VA's $12.9M sole-source contract to MITRE for R&D support raises questions on competition and value

Contract Overview

Contract Amount: $12,937,148 ($12.9M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-09-28

End Date: 2008-09-28

Contract Duration: 366 days

Daily Burn Rate: $35.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: TECHNICAL SUPPORT FOR DEPT OF VETERANS AFFAIRS INITIATIVES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.9 million to THE MITRE CORPORATION for work described as: TECHNICAL SUPPORT FOR DEPT OF VETERANS AFFAIRS INITIATIVES Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing. 2. Research and Development focus in physical, engineering, and life sciences. 3. Long-term contract duration of 366 days. 4. Firm Fixed Price contract type, offering cost certainty but potentially limiting flexibility. 5. High value for a single-award, non-competed contract. 6. Contractor, The MITRE Corporation, is a well-established entity in government R&D.

Value Assessment

Rating: questionable

The contract's value of $12.9 million for a single year of R&D support is substantial. Without competitive bidding, it is difficult to benchmark the pricing against market rates or other similar contracts. The lack of competition suggests potential for overpayment or a lack of cost-efficiency. Further analysis would be needed to determine if the services rendered align with industry standards for R&D technical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard procurement process designed to foster competition and achieve the best value for the government. The absence of multiple bidders means there was no opportunity to explore a range of technical solutions or pricing structures, potentially leading to a less optimal outcome.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. It also limits transparency in the procurement process.

Public Impact

The Department of Veterans Affairs benefits from specialized technical support for its research and development initiatives. Services likely contribute to advancements in areas related to physical, engineering, and life sciences within the VA. The contract supports the VA's mission to provide healthcare and benefits to veterans through technological and scientific progress. Workforce implications are likely internal to the contractor and the VA's R&D departments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of competition may reduce opportunities for innovative solutions from a wider market.
Long contract duration without clear performance metrics could pose a risk if objectives are not met.

Positive Signals

The MITRE Corporation has a strong track record in government R&D and technical support.
Firm Fixed Price contract provides cost predictability for the VA.
Contract supports critical R&D initiatives within a major federal agency.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized technical support is often dominated by a few highly capable organizations. The value of $12.9 million for a year of support is significant, suggesting a complex or critical set of R&D activities. Comparable spending benchmarks would typically involve analyzing other sole-source or competitively awarded R&D support contracts within federal agencies.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities, as it was awarded sole-source to a large, established entity. The lack of competition limits the potential for small businesses to participate in this specific contract's execution. Further investigation into the contractor's subcontracting plans would be necessary to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' internal procurement and program management offices. As a sole-source award, it may receive heightened scrutiny. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs IT Support Contracts
Federal Research and Development Funding
Government Technical Consulting Services
Sole-Source Procurement Analysis

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.
Contract duration and scope require robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.9 million to THE MITRE CORPORATION. TECHNICAL SUPPORT FOR DEPT OF VETERANS AFFAIRS INITIATIVES

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-09-28.

What specific R&D initiatives is The MITRE Corporation supporting for the VA under this contract?

The provided data does not specify the exact R&D initiatives. However, given the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences), the support likely pertains to scientific research, experimental development, or analysis in these broad fields. This could range from medical research related to veteran health to engineering solutions for VA facilities or life sciences research impacting healthcare delivery. The contract's value suggests a significant scope of work requiring specialized expertise that The MITRE Corporation is contracted to provide.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For The MITRE Corporation, this could be due to unique expertise, proprietary technology, or a specific mission-oriented role it plays for the government that cannot be replicated by other entities. The Department of Veterans Affairs would have had to document the justification for this sole-source award, likely citing factors such as specialized knowledge, existing infrastructure, or critical mission requirements that only MITRE could fulfill at the time of procurement.

How does the $12.9 million contract value compare to similar R&D support contracts for the VA or other agencies?

Without specific details on the scope of work and duration, a direct comparison is challenging. However, $12.9 million for a one-year R&D support contract is a substantial investment. If this contract was competitively bid, it might indicate a high level of complexity or specialized services. As a sole-source award, the value is harder to benchmark against market rates. Analysis of other sole-source R&D contracts within the VA or comparable agencies would be necessary to determine if this represents a fair market price or an outlier.

What is The MITRE Corporation's track record with the Department of Veterans Affairs and other federal agencies?

The MITRE Corporation is a well-established non-profit organization that operates federally funded research and development centers (FFRDCs) for various government agencies. They have a long history of providing technical expertise, research, and systems engineering support across defense, intelligence, healthcare, and civilian sectors. Their work with the VA likely involves leveraging their broad R&D capabilities to address specific challenges within the department, contributing to technological advancements and operational improvements. Their extensive experience suggests a high level of capability.

What are the potential risks associated with a sole-source, firm-fixed-price contract for R&D support?

A primary risk of a sole-source contract is the lack of competitive pressure, which can lead to higher costs than might be achieved through competition. For a firm-fixed-price contract, the risk shifts to the contractor to manage costs within the agreed price. If the R&D work proves more complex or costly than anticipated, the contractor might cut corners or seek change orders, potentially impacting quality or scope. Conversely, if the work is less complex, the contractor could realize significant profit. The government bears the risk of not achieving the best possible value or innovative solutions that competition might have fostered.

What performance metrics or oversight mechanisms are in place for this contract?

The provided data does not detail specific performance metrics or oversight mechanisms. However, for any federal contract, especially one of this value, the contracting agency (Department of Veterans Affairs) is responsible for monitoring performance. This typically involves contract officers, technical monitors, and regular progress reports from the contractor. Firm-fixed-price contracts usually have defined deliverables and milestones. The effectiveness of oversight depends on the rigor of the VA's contract management processes and the clarity of the contract's statement of work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,180,011

Exercised Options: $14,180,011

Current Obligation: $12,937,148

Timeline