DoD's $63M R&D Contract with MRI Global Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $63,199,373 ($63.2M)
Contractor: Mriglobal
Awarding Agency: Department of Defense
Start Date: 2017-02-10
End Date: 2022-05-10
Contract Duration: 1,915 days
Daily Burn Rate: $33.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF RESEARCH, DEVELOPMENT, TEST,&EVALUATION,&STRATEGIC INITIATIVES, JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL AND BIOLOGICAL DEFENSE
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64110
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $63.2 million to MRIGLOBAL for work described as: IGF::OT::IGF RESEARCH, DEVELOPMENT, TEST,&EVALUATION,&STRATEGIC INITIATIVES, JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL AND BIOLOGICAL DEFENSE Key points: 1. The contract awarded to MRI Global for R&D services is substantial, totaling over $63 million. 2. While listed as 'Full and Open Competition,' the specific award type and duration warrant further examination for true market engagement. 3. The 'Cost Plus Fixed Fee' pricing structure can present risks if not tightly managed, potentially impacting overall value. 4. This spending falls within the Defense sector's significant R&D investments, particularly in chemical and biological defense.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, requires rigorous oversight to ensure costs remain reasonable and aligned with project goals. Without detailed cost breakdowns and performance metrics, assessing the value for money against similar R&D efforts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' suggesting a broad solicitation. However, the nature of specialized R&D can sometimes limit the number of truly capable bidders, potentially impacting the competitive intensity and price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for advanced research and development. Ensuring the most cost-effective approach and achieving desired technological advancements are key to maximizing the return on this investment.
Public Impact
Significant investment in defense R&D, potentially leading to advancements in chemical and biological defense capabilities. Contract duration of over 4 years suggests a long-term commitment to specific research objectives. Potential for innovation and technological breakthroughs that could enhance national security. The CPFF structure necessitates transparency in cost reporting to assure the public of responsible spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Specialized R&D area
Positive Signals
- Full and Open Competition
- Potential for technological advancement
Sector Analysis
This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' category, specifically within the Department of Defense's strategic initiatives for chemical and biological defense. Spending in this sector is critical for national security but often involves high costs and inherent uncertainties.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of Defense, through its various contracting and oversight agencies, is responsible for monitoring this contract. Ensuring robust oversight of the CPFF structure and performance metrics is crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited visibility into specific R&D outcomes and value realization
- Ensuring true market competition in a specialized R&D niche
- Long contract duration may reduce flexibility
- Need for robust oversight of contractor performance and costs
Tags
research-and-development-in-the-physical, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.2 million to MRIGLOBAL. IGF::OT::IGF RESEARCH, DEVELOPMENT, TEST,&EVALUATION,&STRATEGIC INITIATIVES, JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL AND BIOLOGICAL DEFENSE
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 $63.2 million.
What is the period of performance?
Start: 2017-02-10. End: 2022-05-10.
What specific technological advancements or capabilities are expected from this $63 million R&D investment, and how will their achievement be measured against the CPFF structure?
The contract aims to advance research, development, test, and evaluation in chemical and biological defense. Measuring achievement under a CPFF contract typically involves tracking progress against defined milestones, deliverables, and technical objectives. Specific expected advancements would be detailed in the contract's SOW, requiring rigorous review to ensure alignment with the fixed fee and overall value.
Given the specialized nature of chemical and biological defense R&D, how can the Department of Defense ensure genuine competition and prevent potential cost overruns within the 'Full and Open Competit
Ensuring genuine competition in specialized fields involves proactive market research to identify all capable sources and structuring solicitations to encourage participation. For CPFF contracts, robust cost monitoring, independent government cost estimates, and clear performance metrics are essential to control spending and prevent overruns, even with full and open competition.
What is the long-term strategic value of this specific R&D program, and how does it align with current and future national security threats in the chemical and biological defense domain?
The long-term value hinges on the successful development of advanced capabilities to counter evolving chemical and biological threats. Alignment with national security requires continuous assessment of the threat landscape and ensuring the R&D portfolio directly addresses identified vulnerabilities and emerging risks, justifying the sustained investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA807512R0002
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, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,507,523
Exercised Options: $63,507,523
Current Obligation: $63,199,373
Actual Outlays: $540,106
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $13,211,591
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA807514D0006
IDV Type: IDC
Timeline
Start Date: 2017-02-10
Current End Date: 2022-05-10
Potential End Date: 2022-05-10 00:00:00
Last Modified: 2023-10-18
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