DHS's $17.4M MITRE contract for secure border initiative analysis shows potential for cost efficiencies

Contract Overview

Contract Amount: $17,383,820 ($17.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2008-06-02

End Date: 2009-08-31

Contract Duration: 455 days

Daily Burn Rate: $38.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAM AND TECHNICAL ANALYSIS FOR SECURE BORDER INITIATIVE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.4 million to THE MITRE CORPORATION for work described as: PROGRAM AND TECHNICAL ANALYSIS FOR SECURE BORDER INITIATIVE Key points: 1. Contract awarded to a single, highly qualified entity, suggesting specialized expertise was prioritized. 2. The contract duration of 455 days indicates a focused, project-based engagement rather than ongoing support. 3. Analysis of 'Other Management Consulting Services' suggests a need for strategic guidance and technical assessment. 4. The cost-plus-fixed-fee structure requires careful monitoring to ensure alignment with project objectives and budget. 5. Limited competition may impact price discovery, necessitating robust performance metrics to ensure value. 6. The contract's focus on a 'secure border initiative' highlights its importance to national security objectives.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more detailed cost breakdowns or comparable projects. The cost-plus-fixed-fee (CPFF) pricing structure can lead to cost overruns if not managed diligently. While MITRE is a reputable organization, the absence of competitive bids makes it difficult to definitively assess if the fixed fee represents optimal value for the services rendered. Further analysis of the specific deliverables and their impact would be needed to provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data provided does not specify the number of bids received or the evaluation process. A high level of competition typically drives down prices and encourages innovation, but the specific outcomes for this contract are not detailed. The award to a single entity suggests they were deemed the most advantageous offer.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive marketplace, potentially leading to better pricing and service quality. However, the ultimate benefit depends on the effectiveness of the competition and the resulting price negotiated.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP) agency, which receives analytical support for its secure border initiative. The services delivered are expected to enhance the strategic planning and technical implementation of border security measures. The geographic impact is national, focusing on the effectiveness and efficiency of U.S. border security operations. Workforce implications are indirect, potentially influencing the operational strategies and technological adoption by CBP personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs than necessary if oversight is insufficient.
Limited insight into the specific performance metrics and deliverables makes it hard to gauge the true value for money.
The 'Other Management Consulting Services' category is broad, potentially masking specific areas where costs could escalate.

Positive Signals

Awarded to The MITRE Corporation, a federally funded research and development center (FFRDC) known for its technical expertise.
The contract addresses a critical national security initiative, suggesting a high level of strategic importance and potential for impactful outcomes.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the management consulting services sector, a broad industry that supports government agencies in strategic planning, operational efficiency, and technology implementation. The market for these services is competitive, with numerous firms offering specialized expertise. The value of this contract, approximately $17.4 million, is moderate within the context of large federal consulting engagements, particularly those related to national security and border management.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. As a full and open competition, it's possible that small businesses could have participated, but the award went to The MITRE Corporation. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection contracting officers and program managers. As a CPFF contract, rigorous monitoring of costs, performance, and adherence to the fixed fee is crucial. Transparency is dependent on the agency's reporting practices and any available Inspector General audits or reviews related to the Secure Border Initiative.

Related Government Programs

Secure Border Initiative
Department of Homeland Security IT Services
Management and Consulting Services
Border Security Technology

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Limited Competition Impact on Price
Effectiveness of Secure Border Initiative Program

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.4 million to THE MITRE CORPORATION. PROGRAM AND TECHNICAL ANALYSIS FOR SECURE BORDER INITIATIVE

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2008-06-02. End: 2009-08-31.

What specific analytical tasks were performed under this contract for the Secure Border Initiative?

The contract data indicates 'PROGRAM AND TECHNICAL ANALYSIS FOR SECURE BORDER INITIATIVE' and classifies the service as 'Other Management Consulting Services.' This suggests that The MITRE Corporation was likely engaged in activities such as evaluating the effectiveness of existing border security programs, identifying technological gaps or opportunities, analyzing operational processes, and providing strategic recommendations for improvement. The analysis could have encompassed areas like surveillance technology, data management, inter-agency coordination, and resource allocation to enhance border security.

How does the $17.4 million cost compare to similar federal contracts for border security analysis?

Directly comparing this $17.4 million contract to others is difficult without knowing the precise scope, duration, and specific deliverables. However, federal spending on border security initiatives is substantial, often involving multi-year, multi-billion dollar programs. For analytical and consulting services, $17.4 million over approximately 15 months (June 2008 - August 2009) represents a significant but not extraordinary investment. Its value proposition hinges on the quality of the analysis and its impact on improving border security operations and resource deployment.

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

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to a fixed-price contract, as the government agrees to pay all allowable costs plus a predetermined fixed fee. If the government's oversight is not robust, the contractor could incur higher costs than necessary, potentially leading to the government paying more than the actual value of the work. For this contract, risks include potential cost overruns if the scope is not tightly managed and ensuring that the fixed fee accurately reflects the complexity and effort required for the analysis.

What was The MITRE Corporation's track record with the Department of Homeland Security prior to this contract?

The MITRE Corporation is a well-established Federally Funded Research and Development Center (FFRDC) that frequently supports government agencies, including the Department of Homeland Security (DHS), across various critical missions. Prior to this specific contract, MITRE had a long history of providing technical, analytical, and systems engineering support to government entities. Their role often involves objective, independent analysis of complex technical and programmatic challenges, making them a common choice for high-stakes initiatives like border security.

How effective was the Secure Border Initiative program itself, and did this analysis contribute to its success?

The effectiveness of the broader Secure Border Initiative (SBI) program is a complex and debated topic, with mixed results and significant criticisms regarding its cost, implementation, and overall impact. This specific contract focused on providing 'PROGRAM AND TECHNICAL ANALYSIS,' suggesting its role was to assess and potentially improve aspects of the SBI. While the analysis itself may have provided valuable insights, the ultimate success of the SBI depended on numerous factors, including political will, funding, inter-agency cooperation, and the feasibility of the technologies and strategies employed. The contract's output would have informed decision-making, but attributing direct success or failure of the entire SBI to this single analytical contract is not feasible.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

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: $17,383,850

Exercised Options: $17,383,850

Current Obligation: $17,383,820

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO99D00005

IDV Type: IDC

Timeline