DOT's $1.7B CAASD FFRDC Contract with MITRE Awarded Without Competition

Contract Overview

Contract Amount: $1,701,706,860 ($1.7B)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Transportation

Start Date: 2010-07-07

End Date: 2021-09-30

Contract Duration: 4,103 days

Daily Burn Rate: $414.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CENTER FOR ADVANCED AVIATION DEVELOPMENT (CAASD) FFRDC MITRE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $1.70 billion to THE MITRE CORPORATION for work described as: CENTER FOR ADVANCED AVIATION DEVELOPMENT (CAASD) FFRDC MITRE Key points: 1. Significant investment in a Federally Funded Research and Development Center (FFRDC) focused on aviation. 2. Sole-source award to MITRE Corporation, raising questions about competition and potential cost efficiencies. 3. Long contract duration (over 10 years) suggests a strategic, long-term partnership. 4. Engineering services sector, with a substantial value, indicates complex technical requirements.

Value Assessment

Rating: questionable

The contract value of $1.7 billion over its life is substantial. Without competitive benchmarks, assessing its value for money is difficult. The cost-plus-fixed-fee structure can incentivize cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis to MITRE Corporation, a known FFRDC operator. This limits price discovery and competitive pressure, potentially leading to higher costs than a competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. The FFRDC model is intended for unique government needs, but the absence of bidding warrants scrutiny.

Public Impact

Impacts the Federal Aviation Administration's (FAA) ability to advance aviation technology and safety. Potential for innovation and specialized expertise through the FFRDC model. Raises concerns about the government's procurement practices and maximizing taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus-fixed-fee contract type
Long contract duration

Positive Signals

Utilizes a specialized FFRDC for critical aviation development
MITRE Corporation has a strong track record in R&D

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a broad category. FFRDCs like CAASD are established to provide long-term, objective advice and analysis to the government, often in highly specialized technical areas. Benchmarking is difficult due to the unique nature of FFRDC work.

Small Business Impact

The data indicates this contract was not awarded to small businesses. FFRDCs are typically large, established organizations, and this contract structure does not appear to include provisions for small business participation.

Oversight & Accountability

The sole-source nature of this large contract necessitates robust oversight from the Department of Transportation and the FAA to ensure performance, cost control, and alignment with government objectives. Regular reviews of the FFRDC's work and value are crucial.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Lack of competition may lead to higher costs.
Cost-plus-fixed-fee contract type can incentivize cost overruns.
Long contract duration without clear exit strategy or re-competition.
Potential for vendor lock-in with a sole-source FFRDC.
Difficulty in benchmarking performance and cost against alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.70 billion to THE MITRE CORPORATION. CENTER FOR ADVANCED AVIATION DEVELOPMENT (CAASD) FFRDC MITRE

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 $1.70 billion.

What is the period of performance?

Start: 2010-07-07. End: 2021-09-30.

What specific, unique capabilities does MITRE's CAASD provide that justify a sole-source FFRDC award over exploring competitive options for similar engineering services?

FFRDCs like CAASD are established to provide unique, long-term, and objective technical support to the government, often in areas requiring deep institutional knowledge and specialized expertise that cannot be easily replicated by commercial firms. The justification for a sole-source award typically rests on MITRE's established role, its independence, and its ability to address complex, evolving national needs in aviation development without the conflicts of interest inherent in commercial R&D.

How does the Cost Plus Fixed Fee (CPFF) structure ensure cost control and value for money given the $1.7 billion value and sole-source nature of this contract?

The CPFF structure aims to provide a degree of cost certainty by fixing the contractor's fee, incentivizing them to control costs to maximize profit within that fixed fee. However, for a sole-source contract of this magnitude, robust government oversight, detailed cost monitoring, and clear performance metrics are essential to prevent cost overruns and ensure the government receives fair value. Without competitive pressure, the government must rely heavily on its own expertise and diligence.

What mechanisms are in place to ensure the effectiveness and continued relevance of the CAASD FFRDC's work for the FAA, especially given the long contract duration and lack of direct competition?

Effectiveness is typically ensured through rigorous performance reviews, milestone tracking, and regular technical assessments by the FAA. The FFRDC model itself relies on a strong government-sponsor relationship, requiring continuous dialogue and feedback to ensure the research and development remain aligned with evolving FAA priorities. Periodic re-evaluation of the FFRDC's charter and mission may also be employed to maintain relevance.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $19,000,000,000

Exercised Options: $1,703,062,360

Current Obligation: $1,701,706,860

Actual Outlays: $243,527,117

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,703,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline