HHS Awards $14.7M for Medicaid IT Support, Replacing Prior Award Due to Administrative Error
Contract Overview
Contract Amount: $14,686,977 ($14.7M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2025-06-20
End Date: 2026-06-20
Contract Duration: 365 days
Daily Burn Rate: $40.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE PURPOSE OF THIS REWARD IS TO REPLACE THE ORIGINAL ADVANCING THE MEDICAID IT AMIT AWARD 75FCMC18D0047/ 75FCMC25FJ068 DUE TO AN ADMINISTRATIVE ERROR WHICH OCCURRED AT THE TIME OF AWARD. NONE OF THE TERMS AND CONDITIONS HAVE CHANGES AND ALL ATTACHME
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $14.7 million to THE MITRE CORPORATION for work described as: THE PURPOSE OF THIS REWARD IS TO REPLACE THE ORIGINAL ADVANCING THE MEDICAID IT AMIT AWARD 75FCMC18D0047/ 75FCMC25FJ068 DUE TO AN ADMINISTRATIVE ERROR WHICH OCCURRED AT THE TIME OF AWARD. NONE OF THE TERMS AND CONDITIONS HAVE CHANGES AND ALL ATTACHME Key points: 1. Award value of $14.7 million for IT support services. 2. Contract is a delivery order under an existing contract. 3. No changes to terms and conditions from the original award. 4. Focus on Research and Development in Physical, Engineering, and Life Sciences. 5. Contract awarded to The MITRE Corporation.
Value Assessment
Rating: questionable
The contract value is $14.7 million. Without knowing the specific scope of work or the original award's details, it's difficult to benchmark pricing. However, the stated purpose is to correct an administrative error, suggesting the pricing itself may not have been re-evaluated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive bidding process to drive down prices.
Taxpayer Impact: Awarding without competition may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competition. The administrative error highlights potential weaknesses in contract award processes. Continued reliance on a single contractor for critical IT support. The specific R&D focus within Medicaid IT is not detailed, limiting public understanding of the investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to administrative error correction
- Administrative error in initial award process
Positive Signals
- Awarding to a known entity (MITRE Corporation)
- Correction of an administrative error to ensure continuity
Sector Analysis
The contract falls under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). This is an IT support contract for Medicaid, which is unusual for this R&D-focused code. Typical R&D spending benchmarks are not directly applicable here.
Small Business Impact
The contract was awarded to The MITRE Corporation, a large, federally funded research and development center (FFRDC). There is no indication that small businesses were involved in this specific award, nor is there a stated effort to subcontract to them.
Oversight & Accountability
The need to correct an administrative error suggests a potential lapse in oversight during the initial award process. Further review would be needed to assess if internal controls are adequate to prevent future errors.
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
- Lack of competition
- Potential for inflated costs due to administrative error correction
- Unclear R&D focus within IT support
- Administrative error in initial award process
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $14.7 million to THE MITRE CORPORATION. THE PURPOSE OF THIS REWARD IS TO REPLACE THE ORIGINAL ADVANCING THE MEDICAID IT AMIT AWARD 75FCMC18D0047/ 75FCMC25FJ068 DUE TO AN ADMINISTRATIVE ERROR WHICH OCCURRED AT THE TIME OF AWARD. NONE OF THE TERMS AND CONDITIONS HAVE CHANGES AND ALL ATTACHME
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 $14.7 million.
What is the period of performance?
Start: 2025-06-20. End: 2026-06-20.
What was the nature of the administrative error, and how was it identified?
The data provided states the award is to replace a previous one due to an administrative error at the time of award. Specific details about the error's nature or how it was identified are not included. Understanding this could shed light on the agency's internal processes and the potential impact on the contract's validity or cost.
What is the specific scope of work for this R&D-focused IT support contract within Medicaid?
The NAICS code 541715 suggests Research and Development in Physical, Engineering, and Life Sciences. However, the contract's purpose is described as IT support for Medicaid. The specific R&D activities or how they relate to Medicaid IT are unclear from the provided data, making it difficult to assess the value or necessity of this particular R&D focus.
Were any alternative solutions or contractors considered before issuing this delivery order as not competed?
The contract is explicitly marked as 'NOT COMPETED'. This implies that no formal competitive process was undertaken for this specific delivery order. While it's a replacement for a prior award, the lack of competition raises questions about whether alternative solutions or contractors were evaluated, potentially impacting cost-effectiveness for the taxpayer.
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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: $39,186,959
Exercised Options: $14,686,977
Current Obligation: $14,686,977
Actual Outlays: $6,873,757
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
Start Date: 2025-06-20
Current End Date: 2026-06-20
Potential End Date: 2028-06-19 00:00:00
Last Modified: 2025-12-16
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