DoD's $353.7M MITRE Corp contract for Systems Engineering Services awarded without competition

Contract Overview

Contract Amount: $353,691,831 ($353.7M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2009-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $242.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: 200512!008742!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CF600 !A!N! !Y! ! !20050930!20080930!040540304!040540304!007872690!N!THE MITRE CORPORATION !7515 COLSHIRE DR !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000359604!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !3! ! ! ! ! !20200930!B! ! !N!Z!D!N!S!1!001!N!3A!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $353.7 million to THE MITRE CORPORATION for work described as: 200512!008742!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CF600 !A!N! !Y! ! !20050930!20080930!040540304!040540304!007872690!N!THE MITRE CORPORATION !7515 COLSHIRE DR !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. The contract awarded to THE MITRE CORPORATION for $353.7 million is for Systems Engineering Services. 2. This contract was not competed, raising questions about potential price discovery and value. 3. The primary risk is the lack of competition, which could lead to inflated costs. 4. The sector is IT/Electronics and Communication Equipment, with a significant dollar value. 5. The contract duration of 4 years (1461 days) is substantial for a non-competed award.

Value Assessment

Rating: questionable

The contract value of $353.7 million for engineering services is significant. Without competitive bids, it's difficult to assess if this price is fair compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as 'NOT COMPETED' (sole-source). This limits price discovery and may not yield the best value for taxpayers.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may have overpaid due to the absence of market forces driving down costs.

Public Impact

Taxpayers may have paid a premium for engineering services due to the sole-source award. The Department of Defense relies on MITRE for critical systems engineering, but the lack of competition warrants scrutiny. Future procurements in this area should explore competitive strategies to ensure cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Long contract duration

Positive Signals

MITRE Corporation is a recognized entity in systems engineering.
Contract supports critical defense needs.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and specifically relates to Electronics and Communication Equipment. The DoD's spending in this area is substantial, and competitive bidding is crucial for cost efficiency.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, which is a missed opportunity for their participation.

Oversight & Accountability

The sole-source nature of this award suggests potential gaps in oversight or justification for not seeking competitive bids. Further review of the justification is needed.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited small business participation
Oversight concerns regarding sole-source justification
Significant taxpayer investment without demonstrated best value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $353.7 million to THE MITRE CORPORATION. 200512!008742!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CF600 !A!N! !Y! ! !20050930!20080930!040540304!040540304!007872690!N!THE MITRE CORPORATION !7515 COLSHIRE DR !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000359604!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !3! ! ! ! ! !202

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 $353.7 million.

What is the period of performance?

Start: 2005-09-30. End: 2009-09-30.

What specific justification was provided for awarding this $353.7M contract to MITRE Corporation on a sole-source basis, and does it align with FAR regulations?

The provided data indicates the contract was 'NOT COMPETED' (CT: 'NOT COMPETED'). While the specific justification document isn't included, sole-source awards typically require a documented justification citing reasons like unique capabilities, urgent needs, or lack of sources. Compliance with Federal Acquisition Regulation (FAR) Part 6 is essential for such awards.

How does the $353.7M contract value compare to similar systems engineering services procured competitively by the DoD or other federal agencies?

Benchmarking this $353.7 million contract against competitively awarded contracts for similar systems engineering services is challenging without access to detailed pricing data and scope of work comparisons. However, the absence of competition inherently raises concerns that the price may be higher than what could have been achieved through a competitive process.

What is the potential impact on future technological advancements and cost savings if critical systems engineering services are consistently awarded without competition?

Consistently awarding critical services like systems engineering without competition can stifle innovation by reducing the incentive for multiple companies to develop cutting-edge solutions. It also limits the government's ability to leverage market competition to drive down costs, potentially leading to higher long-term spending and less advanced technological outcomes.

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 DR, MC LEAN, VA, 90

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline