Air Force awards $524.6M contract to MITRE for National Security Engineering Services

Contract Overview

Contract Amount: $524,629,211 ($524.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.4M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: MITRE NATIONAL SECURITY ENGINEERING CENTER (NSEC) SERVICES FOR THE AIR FORCE

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $524.6 million to THE MITRE CORPORATION for work described as: MITRE NATIONAL SECURITY ENGINEERING CENTER (NSEC) SERVICES FOR THE AIR FORCE Key points: 1. Contract awarded to a single, non-profit research and development organization. 2. Focus on national security engineering services for the Air Force. 3. Contract duration is one year, with potential for extensions. 4. Pricing structure is Cost No Fee, indicating reimbursement of costs without profit. 5. The awardee, MITRE, is a federally funded research and development center (FFRDC). 6. This award represents a significant portion of the Air Force's spending in this specialized service area.

Value Assessment

Rating: good

The contract's Cost No Fee (CNF) structure is typical for FFRDCs like MITRE, where the focus is on objective research and analysis rather than profit. Benchmarking value is challenging without specific deliverables, but the CNF structure generally aims to cover costs and ensure access to specialized expertise. The total award amount of $524.6 million over one year suggests a substantial scope of work, but without detailed performance metrics or comparison to similar FFRDC contracts, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation. As a federally funded research and development center (FFRDC), MITRE is uniquely positioned to provide specialized national security engineering services to the Department of Defense. Sole-source awards to FFRDCs are common due to their established expertise, government-sponsored mission, and lack of direct competition.

Taxpayer Impact: Sole-source awards to FFRDCs like MITRE are generally accepted as a necessary mechanism for accessing specialized, objective technical support. While this limits direct price competition, it ensures the government can leverage unique capabilities critical for national security.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving critical national security engineering support. Services delivered are expected to enhance the Air Force's technological capabilities and strategic planning. The geographic impact is national, supporting Air Force operations and research initiatives across various locations. Workforce implications include continued employment for MITRE's specialized engineers and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding limits price discovery and potential cost savings for taxpayers.
Sole-source nature means no direct comparison of technical approaches or innovative solutions from other providers.
Cost-reimbursement structure, while standard for FFRDCs, requires robust oversight to ensure cost efficiency.

Positive Signals

Award to MITRE, a highly respected FFRDC with a proven track record in national security.
Contract focuses on critical national security engineering, aligning with government priorities.
Cost No Fee structure emphasizes mission accomplishment over profit, potentially leading to more objective analysis.
One-year base period allows for flexibility and reassessment of needs before future commitments.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on national security engineering. This sector is characterized by highly specialized expertise and often involves long-term relationships with government agencies. MITRE, as an FFRDC, operates within a unique segment of this market, providing objective research and development support that is not typically available from commercial entities. Comparable spending benchmarks are difficult to establish due to the specialized nature of FFRDC work, but the scale of this award indicates a significant investment in advanced engineering capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded sole-source to The MITRE Corporation. MITRE, as an FFRDC, is a large, non-profit organization. There is no explicit indication of subcontracting requirements for small businesses within the provided data, though MITRE's broader operations may involve such arrangements. The direct award to MITRE bypasses the typical competitive processes that might include small business participation goals.

Oversight & Accountability

Oversight for this Cost No Fee contract will likely be managed by the contracting agency within the Department of the Air Force. As a sole-source award to an FFRDC, oversight will focus on ensuring that costs incurred are reasonable and allocable to the contract's objectives, and that MITRE fulfills its mission-oriented responsibilities. Transparency is generally high for FFRDC work, with regular reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federally Funded Research and Development Centers (FFRDCs)
National Security Programs
Air Force Research and Development
Advanced Engineering Services
Department of Defense IT and Engineering Support

Risk Flags

Sole-source award
Cost-reimbursement contract type
FFRDC reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $524.6 million to THE MITRE CORPORATION. MITRE NATIONAL SECURITY ENGINEERING CENTER (NSEC) SERVICES FOR THE AIR FORCE

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

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 $524.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is MITRE's track record with the Department of Defense, particularly the Air Force?

The MITRE Corporation has a long-standing and extensive track record of supporting the Department of Defense (DoD) and the Air Force. As a Federally Funded Research and Development Center (FFRDC), MITRE operates under various contracts and agreements to provide objective, independent research, development, and analysis. Their work often spans critical areas such as command and control, cybersecurity, systems engineering, and advanced technology integration. For the Air Force specifically, MITRE has been instrumental in areas like air and space systems development, modernization efforts, and strategic planning. Their deep institutional knowledge and technical expertise make them a trusted partner for complex national security challenges, often leading to sole-source or limited-competition awards for specialized services.

How does the Cost No Fee (CNF) pricing structure compare to other contract types for similar services?

The Cost No Fee (CNF) pricing structure is unique in that it reimburses the contractor for all allowable costs incurred in performing the contract but provides no fee or profit. This structure is typically reserved for specific types of organizations, most notably Federally Funded Research and Development Centers (FFRDCs) like MITRE, whose primary mission is objective research and analysis rather than commercial gain. Unlike cost-plus-fee (CPF) contracts, which include a fee, or fixed-price contracts, which establish a set price regardless of cost, CNF aims to ensure that the government receives the benefit of the contractor's expertise without the profit motive influencing the research or recommendations. This structure necessitates robust government oversight to ensure costs are reasonable and directly related to contract performance, but it is often seen as a mechanism to ensure unbiased technical support.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude, particularly to an FFRDC, revolve around the lack of direct competition. This can lead to potential inefficiencies if cost controls are not rigorously applied, as there is no market pressure to drive down prices. There's also a risk that alternative, potentially more innovative or cost-effective solutions from other providers might not be considered. Furthermore, over-reliance on a single source, even a trusted FFRDC, can create dependencies and limit the government's flexibility in exploring a broader range of technological advancements or strategic partnerships. Ensuring strong contract oversight and performance management becomes paramount to mitigate these risks and maximize the value derived from the investment.

How does this contract align with the Air Force's broader strategic objectives in national security?

This contract directly aligns with the Air Force's strategic objectives by providing essential national security engineering services. The Air Force, like other branches of the military, faces rapidly evolving threats and technological landscapes. Contracts like this enable the Air Force to leverage specialized expertise, often from FFRDCs like MITRE, to develop, integrate, and sustain advanced capabilities. This includes areas such as resilient command and control systems, advanced cyber defenses, space domain awareness, and next-generation aerospace technologies. By securing these services, the Air Force aims to maintain its technological superiority, enhance operational effectiveness, and ensure national security in an increasingly complex global environment.

What is the historical spending pattern for similar national security engineering services within the Air Force?

Historical spending patterns for national security engineering services within the Air Force, especially those involving FFRDCs like MITRE, tend to show consistent, significant investment. These services are critical for maintaining technological advantage and addressing complex defense challenges. While specific figures fluctuate year-to-year based on evolving priorities and program lifecycles, the Air Force consistently allocates substantial resources to research, development, and specialized technical support. Awards to FFRDCs often represent a stable, long-term commitment due to the nature of the work and the unique capabilities these organizations provide. The $524.6 million awarded here is indicative of the scale of investment typically seen for high-priority national security engineering initiatives within the Air Force, reflecting ongoing needs in areas like modernization, cybersecurity, and advanced systems integration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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 NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 202 BURLINGTON RD, BEDFORD, MA, 01730

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: $544,266,710

Exercised Options: $544,266,710

Current Obligation: $524,629,211

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline