DoD Spends $38M on IPE Mannequin System via Cost Plus Fixed Fee Contract
Contract Overview
Contract Amount: $37,970,077 ($38.0M)
Contractor: Mriglobal
Awarding Agency: Department of Defense
Start Date: 2008-11-26
End Date: 2013-11-30
Contract Duration: 1,830 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IPE MANNEQUIN SYSTEM
Place of Performance
Location: DUGWAY, TOOELE County, UTAH, 84022
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $38.0 million to MRIGLOBAL for work described as: IPE MANNEQUIN SYSTEM Key points: 1. The Department of Defense awarded a $37.97M contract for the IPE Mannequin System. 2. The contract was awarded using full and open competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Other Measuring and Controlling Device Manufacturing, with a benchmark of $2.07M. 5. The contract was awarded to MRIGLOBAL.
Value Assessment
Rating: questionable
The contract's total value of $37.97M significantly exceeds the sector benchmark of $2.07M. The Cost Plus Fixed Fee structure also introduces risk for cost overruns, making the overall value questionable without further justification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the significant deviation from the sector benchmark raises questions about the effectiveness of this competition in securing competitive pricing.
Taxpayer Impact: Taxpayers may have overpaid due to the high contract value relative to the sector benchmark and the inherent cost risks of a CPFF contract.
Public Impact
Significant taxpayer investment in specialized defense equipment. Potential for cost overruns due to contract type. Impact on the 'Other Measuring and Controlling Device Manufacturing' sector. Long contract duration of 1830 days. Award to a single contractor, MRIGLOBAL.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value relative to sector benchmark
- Cost Plus Fixed Fee contract type
- Long contract duration
- No small business participation indicated
Positive Signals
- Full and open competition utilized
- Clear product identification (IPE Mannequin System)
Sector Analysis
The 'Other Measuring and Controlling Device Manufacturing' sector saw this contract valued at $37.97M, which is substantially higher than the provided benchmark of $2.07M. This suggests a potentially unique or high-value specialized system.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the contract was either awarded to a large business or that small businesses were not involved in the supply chain.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Further oversight would be needed to ensure cost control and performance under the Cost Plus Fixed Fee structure.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High value relative to sector benchmark
- Cost Plus Fixed Fee contract type
- Long contract duration (1830 days)
- No small business participation
- Potential for cost overruns
Tags
other-measuring-and-controlling-device-m, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to MRIGLOBAL. IPE MANNEQUIN SYSTEM
Who is the contractor on this award?
The obligated recipient is MRIGLOBAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.0 million.
What is the period of performance?
Start: 2008-11-26. End: 2013-11-30.
What specific capabilities does the IPE Mannequin System provide that justify its cost significantly above the sector benchmark?
The IPE Mannequin System likely provides highly specialized capabilities critical for defense applications, such as advanced simulation, testing, or training. Its unique technical requirements and potentially limited market may contribute to a higher cost compared to general measuring devices. Detailed specifications and performance metrics would be needed to fully understand the value proposition.
What measures were in place to mitigate cost overruns given the Cost Plus Fixed Fee contract type?
With a Cost Plus Fixed Fee (CPFF) contract, the government pays the contractor's allowable costs plus a fixed fee. To mitigate overruns, the government would typically establish detailed cost ceilings, require regular reporting and audits of expenditures, and implement strict change order controls. Performance incentives or penalties could also be negotiated to encourage efficiency.
How effective was the full and open competition in achieving a competitive price for this specialized system?
While full and open competition is generally preferred, its effectiveness in achieving a competitive price depends on the number and capability of bidders for specialized systems. If only a few companies could meet the stringent requirements, the competition might have been limited in practice, potentially leading to a higher price than if the market were broader. Benchmarking against similar specialized contracts would be informative.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911SR08R0008
Offers Received: 2
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,975,090
Exercised Options: $37,975,090
Current Obligation: $37,970,077
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-11-26
Current End Date: 2013-11-30
Potential End Date: 2013-11-30 00:00:00
Last Modified: 2018-07-14
More Contracts from Mriglobal
- Award of MRI Contract — $1.8B (Department of Energy)
- Research, Development, Test,&evaluation,&strategic Initiatives, Joint Program Executive Office for Chemical and Biological Defense — $63.2M (Department of Defense)
- Research, Development, Test, Evaluation, and Strategic Initiatives for Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (jpeo Cbrnd) — $60.7M (Department of Defense)
- Non-Traditional Agent (NTA) Test System — $51.0M (Department of Defense)
- Chemistry Services for the NTP — $50.9M (Department of Health and Human Services)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)