DoD's $34.76M MRIGLOBAL contract for R&D in physical sciences awarded via full and open competition

Contract Overview

Contract Amount: $34,759,997 ($34.8M)

Contractor: Mriglobal

Awarding Agency: Department of Defense

Start Date: 2020-10-26

End Date: 2024-11-30

Contract Duration: 1,496 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH IAW SOW - DARPA DIGET PROGRAM

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64110

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to MRIGLOBAL for work described as: RESEARCH IAW SOW - DARPA DIGET PROGRAM Key points: 1. Contract awarded to MRIGLOBAL for research and development services. 2. The contract has a duration of 1496 days, indicating a long-term project. 3. Awarded under a Cost Plus Fixed Fee (CPFF) contract type. 4. The contract was competed using a 'full and open' approach. 5. The North American Industry Classification System (NAICS) code is 541715, focusing on physical sciences R&D. 6. The contract is managed by the Department of the Navy. 7. The contract is for the DARPA DIGET PROGRAM. 8. The contract was awarded in Missouri.

Value Assessment

Rating: good

The contract's value of $34.76 million over approximately four years for specialized R&D services appears reasonable. Benchmarking against similar large-scale R&D contracts within the Department of Defense, particularly those involving advanced research for programs like DARPA, suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in research while providing a defined profit margin for the contractor, which can be efficient for exploratory work. However, detailed cost breakdowns and performance metrics would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a healthy level of competition for this specialized R&D requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer their best technical and cost proposals to win the award. The agency's decision to use full and open competition implies confidence that multiple capable contractors could meet the demanding SOW.

Taxpayer Impact: A full and open competition benefits taxpayers by ensuring that the government receives the most advantageous offers, both technically and financially. It drives down costs through market forces and reduces the risk of overpayment compared to sole-source or limited competitions.

Public Impact

The primary beneficiaries are the Department of Defense and DARPA, who will receive advanced research and development to support national security objectives. The services delivered will focus on research and development within the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The contract is geographically located in Missouri, potentially impacting the local economy and workforce in that region. The contract supports specialized scientific and engineering roles, contributing to the high-tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can sometimes lead to cost overruns if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee.
The specific nature of R&D means that outcomes are not guaranteed, posing a risk to the investment if breakthroughs are not achieved.
Long contract duration (1496 days) requires sustained oversight to ensure continued relevance and performance.

Positive Signals

Awarded through full and open competition, indicating a robust selection process and potential for competitive pricing.
The contractor, MRIGLOBAL, is likely selected based on demonstrated expertise in R&D within the specified scientific domains.
The contract supports a critical national security program (DARPA DIGET), suggesting high strategic importance and potential for impactful innovation.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences. The NAICS code 541715 covers a broad range of scientific research and experimental development services. The market for such services is characterized by highly specialized firms, often with deep technical expertise and significant investment in facilities and personnel. Comparable spending benchmarks in this sector are difficult to establish precisely due to the unique nature of R&D projects, but large government contracts for advanced research can range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a large definitive contract awarded through full and open competition, the primary focus is on selecting the most capable large or small business prime contractor. There is no explicit indication of subcontracting goals for small businesses within the provided data. However, large prime contractors often utilize small businesses for specialized support services, so there may be indirect opportunities for small businesses to participate.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent monitoring of allowable costs and contractor performance against the Statement of Work (SOW). Transparency is typically managed through regular reporting requirements from the contractor and periodic reviews. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG generally has oversight over defense contracts to prevent fraud, waste, and abuse.

Related Government Programs

DARPA Research Programs
Department of Defense Research and Development
Physical Sciences Research Contracts
Cost Plus Fixed Fee Contracts
Navy R&D Spending

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
R&D outcomes are inherently uncertain, posing a risk to investment.
Long contract duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to MRIGLOBAL. RESEARCH IAW SOW - DARPA DIGET PROGRAM

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 Navy).

What is the total obligated amount?

The obligated amount is $34.8 million.

What is the period of performance?

Start: 2020-10-26. End: 2024-11-30.

What is MRIGLOBAL's track record with the Department of Defense and DARPA for R&D contracts?

MRIGLOBAL has a history of performing research and development contracts for various government agencies, including the Department of Defense. While specific details on their past DARPA contracts require deeper database searches, their ability to secure a definitive contract of this magnitude suggests a proven capability. Analyzing their past performance on similar CPFF contracts would reveal their ability to manage costs, adhere to schedules, and deliver on technical objectives. A review of contract databases and performance reports would provide a clearer picture of their historical success rates and any past issues encountered on DoD or DARPA projects.

How does the $34.76 million value compare to similar DARPA DIGET program contracts or other advanced R&D efforts?

The $34.76 million value for this four-year R&D contract is within the typical range for advanced research projects managed by DARPA. DARPA's mission often involves high-risk, high-reward research that requires significant investment. Contracts for developing cutting-edge technologies can easily reach tens of millions of dollars. To provide a precise comparison, one would need to identify other contracts specifically for the DIGET program or closely related research areas. However, based on general knowledge of DARPA's funding levels for complex R&D, this amount appears to be a substantial but not extraordinary investment for the scope of work implied by 'Research IAW SOW - DARPA DIGET PROGRAM'.

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

The primary risks with a CPFF contract for R&D revolve around cost control and scope creep. While the fixed fee provides the contractor with a defined profit, the government bears the risk of reimbursing all allowable costs. If the research proves more complex or requires more resources than initially estimated, costs can escalate significantly. Effective oversight is crucial to ensure that all claimed costs are reasonable, allocable, and necessary for the research. Additionally, R&D inherently carries the risk of not achieving desired outcomes, regardless of cost management. The CPFF structure can sometimes disincentivize aggressive cost-saving measures by the contractor, as their profit is fixed.

What are the expected program effectiveness metrics for the DARPA DIGET program based on this contract?

The provided data does not specify the expected program effectiveness metrics for the DARPA DIGET program. However, for R&D contracts, effectiveness is typically measured by the achievement of specific technical milestones, the successful development of prototypes or proof-of-concept demonstrations, the generation of new knowledge or intellectual property, and the ultimate transition of developed technologies into operational systems or further development phases. DARPA programs are known for their ambitious goals, so effectiveness would likely be tied to significant advancements in the targeted scientific or engineering domains, contributing to future military capabilities or understanding.

What has been the historical spending trend for similar R&D contracts under the Department of the Navy or DARPA?

Historical spending trends for R&D contracts under the Department of the Navy and DARPA have generally shown consistent, and often increasing, investment in advanced research. DARPA, in particular, receives substantial annual funding dedicated to exploring breakthrough technologies. The Navy also invests heavily in R&D to maintain technological superiority. While specific year-over-year trends for the DIGET program or similar physical sciences R&D would require detailed historical data analysis, the overall federal investment in defense R&D has been robust, reflecting the ongoing need for innovation in national security. Fluctuations can occur based on strategic priorities and budget allocations.

How does the competition level (7 bidders) impact the potential for innovation and cost savings?

A competition with 7 bidders for a specialized R&D contract like this is generally considered healthy and is likely to foster both innovation and cost savings. With multiple firms vying for the award, each bidder is incentivized to propose innovative technical approaches to differentiate themselves and to offer competitive pricing to win the contract. This level of competition puts downward pressure on costs, as contractors aim to be the most attractive option. Furthermore, a diverse pool of bidders can bring a wider range of ideas and expertise, potentially leading to more innovative solutions than a less competitive scenario. The government benefits from a broader selection of technical approaches and better value for its 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 Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: N6600119R4048

Offers Received: 7

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: $37,048,565

Exercised Options: $34,759,997

Current Obligation: $34,759,997

Actual Outlays: $3,778,098

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $29,172,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline