MIT Lincoln Lab FFRDC Contract Awarded $39.25M by DoD for R&D Services

Contract Overview

Contract Amount: $39,253,109 ($39.3M)

Contractor: Massachusetts Institute of Technology

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2030-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $21.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: OPERATION OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY LINCOLN LABORATORY FEDERALLY FUNDED RESEACH AND DEVELOPMENT CENTER.

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: OPERATION OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY LINCOLN LABORATORY FEDERALLY FUNDED RESEACH AND DEVELOPMENT CENTER. Key points: 1. Significant contract awarded to a leading research institution for critical R&D. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long-term contract (5 years) suggests ongoing need for specialized research. 4. Focus on physical, engineering, and life sciences R&D aligns with national priorities.

Value Assessment

Rating: fair

The contract type is 'COST NO FEE', indicating the government will reimburse costs but not provide a fee. This is common for FFRDCs where the focus is on research rather than profit. Benchmarking is difficult without fee data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, which is typical for Federally Funded Research and Development Centers (FFRDCs) due to their unique relationship with the government. However, the lack of competition limits price discovery and potential for cost savings.

Taxpayer Impact: Taxpayer funds are being used for a sole-source award to a FFRDC, implying a strategic decision to leverage specialized capabilities. Oversight is crucial to ensure value for money.

Public Impact

Advancement of critical research and development in physical, engineering, and life sciences. Potential for technological breakthroughs with national security or economic implications. Sustained investment in a key research institution, fostering innovation. Ensuring continued access to specialized expertise for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition for a significant contract.
  • Potential for cost overruns without a fee structure to incentivize efficiency.
  • Reliance on a single entity for specialized research.

Positive Signals

  • Award to a highly reputable FFRDC with a proven track record.
  • Long-term commitment ensures continuity of critical research.
  • Alignment with strategic national research and development goals.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation and national competitiveness. Benchmarks vary widely based on specific research areas and contract types.

Small Business Impact

This contract is awarded to MIT, a large research institution, and does not appear to involve small business participation directly. The focus is on leveraging the FFRDC's capabilities.

Oversight & Accountability

As a sole-source award to an FFRDC, oversight should focus on performance metrics, adherence to research objectives, and justification of costs. The Department of the Air Force is responsible for this oversight.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Lack of competitive bidding.
  • Potential for cost creep without a fee structure.
  • Dependence on a single research entity.
  • Need for robust performance monitoring to ensure value.

Tags

research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. OPERATION OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY LINCOLN LABORATORY FEDERALLY FUNDED RESEACH AND DEVELOPMENT CENTER.

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 $39.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2030-03-31.

What is the justification for the sole-source award, and how is value for money ensured without competition?

Sole-source awards to FFRDCs are typically justified by their unique capabilities, established relationships, and the need for continuity in specialized research. Value for money is ensured through rigorous cost monitoring, performance evaluations against defined research objectives, and adherence to the FFRDC's charter, rather than traditional competitive bidding processes.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key performance indicators would likely focus on research milestones, scientific advancements, timely delivery of research findings, and adherence to budget. Measurement would involve regular technical reviews, progress reports, and potentially peer reviews of research outcomes, ensuring the FFRDC meets its research and development obligations.

How does this contract contribute to the Department of Defense's broader strategic goals in R&D?

This contract supports the DoD's strategic goals by providing access to cutting-edge research and development capabilities at MIT Lincoln Laboratory, a trusted partner. It enables the exploration of new technologies and scientific advancements crucial for maintaining technological superiority and addressing future defense challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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: $220,353,360

Exercised Options: $220,353,360

Current Obligation: $39,253,109

Actual Outlays: $171,392

Subaward Activity

Number of Subawards: 94

Total Subaward Amount: $50,835,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA870225DB002

IDV Type: IDC

Timeline

Start Date: 2025-04-01

Current End Date: 2030-03-31

Potential End Date: 2030-03-31 00:00:00

Last Modified: 2026-04-03

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