VA's $23M MITRE contract for IT transformation support awarded via sole-source vehicle

Contract Overview

Contract Amount: $23,062,665 ($23.1M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-03-29

End Date: 2017-05-02

Contract Duration: 399 days

Daily Burn Rate: $57.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE DEPARTMENT OF VETERANS AFFAIRS OFFICE OF INFORMATION AND TECHNOLOGY FOR TRANSFORMATION SUPPORT. IGF::CL::IGF IGF::CT::IGF

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.1 million to THE MITRE CORPORATION for work described as: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE DEPARTMENT OF VETERANS AFFAIRS OFFICE OF INFORMATION AND TECHNOLOGY FOR TRANSFORMATION SUPPORT. IGF::CL::IGF IGF::CT::IGF Key points: 1. Contract awarded to a Federally Funded Research and Development Center (FFRDC) for specialized expertise. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. Contract duration of 399 days suggests a focused, short-term project. 4. Cost-plus-fixed-fee pricing structure allows for cost reimbursement plus a predetermined profit. 5. The Department of Veterans Affairs (VA) is the primary agency utilizing these services. 6. Services provided fall under 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

This contract's value of approximately $23 million for a little over a year of service is difficult to benchmark without comparable FFRDC contracts for similar transformation support. As a sole-source award to an FFRDC, the pricing is likely based on established FFRDC rates rather than a competitive bidding process. The cost-plus-fixed-fee structure means the government reimburses costs and pays a fixed fee, which can lead to cost overruns if not managed carefully. Without competitive bids, assessing true value-for-money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The MITRE Corporation, which operates as a Federally Funded Research and Development Center (FFRDC). FFRDCs are typically awarded contracts without full and open competition due to their unique capabilities and government-sponsored status. This approach ensures access to specialized expertise but limits opportunities for other vendors to compete and potentially offer lower prices.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from the price competition that typically drives down costs in a fully competed procurement. The government relied on the established rates and expertise of the FFRDC.

Public Impact

The Department of Veterans Affairs' Office of Information and Technology is the direct beneficiary, receiving support for transformation initiatives. The services aim to improve IT systems and processes within the VA, potentially impacting veterans' access to services. The contract is geographically focused within the VA's operational scope, primarily supporting its Virginia-based operations. Workforce implications are likely internal to the VA and MITRE, focusing on project management and technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored.
Reliance on a single FFRDC may limit exposure to innovative solutions from the broader market.

Positive Signals

Award to an FFRDC ensures access to specialized, objective technical expertise.
Transformation support is critical for modernizing government IT infrastructure.
The contract duration is relatively short, suggesting a focused project with defined deliverables.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically IT transformation support. The market for such services is vast, encompassing numerous large and small businesses. However, the use of an FFRDC like MITRE signifies a specific government strategy to leverage unique, trusted entities for complex, sensitive, or long-term strategic initiatives. Comparable spending benchmarks are difficult to establish due to the specialized nature of FFRDC work and the sole-source award mechanism.

Small Business Impact

As a sole-source award to an FFRDC, this contract does not appear to include small business set-asides. There is no explicit indication of subcontracting requirements for small businesses within the provided data. This contract structure bypasses the typical mechanisms designed to promote small business participation in federal contracting.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Veterans Affairs' Office of Information and Technology. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency is generally higher for FFRDC work due to their public interest mission, but specific oversight mechanisms like Inspector General reviews would depend on the VA's internal policies and the nature of the transformation support.

Related Government Programs

Federally Funded Research and Development Centers (FFRDCs)
IT Modernization Programs
Department of Veterans Affairs IT Services
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
FFRDC reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.1 million to THE MITRE CORPORATION. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER SERVICES TO THE DEPARTMENT OF VETERANS AFFAIRS OFFICE OF INFORMATION AND TECHNOLOGY FOR TRANSFORMATION SUPPORT. IGF::CL::IGF IGF::CT::IGF

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 $23.1 million.

What is the period of performance?

Start: 2016-03-29. End: 2017-05-02.

What is the track record of The MITRE Corporation in supporting federal IT transformation initiatives?

The MITRE Corporation has a long-standing history of supporting federal agencies, including the Department of Veterans Affairs (VA), with complex technical challenges and strategic initiatives. As a Federally Funded Research and Development Center (FFRDC), MITRE is chartered to provide objective, independent research and analysis. Their work often involves systems engineering, cybersecurity, data analytics, and IT modernization strategies. For the VA, MITRE has been involved in various projects aimed at improving healthcare delivery, IT infrastructure, and operational efficiency. Their expertise in navigating large, bureaucratic organizations and understanding the unique needs of public service makes them a frequent choice for critical transformation efforts across government.

How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar IT transformation services?

The Cost-Plus-Fixed-Fee (CPFF) structure used in this contract reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set upfront, and cost-reimbursement contracts (without a fixed fee), which can offer less incentive for cost control. For IT transformation, which can involve evolving requirements and unforeseen technical challenges, CPFF can provide flexibility. However, it places a significant burden on the government to meticulously track and audit costs to prevent overruns. In a competitive environment, fixed-price or performance-based contracts are often preferred for better value, but the sole-source nature and FFRDC status here make direct comparison difficult.

What are the primary risks associated with a sole-source award to an FFRDC for IT transformation?

The primary risks associated with a sole-source award to an FFRDC for IT transformation include a lack of competitive pricing, potentially leading to higher costs for taxpayers. Without competition, there's less pressure on the contractor to innovate or optimize efficiency beyond their established methods. Furthermore, relying on a single entity, even a trusted FFRDC, might limit the government's exposure to a broader range of cutting-edge technologies and solutions available in the commercial market. There's also a risk that the FFRDC's recommendations could be influenced by their unique position or long-term relationships, although FFRDCs are designed to maintain objectivity. Effective government oversight is critical to mitigate these risks.

How does this contract's spending align with historical VA IT modernization efforts?

This contract, valued at approximately $23 million over roughly 13 months, represents a specific investment in IT transformation support for the VA's Office of Information and Technology. The VA has historically faced significant challenges with its IT infrastructure and modernization efforts, often requiring substantial and sustained investment. Spending on IT modernization within the VA has fluctuated over the years, driven by evolving veteran needs, technological advancements, and legislative mandates. Contracts like this, even if sole-source, are part of a larger, ongoing strategy to update systems, improve data sharing, and enhance cybersecurity. Analyzing this single contract in isolation provides limited insight into the overall historical spending patterns, but it reflects a continued commitment to addressing IT deficiencies.

What are the potential performance implications of a 399-day contract duration for transformation support?

A contract duration of 399 days (approximately 13 months) for IT transformation support suggests a project with defined, relatively short-term objectives rather than a complete, long-term overhaul. This duration is suitable for specific phases of transformation, such as strategic planning, requirements definition, pilot program implementation, or technology assessment. It allows for focused effort and timely delivery of key milestones. However, it may not be sufficient for deep-rooted systemic changes that require sustained effort over several years. The success of such a contract hinges on clear, achievable goals set for this specific period and effective knowledge transfer to ensure continuity beyond the contract's end.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $23,062,665

Exercised Options: $23,062,665

Current Obligation: $23,062,665

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: VA118A15D0004

IDV Type: IDC

Timeline