HHS awards $150M contract to MRI Global for research and development services

Contract Overview

Contract Amount: $14,990,525 ($15.0M)

Contractor: Mriglobal

Awarding Agency: Department of Health and Human Services

Start Date: 2000-09-15

End Date: 2005-11-15

Contract Duration: 1,887 days

Daily Burn Rate: $7.9K/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: KANSAS CITY, JACKSON County, MISSOURI, 64110

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.0 million to MRIGLOBAL for work described as: Key points: 1. Contract awarded to MRI Global for $149.9M. 2. Full and open competition was utilized. 3. Services are categorized under research and development. 4. Contract duration is 1887 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may limit the incentive for the contractor to minimize costs.

Taxpayer Impact: Taxpayer funds are being used for research and development, which has the potential for significant long-term benefits but also carries inherent risks of not yielding desired outcomes.

Public Impact

Supports critical research and development initiatives within the National Institutes of Health. Potential for advancements in health and medical fields. Long-term investment in scientific progress.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type.
Lack of specific performance metrics.
Potential for scope creep.

Positive Signals

Full and open competition.
Supports vital NIH research.
Long contract duration allows for sustained effort.

Sector Analysis

This contract falls under the Research and Development sector, specifically supporting health-related scientific endeavors. Spending in this sector is crucial for innovation but requires careful oversight due to its inherent uncertainties.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and aligned with project goals. The duration of the contract necessitates ongoing monitoring by the agency.

Related Government Programs

Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee structure may incentivize higher costs.
Lack of detailed service description.
Potential for cost overruns.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.0 million to MRIGLOBAL. See the official description on USAspending.

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 $15.0 million.

What is the period of performance?

Start: 2000-09-15. End: 2005-11-15.

What specific research areas does this contract cover, and what are the expected outcomes?

The contract is for research and development services for the National Institutes of Health. Without more detailed information on the specific research areas, it is difficult to assess the expected outcomes or the potential return on investment for taxpayers. Further clarification from the agency would be beneficial.

How will the agency ensure cost control under the Cost Plus Fixed Fee structure?

The agency should implement robust oversight mechanisms, including regular reviews of contractor expenditures, detailed progress reports, and clear milestones. Establishing a fixed fee that is justified by the scope of work and negotiating fair reimbursement rates for costs are also critical to managing expenses effectively.

What is the potential impact of this contract on advancing public health?

This contract supports the National Institutes of Health's mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and prevent illness. The potential impact is significant, ranging from new treatments to improved understanding of diseases, but is inherently uncertain given the nature of R&D.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 425 VOLKER BLVD, KANSAS CITY, MO, 05

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,440,008

Exercised Options: $20,900,008

Current Obligation: $14,990,525

Timeline