HHS awards $5.9M to MITRE for FFRDC strategic support to CMCS

Contract Overview

Contract Amount: $5,922,699 ($5.9M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-24

End Date: 2026-06-23

Contract Duration: 364 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HEALTH FFRDC STRATEGIC SUPPORT FOR CENTER FOR MEDICAID AND CHIP SERVICES (CMCS), OFFICE OF THE CENTER DIRECTOR (OCD)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.9 million to THE MITRE CORPORATION for work described as: HEALTH FFRDC STRATEGIC SUPPORT FOR CENTER FOR MEDICAID AND CHIP SERVICES (CMCS), OFFICE OF THE CENTER DIRECTOR (OCD) Key points: 1. The contract supports the Center for Medicaid and CHIP Services (CMCS) with strategic guidance. 2. MITRE Corporation, a Federally Funded Research and Development Center (FFRDC), is the sole awardee. 3. The contract is a cost-plus-fixed-fee type, indicating potential for cost overruns. 4. The NAICS code 541715 suggests research and development in physical, engineering, and life sciences.

Value Assessment

Rating: fair

This is a cost-plus-fixed-fee contract, which can lead to higher costs than fixed-price contracts. Benchmarking per-unit cost is difficult without more specific deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, which limits price discovery and potentially reduces competition. As a sole-source award to an FFRDC, the rationale likely centers on specialized expertise.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competed.

Public Impact

Supports critical Medicaid and CHIP programs impacting millions of Americans. FFRDC expertise ensures specialized, objective analysis for complex healthcare policy. Contract duration of one year allows for focused, strategic initiatives. Potential for follow-on work based on performance and evolving needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Cost-plus-fixed-fee structure carries cost risk
FFRDC designation may imply higher overhead

Positive Signals

Award to established FFRDC with relevant expertise
Supports vital healthcare programs
Clear period of performance

Sector Analysis

This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for innovation and policy development within government agencies like CMS.

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 to an FFRDC, oversight may focus on ensuring the FFRDC operates independently and provides objective analysis. The Centers for Medicare and Medicaid Services (CMS) will be responsible for monitoring performance and costs.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of defined deliverables in summary
Potential for cost overruns
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.9 million to THE MITRE CORPORATION. HEALTH FFRDC STRATEGIC SUPPORT FOR CENTER FOR MEDICAID AND CHIP SERVICES (CMCS), OFFICE OF THE CENTER DIRECTOR (OCD)

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2025-06-24. End: 2026-06-23.

What specific strategic support will MITRE provide to CMCS, and how will its effectiveness be measured?

The contract aims to provide strategic support to the Center for Medicaid and CHIP Services (CMCS) and its Office of the Center Director (OCD). Specific deliverables and performance metrics are not detailed in the provided data. However, effectiveness will likely be measured through the quality of strategic advice, policy analysis, and recommendations provided, contributing to CMCS's mission of improving health coverage for vulnerable populations.

Given the sole-source nature and cost-plus-fixed-fee structure, what are the primary risks to taxpayer value?

The primary risks to taxpayer value stem from the lack of competitive bidding, which could lead to a higher price than a competed contract. The cost-plus-fixed-fee structure also introduces risk, as costs can escalate beyond initial estimates, potentially increasing the final price paid by taxpayers without a guaranteed increase in value or scope.

How does awarding this contract to an FFRDC like MITRE ensure effectiveness in supporting complex healthcare policy initiatives?

Awarding this contract to an FFRDC like MITRE ensures effectiveness by leveraging their unique position as a government-sponsored, non-profit entity. FFRDCs are established to provide objective, independent research and analysis, free from commercial conflicts of interest. This allows them to tackle complex, long-term challenges in areas like healthcare policy with specialized expertise and a focus on national interest.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: $11,320,959

Exercised Options: $5,922,699

Current Obligation: $5,922,699

Actual Outlays: $2,426,284

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75FCMC23D0004

IDV Type: IDC

Timeline