Department of Defense awards $55.6M for industrial design services, with a significant portion for maintenance and repair equipment

Contract Overview

Contract Amount: $55,560,946 ($55.6M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2005-04-29

End Date: 2011-04-29

Contract Duration: 2,191 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200509!000001!5700!FA8100!OC-ALC/PK !FA810004D0002 !A!N! !Y!0002 ! !20050429!20070830!007901598!007901598!007901598!N!BATTELLE MEMORIAL INSTITUTE !505 KING AVE !COLUMBUS !OH!43201!73800!017!40!TINKER AFB !CANADIAN !OKLAHOMA !+000010946316!N!N!000000000000!N049!INSTALLATION OF EQ/MAINTENANCE & REPAIR SHOP EQ !S1 !SERVICES !000 !* !541420!E! !5!B!S! ! ! !20200930!B! ! !A! !A!N!U!2!002!B! !C!N!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $55.6 million to BATTELLE MEMORIAL INSTITUTE for work described as: 200509!000001!5700!FA8100!OC-ALC/PK !FA810004D0002 !A!N! !Y!0002 ! !20050429!20070830!007901598!007901598!007901598!N!BATTELLE MEMORIAL INSTITUTE !505 KING AVE !COLUMBUS !OH!43201!73800!017!40!TINKER AFB !CANA… Key points: 1. Contract awarded to Battelle Memorial Institute for installation of maintenance and repair shop equipment. 2. The contract value represents a substantial investment in facility upgrades and operational efficiency. 3. Competition was full and open, suggesting a competitive bidding process for this requirement. 4. The contract duration spans over 6 years, indicating a long-term need for these services. 5. The pricing structure is Cost Plus Fixed Fee, which can introduce cost variability. 6. The specific service category is Industrial Design Services, crucial for optimizing operational layouts and equipment integration.

Value Assessment

Rating: fair

The total award amount of $55.6 million for industrial design services is substantial. Benchmarking this against similar contracts for installation of maintenance and repair shop equipment is challenging without more specific data on the scope of work. The Cost Plus Fixed Fee (CPFF) contract type means the final cost is subject to the actual costs incurred plus a negotiated fixed fee, which can lead to cost overruns if not managed tightly. Without detailed cost breakdowns, it's difficult to definitively assess value for money, but the duration and scope suggest a significant project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While full and open competition is generally preferred, a low number of bids (two) might suggest potential limitations in the market for this specific type of service or a lack of aggressive bidding.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for price discovery and can lead to more competitive pricing for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its personnel at Tinker Air Force Base, who will utilize the upgraded maintenance and repair facilities. The services delivered include the installation of equipment and potentially the design and layout of maintenance and repair shops. The geographic impact is centered around Tinker Air Force Base in Oklahoma, enhancing its operational capabilities. Workforce implications may include the need for skilled technicians to operate and maintain the new equipment, as well as potential training requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost uncertainty and potential overruns if not closely monitored.
A low number of bids (2) in a full and open competition might indicate limited market interest or potential for higher prices than if more bidders participated.
The long contract duration (over 6 years) requires sustained oversight to ensure performance remains aligned with objectives throughout its life.

Positive Signals

Awarded under full and open competition, which is a positive indicator for market engagement.
The contract addresses critical infrastructure needs for maintenance and repair operations, supporting military readiness.
The contractor, Battelle Memorial Institute, is a well-established research and development organization with significant experience.

Sector Analysis

Industrial Design Services (NAICS 541420) is a niche sector focused on creating functional and aesthetic designs for products and systems. Within the federal contracting landscape, this sector supports various agencies in optimizing their operational facilities, equipment, and processes. Spending in this area is often tied to infrastructure upgrades, modernization efforts, and efficiency improvements. Comparable spending benchmarks would depend heavily on the specific scope of installation and design services required for maintenance and repair facilities.

Small Business Impact

There is no indication in the provided data that this contract included a small business set-aside. Given the substantial award amount and the nature of the services, it is unlikely that small businesses were the primary focus, though they may have participated as subcontractors. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices at Tinker Air Force Base. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to track incurred costs and ensure the fixed fee is justified. Transparency would be enhanced through regular reporting requirements and potentially through the contract's performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Installation Support Services
Maintenance and Repair Services
Facility Modernization Programs
Industrial Engineering Services
Defense Infrastructure Projects

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring of costs.
Limited number of bidders (2) in a full and open competition.
Long contract duration necessitates sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.6 million to BATTELLE MEMORIAL INSTITUTE. 200509!000001!5700!FA8100!OC-ALC/PK !FA810004D0002 !A!N! !Y!0002 ! !20050429!20070830!007901598!007901598!007901598!N!BATTELLE MEMORIAL INSTITUTE !505 KING AVE !COLUMBUS !OH!43201!73800!017!40!TINKER AFB !CANADIAN !OKLAHOMA !+000010946316!N!N!000000000000!N049!INSTALLATION OF EQ/MAINTENANCE & REPAIR SHOP EQ !S1 !SERVICES !000 !* !541420!E! !5!B!S! ! ! !202

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $55.6 million.

What is the period of performance?

Start: 2005-04-29. End: 2011-04-29.

What is the specific scope of 'Industrial Design Services' for the installation of maintenance and repair shop equipment?

The provided data indicates the contract is for 'INSTALLATION OF EQ/MAINTENANCE & REPAIR SHOP EQ' under NAICS code 541420 (Industrial Design Services). This suggests the scope likely extends beyond simple equipment installation to include the design and layout of the workshop space, integration of new equipment with existing infrastructure, optimization of workflow, and potentially ergonomic considerations for personnel. Industrial design in this context aims to create a functional, efficient, and safe working environment tailored to the specific maintenance and repair tasks performed at Tinker Air Force Base. The 'BATTELLE MEMORIAL INSTITUTE' as the contractor further implies a potential for research, development, and advanced design solutions to be incorporated into the project.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact the final cost and value for money?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined at the outset or involves a high degree of uncertainty. For taxpayers, this presents a risk of cost escalation, as the government bears the risk of cost overruns. Value for money is contingent on effective government oversight to control allowable costs and ensure the fixed fee remains reasonable relative to the effort. Without detailed cost reports and performance metrics, it's difficult to ascertain if the final cost represents good value.

What are the potential risks associated with only two bids being received for this contract?

Receiving only two bids in a 'full and open competition' can indicate several potential risks. Firstly, it might suggest a lack of market interest or capacity for this specific type of service, potentially leading to higher prices than if more competition existed. Secondly, it could imply that the solicitation requirements were overly restrictive or complex, deterring potential bidders. Thirdly, it might mean that the two bidders were the only ones with the specialized capabilities required. This limited competition reduces the government's leverage in price negotiations and could result in a less optimal outcome for taxpayers compared to a scenario with multiple competitive bids.

What is Battelle Memorial Institute's track record with similar large-scale installation and design contracts?

Battelle Memorial Institute is a globally recognized non-profit applied science and technology development company. While their primary focus is often research and development, they have extensive experience managing complex projects, including those involving engineering, integration, and facility support. Their track record typically involves large, technically challenging endeavors across various sectors, including defense. Specific data on their past performance with 'installation of maintenance and repair shop equipment' contracts of this scale would require a deeper dive into contract databases and performance reviews, but their general reputation suggests a capable contractor for such a requirement.

How does this $55.6 million award compare to historical spending on similar industrial design or facility upgrade contracts within the Air Force?

Comparing this $55.6 million award requires context regarding the specific scope and duration. The data indicates a contract duration of over 6 years (2191 days) and a delivery order structure. Historical spending on similar contracts within the Air Force for industrial design and facility upgrades can vary significantly based on the base, the type of facility, and the complexity of the equipment being installed. Without specific benchmarks for 'installation of maintenance and repair shop equipment' projects at large Air Force installations, it's challenging to definitively state if this amount is high or low. However, it represents a significant investment in infrastructure modernization.

What are the implications of the contract ending in April 2011, given the start date in April 2005?

The contract start date was April 29, 2005, and the end date was April 29, 2011, giving it a total duration of exactly 6 years. This duration indicates a long-term project or a series of related tasks performed over an extended period. For the Department of the Air Force, this suggests a sustained need for the services related to the installation and design of maintenance and repair shop equipment. The extended timeline allows for phased implementation, potential adjustments based on evolving needs, and integration of new technologies over the contract period. It also necessitates consistent oversight throughout its life.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Specialized Design Services › Industrial Design Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 43201

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810004D0002

IDV Type: IDC

Timeline