DoD's $19.7M R&D contract with MRI Global shows long-term engagement in physical sciences

Contract Overview

Contract Amount: $19,675,145 ($19.7M)

Contractor: Mriglobal

Awarding Agency: Department of Defense

Start Date: 2001-08-20

End Date: 2006-10-31

Contract Duration: 1,898 days

Daily Burn Rate: $10.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64110

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to MRIGLOBAL for work described as: Key points: 1. Contract awarded through a non-competitive process, raising questions about price discovery. 2. Long duration of 1898 days suggests a sustained need for the research services. 3. Cost-plus award fee structure incentivizes performance but can lead to cost overruns. 4. The contract falls under the Research and Development category, indicating investment in innovation. 5. Focus on physical, engineering, and life sciences aligns with advanced technological development.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and non-competitive award. The cost-plus award fee structure, while common for R&D, can sometimes lead to higher final costs compared to fixed-price contracts if not managed tightly. Without comparable sole-source R&D contracts of similar scope and duration, a precise value-for-money assessment is difficult. However, the significant duration suggests the Air Force found sustained value in MRI Global's capabilities.

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 among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation through alternative proposals. This raises concerns about whether the government secured the best possible price and solution.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government missed an opportunity to explore a wider range of innovative solutions and potentially achieve cost savings through a competitive bidding process.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which receives advanced research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies and capabilities. The geographic impact is primarily centered around the contractor's location in Missouri, though the research outcomes could have national or global implications. The contract likely supports a specialized workforce of scientists, engineers, and researchers within MRI Global.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially reduces innovation.
Cost-plus award fee structure can lead to cost escalation if not carefully monitored.
Long contract duration without clear performance metrics in the provided data could obscure true value.
Lack of detailed performance data makes it difficult to assess the effectiveness of the R&D outcomes.

Positive Signals

Long-term engagement suggests sustained value and trust in the contractor's capabilities.
Focus on R&D indicates investment in critical future technologies for national security.
Awarding agency is the Department of Defense, a key entity for national security research.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under the North American Industry Classification System (NAICS) code 541710 for Research and Development in the Physical, Engineering, and Life Sciences. This sector is characterized by innovation, intellectual property development, and often long-term projects. Government spending in this area is crucial for maintaining technological superiority and addressing complex challenges. Comparable spending benchmarks are difficult to establish for sole-source R&D due to the unique nature of each project and contractor.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from a small business set-aside. The focus is on a large-scale R&D effort likely executed by the prime contractor, MRI Global.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. The cost-plus award fee structure necessitates robust oversight to ensure that costs are reasonable and that the contractor meets performance objectives to earn award fees. Transparency is often limited for sole-source R&D contracts, but contract modifications, performance reports, and financial audits would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Science and Technology Programs
Advanced Materials Research
Engineering Services Contracts
Life Sciences Research Contracts

Risk Flags

Sole-source award
Cost-plus award fee structure
Long contract duration
Lack of detailed performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to MRIGLOBAL. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MRIGLOBAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2001-08-20. End: 2006-10-31.

What specific research areas did this contract cover under NAICS code 541710?

While the NAICS code 541710 broadly covers 'Research and Development in the Physical, Engineering, and Life Sciences,' the specific research areas for this contract with MRI Global are not detailed in the provided data. Typically, R&D contracts under this code can encompass a wide range of disciplines, including but not limited to materials science, aerospace engineering, biotechnology, cybersecurity research, environmental science, and advanced manufacturing. Given the awarding agency is the Department of the Air Force, the research likely pertained to defense-specific applications, potentially involving areas like advanced propulsion, sensor technology, electronic warfare, or novel materials for aircraft and defense systems. Further investigation into contract line item numbers (CLINs) or specific statements of work would be necessary to identify the precise research focus.

How does the cost-plus award fee (CPAF) structure compare to other contract types for R&D, and what are its implications?

The Cost-Plus Award Fee (CPAF) contract type is common for research and development efforts where the scope of work can be uncertain or evolve. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fixed fee, with the potential for an additional award fee based on meeting or exceeding specific performance objectives. This structure incentivizes the contractor to perform well and achieve desired outcomes, unlike a simple cost-plus fixed-fee (CPFF) contract. However, compared to fixed-price contracts, CPAF carries a higher risk of cost growth, as the government bears the cost risk. Effective oversight and clearly defined performance metrics are crucial to managing costs and ensuring value under a CPAF arrangement. For taxpayers, CPAF can be more expensive than fixed-price if performance targets are easily met or if the base fee is high, but it can yield better results for complex, uncertain R&D projects.

What is the significance of the contract's long duration (1898 days)?

A contract duration of 1898 days, approximately 5.2 years, is substantial and indicates a long-term commitment by the Department of the Air Force to the research and development services provided by MRI Global. This extended period suggests that the research undertaken was complex, requiring sustained effort and potentially iterative development. It implies that the Air Force identified a critical, ongoing need for the expertise and capabilities offered by MRI Global in the physical, engineering, and life sciences. Such long-term engagements can foster deeper collaboration and allow for the exploration of more ambitious research goals, but they also necessitate continuous oversight to ensure the project remains aligned with evolving defense needs and that costs remain justified over its lifespan.

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

The primary risk associated with a sole-source R&D contract of this magnitude ($19.7 million) is the lack of competition. This can lead to several issues: 1) Suboptimal Pricing: Without competing bids, the government may not achieve the most favorable pricing, potentially overpaying for the services. 2) Limited Innovation: A sole-source award might stifle innovation by not exposing the government to alternative approaches or technologies that other qualified contractors could offer. 3) Contractor Lock-in: The government becomes dependent on a single contractor, potentially reducing leverage in future negotiations or contract renewals. 4) Reduced Transparency: Sole-source procurements can sometimes be less transparent than competed ones, making it harder for the public and oversight bodies to scrutinize the value received. For R&D, this means the government might miss out on breakthrough solutions from a broader market.

How does MRI Global's track record, as suggested by this contract, inform future R&D investments?

This contract, awarded in 2001 and spanning over five years, suggests that MRI Global has a history of successfully performing R&D services for the Department of Defense. The fact that the Air Force entered into a long-term, sole-source agreement implies a level of confidence in MRI Global's technical capabilities, reliability, and potentially unique expertise. For future R&D investments, this contract serves as a data point indicating MRI Global's capacity to handle complex research projects within the physical, engineering, and life sciences domains. However, it's crucial to note that past performance, especially from over two decades ago, should be evaluated alongside more recent contract history, performance reviews, and current market capabilities when making future investment decisions. The sole-source nature also warrants careful consideration regarding future competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 425 VOLKER BOULEVARD, KANSAS CITY, MO, 05

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $910,651

Exercised Options: $910,651

Current Obligation: $19,675,145

Contract Characteristics

Cost or Pricing Data: YES

Timeline