DoD's JPEO CBRND contract awarded to MRI Global for $60.7M for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $60,706,889 ($60.7M)

Contractor: Mriglobal

Awarding Agency: Department of Defense

Start Date: 2021-03-15

End Date: 2026-03-14

Contract Duration: 1,825 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TEST, EVALUATION, AND STRATEGIC INITIATIVES FOR JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR DEFENSE (JPEO CBRND)

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to MRIGLOBAL for work described as: RESEARCH, DEVELOPMENT, TEST, EVALUATION, AND STRATEGIC INITIATIVES FOR JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR DEFENSE (JPEO CBRND) Key points: 1. The contract focuses on research, development, test, and evaluation for chemical, biological, radiological, and nuclear defense. 2. MRI Global, the sole contractor, has a significant role in advancing CBRND capabilities. 3. The contract duration of five years suggests a long-term commitment to the program's objectives. 4. The Cost Plus Fixed Fee (CPFF) contract type indicates potential for cost overruns, requiring close monitoring. 5. The absence of small business set-asides warrants examination of subcontracting opportunities. 6. The contract's strategic importance lies in bolstering national security against CBRN threats.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable R&D efforts for JPEO CBRND. The Cost Plus Fixed Fee (CPFF) structure, while common for research, can lead to costs exceeding initial estimates if not managed diligently. The fixed fee component provides some predictability for the contractor's profit, but the overall cost is variable. Further analysis would require understanding the specific research objectives and the market rates for similar scientific expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. However, the data indicates only one award was made, which could imply that only one offer was received or that MRI Global was the only one that met all the stringent requirements. The level of competition, while initially broad, resulted in a single awardee, which may limit price discovery compared to contracts with multiple competing bids.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers. However, when only one award is made, the taxpayer may not fully benefit from the competitive pressure that drives down prices.

Public Impact

The primary beneficiaries are the Department of Defense and national security agencies, who will receive advanced CBRND defense capabilities. The services delivered include critical research, development, testing, and evaluation to counter emerging threats. The geographic impact is national, as the advancements are intended to protect the entire United States and its interests. Workforce implications include specialized scientific and technical roles within MRI Global and potentially supporting subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not closely managed, potentially increasing the final expenditure beyond initial projections.
The absence of explicit small business participation goals or set-asides may limit opportunities for smaller firms to contribute and benefit from this contract.
The sole awardee nature of this contract, despite full and open competition, raises questions about the breadth of market engagement or the specific requirements that may have limited the number of viable bidders.

Positive Signals

The contract is awarded through full and open competition, indicating an effort to leverage the broadest possible market for specialized R&D services.
The five-year duration suggests a strategic, long-term investment in critical CBRND defense capabilities, aligning with ongoing national security priorities.
The focus on R&D for JPEO CBRND addresses a vital area of national security, aiming to develop advanced solutions against complex threats.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for CBRND defense research is highly specialized, often involving a limited number of contractors with the requisite expertise and security clearances. Government spending in this area is driven by national security imperatives and is subject to rigorous oversight. Comparable spending benchmarks would typically be found within other defense R&D contracts for advanced scientific and technological development.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside. This means that while small businesses could have competed, there were no explicit provisions to encourage or mandate their involvement. It is crucial to assess whether MRI Global has a subcontracting plan that includes small businesses to ensure they can benefit from this significant federal investment and contribute their specialized capabilities to the CBRND program.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically within the JPEO CBRND. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the Cost Plus Fixed Fee contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific research details may be sensitive. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (JPEO CBRND) initiatives
Department of Defense Research and Development Programs
Chemical and Biological Defense Program
Radiological and Nuclear Defense Program
Advanced Scientific Research Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Small Business Participation
Sole Awardee Despite Full Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to MRIGLOBAL. RESEARCH, DEVELOPMENT, TEST, EVALUATION, AND STRATEGIC INITIATIVES FOR JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR DEFENSE (JPEO CBRND)

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 $60.7 million.

What is the period of performance?

Start: 2021-03-15. End: 2026-03-14.

What is MRI Global's track record with the Department of Defense, particularly in CBRND research?

MRI Global has a history of performing research and development for various government agencies, including the Department of Defense. Their expertise often lies in areas such as chemical and biological defense, materials science, and advanced manufacturing. While specific details on past CBRND-related contracts with DoD would require deeper database searches, their designation as a recipient for this significant JPEO CBRND contract suggests a demonstrated capability and a positive past performance record relevant to the agency's needs. Further investigation into their contract history, including any past performance reviews or awards, would provide a more comprehensive understanding of their reliability and effectiveness in similar research endeavors.

How does the $60.7 million contract value compare to similar R&D efforts for CBRND defense?

Comparing the $60.7 million value requires context regarding the scope and duration of similar R&D efforts. Contracts for specialized CBRND research can vary significantly based on the complexity of the threat being addressed, the required technological advancements, and the duration of the research program. A five-year contract of this magnitude suggests a substantial, multi-faceted research initiative. To benchmark effectively, one would need to identify other DoD contracts awarded to different entities for comparable R&D in chemical, biological, radiological, or nuclear defense over similar timeframes. Without such direct comparisons, it's difficult to definitively state whether this represents a high, low, or average investment for the capabilities sought.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, particularly for research and development, revolve around cost control and potential overruns. While the 'fixed fee' provides a guaranteed profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the research proves more complex or time-consuming than anticipated, or if unforeseen challenges arise, the total cost to the government can escalate significantly beyond initial estimates. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear definition of research objectives and milestones to ensure that costs remain reasonable and aligned with the program's goals.

How effective is the JPEO CBRND program in developing and fielding advanced defense capabilities?

The Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (JPEO CBRND) is a critical entity within the Department of Defense tasked with developing and fielding advanced CBRND defense capabilities. Its effectiveness is generally measured by its ability to deliver timely and relevant technologies that counter evolving threats. The program has been instrumental in acquiring and developing a range of protective equipment, medical countermeasures, and detection systems. However, like many large-scale defense acquisition programs, it can face challenges related to technological hurdles, budget constraints, and the long lead times inherent in R&D. Success is often demonstrated through the successful fielding of new capabilities and the continuous adaptation of strategies to address emerging threats.

What are the historical spending patterns for CBRND research and development within the DoD?

Historical spending patterns for CBRND research and development within the Department of Defense have generally shown a consistent, albeit fluctuating, commitment driven by national security priorities and threat assessments. Funding levels can increase during periods of heightened global concern regarding CBRN threats or after specific incidents. The DoD allocates significant resources to entities like JPEO CBRND to maintain a technological edge and develop countermeasures. Analyzing historical budgets would reveal trends in investment across different CBRND domains (chemical, biological, radiological, nuclear) and highlight shifts in research focus over time, often influenced by geopolitical events and scientific advancements.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' is highly significant for this contract. It precisely categorizes the core activity being procured: scientific research and experimental development. This code indicates that the contract is for advanced scientific inquiry and innovation across a broad spectrum of disciplines, excluding highly specialized fields like nanotechnology and biotechnology. For the JPEO CBRND, this code signifies a focus on fundamental and applied research aimed at understanding, preventing, and mitigating threats related to chemical, biological, radiological, and nuclear agents, utilizing expertise from physics, chemistry, engineering, biology, and related fields.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $62,779,127

Exercised Options: $62,779,127

Current Obligation: $60,706,889

Actual Outlays: $5,175,574

Subaward Activity

Number of Subawards: 151

Total Subaward Amount: $47,521,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0017

IDV Type: IDC

Timeline