DoD's $243.7M MIT Contract for R&D: Long-Term, Non-Competed
Contract Overview
Contract Amount: $243,689,483 ($243.7M)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2016-11-30
End Date: 2029-06-30
Contract Duration: 4,595 days
Daily Burn Rate: $53.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF TRANSITION OF SEVERABLE PROJECTS
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $243.7 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: IGF::OT::IGF TRANSITION OF SEVERABLE PROJECTS Key points: 1. Significant long-term investment in advanced R&D. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for high impact research, but risks associated with non-competitive awards. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's 'COST NO FEE' structure with a long duration (over 11 years) makes direct pricing assessment difficult without detailed cost breakdowns. Benchmarking is challenging due to the specialized R&D nature.
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 compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the research and development services.
Public Impact
Long-term funding for critical research areas. Potential for groundbreaking discoveries with national security implications. Concerns about the absence of competitive pressure on costs and innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Cost-plus contract type (implied by 'COST NO FEE' for R&D)
Positive Signals
- Potential for significant technological advancement
- Sustained investment in a key research institution
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but often involves high risk and long development cycles, making direct spending benchmarks difficult.
Small Business Impact
The data does not indicate any subcontracting to small businesses. The award to a large research institution suggests a focus on specialized capabilities not typically found in small businesses.
Oversight & Accountability
The 'COST NO FEE' structure requires robust oversight to ensure costs are reasonable and allocable to the contract. The long duration necessitates continuous monitoring of progress and expenditures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns without competitive pressure
- Long contract duration may lead to scope creep or outdated technology
- Limited transparency on specific research objectives and outcomes
Tags
research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $243.7 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. IGF::OT::IGF TRANSITION OF SEVERABLE PROJECTS
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 $243.7 million.
What is the period of performance?
Start: 2016-11-30. End: 2029-06-30.
What is the specific research being conducted under this contract, and how does it align with DoD priorities?
The contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific projects are not detailed, the 'IGF TRANSITION OF SEVERABLE PROJECTS' suggests a focus on transitioning research findings into practical applications or further development phases, likely aligning with broader Air Force technological advancement goals.
What justification was provided for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided in the data. However, for 'COST NO FEE' contracts, the government typically negotiates the estimated cost and fee structure. Without competition, ensuring fair and reasonable pricing relies heavily on the government's negotiation expertise and access to cost data.
How will the effectiveness and impact of the research be measured over the contract's long duration?
Effectiveness measurement for R&D contracts often involves milestones, deliverables, and technical reviews. Given the long duration and 'severable projects' nature, periodic reviews and phase-gate assessments by the Department of the Air Force would be crucial to track progress, adapt to research outcomes, and ensure alignment with evolving needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $257,612,561
Exercised Options: $253,917,561
Current Obligation: $243,689,483
Actual Outlays: $21,227,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA870215D0001
IDV Type: IDC
Timeline
Start Date: 2016-11-30
Current End Date: 2029-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2025-12-09
More Contracts from Massachusetts Institute of Technology
- Federal Contract — $3.2B (Department of Defense)
- 200507!000127!5700!fa8721!esc/Xpk !FA872105C0002 !A!N! !Y! ! !20050401!20100331!001425594!001425594!001425594!n!massachusetts Institute of TEC!77 Massachusetts AVE Ne49-!cambridge !ma!02139!11000!017!25!cambridge !middlesex !mass !+000010298000!n!n!003260606491!ac61!rdte/Electronics&communication Eq-Basic Research!s1 !services !000 !* !541990!E! !3! ! ! ! ! !20200930!B!A! !n!z!d!u!s!1!001!n!3a!z!y!d! ! !N!V!N! ! ! ! ! !a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $3.0B (Department of Defense)
- Transition of Programs From MIT LL Contract FA8721-05-C-0002 to MIT LL Contract FA8702-15-D-0001 — $1.6B (Department of Defense)
- Massachusetts Institute of Technology: Lincoln Laboratory - Research and Development — $1.4B (Department of Defense)
- MIT LL Non-Severable Task Order Program 1815 — $1.0B (Department of Defense)
View all Massachusetts Institute of Technology federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)