HHS's $33.3M NIH contract for chemical agent repository and drug chemistry support awarded to MRIGLOBAL

Contract Overview

Contract Amount: $33,345,515 ($33.3M)

Contractor: Mriglobal

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-01

End Date: 2018-07-31

Contract Duration: 2,525 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CENTRALIZED CHEMOPREVENTIVE AGENT REPOSITORY AND DRUG CHEMISTRY SUPPORT

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64110

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.3 million to MRIGLOBAL for work described as: CENTRALIZED CHEMOPREVENTIVE AGENT REPOSITORY AND DRUG CHEMISTRY SUPPORT Key points: 1. Contract awarded to MRIGLOBAL for scientific and technical consulting services. 2. The contract duration was 2525 days, indicating a long-term need. 3. Services included a centralized repository and drug chemistry support. 4. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns. 5. The award was made under full and open competition. 6. The contract was awarded by the National Institutes of Health. 7. The contract value was approximately $33.3 million. 8. The contract was awarded in Missouri.

Value Assessment

Rating: fair

The contract value of $33.3 million over approximately 7 years for specialized scientific consulting services appears within a reasonable range for such niche support. However, without specific benchmarks for 'centralized chemopreventive agent repository and drug chemistry support,' a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, as contractor profit is tied to costs incurred. This contrasts with fixed-price contracts which offer greater cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bids indicates a moderate level of competition for this specialized service. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the specific nature of the services (chemopreventive agent repository and drug chemistry support) might limit the pool of qualified bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages competitive pricing and potentially leads to more cost-effective solutions. The existence of multiple bids suggests that the government received a range of offers, allowing for selection of the best value.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by securing essential support for drug discovery and development. The contract supports the maintenance of a centralized repository of chemopreventive agents, crucial for research. Drug chemistry support aids in the identification, synthesis, and analysis of potential therapeutic compounds. This contract indirectly benefits the public by advancing medical research and the development of new treatments. The primary beneficiaries are researchers and scientists within the NIH and potentially collaborating institutions. The geographic impact is primarily within Missouri, where the contractor is located, but the research supported has national and global implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending as profit is a percentage of costs.
Limited public information on specific performance metrics makes it difficult to assess the contractor's efficiency.
The long duration of the contract (over 7 years) could lead to potential complacency or reduced urgency if not actively managed.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract supports critical research in drug discovery and development, aligning with NIH's mission.
The contractor, MRIGLOBAL, has a track record in scientific research and development, suggesting relevant expertise.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, specifically focusing on chemical and pharmaceutical research support. This is a critical area for government-funded health research, enabling advancements in disease prevention and treatment. The market for such specialized services is often characterized by a limited number of highly qualified firms capable of meeting stringent scientific and regulatory requirements. Comparable spending in this niche would likely be found within other government agencies funding biomedical research, such as the Department of Defense's research arms or the National Science Foundation.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be minimal unless MRIGLOBAL actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), the awarding agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and allocable to the contract's objectives. The contract's duration suggests ongoing programmatic oversight. Transparency is facilitated by the contract being awarded under full and open competition, with the award details being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research and Development Support Services
Chemical and Pharmaceutical Research Contracts
Scientific and Technical Consulting Services
Biomedical Research Infrastructure Support
Drug Discovery and Development Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of specific performance metrics in public data hinders detailed value assessment.
Specialized nature of services may limit the pool of qualified bidders, potentially impacting competition.
Long contract duration requires sustained oversight to ensure continued efficiency and relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.3 million to MRIGLOBAL. CENTRALIZED CHEMOPREVENTIVE AGENT REPOSITORY AND DRUG CHEMISTRY SUPPORT

Who is the contractor on this award?

The obligated recipient is MRIGLOBAL.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2011-09-01. End: 2018-07-31.

What is MRIGLOBAL's specific expertise and track record in managing centralized chemical agent repositories and providing drug chemistry support?

MRIGLOBAL (Midwest Research Institute) has a long history of providing scientific and technical support to government agencies, including the NIH. Their expertise spans various areas of chemical research, analysis, and management of specialized collections. For instance, they have been involved in managing chemical libraries, conducting analytical chemistry services, and supporting drug discovery programs. Their experience likely includes handling sensitive materials, ensuring proper storage and inventory control for repositories, and performing complex chemical syntheses and analyses required for drug chemistry support. Specific details on their past performance related to centralized chemopreventive agent repositories would require a deeper dive into their contract history and project reports, but their general capabilities align with the requirements of this contract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost control for similar scientific services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, common in research and development. In CPFF, the government pays the contractor's actual allowable costs plus a fixed fee, which represents the contractor's profit. This structure incentivizes the contractor to incur costs to increase their profit margin, as the fee is a percentage of the estimated cost. Compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, CPFF offers less cost certainty for the government and higher risk of cost overruns. However, it provides flexibility for evolving research needs. Other types like Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF) introduce performance incentives that can better align contractor and government interests in cost efficiency and quality.

What were the key performance indicators (KPIs) used to evaluate MRIGLOBAL's performance under this contract, and how did they perform against these metrics?

The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation reports for this contract. Typically, for a contract involving a chemical agent repository and drug chemistry support, KPIs might include metrics such as the accuracy and completeness of the repository inventory, the timeliness of sample retrieval and processing, the quality and reproducibility of chemical analyses, adherence to safety protocols, and the successful completion of drug chemistry milestones. Without access to the contract's Statement of Work (SOW) and subsequent performance reviews, it is impossible to detail MRIGLOBAL's performance against specific metrics. The contract's duration and renewal (if any) could indirectly suggest satisfactory performance, but concrete data is absent.

What is the historical spending trend for similar 'Other Scientific and Technical Consulting Services' at the National Institutes of Health?

Historical spending trends for 'Other Scientific and Technical Consulting Services' (NAICS code 541690) at the National Institutes of Health (NIH) show a consistent and significant investment in external expertise. Over the past decade, NIH's expenditure in this category has generally increased, reflecting the growing complexity of biomedical research and the need for specialized support services. While specific figures fluctuate year-to-year based on research priorities and funding cycles, this category consistently represents a substantial portion of NIH's contracting budget. This particular contract, valued at approximately $33.3 million over its period of performance, aligns with the scale of other major consulting service awards within NIH, indicating a sustained commitment to leveraging external scientific and technical capabilities to advance its mission.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

While the provided data does not explicitly list risks and mitigation strategies for this specific contract, common challenges in scientific consulting and repository management contracts include: 1) Technical challenges: Ensuring the stability and integrity of chemical agents, adapting to evolving scientific methodologies, and maintaining complex analytical equipment. Mitigation often involves robust quality control procedures, continuous staff training, and contingency planning for equipment failure. 2) Cost overruns: Particularly with CPFF contracts, managing costs requires diligent oversight, regular budget reviews, and clear definition of allowable costs. 3) Schedule delays: Research projects can face unforeseen scientific hurdles. Mitigation involves realistic scheduling, proactive problem-solving, and clear communication channels. 4) Data security and intellectual property: Protecting sensitive research data and ensuring proper handling of intellectual property are critical. Mitigation involves strict adherence to security protocols and clear IP agreements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N02PC1500344

Offers Received: 3

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: $33,345,515

Exercised Options: $33,345,515

Current Obligation: $33,345,515

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline