DHS awards $2.87M for baggage readiness testing, with Battelle Memorial Institute securing the task order

Contract Overview

Contract Amount: $2,868,299 ($2.9M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-26

End Date: 2026-12-25

Contract Duration: 851 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: TSL RDDT&E TIME & MATERIALS TASK ORDER FOR CHECKED AND CARRY-ON BAGGAGE READINESS TESTING (RT)

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.9 million to BATTELLE MEMORIAL INSTITUTE for work described as: TSL RDDT&E TIME & MATERIALS TASK ORDER FOR CHECKED AND CARRY-ON BAGGAGE READINESS TESTING (RT) Key points: 1. The contract focuses on research and development for physical and engineering sciences, specifically related to baggage screening. 2. This task order is a Time and Materials (T&M) contract, which can pose cost control challenges if not managed closely. 3. The duration of 851 days suggests a significant, ongoing effort in readiness testing. 4. The specific NAICS code (541715) indicates a focus on advanced scientific research and development services. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The contract value of $2.87 million for a period of 851 days (approximately 2.3 years) needs further benchmarking against similar R&D efforts in physical and engineering sciences. As a Time and Materials contract, the final cost is dependent on the hours worked and material costs incurred, making a precise value-for-money assessment difficult without detailed labor rates and material markups. However, the award amount itself does not appear excessively high for a federal R&D task order of this nature, but the T&M structure warrants close monitoring to ensure costs remain within reasonable bounds.

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. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and innovation. The agency's choice of full and open competition suggests confidence in the market's ability to provide qualified contractors for this specialized R&D requirement.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security (DHS) and its operational components, such as the Transportation Security Administration (TSA), which rely on effective baggage screening technologies. The services delivered involve research and development aimed at improving the readiness and effectiveness of checked and carry-on baggage screening. The geographic impact is primarily within New Jersey, where the contractor Battelle Memorial Institute's work will be performed, but the ultimate impact is national security through enhanced aviation security. This contract supports specialized R&D roles, potentially involving scientists, engineers, and technicians, contributing to the high-tech workforce in the physical and engineering sciences sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for labor hours and material costs.
The specific nature of 'readiness testing' requires clear performance metrics to ensure the R&D efforts translate into tangible improvements in baggage screening.
The duration of the contract (851 days) necessitates robust project management to maintain focus and efficiency over an extended period.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that could yield better value.
The contractor, Battelle Memorial Institute, is a well-established research organization with a history of government contracts.
The contract addresses a critical national security function: baggage screening effectiveness.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This sector is characterized by innovation and specialized scientific expertise. Federal spending in this area supports advancements in technology and scientific understanding across various domains. Comparable spending benchmarks would involve looking at other federal R&D contracts awarded for similar scientific research, particularly those focused on security, engineering, and physical sciences.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). As a task order under a larger contract vehicle, it's possible that subcontracting opportunities for small businesses may exist, depending on the prime contractor's strategy and the nature of the work. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is likely limited unless Battelle actively seeks small business partners.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security (DHS) contracting officers and program managers. As a Time and Materials contract, rigorous oversight of labor hours, material costs, and progress against milestones will be crucial to ensure accountability and prevent cost overruns. Transparency is facilitated by the contract being publicly awarded, and any specific Inspector General (IG) jurisdiction would typically be related to DHS oversight functions.

Related Government Programs

Transportation Security Administration (TSA) Technology Research and Development
Department of Homeland Security Science and Technology Directorate
Federal Aviation Administration (FAA) Research Programs
National Institute of Standards and Technology (NIST) Research

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for clear performance metrics to ensure R&D effectiveness.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.9 million to BATTELLE MEMORIAL INSTITUTE. TSL RDDT&E TIME & MATERIALS TASK ORDER FOR CHECKED AND CARRY-ON BAGGAGE READINESS TESTING (RT)

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-12-25.

What is Battelle Memorial Institute's track record with similar R&D contracts for DHS or TSA?

Battelle Memorial Institute is a large, well-established non-profit applied science and technology development company with extensive experience in government contracting, including significant work with defense and homeland security agencies. While specific details on their past performance on identical 'baggage readiness testing' contracts for DHS are not provided in this data snippet, their broad portfolio includes research in areas like threat detection, sensor technology, and security systems. A deeper dive into their contract history with DHS and TSA, focusing on projects involving physical security, screening technologies, and R&D under Time and Materials or similar contract types, would be necessary to fully assess their relevant track record. Past performance evaluations from previous government contracts would be a key indicator of their capability and reliability in executing complex R&D tasks.

How does the $2.87 million value compare to similar R&D efforts in physical and engineering sciences for security applications?

Benchmarking the $2.87 million value requires comparing it against other federal contracts for Research and Development (R&D) in physical and engineering sciences, particularly those focused on security applications like threat detection or screening technologies. Given the contract's duration of 851 days (approximately 2.3 years) and its Time and Materials (T&M) nature, the total value is an estimate contingent on actual labor hours and material costs. For R&D projects of this scope and duration, $2.87 million is within a plausible range, especially considering the specialized expertise required. However, without access to a comprehensive database of comparable T&M R&D contracts, a precise comparison is difficult. Factors such as the specific technologies being tested, the complexity of the research, and the required personnel expertise significantly influence cost. A detailed analysis would involve examining the proposed labor mix, overhead rates, and material markups against industry standards and historical government R&D spending.

What are the primary risks associated with this Time and Materials (T&M) contract structure for readiness testing?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, which is determined by the actual hours worked by contractor personnel and the cost of materials used, plus a fixed fee or hourly rate. If not managed diligently, contractors may bill for excessive hours or inflate material costs. For 'readiness testing,' the scope might evolve, leading to increased labor demands. Effective risk mitigation requires robust oversight from the government, including detailed monitoring of timesheets, verification of material invoices, and clear definition of work requirements and milestones. The government must actively manage the contractor's effort to ensure efficiency and prevent scope creep from driving up costs beyond the anticipated value.

How will the effectiveness of the 'readiness testing' be measured and ensured?

The effectiveness of the 'readiness testing' under this contract will be measured through specific performance metrics and deliverables outlined in the task order's Statement of Work (SOW). While the provided data does not detail these metrics, typical measures for R&D readiness testing include the successful development and validation of prototypes, the accuracy and reliability of new screening technologies under simulated conditions, the identification of specific vulnerabilities or improvements, and the generation of comprehensive test reports. The government's contracting officer and technical representatives will be responsible for monitoring progress against these defined objectives and deliverables. Regular progress reviews, technical evaluations of findings, and potentially independent verification of results will be employed to ensure the R&D efforts are achieving their intended purpose of enhancing baggage screening readiness.

What is the historical spending trend for baggage screening R&D within DHS?

Historical spending trends for baggage screening R&D within the Department of Homeland Security (DHS) are not directly available from the provided data snippet. However, it is reasonable to infer that DHS, particularly through its Transportation Security Administration (TSA) and the Science and Technology Directorate (S&T), consistently invests in research and development to improve aviation security technologies. This includes advancements in computed tomography (CT) scanners, explosive detection systems, and other screening methodologies. Spending in this area can fluctuate based on emerging threats, technological advancements, and congressional appropriations. The $2.87 million awarded for this specific task order represents a portion of DHS's broader R&D budget allocated to enhancing screening capabilities, suggesting a continued commitment to innovation in this critical security domain.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RSAT24R00000024

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 43201

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,607,400

Exercised Options: $4,723,113

Current Obligation: $2,868,299

Actual Outlays: $1,318,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RSAT23D00000002

IDV Type: IDC

Timeline