DoD's $1.43B R&D Contract with MIT Lincoln Lab Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $1,430,817,333 ($1.4B)
Contractor: Massachusetts Institute of Technology
Awarding Agency: Department of Defense
Start Date: 2019-02-26
End Date: 2030-02-28
Contract Duration: 4,020 days
Daily Burn Rate: $355.9K/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 $1.43 billion 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 R&D investment in physical, engineering, and life sciences. 2. Sole-source award to MIT Lincoln Laboratory raises competition concerns. 3. Long contract duration (11 years) may limit future price adjustments. 4. High value suggests substantial impact on the research sector.
Value Assessment
Rating: questionable
The contract's Cost No Fee (CNF) structure makes direct pricing comparisons difficult. Without competitive bidding, it's challenging to assess if the negotiated price represents fair market value for the extensive R&D services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method bypasses the price discovery benefits typically achieved through competitive bidding, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude could result in suboptimal resource allocation and higher overall expenditure for the government.
Public Impact
Advances critical research in physical, engineering, and life sciences. Potential for groundbreaking discoveries impacting national security and technology. Long-term commitment ensures continuity for complex, multi-year research projects. Economic benefits for the Massachusetts region through research funding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
- Cost-plus contract type (CNF)
Positive Signals
- High-value R&D investment
- Partnership with leading research institution
- Long-term strategic focus
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its often complex and non-standardized nature.
Small Business Impact
The contract data does not indicate any specific provisions or set-asides for small businesses. Given the sole-source nature and the specialized research focus, it is unlikely that small businesses were significantly involved in this particular award.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure the research objectives are met efficiently and effectively. Accountability mechanisms should be robust to track progress and expenditures over the extended period.
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
- Sole-source award justification
- Extended contract duration (11 years)
- Potential for cost overruns without competitive pressure
- Limited transparency in pricing
Tags
research-and-development-in-the-physical, department-of-defense, ma, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.43 billion 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 $1.43 billion.
What is the period of performance?
Start: 2019-02-26. End: 2030-02-28.
What specific justifications were provided for awarding this contract on a sole-source basis to MIT Lincoln Laboratory, and do they align with federal procurement regulations for non-competitive procu
Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. For this contract, the justification would likely center on MIT Lincoln Laboratory's unique capabilities, specialized facilities, or prior research critical to the Department of Defense's mission. A thorough review would confirm if these justifications meet the stringent criteria for non-competitive procurement.
How will the Department of Defense ensure cost control and performance monitoring throughout the 11-year duration of this Cost No Fee contract, given the lack of competitive pressure?
Despite the CNF structure and sole-source award, DoD can implement robust oversight through detailed performance metrics, regular progress reviews, and independent technical assessments. Establishing clear milestones and deliverables, coupled with strong program management, will be crucial to ensure efficient resource utilization and adherence to research objectives over the contract's long term.
What is the potential long-term impact of this significant, non-competed R&D investment on the broader scientific research landscape and the development of alternative research capabilities?
A substantial, sole-source investment can concentrate resources and expertise, potentially accelerating specific research areas. However, it may also limit opportunities for other institutions and researchers, potentially stifling broader innovation or the development of competing capabilities. The long-term impact depends on how effectively the research outcomes are disseminated and integrated into wider scientific and technological advancements.
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: $2,313,005,281
Exercised Options: $2,313,004,244
Current Obligation: $1,430,817,333
Actual Outlays: $82,842,819
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: 2019-02-26
Current End Date: 2030-02-28
Potential End Date: 2030-02-28 00:00:00
Last Modified: 2026-01-13
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