DoD awards $45M contract for electronic connectors, with Battelle Memorial Institute as the sole awardee

Contract Overview

Contract Amount: $45,005,883 ($45.0M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2016-09-23

Contract Duration: 1,095 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF INITIAL AWARD - CBRNIAC CB 13-0756

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGF INITIAL AWARD - CBRNIAC CB 13-0756 Key points: 1. The contract's value of $45 million over three years suggests a significant need for specialized electronic connectors. 2. Competition dynamics are unclear as the contract type is a delivery order under a larger contract, potentially limiting direct comparison. 3. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny to ensure cost control and value for money. 4. Performance context is limited without details on the specific electronic connectors and their application within the Department of Defense. 5. The contract falls within the manufacturing sector, specifically electronic connector manufacturing, indicating a niche but critical supply chain component.

Value Assessment

Rating: fair

Benchmarking the value of this $45 million contract is challenging without knowing the specific types and quantities of electronic connectors procured. The 'Cost Plus Fixed Fee' (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed carefully. However, CPFF is often used when the scope of work is not well-defined, allowing for flexibility. Without comparable contract data for similar electronic connector manufacturing services, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this is a 'Delivery Order' under a larger contract (CBRNIAC CB 13-0756). The competition level for the original contract is not specified, and therefore, the competition for this specific delivery order cannot be definitively assessed. If the original contract was competed broadly, this delivery order might benefit from that competition. However, if the original contract had limited competition, the pricing and innovation for this order could be constrained.

Taxpayer Impact: The level of competition for this delivery order directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better deals for the government. Limited or unknown competition raises concerns about potential overpayment and reduced access to the best available solutions.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical electronic components for its operations. The contract supports the manufacturing and supply of electronic connectors, essential for various defense systems. The geographic impact is primarily in Ohio, where Battelle Memorial Institute is headquartered, potentially creating or sustaining local jobs. The contract implies a need for skilled labor in manufacturing and quality control within the electronics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Fixed Fee' (CPFF) contract type requires diligent oversight to prevent cost overruns and ensure efficiency.
Lack of detailed information on the specific electronic connectors and their intended use makes it difficult to assess performance risks.
The competition for the parent contract is not specified, which could limit price discovery and potentially lead to less favorable terms.

Positive Signals

Battelle Memorial Institute is a reputable research and development organization, suggesting a capable contractor.
The contract duration of three years provides a stable period for supply and potential for relationship building.
The award is a delivery order, indicating it's part of an existing framework, which can streamline procurement for established needs.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically focusing on electronic components. The market for electronic connectors is diverse, serving industries from consumer electronics to aerospace and defense. The Department of Defense is a significant consumer of such components, often requiring specialized, high-reliability parts. Benchmarking this contract's value is difficult without specific product details, but annual spending on electronic components by the DoD can run into billions of dollars.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the procurement was likely focused on large-scale manufacturing capabilities. There is no explicit information on subcontracting plans, so the impact on the small business ecosystem is not directly ascertainable from this award alone. Future analysis might explore if any small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The 'Cost Plus Fixed Fee' nature of the contract necessitates close monitoring of costs and adherence to the fixed fee. Transparency regarding the specific use of funds and performance metrics would be crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) procurement of electronic components
Naval Sea Systems Command (NAVSEA) contracts for electronic systems
Air Force Materiel Command (AFMC) electronics procurement
Army Contracting Command (ACC) electronics and hardware contracts

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring
Potential for technology obsolescence given award date
Unclear competition level for the parent contract
Lack of specific details on connector types and applications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGF INITIAL AWARD - CBRNIAC CB 13-0756

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $45.0 million.

What is the period of performance?

Start: 2013-09-24. End: 2016-09-23.

What is the specific type and application of the electronic connectors being procured under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 334417, which corresponds to 'Electronic Connector Manufacturing'. However, the specific types and applications of the electronic connectors are not detailed in the award information. These connectors could range from simple wire connectors to complex, high-reliability components used in advanced military systems such as communication equipment, radar, avionics, or weapon platforms. Understanding the exact nature of these connectors is crucial for assessing their criticality, performance requirements, and the appropriateness of the contract's value and terms.

How does the 'Cost Plus Fixed Fee' (CPFF) pricing structure compare to other contract types for similar electronic component procurements?

The 'Cost Plus Fixed Fee' (CPFF) contract type is often employed when the scope of work is not precisely defined, or when there is a high degree of uncertainty in the costs associated with performance. In such cases, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost escalation if not managed diligently. For standard, well-defined electronic components, fixed-price contracts are generally preferred by the government as they offer greater price certainty and incentivize contractor efficiency. However, for specialized or developmental connectors, CPFF might be deemed necessary to encourage innovation and manage unforeseen technical challenges. Without more context on the specific connectors, it's difficult to definitively state if CPFF was the most appropriate choice.

What is the track record of Battelle Memorial Institute in delivering electronic components to the Department of Defense?

Battelle Memorial Institute is a well-established and reputable non-profit applied science and technology development company. While primarily known for research and development, they do engage in manufacturing and systems integration. Their track record with the Department of Defense is extensive, often involving complex R&D projects, advanced materials, and specialized systems. Specific to electronic component manufacturing, their experience would likely be in high-specification, custom-designed parts rather than mass-produced commodity connectors. A deeper dive into their contract history with DoD would reveal specific performance metrics and past successes or challenges in delivering hardware.

What are the potential risks associated with a $45 million contract for electronic connectors awarded in 2013?

Several risks are associated with a contract of this magnitude and vintage. Firstly, the technology for electronic connectors can evolve rapidly; components procured in 2013 might be outdated or less capable by current standards, potentially impacting the performance of defense systems. Secondly, the 'Cost Plus Fixed Fee' structure, as mentioned, carries inherent cost-reimbursement risks. Thirdly, the supply chain for specialized electronic components can be vulnerable to disruptions, geopolitical events, or single-source dependencies, which could impact delivery schedules and costs. Finally, ensuring the long-term reliability and interoperability of these connectors within evolving defense architectures presents an ongoing challenge.

How does this contract fit into the broader spending patterns for electronic components within the Department of Defense?

This $45 million contract represents a specific procurement within the vast electronics and hardware spending of the Department of Defense. The DoD procures a wide array of electronic components, from basic resistors and capacitors to complex integrated circuits and specialized connectors, often totaling billions of dollars annually. Contracts like this one, focused on specific manufacturing capabilities (NAICS 334417), highlight the DoD's reliance on specialized suppliers for critical systems. Its size suggests it's a significant, but not exceptionally large, award within the context of overall defense electronics procurement, likely supporting a particular program or platform's needs.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Electronic Connector Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, COLUMBUS, OH, 43201

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,195,736

Exercised Options: $47,195,736

Current Obligation: $45,005,883

Subaward Activity

Number of Subawards: 54

Total Subaward Amount: $67,384,769

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP070000D3180

IDV Type: IDC

Timeline