DoD's MITRE Corp Awarded $687M for R&D Task Order, Lacking Competition

Contract Overview

Contract Amount: $687,294,528 ($687.3M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2023-12-31

Contract Duration: 458 days

Daily Burn Rate: $1.5M/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: INITIAL MODIFICATION ON TASK ORDER 5 NSEC, FFRDC TO INCREMENTALLY FUND, UPDATE PWS & DD254

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $687.3 million to THE MITRE CORPORATION for work described as: INITIAL MODIFICATION ON TASK ORDER 5 NSEC, FFRDC TO INCREMENTALLY FUND, UPDATE PWS & DD254 Key points: 1. Significant R&D spending concentrated with a single FFRDC. 2. Task order modification suggests evolving requirements and potential scope creep. 3. Lack of competition raises concerns about price discovery and value for money. 4. FFRDC's role in research and development warrants close oversight.

Value Assessment

Rating: questionable

The contract's cost-plus-no-fee structure for a modified task order, especially without clear competition, makes value assessment difficult. Benchmarking against similar R&D contracts is challenging due to the specialized nature of FFRDC work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This award was not competed, relying on a sole-source FFRDC arrangement. This limits price discovery and potentially leads to higher costs than a competitive process might yield.

Taxpayer Impact: Taxpayer funds are directed to a single entity without competitive pressure, potentially reducing the overall value obtained for the investment.

Public Impact

Research and Development funding is concentrated, potentially limiting broader innovation. The modification of an existing task order indicates evolving defense needs. FFRDC's unique position may be leveraged for critical but potentially costly research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for scope creep
Cost control concerns

Positive Signals

Utilizes FFRDC expertise
Addresses evolving requirements

Sector Analysis

This contract falls under Research and Development, a sector often characterized by high innovation and specialized expertise. Benchmarks are difficult due to the unique nature of FFRDC work, but significant R&D investments are common in defense.

Small Business Impact

This contract does not appear to involve small business participation, as it is awarded directly to a Federally Funded Research and Development Center (FFRDC).

Oversight & Accountability

The modification of a task order, especially one with significant funding, requires robust oversight to ensure requirements are justified and costs are controlled. The FFRDC's unique relationship with the government necessitates careful monitoring of its performance and adherence to its charter.

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 to FFRDC
Contract modification with incremental funding
Lack of clear competition
Potential for cost overruns
Evolving requirements (PWS/DD254 changes)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $687.3 million to THE MITRE CORPORATION. INITIAL MODIFICATION ON TASK ORDER 5 NSEC, FFRDC TO INCREMENTALLY FUND, UPDATE PWS & DD254

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 $687.3 million.

What is the period of performance?

Start: 2022-09-29. End: 2023-12-31.

What specific changes in the PWS and DD254 necessitated the incremental funding and modification of this task order, and were these changes fully justified?

The provided data indicates modifications to the Performance Work Statement (PWS) and DD254, leading to incremental funding. A thorough review would require access to the modification documentation to understand the precise nature of the changes. Justification would likely involve evolving threat assessments, technological advancements, or shifts in strategic priorities within the Department of the Army that necessitate updated research objectives or security protocols.

How does the Department of Defense ensure cost-effectiveness and prevent potential overspending when awarding sole-source contracts to FFRDCs like MITRE for evolving R&D needs?

DoD employs several mechanisms, including FFRDC charter requirements for objectivity and independence, regular performance reviews, and cost realism analyses. For sole-source awards, robust internal justification processes and independent cost estimates are crucial. The 'Cost No Fee' (CNF) contract type, while unusual for R&D, might be intended to incentivize performance or manage risk, but its application here warrants scrutiny to ensure it doesn't mask inefficiencies.

What is the long-term strategic value of this specific R&D investment, and how does it align with broader national security objectives given the lack of competitive input?

The strategic value is tied to the specific R&D objectives outlined in the PWS, which are not detailed here. FFRDCs are established to address long-term, complex national security needs that require special attention. Without competition, the alignment relies heavily on the government's strategic foresight and the FFRDC's ability to deliver unique, mission-critical capabilities that cannot be obtained elsewhere, necessitating strong program management and oversight.

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: $687,297,018

Exercised Options: $687,297,018

Current Obligation: $687,294,528

Actual Outlays: $155,263,613

Subaward Activity

Number of Subawards: 180

Total Subaward Amount: $21,752,225

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