DoD's $12.8M Laboratory Analytical Services Contract Awarded to MRIGLOBAL Under Sole Source Basis
Contract Overview
Contract Amount: $12,794,299 ($12.8M)
Contractor: Mriglobal
Awarding Agency: Department of Defense
Start Date: 2006-10-01
End Date: 2009-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $11.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABORATORY ANALYTICAL SERVICES TAS::57 3400::TAS
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64110, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to MRIGLOBAL for work described as: LABORATORY ANALYTICAL SERVICES TAS::57 3400::TAS Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 3. A 1095-day duration suggests a long-term need for these analytical services. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 5. Awarded by the Defense Contract Management Agency, indicating a focus on defense-related analytical needs. 6. The absence of small business set-aside suggests larger prime contractors are expected to perform the work.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and the broad scope of 'Laboratory Analytical Services'. Without competitive bids, it's difficult to ascertain if the $12.8 million price tag represents a fair market value. The cost-plus-fixed-fee (CPFF) contract type, while common for research and development, can lead to higher costs compared to fixed-price contracts if not managed diligently. Further analysis would require comparing the specific services rendered to similar sole-source contracts within the Department of Defense.
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 only one vendor possesses the unique capabilities or proprietary knowledge required for the service. The lack of competition means there was no direct price negotiation through a bidding process, potentially leading to a higher cost for the government than if multiple offers had been considered.
Taxpayer Impact: A sole-source award limits the government's ability to leverage competition to drive down prices, potentially resulting in less favorable terms for taxpayers compared to a fully competed contract.
Public Impact
The Department of Defense benefits from specialized laboratory analytical services essential for its operations. Services likely support research, development, testing, and evaluation activities within the defense sector. The contract's geographic impact is centered in Missouri, where MRIGLOBAL is located. Workforce implications include employment opportunities at MRIGLOBAL and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Cost-plus-fixed-fee contract type can incentivize higher spending if not closely monitored.
- Broad 'All Other Professional, Scientific, and Technical Services' NAICS code makes specific performance assessment difficult without further detail.
- Long contract duration (1095 days) requires sustained oversight to ensure continued value.
Positive Signals
- MRIGLOBAL is a known entity in the scientific research and development sector, suggesting established expertise.
- The Defense Contract Management Agency's involvement indicates a focus on critical defense needs.
- The contract was awarded for laboratory analytical services, a crucial function for defense operations.
Sector Analysis
The contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 for 'All Other Professional, Scientific, and Technical Services'. This broad category encompasses a wide range of specialized services. The Department of Defense is a significant consumer of such services, utilizing them for research, development, testing, and analysis. Comparable spending in this sector by federal agencies is substantial, reflecting the critical role these services play in national security and technological advancement.
Small Business Impact
The contract data indicates that this award was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. This suggests that the primary contractor, MRIGLOBAL, is expected to perform the majority of the work. The absence of small business participation could limit opportunities for smaller firms within the scientific and technical services ecosystem to contribute to this specific defense contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract's terms and conditions, including reporting requirements and performance metrics. Transparency may be limited due to the sole-source nature of the award and the proprietary aspects of laboratory analysis. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Research and Development Contracts
- Scientific and Technical Services Contracts
- Laboratory Testing and Analysis Services
- Defense Contract Management Agency Services
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of specific service details
Tags
department-of-defense, laboratory-analytical-services, mriglobal, sole-source, cost-plus-fixed-fee, professional-scientific-and-technical-services, defense-contract-management-agency, missouri, non-small-business-set-aside, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to MRIGLOBAL. LABORATORY ANALYTICAL SERVICES TAS::57 3400::TAS
Who is the contractor on this award?
The obligated recipient is MRIGLOBAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2006-10-01. End: 2009-09-30.
What is MRIGLOBAL's track record with the Department of Defense, particularly on similar laboratory analytical services contracts?
MRIGLOBAL has a history of performing work for the Department of Defense, though specific details on prior laboratory analytical services contracts are not immediately available from the provided data. As a research and development organization, their broader portfolio likely includes various scientific and technical services relevant to defense needs. A deeper dive into federal procurement databases like FPDS-NG or SAM.gov would be necessary to fully assess their past performance, including contract values, durations, and any reported issues or successes on similar engagements. Understanding their historical performance on DoD contracts is crucial for evaluating the risk associated with this current award.
How does the $12.8 million value of this contract compare to similar laboratory analytical services procured by the DoD?
Direct comparison of the $12.8 million value is difficult without knowing the precise scope and duration of services rendered, especially given the broad 'All Other Professional, Scientific, and Technical Services' classification. However, for long-term, specialized laboratory analysis, this figure is not unusual for a sole-source award to a research institution. To benchmark effectively, one would need to identify comparable sole-source or competed contracts for similar analytical services within the DoD, considering factors like the number of analytical tests, complexity, and required expertise. The absence of competition inherently makes a direct value-for-money assessment challenging.
What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for laboratory analytical services?
The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to offer the most cost-effective solution. Taxpayers may end up paying more than necessary. Secondly, the Cost-Plus-Fixed-Fee (CPFF) structure, while providing flexibility for evolving research needs, carries the risk of cost overruns. The contractor is reimbursed for allowable costs plus a predetermined fixed fee. If costs escalate beyond initial estimates, the total contract value could increase, impacting the overall budget. Robust oversight and clear performance metrics are essential to mitigate these risks.
What specific types of laboratory analytical services are likely being provided under this contract?
Given the 'Laboratory Analytical Services' designation and the Department of Defense as the client, the services likely encompass a range of scientific analyses critical to defense operations. This could include materials testing and analysis for component reliability, chemical and biological agent detection and identification, environmental monitoring and compliance testing, forensic analysis, and potentially research and development support for new technologies or materials. The broad NAICS code suggests the scope could be extensive, covering various scientific disciplines to support the DoD's diverse operational and research requirements.
What is the historical spending trend for 'Laboratory Analytical Services' within the Department of Defense?
Historical spending on 'Laboratory Analytical Services' within the Department of Defense is substantial and generally trends upwards, reflecting the continuous need for scientific support in areas like R&D, testing, and threat assessment. While specific figures for this exact contract category are not provided, the DoD consistently allocates significant portions of its budget to scientific and technical services. Factors influencing this spending include evolving technological landscapes, emerging threats, and the lifecycle of defense systems. Analyzing multi-year spending patterns for similar NAICS codes (like 541990) would reveal the overall investment in these critical support functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA252106R0008
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 425 VOLKER BLVD, KANSAS CITY, MO, 64110
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,272,934
Exercised Options: $12,794,299
Current Obligation: $12,794,299
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-10-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2016-10-04
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