DoD's $23M Diagnostic Lab Contract with MRIGLOBAL Lacked Competition, Raising Cost Concerns

Contract Overview

Contract Amount: $23,018,455 ($23.0M)

Contractor: Mriglobal

Awarding Agency: Department of Defense

Start Date: 2014-11-07

End Date: 2016-09-30

Contract Duration: 693 days

Daily Burn Rate: $33.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF SIERRA LEONE DIAGNOSTIC LABORATORY UNITS

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64110

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to MRIGLOBAL for work described as: IGF::OT::IGF SIERRA LEONE DIAGNOSTIC LABORATORY UNITS Key points: 1. High contract value ($23M) awarded without competition. 2. MRIGLOBAL is the sole awardee, limiting market options. 3. Risk of inflated costs due to lack of competitive pressure. 4. Spending falls within the Testing Laboratories and Services sector.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, suggests potential for cost overruns. Benchmarking against similar contracts is difficult without competitive data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation by not engaging a broader market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition justification
High contract value

Positive Signals

Contract awarded to a known entity (MRIGLOBAL)
Specific agency (DTRA) involved

Sector Analysis

Spending in the Testing Laboratories and Services sector can vary widely. This contract's value is significant for a sole-source award in this area, especially given its duration.

Small Business Impact

No indication of small business participation is provided for this sole-source contract. The focus appears to be on a single, larger entity.

Oversight & Accountability

The lack of competition raises questions about the oversight applied during the award process. Further review is needed to understand the justification for not seeking competitive bids.

Related Government Programs

Testing Laboratories and Services
Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Lack of competition
Sole-source award
Cost-plus contract type
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to MRIGLOBAL. IGF::OT::IGF SIERRA LEONE DIAGNOSTIC LABORATORY UNITS

Who is the contractor on this award?

The obligated recipient is MRIGLOBAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2014-11-07. End: 2016-09-30.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data does not detail the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must document extensive market research and justification to deviate from full and open competition, which appears to be missing here.

How does the final cost of this contract compare to the estimated cost, and what factors contributed to any variance?

The data does not provide final cost figures or details on cost variances. As a Cost Plus Fixed Fee contract awarded without competition, there's an inherent risk of costs exceeding initial estimates without competitive pressure to optimize spending. A post-award audit would be necessary to assess cost efficiency.

What measures were in place to ensure the effectiveness and quality of the diagnostic laboratory services provided under this contract?

While the contract type (Cost Plus Fixed Fee) and awarding agency (DTRA) are noted, specific quality assurance or performance monitoring mechanisms are not detailed. Effective oversight would typically involve regular performance reviews, adherence to testing standards, and clear deliverables to ensure the services met the agency's needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $26,629,039

Exercised Options: $26,629,039

Current Obligation: $23,018,455

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline