MITRE Corporation awarded $20.7M contract by HHS for technical services, highlighting a need for specialized expertise

Contract Overview

Contract Amount: $20,738,007 ($20.7M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-24

End Date: 2016-09-24

Contract Duration: 731 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::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 $20.7 million to THE MITRE CORPORATION for work described as: IGF::CL::IGF Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 3. The duration of 731 days indicates a significant, ongoing need for the services provided. 4. The services fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The award to a single contractor, THE MITRE CORPORATION, suggests specialized capabilities were sought. 6. The contract was issued as a Delivery Order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $20.7 million over two years for specialized technical services appears reasonable given the broad category of services. Benchmarking against similar contracts for 'All Other Professional, Scientific, and Technical Services' would provide a more precise value-for-money assessment. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, which needs diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these specialized technical services. This process is designed to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and quality for the services rendered, preventing potential overspending associated with less competitive solicitations.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from these technical services, likely to support its mission. The services delivered are broadly defined as 'All Other Professional, Scientific, and Technical Services,' suggesting a wide range of potential support functions. The contract is geographically located in Virginia (VA), indicating a concentration of federal technical support activities in that region. The contract likely supports a workforce of highly skilled professionals in scientific and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee, requiring robust oversight.
The broad 'All Other Professional, Scientific, and Technical Services' category lacks specificity, making it harder to define precise performance metrics and assess value.
Lack of detail on the number of bidders in the full and open competition limits the assessment of the true competitive landscape.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
The contract is with THE MITRE CORPORATION, a well-established entity often involved in government technical support and research.
The contract duration suggests a sustained need and potential for long-term partnership, fostering expertise development.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) encompasses a wide array of specialized services. This contract fits within the broader federal IT and professional services sector, which sees significant government spending. Comparable spending benchmarks would depend on the specific nature of the technical services provided, but the overall federal spending on such services is substantial, reflecting the government's reliance on external expertise for complex tasks.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of specialized technical services often awarded to established firms like THE MITRE CORPORATION, subcontracting opportunities for small businesses may be limited unless specifically mandated or pursued by the prime contractor. Further analysis would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and specifically the Centers for Medicare and Medicaid Services (CMS). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain controlled and objectives are met. Transparency would be enhanced by public reporting of performance metrics and expenditures, though specific details may be limited by contract sensitivity.

Related Government Programs

HHS IT Services
CMS Support Contracts
Professional and Technical Services
Government Consulting Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Broad service description lacks specificity, potentially hindering performance measurement.
Number of bidders not specified, limiting assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.7 million to THE MITRE CORPORATION. IGF::CL::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 $20.7 million.

What is the period of performance?

Start: 2014-09-24. End: 2016-09-24.

What is the track record of THE MITRE CORPORATION with the Department of Health and Human Services?

THE MITRE CORPORATION has a long-standing history of supporting various government agencies, including the Department of Health and Human Services (HHS). Their work often involves complex technical challenges, research, and development, particularly in areas related to healthcare systems, public health, and scientific advancement. While specific details of past HHS contracts would require a deeper dive into federal procurement databases, MITRE's general reputation is that of a highly capable organization often tasked with critical, non-commercial government functions. Their involvement with HHS likely spans multiple programs and initiatives, contributing to the agency's mission through technical expertise and objective analysis. The nature of their work often involves systems engineering, cybersecurity, and policy support, aligning with the broad needs of a large agency like HHS.

How does the $20.7 million contract value compare to similar technical service contracts awarded by HHS?

The $20.7 million contract value for THE MITRE CORPORATION with HHS, awarded over a two-year period, falls within a moderate range for specialized technical services. To provide a precise comparison, one would need to analyze contracts within the same NAICS code (541990 - All Other Professional, Scientific, and Technical Services) and with similar objectives. However, considering the broad nature of the services, this value suggests a significant but not exceptionally large engagement. HHS frequently awards contracts in the tens to hundreds of millions for various IT, research, and operational support services. MITRE's award appears to be a substantial investment in specialized expertise, likely for a critical function, but it is not an outlier in the context of overall HHS spending on professional services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For the government, this means the final cost can exceed initial estimates if costs are not meticulously managed and controlled. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate this risk and ensure the government receives good value. Without stringent management, CPFF contracts can become significantly more expensive than initially planned.

What is the expected impact of these services on the Centers for Medicare and Medicaid Services' (CMS) operations?

The expected impact of these 'All Other Professional, Scientific, and Technical Services' on CMS operations is likely significant, though the specific nature is broad. Given CMS's mission to administer Medicare, Medicaid, and the Children's Health Insurance Program, these services could support a wide range of functions. This might include enhancing IT systems, improving data analytics for healthcare quality and fraud detection, providing technical expertise for policy implementation, or supporting research and development initiatives aimed at healthcare reform. The contract's duration suggests a sustained need for these specialized capabilities, implying they are integral to ongoing CMS operations and strategic goals, contributing to the efficiency, effectiveness, and integrity of federal healthcare programs.

How has federal spending in the 'All Other Professional, Scientific, and Technical Services' category evolved over the past five years?

Federal spending within the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) has generally seen a steady increase over the past five years, reflecting the government's continued reliance on specialized external expertise across various domains. While specific figures fluctuate annually based on agency priorities and budget allocations, this broad category consistently represents a significant portion of federal procurement. Agencies across the board, including Health and Human Services, Defense, and others, utilize these services for tasks ranging from scientific research and development support to complex analytical and consulting functions that may not fit into more narrowly defined service categories. The trend indicates a persistent demand for a diverse range of professional and technical skills to support government missions.

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: $20,738,007

Exercised Options: $20,738,007

Current Obligation: $20,738,007

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,095,262

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201200008I

IDV Type: IDC

Timeline