NIH contract to Battelle Memorial Institute for $166.6M over 5 years for research and development

Contract Overview

Contract Amount: $16,659,196 ($16.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2000-02-15

End Date: 2005-06-20

Contract Duration: 1,952 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize contractors to control costs while ensuring a profit. 3. The duration of the contract is over 5 years, indicating a long-term need for the services. 4. The contract was awarded by the National Institutes of Health, a major health research agency. 5. The contractor, Battelle Memorial Institute, is a significant player in the research and development sector. 6. The contract value of $166.6 million represents a substantial investment in research.

Value Assessment

Rating: good

The contract value of $166.6 million over approximately 5 years averages to about $33.3 million per year. Without specific details on the services rendered, direct comparison is challenging. However, for large-scale R&D contracts, this annual figure appears within a reasonable range for complex scientific endeavors. The Cost Plus Fixed Fee structure aims to balance contractor incentive with government oversight on costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding process with multiple interested parties, which can lead to more competitive pricing and better value for the government. The number of bidders is not specified, but the designation implies a healthy level of market interest.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely researchers and institutions supported by the National Institutes of Health, advancing scientific knowledge. Services delivered are expected to be in the realm of research and development, potentially leading to breakthroughs in health and medicine. The geographic impact is primarily within Ohio, where Battelle Memorial Institute is headquartered, but the research outcomes can have a national or global impact. Workforce implications include employment opportunities for scientists, researchers, technicians, and support staff at Battelle and potentially collaborating institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract may present challenges in adapting to rapidly evolving research landscapes.
Dependence on a single large contractor for a significant R&D effort could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable terms.
Battelle Memorial Institute has a strong reputation in research and development, indicating a capable contractor.
The substantial funding signals a commitment to critical research areas by the NIH.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on health-related scientific endeavors. The R&D sector is characterized by innovation, long lead times, and often high upfront investment. Comparable spending benchmarks would involve looking at other large-scale NIH grants and contracts awarded for similar research initiatives, which can range from tens to hundreds of millions of dollars depending on the scope and duration.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the large contract value and the nature of advanced research and development, it is likely that the prime contractor, Battelle Memorial Institute, would be responsible for managing any subcontracting opportunities. The extent to which small businesses might be involved as subcontractors is not specified but is a potential area for further inquiry to ensure opportunities are distributed.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), which is responsible for monitoring contractor performance, adherence to contract terms, and financial expenditures. The Cost Plus Fixed Fee structure necessitates careful financial oversight to ensure costs are reasonable and allocable. Transparency would be expected through regular reporting from the contractor and potentially through public dissemination of research findings, subject to any proprietary or national security considerations.

Related Government Programs

NIH Research Grants
Department of Defense R&D Contracts
National Science Foundation Awards
Biomedical Research Initiatives

Risk Flags

Contract duration exceeds typical project cycles.
Cost Plus Fixed Fee structure requires diligent oversight.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.7 million to BATTELLE MEMORIAL INSTITUTE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

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 $16.7 million.

What is the period of performance?

Start: 2000-02-15. End: 2005-06-20.

What specific research areas or projects were funded by this contract?

The provided data does not specify the exact research areas or projects funded by this $166.6 million contract awarded to Battelle Memorial Institute by the NIH. Typically, NIH contracts support a wide range of biomedical and health-related research, from basic science to applied research and development of new technologies or treatments. To understand the specific impact, one would need to consult the contract's statement of work or related NIH program announcements. Without this detail, it's challenging to assess the precise scientific or societal contributions.

How does the annual value of this contract compare to other similar NIH R&D contracts?

The average annual value of this contract is approximately $33.3 million ($166.6M / 5 years). This figure places it within the upper tier of NIH funding for R&D contracts. While NIH funds numerous grants and contracts, those of this magnitude are generally reserved for large-scale, multi-year initiatives requiring significant resources and expertise. Benchmarking against specific NIH program solicitations or reports on contract awards would provide a more precise comparison, but it is indicative of a substantial investment in a particular research domain.

What is Battelle Memorial Institute's track record with large federal R&D contracts?

Battelle Memorial Institute is a well-established and reputable organization with extensive experience in managing and executing large-scale research and development contracts for various federal agencies, including the Department of Defense, Department of Energy, and the NIH. They have a history of handling complex scientific and technical projects. Their track record generally includes successful delivery on significant government contracts, often in areas of advanced materials, national security, energy, and health. Specific performance metrics for past contracts would require deeper investigation into contract databases and performance reports.

What were the key performance indicators (KPIs) for this contract, and were they met?

The provided data does not include information on the key performance indicators (KPIs) established for this specific contract or an assessment of whether they were met. For Cost Plus Fixed Fee R&D contracts, KPIs often relate to research milestones, deliverables, scientific advancements, adherence to timelines, and budget management. A thorough review of the contract's statement of work and any associated performance reports or contract close-out documentation would be necessary to determine the specific KPIs and their fulfillment status.

What is the historical spending trend for similar R&D services at the NIH?

Historical spending trends for similar R&D services at the NIH are generally characterized by consistent and significant investment, reflecting the agency's mission. The NIH is one of the largest funders of biomedical research globally. Annual outlays for R&D contracts and grants typically run into the tens of billions of dollars. While specific contract values fluctuate based on project scope, the overall trend shows a sustained commitment to advancing health sciences through contracted research, with individual large contracts like this one representing a portion of that broader investment.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 90

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

Financial Breakdown

Contract Ceiling: $18,681,250

Exercised Options: $17,270,419

Current Obligation: $16,659,196

Timeline