DoD's $116M R&D Contract with Mayo Clinic: Examining Value and Competition in Life Sciences Research
Contract Overview
Contract Amount: $11,608,495 ($11.6M)
Contractor: Mayo Clinic
Awarding Agency: Department of Defense
Start Date: 2019-01-18
End Date: 2026-06-30
Contract Duration: 2,720 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT NANOTECHNOLOGY AND BIOTECHNOLOGY)
Place of Performance
Location: ROCHESTER, OLMSTED County, MINNESOTA, 55905
Plain-Language Summary
Department of Defense obligated $11.6 million to MAYO CLINIC for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT NANOTECHNOLOGY AND BIOTECHNOLOGY) Key points: 1. Significant investment in advanced R&D at Mayo Clinic, a leading research institution. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. Potential risks include the long contract duration and cost-plus pricing structure. 4. The sector focuses on critical physical, engineering, and life sciences research.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables and comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically fosters competitive pricing. However, the effectiveness of price discovery for complex R&D is variable.
Taxpayer Impact: Taxpayer funds are supporting advanced research, with potential for significant scientific and economic returns, but cost control is paramount.
Public Impact
Supports cutting-edge scientific advancements with potential for broad societal benefits. Invests in a renowned research institution, leveraging expertise and infrastructure. Long-term contract may indicate complex, multi-phase research objectives. Geographic concentration in Minnesota could impact regional economic development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus pricing can inflate costs.
- Long contract duration increases risk exposure.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Competition was full and open.
- Contract awarded to a highly reputable research institution.
- Supports critical R&D in life sciences.
Sector Analysis
This contract falls within the broad R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be challenging to benchmark due to its specialized nature.
Small Business Impact
No specific information is provided regarding small business participation. The contract is with a large, established institution, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be critical to manage costs and ensure research objectives are met within the defined scope and timeline.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overruns due to cost-plus structure.
- Scope creep over the long contract duration.
- Difficulty in measuring R&D outcomes definitively.
- Reliance on a single large institution.
Tags
research-and-development-in-the-physical, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.6 million to MAYO CLINIC. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT NANOTECHNOLOGY AND BIOTECHNOLOGY)
Who is the contractor on this award?
The obligated recipient is MAYO CLINIC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2019-01-18. End: 2026-06-30.
How will the effectiveness of the research be measured given the 'except Nanotechnology and Biotechnology' scope?
Effectiveness measurement will likely depend on the specific milestones and deliverables outlined in the contract's statement of work. While the broad category is defined, the Navy's specific research objectives will dictate the key performance indicators and evaluation criteria used to assess the success of the R&D efforts.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
The primary risks include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen challenges arise during research. The fixed fee provides incentive for the contractor, but the government bears the risk of increased costs. Robust oversight and clear scope definition are essential to mitigate these risks.
How does this contract align with the Department of Defense's broader R&D strategy?
This contract likely supports the DoD's strategic goals in areas requiring advanced scientific understanding, potentially for defense applications or dual-use technologies. The focus on physical, engineering, and life sciences suggests alignment with efforts to enhance capabilities in areas like medical readiness, materials science, or advanced engineering.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001418SB001
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 200 FIRST ST SW, ROCHESTER, MN, 55905
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Hospital, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations
Financial Breakdown
Contract Ceiling: $11,781,704
Exercised Options: $11,781,704
Current Obligation: $11,608,495
Actual Outlays: $146,254
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $2,048,133
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-01-18
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-15
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