MITRE/CAASD contract for engineering services awarded $495.6M to The MITRE Corporation by the FAA

Contract Overview

Contract Amount: $495,611,671 ($495.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Transportation

Start Date: 2006-10-26

End Date: 2010-09-30

Contract Duration: 1,435 days

Daily Burn Rate: $345.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MITRE/CAASD CONTRACT NUMBER: DTFAO-01-C-400001

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $495.6 million to THE MITRE CORPORATION for work described as: MITRE/CAASD CONTRACT NUMBER: DTFAO-01-C-400001 Key points: 1. The contract was awarded under a firm-fixed-price structure, indicating predictable costs for the government. 2. With a duration of 1435 days, this represents a significant, long-term commitment for engineering services. 3. The contract was awarded through full and open competition, suggesting a robust bidding process. 4. The MITRE Corporation, a federally funded research and development center (FFRDC), is a common awardee for complex government engineering needs. 5. The contract's value places it in the upper tier of engineering services contracts within the federal government. 6. The award date in 2006 suggests this contract has been active for a considerable period, allowing for performance evaluation.

Value Assessment

Rating: good

The contract's value of approximately $495.6 million over its period of performance is substantial for engineering services. Benchmarking against similar large-scale engineering contracts awarded by the FAA or other transportation agencies would provide a clearer picture of value for money. However, given the nature of FFRDCs like MITRE, which are often tasked with complex, mission-critical support, the pricing is likely competitive within that specialized domain. The firm-fixed-price structure helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a reasonable level of competition for this specialized engineering services contract. A higher number of bidders might typically lead to more aggressive pricing, but for complex FFRDC-related work, a smaller number of highly qualified bidders is not unusual.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. For this contract, the competition level suggests that the FAA sought the best value from a pool of qualified providers.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving critical engineering support for its operations. This contract supports the development and maintenance of systems crucial for air traffic control and aviation safety. The services delivered likely impact the efficiency and safety of air travel across the United States. The contract supports specialized engineering and technical expertise, potentially benefiting the aerospace and defense workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term nature of the contract could lead to contractor lock-in if not managed carefully.
Reliance on a single FFRDC for critical engineering services may limit exposure to broader market innovations.
The substantial value of the contract warrants close monitoring for scope creep and cost overruns, despite the FFP structure.

Positive Signals

Award to a reputable FFRDC like MITRE suggests a focus on high-quality, mission-critical support.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition indicates a structured procurement process aimed at achieving best value.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Federal Aviation Administration's mission. The market for specialized engineering and technical support for federal agencies, particularly in aviation and defense, is significant. MITRE, as an FFRDC, operates in a unique space, often undertaking complex, long-term projects that require deep technical expertise and a neutral, objective approach. Comparable spending benchmarks would involve other large engineering support contracts for critical infrastructure or defense systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. Given the nature of the work and the awardee (MITRE, an FFRDC), it is less likely that small business subcontracting would be a primary focus, though it is not impossible. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the FAA. As a significant contract, it would likely be subject to regular performance reviews, financial audits, and potentially oversight from the Department of Transportation's Office of Inspector General. Transparency would be facilitated through contract award databases and reporting requirements.

Related Government Programs

Federal Aviation Administration (FAA) Operations Support
Department of Transportation Engineering Services
Air Traffic Control System Modernization
Aerospace Engineering Support Contracts
Federally Funded Research and Development Centers (FFRDCs)

Risk Flags

Long contract duration
High contract value
Sole FFRDC awardee for specific services

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $495.6 million to THE MITRE CORPORATION. MITRE/CAASD CONTRACT NUMBER: DTFAO-01-C-400001

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 $495.6 million.

What is the period of performance?

Start: 2006-10-26. End: 2010-09-30.

What specific engineering services did The MITRE Corporation provide under this contract?

While the contract number and award details are provided, the specific scope of engineering services is not detailed in the summary data. However, given MITRE's role as an FFRDC and the agency (FAA), the services likely encompassed areas such as systems engineering, software development, air traffic management systems analysis, safety engineering, and research and development related to aviation technology. MITRE typically provides objective, independent research and analysis to support government decision-making on complex technical issues. The contract's duration and value suggest a broad and sustained support effort for critical FAA programs.

How does the $495.6 million contract value compare to other FAA engineering services contracts?

The $495.6 million contract value is substantial and places it among the larger engineering services contracts awarded by the FAA. For context, the FAA procures a wide range of services, and large, multi-year contracts for system development, modernization, and sustainment can easily reach hundreds of millions of dollars. Contracts for air traffic control systems, cybersecurity, and infrastructure upgrades often fall into this spending category. Without specific comparative data on similar FFRDC engineering support contracts, it's difficult to definitively benchmark, but this award indicates a significant investment in specialized engineering expertise for the agency's core mission.

What are the key risks associated with a long-term, high-value contract like this?

Key risks include potential for scope creep, where the project's objectives expand beyond the original agreement, leading to cost increases. Contractor performance degradation over a long period is another risk, requiring diligent oversight. There's also the risk of technological obsolescence if the contracted services don't keep pace with evolving technologies. Furthermore, reliance on a single FFRDC for critical functions can create dependency. Mitigating these risks requires robust contract management, clear performance metrics, regular reviews, and proactive communication between the government and the contractor.

What is the significance of awarding this contract to The MITRE Corporation, an FFRDC?

Awarding contracts to Federally Funded Research and Development Centers (FFRDCs) like MITRE signifies the government's need for specialized, objective, and often long-term technical expertise that may not be readily available in the commercial market or requires a neutral perspective. FFRDCs are designed to provide the government with unique capabilities, conduct research, and offer advice without commercial conflicts of interest. For the FAA, engaging MITRE suggests a focus on complex, mission-critical areas where deep technical insight and unbiased analysis are paramount for national airspace safety and efficiency.

How has federal spending on engineering services evolved, and where does this contract fit?

Federal spending on engineering services is a consistent and significant component of the federal budget, particularly within defense, transportation, and infrastructure sectors. This spending fluctuates based on national priorities, infrastructure investment cycles, and technological advancements. This $495.6 million contract, awarded in 2006, represents a substantial investment during that period for specialized aviation engineering support. It aligns with the government's ongoing need for technical expertise to manage and modernize complex systems, reflecting a broader trend of outsourcing specialized technical functions to expert organizations.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 90

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $678,240,195

Exercised Options: $501,441,671

Current Obligation: $495,611,671

Timeline