology firms, represent a major portion of this spending. The overall trend has been towards increasing complexity and technological integration, necessitating sustained and often growing investments in advanced engineering and analytical capabilities to ensure safety and efficiency.

What are the implications of awarding this contract to MITRE Corporation, an FFRDC?

Awarding this contract to MITRE Corporation, a Federally Funded Research and Development Center (FFRDC), has several key implications. FFRDCs are established to provide unique, long-term capabilities to the government that cannot be readily obtained from the private sector. They operate under government sponsorship, maintain objectivity, and often have access to sensitive information. This means MITRE can provide independent, unbiased technical advice and analysis, acting as a trusted agent for the FAA. Their FFRDC status often allows them to tackle complex, mission-critical problems that may involve multiple technologies or require integration across different domains. While FFRDCs are typically awarded contracts on a sole-source or limited-competition basis due to their unique nature, this specific award was noted as full and open competition, which is an interesting detail. Regardless, their FFRDC status implies a deep, enduring relationship focused on national interest rather than pure profit maximization.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 693KA8-21-R-00004

Offers Received: 1

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: $2,240,846,592

Exercised Options: $700,487,399

Current Obligation: $700,487,399

Actual Outlays: $636,845,512

Subaward Activity

Number of Subawards: 142

Total Subaward Amount: $166,213,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline