VA's $66.6M contract with MITRE for R&D support shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $66,635,536 ($66.6M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-30

End Date: 2015-10-05

Contract Duration: 370 days

Daily Burn Rate: $180.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF, IGF::CT::IGF, FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SUPPORT FOR VETERANS HEALTH ADMINISTRATION.

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $66.6 million to THE MITRE CORPORATION for work described as: IGF::CL::IGF, IGF::CT::IGF, FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SUPPORT FOR VETERANS HEALTH ADMINISTRATION. Key points: 1. Value for money appears reasonable given the specialized nature of R&D support. 2. Competition was full and open, indicating a broad market search. 3. Risk indicators are low, with a clear statement of work and established contractor. 4. Performance context is within the scope of R&D and technical services for the VA. 5. Sector positioning is within professional, scientific, and technical services, a common area for FFRDCs. 6. The contract duration was relatively short, suggesting a focused project scope.

Value Assessment

Rating: good

The contract value of $66.6 million over approximately one year appears reasonable for specialized R&D support provided by a Federally Funded Research and Development Center (FFRDC). Benchmarking against similar FFRDC support contracts for other agencies or for different VA initiatives would provide a more precise value assessment. However, the fixed-fee component suggests a degree of cost control and predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but the 'full and open' designation implies a competitive process was initiated. This approach is generally expected to yield competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible value through a broad solicitation process, rather than potentially overpaying through a non-competitive award.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which receives critical R&D support. Services delivered include advanced research and technical analysis to improve veteran healthcare. The geographic impact is primarily within the VA's operational sphere, supporting national healthcare initiatives. Workforce implications are indirect, supporting the VA's mission through specialized technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 370 days is relatively short, potentially limiting long-term strategic impact.
Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to less incentive for cost efficiency compared to fixed-price contracts if not managed tightly.

Positive Signals

Awarded to The MITRE Corporation, a well-established FFRDC with a strong track record in government R&D.
Full and open competition suggests a robust selection process.
The contract is for specialized R&D support, indicating a focus on high-value technical services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on research and development. This sector is crucial for government innovation and problem-solving. Federally Funded Research and Development Centers (FFRDCs) like MITRE play a unique role in providing objective, independent research and analysis. Spending in this area often supports long-term strategic goals rather than immediate operational needs.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major FFRDC, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically structured to do so. The primary focus is on the specialized capabilities of the FFRDC.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. As an FFRDC, MITRE is subject to specific oversight frameworks designed for these unique entities. Transparency is generally high for FFRDC work, with regular reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federally Funded Research and Development Centers (FFRDCs)
Veterans Health Administration Research
Scientific and Technical Services Contracts
Department of Veterans Affairs IT and R&D Support

Risk Flags

Contract duration is relatively short.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to ensure cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $66.6 million to THE MITRE CORPORATION. IGF::CL::IGF, IGF::CT::IGF, FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SUPPORT FOR VETERANS HEALTH ADMINISTRATION.

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 $66.6 million.

What is the period of performance?

Start: 2014-09-30. End: 2015-10-05.

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

The MITRE Corporation has a long-standing relationship with the Department of Veterans Affairs, often serving as a Federally Funded Research and Development Center (FFRDC) providing critical analysis and technical support. Their work typically involves areas like healthcare IT, systems engineering, and research to improve VA operations and veteran services. While this specific contract was for a defined period, MITRE's broader engagement with the VA suggests a deep understanding of the agency's complex needs and a history of delivering relevant expertise. Their FFRDC status implies a commitment to objective, non-commercial research and development, making them a trusted partner for complex government challenges.

How does the value of this contract compare to similar R&D support contracts for the VA or other agencies?

Comparing the $66.6 million value of this contract requires context regarding the scope, duration, and specific R&D objectives. Contracts for FFRDC support can vary significantly. For instance, longer-term, broader R&D initiatives might reach hundreds of millions or even billions over several years. Shorter, more focused projects, like this one estimated at roughly one year, would naturally be lower. Benchmarking against other VA contracts for specialized technical services or R&D, or against similar FFRDC engagements with agencies like the Department of Defense or HHS, would be necessary for a precise value assessment. However, given the specialized nature of FFRDC work and the fixed-fee structure, the value appears aligned with typical engagements for such high-level technical expertise.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract are typical for R&D and technical services: scope creep, potential for cost overruns (though mitigated by the fixed-fee structure), and ensuring the delivered research meets the VA's evolving needs. Mitigation strategies likely include robust project management by the VA, clear definition of deliverables and milestones, regular progress reviews, and leveraging MITRE's established expertise and processes as an FFRDC. The relatively short duration also limits long-term exposure to changing requirements. The use of a reputable FFRDC like MITRE inherently reduces risks related to contractor capability and objectivity.

How effective is the VA in leveraging FFRDCs like MITRE for its research and development needs?

The VA's engagement with FFRDCs like MITRE suggests a strategic approach to accessing specialized, objective expertise that may not be readily available in the private sector or internally. FFRDCs are designed to tackle complex, long-term national problems. The VA leverages them for high-level analysis, technology assessment, and strategic planning, particularly in areas like healthcare innovation and systems modernization. The effectiveness hinges on clear tasking, strong program oversight, and the ability to translate FFRDC recommendations into actionable policy or program changes within the VA. The continued use of FFRDCs indicates perceived value and effectiveness in addressing critical research and development challenges.

What are the historical spending patterns for similar R&D support services within the Department of Veterans Affairs?

Historical spending patterns for R&D support services within the VA show a consistent reliance on specialized contractors and FFRDCs to address complex challenges in healthcare technology, systems integration, and policy analysis. While specific figures fluctuate year-to-year based on strategic priorities and funding allocations, the VA has historically allocated significant resources to research and development initiatives aimed at improving veteran care. Contracts with entities like MITRE, RAND, or other research institutions are common. These patterns reflect the VA's commitment to evidence-based improvements and technological advancement, often involving multi-million dollar investments in targeted research projects and ongoing technical support.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $66,635,536

Exercised Options: $66,635,536

Current Obligation: $66,635,536

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $42,050,299

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201200008I

IDV Type: IDC

Timeline