DoD's $51M MITRE Bridge Contract Awarded to MITRE Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $51,023,589 ($51.0M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2009-09-30
Contract Duration: 364 days
Daily Burn Rate: $140.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: THE MITRE CORPORATION FY09 BRIDGE CONTRACT 10/01/08 - 11/30/08
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730
Plain-Language Summary
Department of Defense obligated $51.0 million to THE MITRE CORPORATION for work described as: THE MITRE CORPORATION FY09 BRIDGE CONTRACT 10/01/08 - 11/30/08 Key points: 1. The Department of Defense awarded a $51 million bridge contract to The MITRE Corporation. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 364 days, suggesting a need for continuity of services. 4. The award falls under 'All Other Professional, Scientific, and Technical Services', a broad category.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which is unusual for a competitive award of this size. This suggests the pricing might be based on actual costs incurred by the contractor, with no additional profit margin. Further analysis is needed to understand the cost drivers and ensure reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which is a positive sign for price discovery. However, the 'COST NO FEE' contract type warrants scrutiny to ensure costs are controlled and reasonable.
Taxpayer Impact: Taxpayer funds are being used for professional, scientific, and technical services. The 'COST NO FEE' structure requires careful oversight to prevent cost overruns.
Public Impact
This contract ensures the continuity of essential professional, scientific, and technical services for the Department of Defense. The use of a bridge contract indicates a potential gap in long-term contracting strategy or a need for immediate service continuation. Transparency in the 'COST NO FEE' structure is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type for a competitive award
- Broad service category may obscure specific needs
- Bridge contract suggests potential planning gaps
Positive Signals
- Awarded under Full and Open Competition
- Ensures service continuity for DoD
Sector Analysis
The award falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Spending in this broad category can vary significantly, but contracts of this magnitude often support critical government functions. Benchmarking requires a deeper understanding of the specific services provided.
Small Business Impact
The data indicates this contract was awarded to The MITRE Corporation, a large entity. There is no indication of small business participation in this specific award, which is common for large, specialized contracts.
Oversight & Accountability
The 'COST NO FEE' contract type necessitates robust oversight to monitor and validate incurred costs. The Department of Defense's contracting officers are responsible for ensuring the government receives fair value.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost No Fee contract type
- Broad service category
- Bridge contract implies potential planning issues
- Lack of profit incentive may affect contractor performance focus
- Potential for cost creep without strong oversight
Tags
all-other-professional-scientific-and-te, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.0 million to THE MITRE CORPORATION. THE MITRE CORPORATION FY09 BRIDGE CONTRACT 10/01/08 - 11/30/08
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 $51.0 million.
What is the period of performance?
Start: 2008-10-01. End: 2009-09-30.
What specific services are covered under 'All Other Professional, Scientific, and Technical Services' for this bridge contract, and how do they align with DoD's ongoing mission requirements?
The 'All Other Professional, Scientific, and Technical Services' category is broad and can encompass a wide range of activities. For this specific bridge contract, understanding the precise nature of the services provided by MITRE is crucial. This includes identifying whether they are research, analysis, engineering support, or other technical functions critical to the Department of Defense's operational needs during the contract period.
How does the 'COST NO FEE' contract structure impact the government's ability to control costs and ensure value for money, especially given the competitive award?
A 'COST NO FEE' contract means the contractor is reimbursed for allowable costs but receives no fee or profit. While this can reduce the overall cost to the government, it shifts the focus to rigorous cost monitoring and auditing. For a competitive award, this structure is unusual and suggests the government may be prioritizing service continuity over profit-driven incentives, but it requires stringent oversight to prevent inflated costs.
What is the strategic rationale behind using a bridge contract of this duration and value, and what are the implications for long-term service acquisition planning?
Bridge contracts are typically used to maintain essential services during a gap in contracting, often while a new, long-term contract is being finalized. A 364-day, $51 million bridge contract suggests a significant need for continuity. This duration and value may indicate potential delays in the planned procurement process or a need to re-evaluate long-term requirements, raising questions about the efficiency of the government's acquisition planning.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 202 BURLINGTON RD, BEDFORD, MA, 06
Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,000,000
Exercised Options: $51,023,589
Current Obligation: $51,023,589
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2011-11-21
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