HHS awards $24.3M for R&D in Physical, Engineering, and Life Sciences to MRI Global

Contract Overview

Contract Amount: $24,323,473 ($24.3M)

Contractor: Mriglobal

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2015-08-03

Contract Duration: 3,594 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R AND D OTHER

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64110, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.3 million to MRIGLOBAL for work described as: R AND D OTHER Key points: 1. Spending focused on R&D, a critical area for innovation and national progress. 2. MRI Global is a significant player in the R&D sector. 3. The contract spans a decade, indicating a long-term need and commitment. 4. Full and open competition was utilized, suggesting a robust price discovery process.

Value Assessment

Rating: good

The contract's value of $24.3M over 10 years suggests a substantial investment. Benchmarking against similar large-scale R&D contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, which typically leads to competitive pricing and ensures the government receives the best value. The duration of the contract suggests sustained effort and potentially complex deliverables.

Taxpayer Impact: The significant investment in R&D through this contract aims to advance scientific knowledge and technological capabilities, ultimately benefiting the public through potential innovations and solutions.

Public Impact

Supports advancements in physical, engineering, and life sciences. Potential for breakthroughs in health, technology, and other critical fields. Long-term investment in research infrastructure and expertise. Contract awarded to a single entity, MRI Global. Funding allocated through the Department of Health and Human Services.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long contract duration (10 years) could lead to scope creep or evolving needs.
Cost Plus Fixed Fee contract type can incentivize cost overruns if not managed tightly.

Positive Signals

Full and open competition utilized.
Significant investment in a critical R&D sector.
Awarded to a reputable research organization.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for innovation, with significant government investment aimed at scientific advancement and technological development.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to MRI Global, a larger entity, suggesting limited direct opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (HHS) through the National Institutes of Health (NIH). Oversight would likely involve regular reporting and milestone reviews to ensure progress and adherence to the fixed fee.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration.
Cost Plus Fixed Fee pricing structure.
Awarded to a single entity.
Lack of specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.3 million to MRIGLOBAL. R AND D OTHER

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 $24.3 million.

What is the period of performance?

Start: 2005-09-30. End: 2015-08-03.

What specific research areas are prioritized under this contract, and how do they align with current public health and scientific priorities?

The contract covers 'Research and Development in the Physical, Engineering, and Life Sciences.' While broad, it implies work on fundamental scientific inquiry and applied research. Specific priorities would be detailed in the contract's statement of work, likely focusing on areas relevant to NIH's mission, such as disease research, biomedical engineering, or environmental health sciences, aligning with national health objectives.

What are the potential risks associated with a 10-year Cost Plus Fixed Fee R&D contract, and how are they mitigated?

Risks include potential cost overruns if research proves more expensive than anticipated, and the fixed fee might not adequately compensate for unforeseen complexities. Mitigation strategies typically involve stringent oversight, regular performance reviews, clear deliverable milestones, and robust auditing processes to ensure efficient use of funds and adherence to the research scope.

How does the $24.3 million investment compare to typical R&D spending in similar fields, and what is the expected return on investment?

The $24.3 million over 10 years averages $2.43 million annually, which is a moderate investment for large-scale R&D. Benchmarking against similar NIH or NSF grants would be necessary for a precise comparison. The return on investment is measured in scientific advancements, potential patents, and solutions to societal challenges, which are often long-term and difficult to quantify financially.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 425 VOLKER BOULEVARD, KANSAS CITY, MO, 64110

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

Financial Breakdown

Contract Ceiling: $163,005,746

Exercised Options: $116,084,248

Current Obligation: $24,323,473

Contract Characteristics

Multi-Year Contract: Yes

Timeline