DoD's $263M MIT Lincoln Lab R&D Contract: Long-Term, Not Competed, Raises Oversight Questions
Contract Overview
Contract Amount: $262,937,117 ($262.9M)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2017-12-04
End Date: 2030-02-28
Contract Duration: 4,469 days
Daily Burn Rate: $58.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF MASSACHUSETTS INSTITUTE OF TECHNOLOGY: LINCOLN LABORATORY - RESEARCH AND DEVELOPMENT
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $262.9 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: IGF::OT::IGF MASSACHUSETTS INSTITUTE OF TECHNOLOGY: LINCOLN LABORATORY - RESEARCH AND DEVELOPMENT Key points: 1. Significant long-term investment in R&D at a prominent institution. 2. Lack of competition suggests potential for higher costs and limited innovation. 3. Oversight is crucial given the extended duration and sole-source nature. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The total award amount is substantial. Without competitive bidding, it's difficult to assess if the pricing represents fair value compared to similar R&D contracts. The 'COST NO FEE' contract type suggests costs are reimbursed, but profit margins are not explicitly stated.
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 may prevent the government from obtaining the best possible pricing or innovative solutions available from a wider pool of contractors.
Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for the research and development services provided over the contract's long duration.
Public Impact
Long-term commitment to a single research institution for critical R&D. Potential for missed opportunities to leverage diverse research capabilities. Questions about the justification for not seeking competitive proposals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Cost-reimbursement contract type
Positive Signals
- Award to a reputable research institution
- Focus on critical R&D areas
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The significant award amount suggests a major investment in advanced scientific and technological pursuits, potentially exceeding typical benchmarks for R&D contracts of this nature.
Small Business Impact
The contract data indicates no specific provisions or set-asides for small businesses. The award to a large research institution suggests that small businesses were likely not involved as prime contractors.
Oversight & Accountability
The extended duration (ending in 2030) and sole-source nature of this contract warrant close oversight. Regular reviews of performance, cost, and continued necessity are essential to ensure accountability and responsible use of funds.
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
- Sole-source award lacks competition
- Long contract duration (over 10 years)
- Cost-reimbursement contract type can lead to cost overruns
- Potential for complacency due to lack of competitive pressure
- Limited transparency on justification for sole-sourcing
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 $262.9 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. IGF::OT::IGF MASSACHUSETTS INSTITUTE OF TECHNOLOGY: LINCOLN LABORATORY - RESEARCH AND DEVELOPMENT
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 $262.9 million.
What is the period of performance?
Start: 2017-12-04. End: 2030-02-28.
What is the specific justification for awarding this contract on a sole-source basis, and has a thorough market research been conducted to confirm the absence of viable alternatives?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or the unavailability of other sources. Without detailed documentation, it's impossible to confirm if comprehensive market research was performed. This lack of transparency raises concerns about whether the government truly explored all options to ensure competitive pricing and access to the best available talent.
How will the Department of Defense ensure cost control and prevent potential overruns given the 'COST NO FEE' contract type and the long duration of the award?
Effective cost control will rely on robust government oversight, including detailed audits of incurred costs, regular performance reviews, and strict adherence to the contract's scope. The 'COST NO FEE' structure means the government reimburses allowable costs, so vigilant monitoring is essential to prevent unnecessary expenditures and ensure the contractor remains efficient throughout the project's lifecycle.
What are the key performance indicators (KPIs) and milestones for this R&D contract, and how will their achievement be measured to ensure the effectiveness of the research?
Effective measurement requires clearly defined KPIs and milestones tied to specific research objectives and deliverables. The government must establish a rigorous framework for tracking progress against these benchmarks, including technical reviews and independent assessments. This ensures that the R&D efforts are on track and delivering the intended scientific and technological advancements as planned.
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: $386,119,915
Exercised Options: $386,119,915
Current Obligation: $262,937,117
Actual Outlays: $6,065,281
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: 2017-12-04
Current End Date: 2030-02-28
Potential End Date: 2030-02-28 00:00:00
Last Modified: 2025-12-29
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