DoD Awards $583M Task Order to MITRE for R&D Support, Lacking Competition
Contract Overview
Contract Amount: $583,286,030 ($583.3M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-25
End Date: 2021-12-31
Contract Duration: 462 days
Daily Burn Rate: $1.3M/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: TASK ORDER 3 FOR NSEC FFRDC, INITIAL FUNDING AND PWS.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $583.3 million to THE MITRE CORPORATION for work described as: TASK ORDER 3 FOR NSEC FFRDC, INITIAL FUNDING AND PWS. Key points: 1. Significant funding awarded to a single contractor for R&D services. 2. Lack of competition raises concerns about potential overpricing and value. 3. The contract is for research and development in physical, engineering, and life sciences. 4. MITRE Corporation, a Federally Funded Research and Development Center (FFRDC), is the sole awardee.
Value Assessment
Rating: questionable
The contract's cost-plus-no-fee structure and lack of competition make a direct pricing assessment difficult. Benchmarking against similar R&D contracts awarded competitively is challenging due to the unique FFRDC relationship.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to MITRE Corporation. Sole-source awards, especially for FFRDCs, can limit price discovery and potentially lead to higher costs compared to competitive procurements.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these R&D services.
Public Impact
Essential research and development services for the Department of the Army are being provided. The FFRDC model aims to provide objective, independent research and analysis to the government. Long-term reliance on a single FFRDC can reduce flexibility and innovation from the broader market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost inefficiencies
Positive Signals
- Award to established FFRDC
- Supports critical R&D mission
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
This award does not appear to involve small business participation, as it is a sole-source contract with a large FFRDC. Opportunities for small businesses in this specific procurement are likely limited.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services provided are necessary, cost-effective, and aligned with government objectives. Transparency in reporting and performance metrics is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Sole-source award to FFRDC
- Potential for cost overruns
- Limited transparency in pricing
- Risk of vendor lock-in
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $583.3 million to THE MITRE CORPORATION. TASK ORDER 3 FOR NSEC FFRDC, INITIAL FUNDING AND PWS.
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 $583.3 million.
What is the period of performance?
Start: 2020-09-25. End: 2021-12-31.
How does the government ensure fair and reasonable pricing for sole-source FFRDC contracts when direct cost comparisons are difficult?
The government typically relies on established pricing agreements, historical cost data, and independent cost estimates when negotiating sole-source FFRDC contracts. Robust internal review processes and justification for the sole-source award are also critical to ensure fair pricing and prevent potential overruns.
What are the risks associated with relying on a single FFRDC for critical research and development needs?
The primary risks include a lack of diverse perspectives and potential for vendor lock-in, which can stifle innovation. Over-reliance may also lead to complacency and reduced urgency in addressing evolving technological challenges. Furthermore, the absence of competitive pressure could result in less efficient resource allocation and higher costs over time.
How effectively is this contract contributing to the Department of the Army's R&D objectives given the lack of competitive benchmarking?
Effectiveness is primarily assessed through the achievement of milestones outlined in the Performance Work Statement (PWS) and the quality of deliverables. While competition is absent, the government should actively monitor progress, conduct regular reviews, and ensure the FFRDC's work directly supports stated objectives and provides objective, unbiased analysis crucial for informed decision-making.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST NO FEE (S)
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: $583,464,964
Exercised Options: $583,464,964
Current Obligation: $583,286,030
Actual Outlays: $83,797,599
Subaward Activity
Number of Subawards: 95
Total Subaward Amount: $10,409,834
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W56KGU18D0004
IDV Type: IDC
Timeline
Start Date: 2020-09-25
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2025-12-23
More Contracts from THE Mitre Corporation
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (Department of Transportation)
- FY25 Task Order 7 - to Provide Systems Engineering Research and Development Services for the Department of Defense (DOD) and Other Federal Government Agencies — $753.9M (Department of Defense)
- FY24 Task Order 6 - Initial Funding and Updating PWS & DD254 — $735.3M (Department of Defense)
- Caasd Must Provide Essential Engineering, Research, and Analysis Capabilities to Support the FAA in the Performance of ITS Mission Through a Systems Approach That Addresses ALL Dimensions (E.G. Political, Operational, Economic, Technical) Required to — $700.5M (Department of Transportation)
- Initial Modification on Task Order 5 Nsec, Ffrdc to Incrementally Fund, Update PWS & DD254 — $687.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)