MITRE Corporation awarded $29.5M contract for technical services by HHS, spanning nearly five years

Contract Overview

Contract Amount: $29,551,986 ($29.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-29

End Date: 2022-07-31

Contract Duration: 1,766 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF TEEN PREGNANCY PREVENTION STUDY

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.6 million to THE MITRE CORPORATION for work described as: IGF::OT::IGF TEEN PREGNANCY PREVENTION STUDY Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. Services fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 3. Contract duration of 1766 days (approx. 4.8 years) indicates a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. 5. Awarded by the Department of Health and Human Services (HHS), indicating a focus on public health or administrative support. 6. The contractor, MITRE Corporation, is a well-established entity often involved in government technical projects.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables. However, the $29.5 million award over nearly five years averages to approximately $6 million annually. This figure needs to be compared against the scope and complexity of the technical services provided. The CPFF structure introduces inherent risk to cost control, as the government bears the risk of cost overruns beyond the fixed fee. Without detailed performance metrics or comparisons to similar technical service contracts within HHS, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process, as it is intended to drive down costs and ensure the government receives the best possible value for its investment. This approach helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiary is likely the Department of Health and Human Services, which receives specialized technical support. The services delivered are broadly categorized as 'Professional, Scientific, and Technical Services,' potentially encompassing research, analysis, system development, or advisory functions. The geographic impact is centered in Virginia, where the contractor is located, but the ultimate impact could be national if services support broader HHS initiatives. Workforce implications include employment opportunities within MITRE Corporation and potentially its subcontractors, contributing to the technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type carries a risk of cost escalation if the contractor's actual costs exceed estimates, with the government absorbing the difference up to the fixed fee.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not meticulously managed, potentially increasing costs and delaying timelines.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the contractor's performance history or potential risks associated with this specific award.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing and value.
The contractor, The MITRE Corporation, is a reputable organization with extensive experience in government contracting, suggesting a lower risk of execution failure.
The contract duration of nearly five years implies a stable, long-term requirement, allowing for focused effort and potential efficiency gains over time.
The award by HHS suggests alignment with critical public health or administrative functions, indicating the importance and potential impact of the services.

Sector Analysis

The contract falls under the broad 'Professional, Scientific, and Technical Services' sector, specifically NAICS code 541990. This sector is characterized by a wide range of specialized services, including research and development, consulting, and technical support. Government spending in this area is substantial, supporting various agencies' missions. Comparable spending benchmarks would depend heavily on the specific nature of the technical services rendered, but overall government expenditure on technical services represents a significant portion of the federal budget.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large government contractor, MITRE Corporation may engage small businesses as subcontractors for specific components of the work, depending on the project's needs and their subcontracting policies. The absence of a small business set-aside means the primary competition was likely among larger, established firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. Transparency would depend on HHS's policies regarding the release of contract details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

HHS Administrative Support Services
Federal IT and Technical Consulting Contracts
Government Research and Development Services
Professional Services Contracts
Cost-Plus Contract Management

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Broad Service Category Ambiguity
Long Contract Duration Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.6 million to THE MITRE CORPORATION. IGF::OT::IGF TEEN PREGNANCY PREVENTION STUDY

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 $29.6 million.

What is the period of performance?

Start: 2017-09-29. End: 2022-07-31.

What is The MITRE Corporation's track record with federal contracts, particularly with HHS?

The MITRE Corporation has a long and extensive history of contracting with various U.S. federal agencies, including the Department of Health and Human Services (HHS). They are a federally funded research and development center (FFRDC) and often engage in complex technical, scientific, and engineering projects. Their track record generally indicates a high level of technical expertise and capability in supporting government missions. Specific to HHS, MITRE has been involved in numerous projects ranging from health IT modernization and data analytics to public health program support and policy analysis. While specific performance ratings for individual contracts are not publicly detailed in this summary, their consistent engagement across multiple agencies suggests a generally positive performance history and a trusted relationship with the government.

How does the $29.5 million value compare to similar technical services contracts within HHS?

Comparing the $29.5 million value requires understanding the specific scope of 'All Other Professional, Scientific, and Technical Services' for this contract. HHS procures a wide array of services, and this amount could be considered moderate to significant depending on the deliverables. For instance, large-scale IT system development or major research initiatives could easily exceed this figure, while smaller consulting engagements would be less. Annual spending by HHS on professional and technical services runs into billions of dollars. To benchmark effectively, one would need to identify contracts with similar objectives, durations (nearly five years), and complexity. Without that granular data, it's difficult to definitively state if $29.5 million represents high, low, or average spending for comparable services within HHS.

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

The primary risk with a CPFF contract, especially one valued at $29.5 million over nearly five years, is cost control. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's actual costs exceed the estimated costs, the government still pays the actual costs up to the negotiated fixed fee. This shifts the cost overrun risk to the government. Key risks include potential for scope creep, inefficient performance by the contractor (as they are guaranteed their fee regardless of efficiency), and difficulties in accurately estimating initial costs. Robust oversight, clear performance metrics, and stringent auditing are essential to mitigate these risks and ensure the government receives value.

What does the 'full and open competition' designation imply for the effectiveness of this procurement?

The 'full and open competition' designation is a positive indicator for procurement effectiveness. It means that the solicitation was made available to all responsible sources, and any source that submitted a timely offer was considered. This broad competition is intended to foster a marketplace where multiple vendors can propose solutions, driving innovation and competitive pricing. It suggests that HHS sought the best possible value by allowing a wide range of qualified contractors to participate. The effectiveness is further realized if the evaluation criteria were clearly defined and the selection process was fair and transparent, ultimately leading to a contract that meets the government's needs at a reasonable cost.

How does the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') impact the understanding of contract deliverables?

The NAICS code 541990 is a broad catch-all category, which means it encompasses a vast array of services that don't fit into more specific professional, scientific, or technical categories. This lack of specificity in the NAICS code means that the actual deliverables under this contract could vary significantly. It could include anything from specialized scientific research, management consulting, technical writing, data analysis, engineering support, or even niche advisory services. To understand the precise deliverables, one would need to examine the contract's statement of work (SOW) or performance work statement (PWS), which details the specific tasks, objectives, and expected outcomes required from The MITRE Corporation.

What is the significance of the contract being awarded to The MITRE Corporation, a known FFRDC?

The MITRE Corporation operates as a federally funded research and development center (FFRDC). FFRDCs are unique entities established to meet specific long-term research and development needs of the government that cannot be met effectively by the private sector or government labs alone. They are typically managed by universities or non-profit organizations and operate in the public interest, free from conflicts of interest. Awarding contracts to an FFRDC like MITRE often signifies a need for objective analysis, systems engineering, research, and development in complex, sensitive, or strategic areas. It suggests the government is leveraging MITRE's specialized expertise and its role as a trusted, independent advisor for critical technical challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: $29,551,986

Exercised Options: $29,551,986

Current Obligation: $29,551,986

Actual Outlays: $4,194,034

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $10,057,039

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201200008I

IDV Type: IDC

Timeline