HHS awards $44.1M contract to MITRE for technical services, raising value and competition questions
Contract Overview
Contract Amount: $44,143,262 ($44.1M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-30
End Date: 2019-05-29
Contract Duration: 1,702 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $44.1 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF Key points: 1. The contract value of $44.1M is significant, requiring careful scrutiny of its necessity and efficiency. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type can introduce cost escalation risks. 4. The sector is professional, scientific, and technical services, a broad category with varying benchmarks.
Value Assessment
Rating: questionable
The CPFF contract type, while allowing flexibility, can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking against similar technical services contracts is crucial to assess if the $44.1M represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of the technical services and the selection process's rigor will determine the extent of price discovery achieved.
Taxpayer Impact: While competition is positive, the CPFF structure warrants oversight to ensure taxpayer funds are used efficiently and effectively for the services rendered.
Public Impact
Impacts healthcare policy and administration through technical expertise. Potential for improved efficiency in Medicare and Medicaid operations. Long-term contract duration may indicate ongoing critical needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type risk
- Broad service category
- Lack of specific performance metrics in data
Positive Signals
- Full and open competition
- Experienced contractor (MITRE)
- Long-term need indicated
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, which is broad. Benchmarks for this sector vary widely based on specialization, but significant government contracts often exceed tens of millions for complex technical support.
Small Business Impact
The data indicates the contractor is THE MITRE CORPORATION, a large entity. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses on this particular contract.
Oversight & Accountability
Oversight is critical given the CPFF structure and the significant contract value. The Centers for Medicare and Medicaid Services (CMS) should ensure robust monitoring of costs and performance to maintain accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost escalation risk due to CPFF structure
- Potential for undefined scope creep
- Lack of specific performance metrics
- Limited small business involvement
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $44.1 million to THE MITRE CORPORATION. IGF::OT::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 $44.1 million.
What is the period of performance?
Start: 2014-09-30. End: 2019-05-29.
What specific technical services were provided under this contract, and how did they directly benefit Medicare and Medicaid beneficiaries or operations?
The contract was for 'All Other Professional, Scientific, and Technical Services.' Without more granular detail, it's difficult to pinpoint the exact services. However, such contracts typically support areas like data analysis, system modernization, policy research, or program evaluation, aiming to improve the efficiency and effectiveness of healthcare programs for beneficiaries.
What measures were in place to control costs and ensure value under the Cost Plus Fixed Fee (CPFF) structure, given the $44.1M award?
CPFF contracts require diligent oversight to manage costs. Key measures would include establishing a realistic fixed fee, detailed cost accounting, regular audits, and performance reviews to ensure the contractor operates efficiently. The agency must actively monitor expenditures against the estimated cost to prevent overruns and ensure the fee remains justified.
How did the full and open competition process ensure the government received the best possible technical solution and pricing for these services?
Full and open competition theoretically allows any interested and qualified vendor to bid, fostering a competitive environment that drives down prices and encourages innovation. The effectiveness depends on the clarity of the solicitation, the evaluation criteria, and the rigor with which proposals were assessed to ensure the chosen solution represented the best value.
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: $44,397,094
Exercised Options: $44,143,262
Current Obligation: $44,143,262
Actual Outlays: $257,883
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $8,472,395
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
Start Date: 2014-09-30
Current End Date: 2019-05-29
Potential End Date: 2019-05-29 00:00:00
Last Modified: 2023-10-17
More Contracts from THE Mitre Corporation
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (Department of Transportation)
- FY25 Task Order 7 - to Provide Systems Engineering Research and Development Services for the Department of Defense (DOD) and Other Federal Government Agencies — $753.9M (Department of Defense)
- FY24 Task Order 6 - Initial Funding and Updating PWS & DD254 — $735.3M (Department of Defense)
- Caasd Must Provide Essential Engineering, Research, and Analysis Capabilities to Support the FAA in the Performance of ITS Mission Through a Systems Approach That Addresses ALL Dimensions (E.G. Political, Operational, Economic, Technical) Required to — $700.5M (Department of Transportation)
- Initial Modification on Task Order 5 Nsec, Ffrdc to Incrementally Fund, Update PWS & DD254 — $687.3M (Department of Defense)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →