DoD awards $618M to MITRE for R&D Task Order, raising competition concerns
Contract Overview
Contract Amount: $617,946,797 ($617.9M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-23
End Date: 2022-12-31
Contract Duration: 464 days
Daily Burn Rate: $1.3M/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: TASK ORDER 4 FOR NSEC FFRDC, INITIAL FUNDING.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $617.9 million to THE MITRE CORPORATION for work described as: TASK ORDER 4 FOR NSEC FFRDC, INITIAL FUNDING. Key points: 1. Significant funding for a Federally Funded Research and Development Center (FFRDC). 2. Sole-source award to MITRE, a well-established FFRDC. 3. Potential for limited competition due to the specialized nature of FFRDCs. 4. Focus on Research and Development in physical, engineering, and life sciences.
Value Assessment
Rating: questionable
The initial funding of $618M for this task order is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to similar R&D contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The MITRE Corporation. This limits price discovery and may not yield the most cost-effective outcome for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible price for the research and development services.
Public Impact
Taxpayers fund critical R&D through a sole-source contract. MITRE Corporation, a key FFRDC, continues its role in government research. The award supports advancements in physical, engineering, and life sciences.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award to FFRDC
Positive Signals
- Award to established FFRDC
- Supports critical R&D
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight to ensure value.
Small Business Impact
This award was not competed and does not indicate any specific set-aside for small businesses. The nature of FFRDC work often involves large, established organizations.
Oversight & Accountability
As a sole-source award to an FFRDC, oversight is critical to ensure the research objectives are met efficiently and effectively, and that the pricing remains reasonable over the contract's life.
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
- Sole-source award
- Lack of competitive bidding
- High contract value
- Potential for cost overruns
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 $617.9 million to THE MITRE CORPORATION. TASK ORDER 4 FOR NSEC FFRDC, INITIAL FUNDING.
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 $617.9 million.
What is the period of performance?
Start: 2021-09-23. End: 2022-12-31.
What is the justification for awarding this task order on a sole-source basis to MITRE?
The justification for a sole-source award to an FFRDC like MITRE typically stems from the unique capabilities, established infrastructure, and institutional knowledge they possess. FFRDCs are designed to provide objective, in-depth analysis and research to government sponsors, often on complex, long-term projects where a specific entity is deemed essential due to its specialized expertise and government-wide role.
What are the potential risks associated with awarding a $618M contract without competition?
The primary risk is the potential for overpayment, as the absence of competitive bids removes the pressure to offer the lowest possible price. There's also a risk of reduced innovation or efficiency if alternative approaches or technologies from other vendors are not considered. Furthermore, a sole-source award can set a precedent for future non-competitive contracts, potentially limiting market opportunities for other qualified entities.
How will the effectiveness of the R&D performed under this task order be measured?
Effectiveness will likely be measured against predefined research objectives, milestones, and deliverables outlined in the task order. Performance metrics may include the quality and impact of research findings, adherence to timelines, and the successful application of developed technologies or methodologies. Regular progress reviews and technical evaluations by the Department of the Army will be crucial for assessing the R&D's effectiveness.
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 › C – National Defense R&D Services
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: $633,806,032
Exercised Options: $633,806,032
Current Obligation: $617,946,797
Actual Outlays: $116,383,066
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $4,082,780
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: 2021-09-23
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 12:12:00
Last Modified: 2025-11-24
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