NIH awarded $11.7M R&D contract to MPI RESEARCH, INC. for life sciences research

Contract Overview

Contract Amount: $11,656,557 ($11.7M)

Contractor: MPI Research, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2000-09-15

End Date: 2008-09-29

Contract Duration: 2,936 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: MATTAWAN, VAN BUREN County, MICHIGAN, 49071

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.7 million to MPI RESEARCH, INC. for work described as: Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Long contract duration of 2936 days suggests a significant, multi-year project. 3. Awarded under full and open competition, indicating a broad search for qualified bidders. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility. 5. The North American Industry Classification System (NAICS) code 541710 points to a specialized R&D sector. 6. The contract was awarded by the National Institutes of Health (NIH), a leading biomedical research agency. 7. The contractor, MPI RESEARCH, INC., is based in Michigan.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can lead to cost overruns if not managed carefully. However, it also allows for flexibility in research projects where costs may be uncertain. Comparing this to similar R&D contracts would require detailed analysis of the scope of work and the specific research outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple sources were solicited and considered. This approach typically leads to a wider pool of potential bidders and can foster competitive pricing. The presence of two bids (no: 2) indicates some level of competition, but the exact number of proposals received and the evaluation process would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to more competitive pricing and better value for the government's investment.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in physical, engineering, and life sciences, potentially advancing scientific knowledge and innovation. The services delivered are focused on research and development, contributing to the NIH's mission of improving health through biomedical research. The geographic impact is primarily centered in Michigan, where the contractor is located, potentially supporting the local economy and research ecosystem. Workforce implications include employment for scientists, researchers, technicians, and support staff at MPI RESEARCH, INC. and potentially collaborating institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not rigorously managed, as the contractor is reimbursed for all allowable costs.
Limited competition (only 2 bids) might suggest that the specialized nature of the R&D or specific requirements limited the number of capable offerors, potentially impacting price discovery.
The long duration of the contract (2936 days) increases the risk of scope creep or changes in research priorities over time, requiring active contract management.

Positive Signals

Awarded under full and open competition, which generally promotes a competitive environment and can lead to better pricing.
The contract supports critical research and development in the life sciences, aligning with the strategic goals of the NIH.
The fixed fee component of the CPFF contract provides a degree of cost certainty for the government regarding the contractor's profit margin.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, as indicated by NAICS code 541710. This sector is characterized by innovation, intellectual property development, and often long-term projects. Comparable spending benchmarks would depend on the specific sub-discipline of life sciences and the scale of the research, but NIH is a major funder of such activities, with significant annual R&D outlays.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary focus is on the large business contractor, MPI RESEARCH, INC. The impact on the small business ecosystem would be indirect, potentially through opportunities for small businesses to partner with or supply the prime contractor, or through the broader advancement of R&D that could spur new ventures.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH). As a Cost Plus Fixed Fee contract, rigorous oversight of allowable costs and performance against research objectives would be crucial. Transparency would be facilitated through contract reporting requirements. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Biomedical Research Grants
National Institutes of Health Contracts
Life Sciences Research and Development
Federal R&D Spending

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Limited number of bids (2) may indicate potential challenges in competition or specialized requirements.
Long contract duration increases risk of scope changes and requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.7 million to MPI RESEARCH, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MPI RESEARCH, INC..

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 $11.7 million.

What is the period of performance?

Start: 2000-09-15. End: 2008-09-29.

What was the specific research scope and key deliverables for this contract?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. However, the specific research scope, objectives, and key deliverables are not detailed in the summary data. Typically, NIH contracts of this nature would involve specific scientific investigations, experimental designs, data collection, analysis, and reporting of findings related to advancing knowledge in areas such as biology, medicine, or related fields. The exact nature of the research would be defined in the Statement of Work (SOW) within the contract.

How does the $11.7 million award compare to typical NIH R&D contract values for similar research areas?

The $11.7 million award over approximately 8 years (2936 days) represents an average annual value of roughly $1.5 million. This figure falls within a common range for significant, multi-year R&D contracts awarded by agencies like the NIH. However, the 'typical' value can vary widely depending on the specific scientific discipline, the complexity of the research, the stage of development (e.g., basic vs. applied research), and the number of bidders. Without knowing the precise research area and scope, a direct comparison is difficult, but it appears to be a substantial investment consistent with major research initiatives.

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

The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. If cost estimation is inaccurate or if unforeseen challenges arise during R&D, the total cost to the government could exceed initial projections. This structure can sometimes disincentivize aggressive cost control by the contractor, as their profit is fixed regardless of the final cost. Effective oversight, clear definition of allowable costs, and robust performance monitoring are crucial to mitigate these risks and ensure value for taxpayer money.

What was the contractor's track record or past performance with the NIH or similar agencies prior to this award?

The provided data does not include information on MPI RESEARCH, INC.'s past performance or track record with the NIH or other federal agencies. A comprehensive analysis would require accessing past performance evaluations, contract histories, and any debriefings or disputes associated with previous contracts. Such information is critical for assessing the contractor's reliability, quality of work, and ability to successfully execute complex R&D projects within budget and schedule.

How did the NIH ensure scientific rigor and relevance in the R&D funded by this contract?

The NIH typically ensures scientific rigor and relevance through a multi-stage review process. For contracts, this often involves technical reviews by scientific experts who assess the proposed research plan, methodology, and potential impact. The contract's Statement of Work (SOW) would outline specific scientific objectives and expected outcomes. Ongoing oversight by NIH program scientists and contracting officers monitors progress, adherence to the SOW, and the scientific validity of the research conducted. Peer review principles, common in grant funding, are often adapted for contract oversight to maintain high scientific standards.

What is the historical spending trend for R&D contracts under NAICS code 541710 by the NIH?

Analyzing historical spending trends for NAICS code 541710 by the NIH would require access to comprehensive federal procurement databases (like USASpending.gov or FPDS). Generally, the NIH is a major spender in this category, reflecting its mission to fund biomedical and health-related research. Spending in this area can fluctuate based on national research priorities, budget allocations, and the emergence of new scientific fields. A detailed trend analysis would reveal patterns of investment in specific sub-fields within physical, engineering, and life sciences R&D over several fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 54943 N MAIN ST, MATTAWAN, MI, 04

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $808,952

Exercised Options: $6,901,952

Current Obligation: $11,656,557

Timeline