MITRE Corporation awarded $21.7M for health services R&D, focusing on basic research in medical services

Contract Overview

Contract Amount: $21,748,316 ($21.7M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2013-09-03

End Date: 2018-09-02

Contract Duration: 1,825 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D- MEDICAL: HEALTH SERVICES (BASIC RESEARCH) IGF::CT::IGF

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.7 million to THE MITRE CORPORATION for work described as: R&D- MEDICAL: HEALTH SERVICES (BASIC RESEARCH) IGF::CT::IGF Key points: 1. Contract awarded to a single, established entity suggests a focus on specialized expertise. 2. The contract's duration of five years indicates a long-term need for the services provided. 3. Cost-plus-fixed-fee structure may incentivize cost control while ensuring project completion. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code points to a broad scope of potential research activities. 5. Performance context is within the Centers for Medicare and Medicaid Services, highlighting a focus on healthcare system improvement. 6. The contract's value is moderate within the context of large-scale federal R&D initiatives.

Value Assessment

Rating: good

The contract value of approximately $21.7 million over five years, averaging around $4.3 million annually, appears reasonable for specialized R&D services in the healthcare sector. Benchmarking against similar basic research contracts within HHS, particularly those managed by CMS, would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure is common for research and development where costs can be uncertain, but it requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. While the specific number of bidders is not provided, this method generally fosters competitive pricing and encourages a wider pool of qualified contractors. The fact that MITRE Corporation was ultimately awarded the contract suggests they offered the best value proposition among the competing entities.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a greater likelihood of selecting the most cost-effective solution for the government's needs.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare system through advancements in medical services research. Services delivered encompass basic research in health services, aiming to improve understanding and delivery of care. Geographic impact is primarily national, given CMS's scope, though specific research findings could have localized applications. Workforce implications may involve specialized scientific and technical personnel employed by MITRE Corporation and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects if not tightly managed.
Reliance on a single contractor for a significant period may limit exposure to emerging technologies from other firms.

Positive Signals

MITRE Corporation is a well-established entity with a strong track record in government R&D and systems engineering.
The CPFF contract type, while requiring oversight, allows for flexibility in research endeavors.
Full and open competition suggests a robust selection process was undertaken.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on basic research in healthcare. The R&D market within healthcare is substantial, driven by the need for continuous innovation in treatment, delivery, and system efficiency. Comparable spending benchmarks would involve looking at other federal contracts for basic scientific research, particularly those awarded by agencies like NIH and HHS, which often range from millions to tens of millions of dollars depending on the scope and duration.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a full and open competition awarded to a large, established entity like MITRE Corporation, the direct impact on small business set-asides is likely minimal unless specific subcontracting opportunities were mandated and fulfilled. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). The cost-plus-fixed-fee structure necessitates diligent monitoring of expenditures and progress to ensure adherence to the fixed fee and efficient use of funds. Transparency is generally maintained through contract reporting requirements, though specific details of research findings may be subject to confidentiality or publication schedules.

Related Government Programs

National Institutes of Health (NIH) Research Grants
HHS Agency-Specific Research Initiatives
Federal Health IT Research Programs
Medical Technology Development Contracts

Risk Flags

Potential for cost overruns due to the nature of R&D.
Risk of research outcomes not directly translating into actionable policy or program changes.
Dependency on a single contractor for a prolonged period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.7 million to THE MITRE CORPORATION. R&D- MEDICAL: HEALTH SERVICES (BASIC RESEARCH) IGF::CT::IGF

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 $21.7 million.

What is the period of performance?

Start: 2013-09-03. End: 2018-09-02.

What is MITRE Corporation's track record with federal health services R&D contracts?

The MITRE Corporation has a long-standing history of supporting federal agencies, including the Department of Health and Human Services (HHS), in research and development. They operate federally funded research and development centers (FFRDCs) that provide objective, data-driven analysis and solutions. Their work often spans complex domains like healthcare, national security, and infrastructure. For health services R&D, MITRE has been involved in areas such as health IT modernization, healthcare policy analysis, quality improvement initiatives, and research into healthcare delivery models. Their extensive experience suggests a strong capability to manage and execute complex research projects, often involving collaboration with government stakeholders and the broader scientific community.

How does the $21.7 million contract value compare to similar basic research contracts within HHS?

The $21.7 million contract value over five years, averaging approximately $4.3 million annually, is a moderate figure for basic research within a large agency like HHS. Agencies such as the National Institutes of Health (NIH) often award grants and contracts for basic biomedical research that can range from hundreds of thousands to tens of millions of dollars per year, depending on the project's scope, duration, and the specific scientific field. Contracts for health services research, which focuses more on the delivery, organization, and financing of healthcare, might typically fall within a similar range. Without specific details on the research objectives, a precise comparison is difficult, but the value suggests a significant, multi-year research effort rather than a small pilot study or a large-scale clinical trial.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may incur higher costs than anticipated, although the fixed fee provides a ceiling on the contractor's profit. There's also a risk that the contractor might not be sufficiently incentivized to control costs rigorously, as the government ultimately bears the allowable costs. For the contractor, the risk lies in underestimating the costs required to complete the research, potentially eroding their profit margin if the fixed fee is insufficient. Effective management, clear definition of research objectives, and robust oversight are crucial to mitigate these risks and ensure the government receives good value.

What does the 'All Other Professional, Scientific, and Technical Services' NAICS code imply about the contract's scope?

The North American Industry Classification System (NAICS) code 541990, 'All Other Professional, Scientific, and Technical Services,' indicates a broad and potentially diverse scope for this contract. This category is a catch-all for establishments primarily engaged in providing professional, scientific, or technical services not elsewhere classified. For a basic research contract in health services, this could encompass a wide range of activities, including but not limited to, data analysis, survey design and implementation, policy research, program evaluation, development of new research methodologies, and technical consulting related to healthcare systems. The broadness of the code suggests flexibility for the contractor to adapt research approaches as needed, but it also necessitates clear communication and defined deliverables from the contracting agency to ensure the research remains focused and aligned with objectives.

What is the significance of this contract being awarded to The MITRE Corporation?

The award to The MITRE Corporation is significant because MITRE operates several Federally Funded Research and Development Centers (FFRDCs). These FFRDCs are unique entities that provide objective, independent research and analysis to the government. Their non-profit status and long-term government sponsorship allow them to tackle complex, long-term challenges that require a high degree of trust and continuity. For a contract focused on basic research in health services, MITRE's role as an FFRDC suggests a focus on strategic, foundational work that may inform policy, improve system efficiency, or advance understanding in critical areas for agencies like CMS. Their involvement implies a commitment to objective analysis and the development of innovative solutions for public benefit.

How might this contract contribute to the Centers for Medicare and Medicaid Services' (CMS) mission?

This contract directly supports the mission of the Centers for Medicare and Medicaid Services (CMS) by funding basic research aimed at improving health services. CMS is responsible for administering Medicare, Medicaid, and the Children's Health Insurance Program, overseeing the healthcare of millions of Americans. Basic research in health services can lead to a better understanding of healthcare delivery models, patient outcomes, cost-effectiveness of treatments, and the overall efficiency of the healthcare system. Findings from this research could inform CMS policy decisions, guide the development of new programs or payment models, and ultimately contribute to providing higher quality, more affordable healthcare to beneficiaries.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20110021

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $21,748,316

Exercised Options: $21,748,316

Current Obligation: $21,748,316

Actual Outlays: $91,264

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $1,672,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201200008I

IDV Type: IDC

Timeline