DOE's $1.76B MRI contract for facilities support services awarded to MRIGLOBAL, spanning nearly a decade
Contract Overview
Contract Amount: $1,762,378,588 ($1.8B)
Contractor: Mriglobal
Awarding Agency: Department of Energy
Start Date: 1999-10-07
End Date: 2008-11-08
Contract Duration: 3,320 days
Daily Burn Rate: $530.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AWARD OF MRI CONTRACT
Place of Performance
Location: GOLDEN, JEFFERSON County, COLORADO, 80401
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $1.76 billion to MRIGLOBAL for work described as: AWARD OF MRI CONTRACT Key points: 1. The contract's long duration and significant value suggest a critical, ongoing need for facilities support. 2. A full and open competition indicates a potentially robust market for these services. 3. The cost-plus-fixed-fee contract type may incentivize cost control while ensuring contractor profit. 4. The award was made to MRIGLOBAL, suggesting a strong past performance or competitive advantage. 5. The contract's performance period, from 1999 to 2008, provides a historical benchmark for similar services. 6. Facilities support services are essential for the operational continuity of government facilities.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $1.76 billion over nearly 10 years averages to approximately $176 million annually, which could be considered substantial for facilities support. However, the 'cost plus fixed fee' structure means the final cost could vary based on actual expenses incurred, making a direct price comparison difficult. Without more granular data on the scope of services and market rates for similar comprehensive facilities management contracts, a definitive value-for-money assessment remains elusive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The fact that there were two bidders indicates a degree of market interest, but it's unclear if this represents the full spectrum of potential providers or if other factors limited participation.
Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a competitive marketplace that can drive down costs and improve service quality.
Public Impact
The primary beneficiaries are the Department of Energy and its various facilities, which receive essential operational support. Services delivered likely include maintenance, repair, security, and general upkeep of government-owned or leased facilities. The geographic impact is concentrated around the facilities managed by MRIGLOBAL under this contract, primarily in Colorado. The contract supports a workforce involved in facilities management, maintenance, and related support functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The long duration of the contract (nearly 10 years) could indicate potential for contractor complacency or a lack of agility in adapting to evolving needs.
- Cost-plus-fixed-fee contracts can sometimes lead to less stringent cost control by the contractor if oversight is not robust.
- Limited competition (2 bidders) might suggest barriers to entry or a specialized market, potentially impacting long-term cost-effectiveness.
Positive Signals
- Awarded under full and open competition, indicating a structured procurement process that allowed for broad market participation.
- The significant contract value suggests the contractor, MRIGLOBAL, possesses the capacity and expertise to handle large-scale, complex facilities support operations.
- The contract's successful completion over its duration implies a level of performance that met the government's requirements.
Sector Analysis
Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized services supporting government and commercial operations. The market size for facilities management is substantial, encompassing everything from routine maintenance to complex infrastructure management. This contract represents a significant portion of spending within this niche, highlighting the government's reliance on specialized contractors for maintaining its extensive physical assets.
Small Business Impact
The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests the contract was not specifically targeted towards small businesses, nor does it appear that small businesses were primary awardees. There is no information provided on subcontracting plans, so the extent to which small businesses may have participated indirectly through subcontracts remains unknown.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of Energy's contracting officers and program managers. Accountability measures would typically be embedded within the contract's terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases and public reporting, although detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Facilities Operations Contracts
- Government Facilities Management Services
- Large-Scale Service Contracts
- Cost-Plus Contracts
- Long-Term Government Service Agreements
Risk Flags
- Long contract duration
- Cost-plus contract type
- Limited number of bidders
Tags
facilities-support-services, department-of-energy, mriglobal, cost-plus-fixed-fee, full-and-open-competition, large-contract, service-contract, colorado, historical-contract, facilities-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $1.76 billion to MRIGLOBAL. AWARD OF MRI CONTRACT
Who is the contractor on this award?
The obligated recipient is MRIGLOBAL.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $1.76 billion.
What is the period of performance?
Start: 1999-10-07. End: 2008-11-08.
What specific facilities support services were included under this contract?
While the contract NAICS code (561210) indicates 'Facilities Support Services,' the precise scope of services under this specific $1.76 billion award to MRIGLOBAL is not detailed in the provided data. Typically, such comprehensive contracts can encompass a wide array of functions including, but not limited to, building operations and maintenance, groundskeeping, custodial services, security, waste management, energy management, space utilization, and minor repairs. Given the contract's duration and value, it likely covered a broad spectrum of essential services required to maintain the operational readiness and safety of Department of Energy facilities.
How did MRIGLOBAL's pricing compare to other potential bidders or market rates at the time of award?
The provided data does not include specific pricing details or cost breakdowns that would allow for a direct comparison of MRIGLOBAL's pricing against other bidders or prevailing market rates. As a 'Cost Plus Fixed Fee' (CPFF) contract, the total cost is composed of allowable costs incurred by the contractor plus a predetermined fixed fee representing profit. While the fixed fee provides some predictability, the overall cost is variable. A thorough analysis would require access to the bid proposals, cost submissions, and potentially independent government cost estimates to assess if the final negotiated price represented good value.
What were the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?
The provided summary data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) that were established for this contract. In a contract of this magnitude and duration for facilities support, it is highly probable that detailed performance metrics were defined to ensure the quality and timeliness of services. These would typically cover areas such as response times for maintenance requests, uptime of critical systems, cleanliness standards, security incident response, and energy efficiency targets. Performance against these metrics would likely influence contractor payment and future contract awards.
What is MRIGLOBAL's track record with large federal facilities support contracts?
MRIGLOBAL has a history of performing large federal contracts, including significant work in facilities support and management. The award of this nearly $1.8 billion Department of Energy contract from 1999 to 2008 demonstrates their capability to handle extensive and complex service requirements over extended periods. While this specific contract award highlights their capacity, a comprehensive assessment of their track record would involve reviewing performance evaluations, past contract history across various agencies, and any documented issues or commendations related to their service delivery on similar large-scale government contracts.
How has federal spending on facilities support services evolved since this contract was awarded?
Federal spending on facilities support services has likely seen significant evolution since this contract, which spanned from 1999 to 2008. Post-2008, there has been an increased emphasis on energy efficiency, sustainability, and the use of advanced technologies (like IoT for building management) in facilities operations. Furthermore, contracting strategies have evolved, with trends towards performance-based contracting, integrated facility management, and potentially more specialized service providers. While overall spending fluctuates based on agency needs and budget appropriations, the nature of services procured and the expected outcomes have likely become more sophisticated and data-driven.
Were there any notable challenges or disputes during the performance of this contract?
The provided data does not contain information regarding specific challenges, disputes, or contract modifications that may have occurred during the performance of this nearly decade-long contract. Large, long-term service contracts often encounter unforeseen issues, scope changes, or performance disagreements. A full review would necessitate examining contract modification history, performance reviews, and any official records of disputes or claims filed by either the contractor or the government agency. Without such records, it's impossible to ascertain if any significant challenges arose.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 425 VOLKER BOULEVARD, KANSAS CITY, MO, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,762,378,588
Exercised Options: $1,762,378,588
Current Obligation: $1,762,378,588
Timeline
Start Date: 1999-10-07
Current End Date: 2008-11-08
Potential End Date: 2008-11-08 00:00:00
Last Modified: 2008-11-24
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