Air Force awards $83.7M continuation contract to MIT for technical services
Contract Overview
Contract Amount: $83,665,468 ($83.7M)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2016-10-31
End Date: 2018-03-31
Contract Duration: 516 days
Daily Burn Rate: $162.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF CONTINUATION CONTRACT FOR FA8721-05-C-0002
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $83.7 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: IGF::OT::IGF CONTINUATION CONTRACT FOR FA8721-05-C-0002 Key points: 1. Significant award to a single, well-known research institution. 2. Contract covers a broad range of professional, scientific, and technical services. 3. No competition was utilized for this award. 4. The sector is dominated by large research institutions and specialized service providers.
Value Assessment
Rating: fair
The contract value of $83.7M over 1.5 years is substantial. Without specific deliverables or performance metrics, assessing value for money is difficult. The 'COST NO FEE' contract type suggests costs are reimbursed, but profit is not awarded, which can incentivize cost control.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Supports advanced research and development activities for the Air Force. Leverages the expertise of a leading academic institution. Potential for long-term technological advancements stemming from the services provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-reimbursement contract type
- Broad service description
Positive Signals
- Award to a reputable institution
- Long-term relationship potential
Sector Analysis
This award falls under professional, scientific, and technical services, a sector often characterized by specialized expertise. Spending benchmarks are difficult to establish due to the broad nature of the services and the unique capabilities of institutions like MIT.
Small Business Impact
This contract was awarded to a large research institution and does not appear to involve small business participation. The nature of the services likely requires specialized, large-scale capabilities.
Oversight & Accountability
The 'COST NO FEE' contract type requires careful oversight to ensure that costs are reasonable and allocable to the contract. The Department of the Air Force is responsible for monitoring performance and expenditures.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns without profit incentive
- Broad service description lacks specificity
- Difficulty in measuring service effectiveness
- High contract value
Tags
all-other-professional-scientific-and-te, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.7 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. IGF::OT::IGF CONTINUATION CONTRACT FOR FA8721-05-C-0002
Who is the contractor on this award?
The obligated recipient is MASSACHUSETTS INSTITUTE OF TECHNOLOGY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $83.7 million.
What is the period of performance?
Start: 2016-10-31. End: 2018-03-31.
What specific technical services are being provided under this contract, and how do they align with Air Force strategic goals?
The contract description 'All Other Professional, Scientific, and Technical Services' is very broad. To assess value, it's crucial to understand the specific tasks, deliverables, and their direct contribution to the Air Force's mission objectives. Without this detail, it's hard to gauge the necessity and impact of the spending.
What is the justification for not competing this contract, and what steps were taken to ensure fair pricing without competition?
Sole-source awards bypass the competitive process, potentially increasing costs. The justification for this decision is critical. The government should have conducted a thorough price analysis, potentially using historical data or independent cost estimates, to ensure the 'COST NO FEE' arrangement was fair and reasonable.
How will the effectiveness of the services provided by MIT be measured, and what are the key performance indicators?
Measuring the effectiveness of broad scientific and technical services is challenging. Clear, measurable performance metrics and deliverables are essential for accountability. The Air Force needs robust oversight mechanisms to track progress, ensure quality, and confirm that the investment is yielding the intended technological or operational benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 244 WOOD ST, LEXINGTON, MA, 02421
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Higher Education (Public), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $83,689,768
Exercised Options: $83,665,468
Current Obligation: $83,665,468
Actual Outlays: $-606
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-10-31
Current End Date: 2018-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2021-08-24
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