MITRE Corporation awarded $215M contract for Air Force engineering services, highlighting a sole-source approach

Contract Overview

Contract Amount: $215,022,985 ($215.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $590.7K/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 $215.0 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 entity, raising questions about competitive pricing and potential cost efficiencies. 2. The duration of the contract (364 days) suggests a need for ongoing, specialized technical support. 3. Services fall under 'All Other Professional, Scientific, and Technical Services,' indicating a broad scope. 4. The 'Cost No Fee' contract type implies the government will reimburse allowable costs without an additional profit margin for the contractor. 5. This award represents a significant investment in specialized engineering capabilities for the Air Force. 6. The absence of small business set-asides or subcontracting requirements may limit broader economic participation.

Value Assessment

Rating: fair

Benchmarking the value of this 'Cost No Fee' contract is challenging without detailed cost breakdowns and comparison to similar sole-source engagements. The absence of competition means there's no direct market price discovery. However, the 'Cost No Fee' structure aims to limit contractor profit, which can be a cost-control mechanism. The total award amount of over $215 million for a one-year period indicates a substantial requirement for specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a reliance on a single provider for critical services.

Taxpayer Impact: Taxpayers may not benefit from the potential cost savings that could arise from a competitive bidding process. The absence of competition means that the negotiated price is not validated against market alternatives, potentially leading to higher overall expenditures.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive specialized engineering and technical services. Services are expected to support national security initiatives and advanced technological development within the Air Force. The contract's geographic impact is likely concentrated where Air Force operations and MITRE facilities are located, primarily Massachusetts. Workforce implications include the utilization of highly skilled engineers and technical professionals employed by MITRE.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of small business participation means fewer opportunities for smaller, innovative firms.
The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to assess specific performance metrics without further detail.

Positive Signals

MITRE Corporation is a well-established federally funded research and development center (FFRDC) with a strong track record.
The 'Cost No Fee' structure aims to align contractor incentives with government cost control.
The contract supports critical national security missions for the Air Force.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the broad category of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector is characterized by a wide range of specialized expertise, often involving research, development, and advisory services. The market size for such services is substantial, driven by government and private sector needs for innovation and problem-solving. MITRE, as an FFRDC, operates in a unique space, often supporting government agencies with objective analysis and technical solutions that may not be readily available from commercial entities.

Small Business Impact

This contract does not appear to include any small business set-asides, nor are there explicit requirements for subcontracting with small businesses mentioned in the provided data. This suggests that the primary contractor, MITRE Corporation, will likely perform the majority of the work internally. Consequently, the direct impact on the small business ecosystem is minimal for this specific award, as opportunities for subcontracting are not mandated.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As MITRE is a Federally Funded Research and Development Center (FFRDC), it is subject to specific oversight frameworks designed to ensure objectivity and alignment with government interests. Transparency regarding the specific deliverables and performance metrics would be crucial for effective accountability, though this level of detail is not provided in the summary data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MITRE FFRDC Contracts
Department of Defense Engineering Services
Air Force Research and Development
Professional and Technical Services Contracts
Sole-Source Federal Awards

Risk Flags

Sole-source award
Lack of competition
No small business subcontracting requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $215.0 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 $215.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is MITRE Corporation's track record with the Department of the Air Force?

MITRE Corporation has a long-standing relationship with the Department of the Air Force, operating as a Federally Funded Research and Development Center (FFRDC). They provide a wide array of technical, engineering, and advisory services to support Air Force programs and national security initiatives. Their historical performance typically involves objective analysis, systems engineering, research, and development support across various domains, including command and control, cybersecurity, and advanced technologies. Specific performance metrics for past contracts would require detailed review, but their designation as an FFRDC implies a high level of trust and capability in supporting complex government needs.

How does the 'Cost No Fee' contract type compare to other pricing structures in terms of value?

The 'Cost No Fee' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used for research and development efforts or when the contractor is a non-profit organization, like MITRE. From a value perspective, CNF aims to minimize contractor profit motive, potentially leading to lower overall costs compared to fixed-price or cost-plus-incentive-fee contracts where profit is a significant component. However, the government still bears the risk of cost overruns, and effective oversight is crucial to ensure costs remain reasonable and necessary for the scope of work.

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 ($215M) include a lack of price competition, which can lead to suboptimal pricing and potentially higher costs for the government compared to a competed contract. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially stifling innovation or reducing flexibility in the future. Furthermore, without competitive pressure, there might be less incentive for the contractor to aggressively pursue cost efficiencies or explore novel solutions. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

What is the typical scope of 'All Other Professional, Scientific, and Technical Services' for the Air Force?

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is a broad classification encompassing a diverse range of specialized services not covered by more specific NAICS codes. For the Air Force, this can include activities such as scientific research and development, engineering consulting, technical analysis, program management support, specialized testing, environmental consulting, and other expert advisory services. The scope is highly dependent on the specific contract's statement of work, but it generally involves leveraging specialized knowledge and expertise to address complex technical challenges, support operational needs, or advance technological capabilities.

How does MITRE's FFRDC status influence contract oversight and value?

MITRE's status as a Federally Funded Research and Development Center (FFRDC) significantly influences contract oversight and perceived value. FFRDCs are established to provide unique, long-term technical capabilities to the government, operating in the public interest with objectivity and independence. Oversight for FFRDCs often involves specific government program offices and potentially broader agency-level reviews, focusing on maintaining objectivity, managing potential conflicts of interest, and ensuring alignment with strategic government objectives. The value proposition of an FFRDC like MITRE lies in its deep technical expertise, unbiased analysis, and ability to tackle complex, mission-critical challenges that may not be adequately addressed by the commercial sector.

What are the implications of the contract duration (364 days) for the Air Force's needs?

A contract duration of 364 days, just shy of a full year, typically indicates a need for ongoing, specialized support that is critical but may not require a multi-year commitment or is subject to annual appropriations. For the Air Force, this duration suggests a requirement for continuous technical expertise, project execution, or advisory services that are essential for current operations or specific development phases. It allows for flexibility in adapting to evolving requirements year-to-year while ensuring continuity of essential services. The short duration also aligns with typical government fiscal year planning and budget cycles.

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: $584,851,282

Exercised Options: $584,851,282

Current Obligation: $215,022,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline