DoD's $306M MITRE Corp Contract for Systems Engineering Services: Fair Value?

Contract Overview

Contract Amount: $306,374,754 ($306.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-30

End Date: 2007-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $279.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: 200412!009561!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CD199 !A!N! !Y! ! !20040930!20080930!040540304!040540304!007872690!N!THE MITRE CORPORATION !7515 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000493288!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!N!S!1!001!N!3A!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $306.4 million to THE MITRE CORPORATION for work described as: 200412!009561!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CD199 !A!N! !Y! ! !20040930!20080930!040540304!040540304!007872690!N!THE MITRE CORPORATION !7515 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. Contract awarded to THE MITRE CORPORATION for Systems Engineering Services. 2. Significant value of $306,374,753.58 over 3 years. 3. Awarded as 'NOT COMPETED', raising questions about price discovery. 4. Sector: IT/Defense, with a focus on engineering services.

Value Assessment

Rating: fair

The contract value of $306M for 3 years suggests a high per-year cost. Without specific deliverables or benchmarks for 'Systems Engineering Services', it's difficult to definitively assess value. The 'COST NO FEE' pricing structure can sometimes lead to less cost-consciousness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

Awarded as 'NOT COMPETED' (sole-source), limiting opportunities for other vendors to bid. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a contract of this magnitude may result in the government paying more than necessary, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the absence of a competitive bidding process. The sole-source nature of the award limits innovation and potentially excludes specialized small businesses. Lack of transparency in the procurement process can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited transparency

Positive Signals

Established contractor
Specific service requirement

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), often associated with defense and technology. Benchmarks for such services are highly variable based on scope and complexity, but a $306M sole-source award warrants scrutiny.

Small Business Impact

The 'NOT COMPETED' award type suggests that small businesses were likely not considered or given an opportunity to compete for this significant contract, potentially limiting their access to government work.

Oversight & Accountability

The sole-source nature of this award raises questions about the oversight applied during the procurement process. Further review is needed to understand why competition was deemed unnecessary or impossible.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency in procurement
Missed opportunity for small business participation
Questionable value for taxpayer money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $306.4 million to THE MITRE CORPORATION. 200412!009561!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CD199 !A!N! !Y! ! !20040930!20080930!040540304!040540304!007872690!N!THE MITRE CORPORATION !7515 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000493288!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $306.4 million.

What is the period of performance?

Start: 2004-09-30. End: 2007-09-30.

What specific systems engineering services were provided, and how was the necessity for a sole-source award justified?

The contract specifies 'SYSTEMS ENGINEERING SERVICES'. A sole-source justification would typically detail unique capabilities, critical national security needs, or the absence of other qualified sources. Without this detailed justification, it's difficult to ascertain the necessity and ensure fair value was obtained.

What is the cost-effectiveness of this contract compared to similar sole-source engineering service contracts awarded by the DoD?

Benchmarking sole-source contracts is challenging due to the lack of direct comparison. However, the significant value of $306M over three years for engineering services, without competition, suggests a potentially high cost. A thorough review of the contractor's pricing and the government's cost analysis is crucial.

What measures are in place to ensure the effectiveness and quality of the systems engineering services provided under this sole-source contract?

Effectiveness is typically measured through performance metrics, milestones, and deliverables outlined in the contract. For sole-source awards, robust government oversight and quality assurance are even more critical to ensure the contractor meets expectations and taxpayer funds are used efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DRIVE, MCLEAN, VA, 90

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline