DHS awards $18.3M for baggage testing support, raising questions on value and competition

Contract Overview

Contract Amount: $18,341,891 ($18.3M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Homeland Security

Start Date: 2019-05-01

End Date: 2020-08-30

Contract Duration: 487 days

Daily Burn Rate: $37.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER 70T04019F1NAP6607 (BPA 016) UNDER ATSS BPA HSTS04-15-A-CT6005. THIS ORDER IS FOR INTEGRATED SITE ACCEPTANCE TESTING (ISAT) AND BASELINE TESTING SUPPORT REQUIREMENTS IN SUPPORT OF CHECKED BAGGAGE. ALL WORK SHALL BE IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BPA AND THE ATTACHED STATEMENT OF WORK.

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.3 million to BATTELLE MEMORIAL INSTITUTE for work described as: THE PURPOSE OF THIS TASK ORDER 70T04019F1NAP6607 (BPA 016) UNDER ATSS BPA HSTS04-15-A-CT6005. THIS ORDER IS FOR INTEGRATED SITE ACCEPTANCE TESTING (ISAT) AND BASELINE TESTING SUPPORT REQUIREMENTS IN SUPPORT OF CHECKED BAGGAGE. ALL WORK SHALL BE IN ACCORDANCE WITH THE TERMS AND CO… Key points: 1. The contract's value appears reasonable given the duration and scope of integrated site acceptance testing. 2. Competition was full and open, suggesting a competitive pricing environment. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The duration of the task order is substantial, indicating a significant need for ongoing support. 5. The services provided are critical for ensuring the functionality of checked baggage systems. 6. The contractor has a history of performing similar government contracts.

Value Assessment

Rating: fair

The contract value of $18.3 million over approximately 16 months for integrated site acceptance testing and baseline testing support appears within a reasonable range for such specialized services. Benchmarking against similar contracts for technical testing and consulting services within the Department of Homeland Security (DHS) suggests that the pricing is not excessively high. However, without detailed cost breakdowns or specific performance metrics, a definitive assessment of value-for-money is challenging. The firm-fixed-price structure incentivizes cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive process that allows for price discovery and potentially better pricing for the government. This approach is typically favored for ensuring the government receives the best value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it fosters a competitive environment, which can lead to more favorable pricing and a wider range of innovative solutions being considered.

Public Impact

The Transportation Security Administration (TSA) benefits directly from this contract through enhanced operational readiness of checked baggage systems. The services ensure the reliable functioning of critical security infrastructure, contributing to aviation safety. The contract supports the maintenance and testing of technology deployed across various airports. While not directly creating new jobs, the contract sustains existing technical expertise within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess contractor effectiveness.
The duration of the contract could lead to complacency if not actively managed.
Potential for scope creep if not strictly managed against the Statement of Work.

Positive Signals

Firm-fixed-price contract type aligns incentives for cost efficiency.
Full and open competition suggests a robust selection process.
Contract supports critical national security infrastructure.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting services (NAICS 541611). This sector is characterized by a wide range of specialized expertise applied to government and commercial operations. The Transportation Security Administration (TSA) frequently procures such services for system testing, integration, and operational support. Comparable spending in this sector for similar technical support services can vary significantly based on complexity and duration, but the $18.3 million for a 16-month period for specialized testing is within the expected range for complex government projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this task order (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem mandated by this particular award. The focus was on full and open competition, which may not prioritize small business set-asides.

Oversight & Accountability

Oversight for this task order would primarily reside with the contracting officer and the program office within the Transportation Security Administration. The firm-fixed-price nature of the contract shifts some performance risk to the contractor, but the government retains responsibility for monitoring progress, ensuring adherence to the Statement of Work, and approving deliverables. Transparency is facilitated through contract award databases, though detailed performance reports are typically internal.

Related Government Programs

TSA Baggage Screening Technology Modernization
DHS Cybersecurity Support Services
Federal Aviation Administration (FAA) Airport Technology Contracts
Department of Defense (DoD) Systems Integration and Testing

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of contractor performance not meeting stringent testing requirements.
Limited transparency on the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.3 million to BATTELLE MEMORIAL INSTITUTE. THE PURPOSE OF THIS TASK ORDER 70T04019F1NAP6607 (BPA 016) UNDER ATSS BPA HSTS04-15-A-CT6005. THIS ORDER IS FOR INTEGRATED SITE ACCEPTANCE TESTING (ISAT) AND BASELINE TESTING SUPPORT REQUIREMENTS IN SUPPORT OF CHECKED BAGGAGE. ALL WORK SHALL BE IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BPA AND THE ATTACHED STATEMENT OF WORK.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2019-05-01. End: 2020-08-30.

What is the track record of Battelle Memorial Institute in performing similar integrated site acceptance testing for government agencies?

Battelle Memorial Institute has a significant track record in performing complex technical services, including systems integration, testing, and research and development for various government agencies, including the Department of Homeland Security. Their experience often spans critical infrastructure, defense, and national security sectors. For integrated site acceptance testing (ISAT) and baseline testing, Battelle's expertise typically involves rigorous validation of system performance against specified requirements. While specific contract details for past ISAT projects are not provided here, their general profile suggests a capability to handle such demanding tasks. Government contract databases often show Battelle as a prime contractor on numerous large-scale technical support efforts, indicating a sustained ability to win and execute complex task orders.

How does the $18.3 million cost compare to similar government contracts for baggage testing support?

Benchmarking the $18.3 million cost for 16 months of Integrated Site Acceptance Testing (ISAT) and baseline testing support requires comparison with contracts of similar scope, duration, and complexity within the federal government, particularly for aviation security infrastructure. While direct, perfectly comparable contracts are difficult to pinpoint without access to proprietary pricing data, the average daily rate implied by this contract is approximately $385,000. This figure needs to be evaluated against the specialized nature of the work, the required expertise, and the contractor's overhead. Contracts for large-scale system integration and testing for critical infrastructure often fall within this range, especially when involving specialized engineering and validation processes. The firm-fixed-price nature also suggests that the government has negotiated a ceiling price, and the contractor is incentivized to complete the work within that budget.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues where the contractor may not meet the required testing standards or timelines, leading to delays in the deployment or operational readiness of checked baggage systems. Another risk is cost overruns if the firm-fixed-price contract is not managed effectively, although the contractor bears the primary financial risk. Scope creep, where the requirements expand beyond the original Statement of Work (SOW), is also a concern. Mitigation strategies include robust government oversight by the contracting officer and technical representatives to monitor progress and ensure adherence to the SOW, clear definition of acceptance criteria, and regular performance reviews. The firm-fixed-price structure itself acts as a mitigation for cost risk to the government, as the contractor is obligated to complete the work for the agreed-upon price.

How effective is the 'full and open competition' approach in ensuring value for taxpayer money in this specific context?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayer money, as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In the context of this task order for integrated site acceptance testing (ISAT) and baseline testing support for checked baggage systems, this approach allows a wide range of qualified contractors to compete. This competition should drive down prices and encourage contractors to offer their best technical solutions at the most competitive rates. The effectiveness is further enhanced if the solicitation clearly defines performance requirements and evaluation criteria, allowing the government to select not just the lowest price, but the best overall value, considering both technical merit and cost.

What are the historical spending patterns for similar baggage testing support services by the TSA or DHS?

Historical spending patterns for similar baggage testing support services by the TSA or DHS are not explicitly detailed in the provided data. However, the Transportation Security Administration (TSA) has consistently invested in the security and efficiency of baggage handling systems, particularly following the implementation of mandates for checked baggage screening. This includes significant spending on the procurement, installation, and ongoing maintenance and testing of screening technologies. Task orders and contracts for system integration, testing, validation, and operational support are recurring needs. While the specific dollar amounts fluctuate based on technology upgrades, system rollouts, and contract durations, the consistent need for such specialized technical support suggests a sustained budgetary allocation within the TSA for these critical functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

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: $18,341,891

Exercised Options: $18,341,891

Current Obligation: $18,341,891

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $3,291,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HSTS0415ACT6005

IDV Type: BPA

Timeline