Mitre Corporation awarded $16M for Enterprise Data Centers Program Services by HHS CMS

Contract Overview

Contract Amount: $15,953,390 ($16.0M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2007-12-31

End Date: 2013-04-01

Contract Duration: 1,918 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE DATA CENTERS PROGRAM SERVICES

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.0 million to THE MITRE CORPORATION for work described as: ENTERPRISE DATA CENTERS PROGRAM SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (1918 days) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541618 points to a focus on management consulting services. 5. The award was a Delivery Order, implying it's part of a larger contract vehicle. 6. The contract was awarded to a single entity, The Mitre Corporation. 7. The contract was awarded by the Centers for Medicare and Medicaid Services (CMS).

Value Assessment

Rating: fair

Benchmarking the value of this $15.95 million contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation if not rigorously managed. Comparing this to similar data center program management contracts would require detailed scope of work and outcome data. The fixed fee component provides some cost certainty, but the 'cost' portion is variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but the designation suggests a robust competitive environment. This approach is generally favored to ensure fair pricing and access to the best available solutions.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation from a wider pool of contractors.

Public Impact

The primary beneficiary is the Centers for Medicare and Medicaid Services (CMS), which receives support for its Enterprise Data Centers Program. Services delivered likely include program management, consulting, and technical expertise related to data center operations and strategy. The geographic impact is centered around CMS operations, likely within the United States. Workforce implications could involve specialized IT and management consulting roles, potentially supporting federal employees and contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if cost controls are weak.
Lack of specific performance metrics makes it difficult to assess the true value for money.
Long contract duration (over 5 years) may reduce flexibility to adapt to changing technological needs.
Reliance on a single contractor for program services could limit future competitive options.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield reasonable pricing.
The Mitre Corporation is a well-established, federally funded research and development center (FFRDC) with a strong track record in complex technical programs.
The fixed fee component provides a degree of cost predictability for the government.
The contract supports critical infrastructure for CMS, essential for healthcare services delivery.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. Contracts for enterprise data center management and consulting are crucial for agencies managing vast amounts of sensitive data. Spending in this area is driven by the need for secure, efficient, and scalable data infrastructure. Comparable spending benchmarks would typically be found within IT consulting and infrastructure management categories for large federal agencies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large contract awarded to The Mitre Corporation, a non-profit FFRDC, the direct impact on small businesses may be limited unless subcontracting opportunities were mandated or pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be expected to ensure costs are reasonable and allocable. Transparency would depend on CMS's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Data Center Consolidation Initiative
IT Modernization Programs
Cloud Computing Services Contracts
Health Information Technology Services
Management and Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Lack of specific performance metrics hinders value assessment.
Potential for technological obsolescence over the contract's long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.0 million to THE MITRE CORPORATION. ENTERPRISE DATA CENTERS PROGRAM SERVICES

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2007-12-31. End: 2013-04-01.

What specific services did The Mitre Corporation provide under this contract?

While the contract is for 'ENTERPRISE DATA CENTERS PROGRAM SERVICES,' the specific deliverables are not detailed in the provided data. Typically, such contracts involve program management, strategic planning, technical consulting, system integration support, cybersecurity assessments, and operational efficiency analysis for federal data centers. Given The Mitre Corporation's role as an FFRDC, their services often focus on objective analysis, research, and development of solutions to complex national challenges, which in this context would relate to optimizing CMS's data center infrastructure and services.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT services?

The CPFF structure is common for complex projects where the scope is not fully defined at the outset or involves significant research and development. It allows the contractor to recover all allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. Cost-reimbursement contracts (like CPFF) are often used when the government needs the contractor to perform work that carries inherent risks or uncertainties, but they require robust oversight to prevent cost overruns. FFP contracts provide the most cost certainty but are best suited for well-defined scopes.

What is The Mitre Corporation's track record with the federal government, particularly CMS?

The Mitre Corporation is a highly respected, non-profit organization that operates federally funded research and development centers (FFRDCs) for various government agencies. They have a long history of providing objective technical guidance, research, and systems engineering support across defense, intelligence, healthcare, aviation, and cybersecurity domains. Their work with CMS likely involves complex technical and programmatic challenges, leveraging their expertise in areas like health IT, data analytics, and systems modernization. Their FFRDC status implies a commitment to unbiased, mission-focused support rather than profit maximization.

What were the key performance indicators (KPIs) or objectives for this contract?

The provided data summary does not include specific Key Performance Indicators (KPIs) or objectives for this contract. For a contract focused on 'Enterprise Data Centers Program Services,' typical KPIs might include data center uptime percentages, energy efficiency metrics (e.g., Power Usage Effectiveness - PUE), cost savings achieved through optimization, successful migration of services, or adherence to security protocols. Without these details, a quantitative assessment of the contract's success is not possible.

How does the $15.95 million award compare to historical spending on similar data center services by CMS?

To compare this $15.95 million award to historical spending, one would need access to CMS's historical contract data for data center services. This figure represents the total obligated amount over the contract's life (approximately 5.2 years). Annualized spending would be around $3.07 million per year. Without comparative data on the scope, duration, and specific services of previous or concurrent contracts, it's difficult to determine if this award represents an increase, decrease, or stable level of investment in data center program services.

What are the potential risks associated with a long-duration contract (1918 days) for data center services?

Long-duration contracts for data center services carry several risks. Technological obsolescence is a primary concern; the IT landscape evolves rapidly, and a 5+ year contract might lock the government into outdated technologies or architectures. Vendor lock-in is another risk, making it difficult and costly to switch providers or adopt new solutions. Furthermore, the initial scope and requirements might become misaligned with evolving agency needs over time, leading to inefficiencies or the need for costly contract modifications. Maintaining contractor focus and performance over an extended period also requires consistent oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 22102

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,603,814

Exercised Options: $15,953,390

Current Obligation: $15,953,390

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TIRNO99D00005

IDV Type: IDC

Timeline