Department of the Army awards $735M R&D contract to MITRE Corporation for advanced research

Contract Overview

Contract Amount: $735,300,741 ($735.3M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2024-12-31

Contract Duration: 467 days

Daily Burn Rate: $1.6M/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: FY24 TASK ORDER 6 - INITIAL FUNDING AND UPDATING PWS & DD254

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $735.3 million to THE MITRE CORPORATION for work described as: FY24 TASK ORDER 6 - INITIAL FUNDING AND UPDATING PWS & DD254 Key points: 1. Contract awarded to a single, highly specialized entity, suggesting unique capabilities required. 2. Significant funding allocated for research and development, indicating a focus on innovation. 3. Contract duration extends over a year, implying a substantial scope of work. 4. The specific R&D category points to complex scientific and engineering challenges. 5. No small business set-aside, indicating the primary contractor is not a small business. 6. The contract type suggests a focus on research outcomes rather than fixed deliverables.

Value Assessment

Rating: good

The contract value of $735.3 million for a period of approximately 1.5 years is substantial. Benchmarking this against similar R&D contracts in the physical, engineering, and life sciences is challenging without more specific project details. However, given the 'NOT COMPETED' status and the nature of R&D, pricing is often based on cost-plus arrangements, which can lead to higher overall costs compared to fixed-price contracts. The value appears commensurate with the potential complexity of advanced R&D, but a direct value-for-money assessment is difficult without competitive pricing data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the only entity capable of performing the required work. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to higher costs for the government compared to a competed contract.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost savings that could arise from a competitive bidding environment. The government relied on the unique qualifications of the selected contractor.

Public Impact

The Department of the Army is the primary beneficiary, receiving advanced research and development services. The contract supports innovation in physical, engineering, and life sciences, potentially leading to new technologies and capabilities for national defense. The geographic impact is primarily within Virginia, where the contractor is located, but the research outcomes could have national implications. Workforce implications include employment for highly skilled researchers, scientists, and engineers at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other capable firms and potentially higher innovation through diverse approaches.
Cost-plus contract type can lead to cost overruns if not managed stringently.
Lack of competition may reduce pressure on the contractor to optimize costs.
The broad R&D category could lead to scope creep if not precisely defined and managed.

Positive Signals

Award to MITRE Corporation, a well-respected organization known for its R&D expertise, suggests a high likelihood of technical success.
The substantial funding indicates a strong commitment from the Department of the Army to critical research areas.
The contract's focus on advanced R&D aligns with the need for technological superiority in defense.
The specific R&D domain (541715) suggests a focus on areas with high potential impact.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, where significant government investment is directed towards maintaining a technological edge. The market for such specialized R&D is often characterized by a limited number of highly capable organizations, which can explain the sole-source nature of this award. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the research, but R&D contracts of this magnitude are common within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to The MITRE Corporation, a large, non-profit research and development organization, indicates that the primary focus was on specialized expertise rather than small business participation. There is no explicit information regarding subcontracting plans for small businesses within the provided data, which could be a missed opportunity for small business engagement in this significant R&D effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Given the R&D nature and sole-source award, close monitoring of technical progress, adherence to the Statement of Work, and cost control (if applicable under the contract type) would be crucial. Transparency is often limited for sole-source R&D contracts due to proprietary information and the nature of the research, but regular reporting requirements should be in place. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Programs
Advanced Technology Development Contracts
Federally Funded Research and Development Centers (FFRDCs)
Physical Sciences Research
Engineering Sciences Research

Risk Flags

Sole-source award
Cost-reimbursement contract type (potential for cost overruns)
Broad R&D category (potential for scope creep)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $735.3 million to THE MITRE CORPORATION. FY24 TASK ORDER 6 - INITIAL FUNDING AND UPDATING 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 $735.3 million.

What is the period of performance?

Start: 2023-09-21. End: 2024-12-31.

What is the specific research focus of this contract within the broad 'Research and Development in the Physical, Engineering, and Life Sciences' category?

The provided data indicates the North American Industry Classification System (NAICS) code is 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. However, the specific research focus or project details are not detailed in the provided data. This broad categorization suggests the contract could encompass a wide range of scientific and technical endeavors, from materials science and advanced manufacturing to complex systems engineering and biological research relevant to defense applications. Further details would be required to understand the precise objectives and expected outcomes of this significant R&D investment.

What is the track record of The MITRE Corporation with the Department of the Army for similar R&D contracts?

The MITRE Corporation has a long-standing and extensive track record of working with various U.S. government agencies, including the Department of Defense and the Department of the Army, often through FFRDC (Federally Funded Research and Development Center) arrangements. They are known for their expertise in systems engineering, research, and analysis across a broad spectrum of technical domains. While specific contract history details are not provided here, MITRE's consistent engagement with defense agencies suggests a high level of trust and proven capability in delivering complex R&D outcomes. Their role often involves tackling challenging, mission-critical problems that require deep technical understanding and objective analysis.

How does the $735.3 million funding compare to typical R&D spending for the Department of the Army in this sector?

The $735.3 million awarded to The MITRE Corporation represents a significant investment within the R&D sector. The Department of the Army's overall R&D budget is substantial, often in the tens of billions of dollars annually, supporting a wide array of research initiatives. Contracts of this magnitude are not uncommon for major R&D efforts, especially those involving advanced technologies or complex systems development. To provide a precise comparison, one would need to analyze historical spending patterns for NAICS code 541715 specifically within the Army, and consider the duration and scope of similar projects. However, this award clearly signifies a high-priority research area for the Army.

What are the potential risks associated with a sole-source R&D contract of this size?

The primary risk associated with a sole-source R&D contract of this size is the lack of competitive pressure, which can potentially lead to suboptimal pricing and reduced incentive for cost efficiency. Without multiple bidders, the government may not achieve the best possible value. Furthermore, relying on a single source can create dependency and limit the infusion of diverse ideas or alternative approaches that might arise from a competitive environment. There's also a risk that the unique capabilities cited for the sole-source award might be overstated or that alternative solutions could emerge if competition were allowed. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What are the implications of the 'COST NO FEE' contract type for this R&D effort?

The 'COST NO FEE' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This type of contract is typically used when the level of risk is high, and the contractor's profit is not directly tied to the success of the effort, but rather to the completion of the work. For R&D, CNF can incentivize the contractor to focus on achieving the research objectives without the pressure of maximizing profit, potentially leading to more objective research outcomes. However, it also means the government bears the full financial risk of cost overruns, making stringent cost monitoring and control essential.

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: $735,996,842

Exercised Options: $735,996,842

Current Obligation: $735,300,741

Actual Outlays: $102,969,519

Subaward Activity

Number of Subawards: 238

Total Subaward Amount: $91,975,157

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