MITRE Corporation awarded $28.4M for complex scientific research and analysis supporting national security

Contract Overview

Contract Amount: $28,388,157 ($28.4M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2009-02-01

End Date: 2014-07-31

Contract Duration: 2,006 days

Daily Burn Rate: $14.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COMPLEX, SCIENTIFIC&TECHNICAL RESEARCH AND ANALYSES IN SUPPORT OF NATIONAL SECURITY

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to THE MITRE CORPORATION for work described as: COMPLEX, SCIENTIFIC&TECHNICAL RESEARCH AND ANALYSES IN SUPPORT OF NATIONAL SECURITY Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost efficiencies. 2. Long-term contract duration (2009-2014) suggests a sustained need for specialized research services. 3. Focus on R&D in physical, engineering, and life sciences indicates a high-value, knowledge-intensive service. 4. Sole-source award may limit opportunities for other capable research organizations to participate. 5. The nature of the research (national security) may necessitate specific expertise, potentially justifying limited competition. 6. Performance period spans over 5 years, indicating a significant investment in ongoing research.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to its sole-source nature and the specialized, complex scientific research it entails. Without comparable contracts or a competitive bidding process, it's difficult to definitively assess if the pricing represents optimal value for money. The Cost Plus Fixed Fee (CPFF) contract type suggests that while the contractor is incentivized to control costs, the government bears the risk of cost overruns. Further analysis would require understanding the specific deliverables and the market rates for such highly specialized R&D services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, The MITRE Corporation, was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be obtained through full and open competition. The lack of multiple bidders means there was no direct price competition, which could potentially lead to higher costs than if multiple firms had vied for the contract. The justification for sole-source awards often rests on the unique qualifications of the contractor.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process. The government relied on negotiation to establish a fair price, rather than market forces.

Public Impact

The primary beneficiary is the Department of the Army, receiving critical research and analysis for national security. Services delivered include complex scientific and technical research and analysis. The geographic impact is primarily within the United States, supporting national defense initiatives. Workforce implications include the employment of highly skilled scientists, engineers, and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
CPFF contract type shifts cost overrun risk to the government.
Lack of transparency in sole-source justification requires careful review.
Long contract duration could indicate a lack of agile acquisition or evolving requirements.

Positive Signals

MITRE Corporation is a federally funded research and development center (FFRDC) with a strong reputation in R&D.
Focus on national security research addresses critical government needs.
The contract type (CPFF) allows for flexibility in research scope.
The specific NAICS code (541712) points to highly specialized technical expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D services supporting national security is often dominated by a few key players, including Federally Funded Research and Development Centers (FFRDCs) like MITRE. Comparable spending benchmarks are difficult to establish due to the unique nature of national security research and the sole-source award. However, R&D spending by the Department of Defense is substantial, reflecting the continuous need for technological advancement.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. As a sole-source award to a large, established research organization, the direct impact on the small business ecosystem is likely minimal. The focus is on specialized, high-level research that typically requires extensive resources and established infrastructure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, there may be enhanced scrutiny regarding the justification and necessity of this approach. 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 Defense Research and Development
National Security Initiatives
Scientific and Technical Research Services
Federally Funded Research and Development Centers (FFRDCs)

Risk Flags

Sole-source award
Lack of competitive bidding
Cost Plus Fixed Fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to THE MITRE CORPORATION. COMPLEX, SCIENTIFIC&TECHNICAL RESEARCH AND ANALYSES IN SUPPORT OF NATIONAL SECURITY

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 $28.4 million.

What is the period of performance?

Start: 2009-02-01. End: 2014-07-31.

What is the specific nature of the 'complex, scientific & technical research and analyses' conducted under this contract?

The provided data indicates the contract's purpose is 'COMPLEX, SCIENTIFIC&TECHNICAL RESEARCH AND ANALYSES IN SUPPORT OF NATIONAL SECURITY.' While the NAICS code 541712 points to 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' the specific projects or research areas are not detailed. Given the 'national security' context and the awardee being MITRE (an FFRDC), the research likely involves advanced technological development, systems engineering, threat analysis, or strategic planning relevant to defense and intelligence. Without access to the contract's SOW (Statement of Work) or specific task orders, a precise breakdown of the research activities remains undisclosed.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the financial risk and incentive structure for The MITRE Corporation?

Under a Cost Plus Fixed Fee (CPFF) contract, the contractor (The MITRE Corporation) is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee. This fee represents the contractor's profit. The primary financial risk lies with the government, as it is responsible for covering all costs, even if they exceed initial estimates. MITRE is incentivized to control costs because any savings achieved below the estimated cost do not increase their fixed fee. However, their primary motivation is to complete the work successfully and deliver the research outcomes, as their fee is fixed regardless of the final cost. This structure is often used for research and development where the scope of work may evolve or is not precisely defined at the outset.

What are the implications of awarding this contract to The MITRE Corporation, a known FFRDC, on a sole-source basis?

Awarding this contract to The MITRE Corporation on a sole-source basis leverages its status as a Federally Funded Research and Development Center (FFRDC). FFRDCs are established to meet specific long-term research needs of the government, possess unique capabilities, and operate in the public interest, free from conflicts of interest. MITRE's designation implies a high level of trust, specialized expertise, and a deep understanding of national security challenges. However, the sole-source nature means that other potentially capable research institutions or companies were not given the opportunity to compete. This can limit innovation spurred by competition and may raise questions about whether the government secured the best possible price and solution, although the unique role of FFRDCs often justifies such awards for specific strategic research.

Considering the contract duration (2009-2014) and the R&D nature, what does this suggest about the program's evolution or stability?

A contract duration spanning over five years (February 2009 to July 2014) for complex R&D suggests a program requiring sustained effort and potentially long-term strategic goals. This extended period indicates that the research was not a short-term project but rather an ongoing endeavor critical to national security objectives. It implies a degree of stability in the program's requirements or a phased approach to research and development. Such long durations are common in R&D where breakthroughs or complex system developments take significant time. It could also reflect the government's long-term commitment to addressing specific national security challenges through continuous research and analysis.

How does the $28.4 million award amount compare to typical spending in the R&D sector for national security?

The $28.4 million award amount for complex scientific and technical research and analysis in support of national security is significant but falls within the typical range for major R&D contracts within the Department of Defense. The DoD's annual R&D budget runs into the tens of billions of dollars, funding a vast array of projects from basic research to advanced technology development. While $28.4 million is a substantial sum for a single contract, it represents a small fraction of the overall defense R&D spending. Its significance lies more in the specialized nature of the research and the strategic importance of the national security domain it supports, rather than its absolute dollar value compared to the entire DoD budget.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T09RF402

Offers Received: 1

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: $53,111,303

Exercised Options: $29,362,893

Current Obligation: $28,388,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline