Mitre Corporation's $12.2M contract for management consulting services awarded by HHS

Contract Overview

Contract Amount: $12,231,153 ($12.2M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-30

End Date: 2010-07-08

Contract Duration: 2,107 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.2 million to THE MITRE CORPORATION for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2107 days (approx. 5.8 years) indicates a long-term need for services. 3. The Cost Plus Fixed Fee (CPFF) pricing structure can present cost control challenges. 4. Services fall under 'Other Management Consulting Services', a broad category. 5. The contract was awarded to a single entity, The Mitre Corporation. 6. The contract was active during a period of significant federal IT spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables. However, the $12.2 million total award over nearly six years suggests an average annual spend of approximately $2.1 million. This figure needs to be compared against the scope and complexity of the management consulting services provided to determine if it represents good value. The CPFF structure, while allowing for flexibility, requires careful oversight to ensure costs remain reasonable and aligned with project objectives. Without more detailed performance data, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the fact that it was competed openly suggests an effort to achieve competitive pricing and identify the best value solution. The open nature of the competition is generally positive for price discovery and ensuring a fair market approach.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer through an open process.

Public Impact

The Department of Health and Human Services (HHS) likely benefited from expert management consulting services. These services could have supported various administrative or operational improvements within the agency. The contract's impact is primarily internal to HHS, focusing on enhancing its operational efficiency. The workforce implications are likely related to the consulting team engaged by The Mitre Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed tightly.
The broad nature of 'Other Management Consulting Services' may lack specific performance metrics for precise evaluation.
Long contract duration (over 5 years) could lead to vendor lock-in or reduced agility if needs change.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The Mitre Corporation is a well-established entity with a history of government contracting.
The contract was awarded by a major federal agency (HHS), suggesting a significant and potentially impactful engagement.

Sector Analysis

This contract falls within the broader 'Management Consulting Services' sector, which is a significant part of the professional services industry supporting government operations. Federal spending on consulting services is substantial, covering areas from strategic planning to operational efficiency improvements. The Mitre Corporation, as a federally funded research and development center (FFRDC) and a major contractor, operates within this competitive landscape. Benchmarks for similar consulting contracts would typically consider the specific expertise, duration, and deliverables required.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this award. There is no explicit information on subcontracting plans, but for a contract of this nature awarded to a large entity like The Mitre Corporation, there is potential for small business participation through subcontracting, though it is not guaranteed or mandated by the award details provided.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) contracting officers and program managers. The CPFF structure necessitates robust oversight to monitor costs, ensure adherence to the fixed fee, and verify that the work performed aligns with the contract's objectives. Transparency would depend on HHS's internal reporting and any public disclosures made regarding the contract's performance and outcomes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Management and Program Support Contracts
Federal Management Consulting Services
IT and Telecommunications Consulting
Professional Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service category ('Other Management Consulting Services') may lack specific performance metrics.
Long contract duration could potentially lead to scope creep or outdated service relevance if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.2 million to THE MITRE CORPORATION. OTHER ADP & TELECOMMUNICATIONS SVCS

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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2004-09-30. End: 2010-07-08.

What specific management consulting services were provided under this contract?

The contract falls under the NAICS code 541618, 'Other Management Consulting Services.' This is a broad category that can encompass a wide range of activities, including policy analysis, organizational development, strategic planning, program management support, and operational efficiency improvements. Without access to the specific Statement of Work (SOW) or task orders issued under this contract, the precise nature of the consulting services remains undefined. However, given the awarding agency is HHS, the services likely supported administrative functions, program implementation, or policy development within the department.

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

The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex services where the scope is not fully defined at the outset, allowing for flexibility. However, it places the risk of cost overruns primarily on the government, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but can be more appropriate when requirements are evolving. Other structures like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives to better align contractor and government interests, potentially offering better value than a pure CPFF if managed effectively.

What is The Mitre Corporation's track record with HHS and similar contracts?

The Mitre Corporation has a long-standing relationship with various U.S. government agencies, including HHS. As a federally funded research and development center (FFRDC), Mitre often engages in complex, mission-oriented work. Their track record typically involves providing technical, analytical, and management support across a broad spectrum of government needs. For HHS, Mitre has historically supported areas related to healthcare policy, health IT, and public health initiatives. Their extensive experience suggests a capacity to handle significant consulting engagements, though specific performance metrics for individual contracts would be needed for a detailed assessment.

What was the total spending on 'Other Management Consulting Services' by HHS during the contract period (2004-2010)?

To determine the total spending on 'Other Management Consulting Services' by HHS during the contract period (September 30, 2004, to July 8, 2010), one would need to access historical federal procurement databases (like USASpending.gov or FPDS-NG) and filter for HHS as the agency, NAICS code 541618, and the specified date range. This specific contract represents $12.2 million of that total. Without performing that detailed query, it's impossible to provide the exact aggregate spending figure. However, federal spending on consulting services generally saw increases during this period, driven by various government initiatives and needs.

Are there any known performance issues or significant cost variances associated with this specific contract?

Based on the provided summary data, there is no direct information indicating performance issues or significant cost variances for this specific contract. The data points focus on the award details, contract type, duration, and value. To ascertain performance issues or cost variances, one would typically need to review contract performance reports, contract modification histories, or any official oversight reports (e.g., from an Inspector General) related to this particular award. The absence of such flags in the summary data does not guarantee flawless execution but means no readily apparent major problems were highlighted in the source information.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $12,231,153

Exercised Options: $12,231,153

Current Obligation: $12,231,153

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TIRNO99D00005

IDV Type: IDC

Timeline