DoD's $2.3M contract for lab analysis awarded sole-source to Noguchi Memorial Institute for Medical Research

Contract Overview

Contract Amount: $2,293,375 ($2.3M)

Contractor: Noguchi Memorial Institute for Medical Research

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-09-28

Contract Duration: 731 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: LABORATORY AND SCIENTIFIC ANALYSIS

Plain-Language Summary

Department of Defense obligated $2.3 million to NOGUCHI MEMORIAL INSTITUTE FOR MEDICAL RESEARCH for work described as: LABORATORY AND SCIENTIFIC ANALYSIS Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Research and Development focus aligns with a critical national security need. 3. Long-term contract duration (731 days) suggests a sustained requirement for these services. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The specific NAICS code (541715) indicates a specialized area of scientific inquiry. 6. No small business set-aside was applied, potentially impacting small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar specialized laboratory analysis. The firm fixed price structure offers predictability, but the absence of competition raises concerns about whether the government secured the best possible price. Further analysis would require understanding the specific services rendered and the market rates for such niche scientific expertise. Without competitive bids, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be met by multiple sources. The lack of competition means there were no other bidders to compare against, and price discovery through market forces was bypassed. This raises questions about the potential for higher costs compared to a competitively bid contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs. The government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Public Impact

The Noguchi Memorial Institute for Medical Research, a specialized research institution, is the direct beneficiary of this contract. The contract supports laboratory and scientific analysis, likely contributing to critical research and development efforts. The geographic impact is primarily centered around the location of the Noguchi Memorial Institute, though the research findings could have broader national or international implications. The contract supports specialized scientific workforce within the research institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if pricing was not adequately vetted without competition.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Contract supports critical research and development activities.
Long contract duration indicates a sustained and important need.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The NAICS code 541715 covers a broad range of scientific research and experimental development. The market for such specialized laboratory analysis can be niche, often dominated by a few highly qualified institutions. Government spending in this area is crucial for advancing scientific knowledge and technological capabilities, but competitive procurement is often challenging due to the specialized nature of the work.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to involve subcontracting opportunities for small businesses based on the information provided. The sole-source nature of the award further limits the likelihood of small business involvement unless they are the sole provider of the specific service. This contract does not appear to contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm fixed price nature provides a degree of financial oversight by limiting cost increases. However, the sole-source award necessitates a robust justification and review process to ensure the public interest is served. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Navy Scientific and Technical Support Services
Laboratory Analysis Services
Scientific Research and Development Services (NAICS 541715)

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs without competition.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to NOGUCHI MEMORIAL INSTITUTE FOR MEDICAL RESEARCH. LABORATORY AND SCIENTIFIC ANALYSIS

Who is the contractor on this award?

The obligated recipient is NOGUCHI MEMORIAL INSTITUTE FOR MEDICAL RESEARCH.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-28.

What is the specific nature of the 'laboratory and scientific analysis' being performed under this contract?

The provided data does not specify the exact nature of the 'laboratory and scientific analysis.' The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' suggests a broad scope. To understand the specifics, one would need to review the contract's statement of work (SOW) or performance work statement (PWS). This would detail the research objectives, methodologies, types of analyses, and expected deliverables. Without the SOW, it's impossible to determine if the work relates to materials science, environmental testing, biological sample analysis, or other specialized scientific domains.

What is the justification for awarding this contract on a sole-source basis to the Noguchi Memorial Institute for Medical Research?

The justification for a sole-source award typically stems from a determination that only one responsible source is capable of providing the required services or supplies. For the Noguchi Memorial Institute for Medical Research, this could be due to unique expertise, proprietary technology, specialized facilities, or a specific research focus that no other entity possesses. The Department of Defense, specifically the Department of the Navy in this case, would have documented this justification, often referred to as a Justification and Approval (J&A) document, in accordance with Federal Acquisition Regulation (FAR) Part 6. This document would detail why full and open competition was not feasible or not in the government's best interest. Without access to the J&A, the precise reasons remain speculative.

How does the $2.3 million contract value compare to historical spending on similar laboratory analysis services by the Department of the Navy?

Comparing this $2.3 million contract value to historical spending requires access to comprehensive federal procurement databases and the ability to filter for similar services, agencies, and contract types. The NAICS code 541715 is broad, encompassing various R&D activities. To make a meaningful comparison, one would need to identify contracts with similar statements of work, performed by comparable institutions, and awarded over similar timeframes. Given this contract is sole-source, direct price comparisons to competitively bid contracts may not be entirely appropriate. However, analyzing the average cost of R&D services within this NAICS code by the Navy over the past several years could provide a benchmark, though significant variations are expected due to the specialized nature of research.

What are the potential risks associated with a sole-source award for specialized research and development services?

The primary risk associated with a sole-source award for specialized R&D services is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the most advantageous price. Another risk is the potential for vendor lock-in, where the government becomes dependent on a single provider, limiting future flexibility. There's also a risk that the government may not be aware of other capable sources that could offer innovative solutions or better value. Furthermore, the absence of competition can sometimes lead to complacency in performance or a reduced incentive for the contractor to seek efficiencies, although this is mitigated by contract oversight.

What is the track record of the Noguchi Memorial Institute for Medical Research in performing government contracts, particularly with the Department of Defense?

Information regarding the Noguchi Memorial Institute for Medical Research's specific track record with government contracts, especially with the Department of Defense, is not detailed in the provided data. A thorough assessment would require searching federal procurement databases like SAM.gov or FPDS-NG for past awards to this institution. This would reveal the types of contracts awarded, their values, performance history (if available), and any past performance issues or successes. Given its designation as a 'Memorial Institute,' it likely has a history of research, but its specific experience as a government contractor, particularly for defense-related R&D, needs independent verification.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018924RZ105

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: NOGUCHI ROAD UNIVERSITY OF GHANA, LEGON ACCRA

Business Categories: Category Business, Foreign Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,227,204

Exercised Options: $2,293,375

Current Obligation: $2,293,375

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline