NIH awards $50.9M contract for chemistry services, with MRIGLOBAL as prime contractor

Contract Overview

Contract Amount: $50,917,033 ($50.9M)

Contractor: Mriglobal

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-18

End Date: 2027-01-17

Contract Duration: 4,566 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF CHEMISTRY SERVICES FOR THE NTP

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64110

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50.9 million to MRIGLOBAL for work described as: IGF::OT::IGF CHEMISTRY SERVICES FOR THE NTP Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, allowing for flexibility in research scope. 2. The contract duration of over 12 years suggests a long-term need for these specialized services. 3. Competition was full and open, indicating a broad market search for qualified bidders. 4. The North American Industry Classification System (NAICS) code 541712 points to a focus on physical, engineering, and life sciences research. 5. The contract is a definitive contract, typically used for complex or long-term requirements. 6. The contract was awarded to a single prime contractor, MRIGLOBAL. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking the value is difficult without specific details on the services rendered and the deliverables. However, the duration and scope suggest a significant investment in research and development. Comparing this to similar R&D contracts would require access to more detailed pricing information and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the agency sought proposals from all responsible sources. With three bidders, the competition level appears moderate. This level of competition is generally favorable for price discovery, though the specific outcomes depend on the technical requirements and the number of truly capable bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The National Institutes of Health (NIH) benefits from access to specialized chemistry services for its research programs. The contract supports research and development in the physical, engineering, and life sciences. The geographic impact is primarily within Missouri, where MRIGLOBAL is located, but the research outcomes can have national and global implications. The contract supports a specialized workforce in scientific research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The long contract duration may present risks if scientific priorities shift or if the contractor's performance declines over time.
Limited public information on specific deliverables makes it challenging to assess the true value for money.

Positive Signals

Awarded under full and open competition, suggesting a robust search for qualified vendors.
The contract supports critical research and development for a major federal health agency.
The prime contractor, MRIGLOBAL, has a history of performing government contracts.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. This sector is characterized by innovation and specialized scientific expertise. Federal spending in this area supports advancements in various fields, from medicine to materials science. Comparable spending benchmarks would depend on the specific sub-discipline of chemistry and the scale of the research projects undertaken by NIH.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this contract are limited unless they are subcontractors to the prime. The overall impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract databases, but specific performance metrics and detailed financial breakdowns may not be publicly available.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Federal Scientific Research Contracts
Chemistry Research Services

Risk Flags

Cost-plus-fixed-fee contract type can lead to cost overruns if not closely monitored.
Long contract duration may pose risks if research priorities change or performance wanes.
Limited public detail on specific deliverables hinders precise value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50.9 million to MRIGLOBAL. IGF::OT::IGF CHEMISTRY SERVICES FOR THE NTP

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 $50.9 million.

What is the period of performance?

Start: 2014-07-18. End: 2027-01-17.

What is the track record of MRIGLOBAL in performing similar government contracts, particularly those with a cost-plus-fixed-fee structure?

MRIGLOBAL has a history of performing government contracts, including those with the Department of Health and Human Services. Analyzing their past performance on cost-plus-fixed-fee contracts would involve reviewing contract award data, past performance evaluations, and any documented issues or successes. A detailed review would assess their ability to manage costs, meet deadlines, and deliver quality scientific services within the agreed-upon fee structure. Without specific performance reports for this contract, it's assumed they have met the necessary qualifications for this award. Further investigation into their contract history could reveal patterns in cost management and project completion.

How does the awarded amount of $50.9 million compare to similar chemistry services contracts awarded by NIH or other federal agencies?

Benchmarking the $50.9 million award requires comparing it to contracts with similar scope, duration, and complexity within the R&D sector, specifically for chemistry services. Contracts for specialized scientific research can vary significantly based on the specific scientific disciplines, the level of expertise required, and the duration. A contract spanning over 12 years suggests a substantial, long-term research need. To provide a precise comparison, one would need to analyze the number of bidders, the specific deliverables, and the pricing structures of comparable contracts. However, the amount indicates a significant investment in specialized scientific support.

What are the primary risks associated with a cost-plus-fixed-fee contract for scientific research, and how are they mitigated?

The primary risk with cost-plus-fixed-fee (CPFF) contracts is the potential for cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. This can incentivize less cost-conscious behavior if not properly managed. For scientific research, risks also include the inherent uncertainty of research outcomes, potential shifts in scientific priorities, and the contractor's ability to maintain cutting-edge expertise. Mitigation strategies include robust government oversight, detailed cost monitoring and reporting requirements, clear performance metrics, and well-defined statements of work. Regular reviews and audits by the contracting officer are crucial to ensure costs are reasonable and allocable, and that the fixed fee remains appropriate.

What specific scientific advancements or program outcomes are expected from this $50.9 million contract over its 12-year duration?

The contract is for 'Chemistry Services for the NTP' (National Toxicology Program). While the exact scientific advancements are not detailed in the provided data, the National Toxicology Program's mission is to develop, conduct, and evaluate the science needed to prevent or reduce environmental exposures that cause illness or death. Therefore, this contract likely supports toxicological testing, chemical analysis, method development, and data interpretation related to various substances. Expected outcomes could include identifying potential health risks of chemicals, developing new testing methodologies, and providing scientific data to inform regulatory decisions and public health policies. The long duration suggests ongoing support for the NTP's comprehensive chemical assessment efforts.

How has federal spending on chemistry services research and development evolved over the past five years, and where does this contract fit in?

Federal spending on R&D, particularly in scientific services like chemistry, has generally seen consistent investment, driven by national priorities in health, defense, and technology. The NIH, as a major funder of biomedical research, consistently awards significant contracts in this area. This $50.9 million contract, awarded in 2014 with an end date in 2027, represents a substantial, long-term commitment to a specific research program (NTP). Its value is significant within the context of specialized chemistry services. Analyzing broader trends would involve looking at aggregate spending data for NAICS code 541712 and similar codes, which would likely show multi-billion dollar annual federal outlays, with individual contracts like this forming crucial components of larger research initiatives.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHES2013180

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: $82,097,769

Exercised Options: $50,917,033

Current Obligation: $50,917,033

Actual Outlays: $17,413,625

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $75,980

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline