DHS awards $34.7M task order to Battelle for T&E support, raising questions on value and competition

Contract Overview

Contract Amount: $34,733,860 ($34.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-17

End Date: 2026-09-16

Contract Duration: 1,825 days

Daily Burn Rate: $19.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER UNDER THE DEVELOPMENT TEST & EVALUATION SUPPORT SERVICES BLANKET PURCHASE AGREEMENT TO BATTELLE MEMORIAL INSTITUTE FOR TIME AND MATERIALS FOR T&E PLANNING, EXECUTION, DATA COLLECTION, ANALYSIS & REPORTING.

Place of Performance

Location: ARLINGTON, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: TASK ORDER UNDER THE DEVELOPMENT TEST & EVALUATION SUPPORT SERVICES BLANKET PURCHASE AGREEMENT TO BATTELLE MEMORIAL INSTITUTE FOR TIME AND MATERIALS FOR T&E PLANNING, EXECUTION, DATA COLLECTION, ANALYSIS & REPORTING. Key points: 1. The contract focuses on critical test and evaluation planning, execution, and analysis. 2. Battelle Memorial Institute, a large research and development organization, is the sole awardee. 3. The contract is structured as a Time and Materials (T&M) award, which can pose cost control challenges. 4. The duration of the contract is 5 years, indicating a long-term need for these services. 5. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework. 6. The specific services include data collection and reporting, vital for program assessment.

Value Assessment

Rating: fair

The contract's value is substantial at $34.7 million over five years. As a Time and Materials contract, it lacks a fixed ceiling, which can lead to cost overruns if not managed carefully. Benchmarking against similar T&E support contracts is difficult without more detailed service breakdowns and labor rates. However, the duration and scope suggest a significant investment in specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This task order was competed under a Blanket Purchase Agreement (BPA) Call. While BPAs can offer efficiency, the 'competed under SAP' (Simplified Acquisition Procedures) designation suggests it may not have undergone the full breadth of competition expected for a contract of this magnitude. The specific competition details for this BPA call are not fully elaborated, but it implies a limited number of pre-qualified vendors could bid.

Taxpayer Impact: The limited competition under the BPA framework may result in less aggressive pricing than a fully open and competitive solicitation, potentially leading to higher costs for taxpayers.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced test and evaluation capabilities. Services delivered include planning, execution, data collection, analysis, and reporting for T&E activities. The contract's impact is primarily within the District of Columbia, where the TSA is headquartered. Specialized scientific and technical personnel will be engaged to perform the required services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty and potential overruns.
Limited competition under the BPA Call may not yield the best value for taxpayer dollars.
The broad scope of 'Other Scientific and Technical Consulting Services' could allow for scope creep.

Positive Signals

Award to Battelle Memorial Institute, a reputable research and development organization, suggests technical capability.
The contract supports critical test and evaluation functions for the TSA.
The BPA framework may streamline the acquisition process for essential services.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' sector, a broad category encompassing specialized advisory and analytical support. The market for T&E support services is competitive, with numerous firms offering expertise in areas like systems engineering, performance testing, and data analysis. Spending in this sector is driven by government needs for objective assessments of technology and program effectiveness, particularly in areas like transportation security.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major research institute, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus is on specialized technical services rather than broad service delivery where small businesses often play a larger role.

Oversight & Accountability

Oversight will likely be managed by the contracting officers and program managers within the TSA. The contract's T&M nature necessitates close monitoring of labor hours and costs to ensure adherence to the estimated value and prevent overspending. Transparency is dependent on the reporting requirements within the BPA and the task order itself, and whether this information is publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security - Test and Evaluation
Transportation Security Administration - Technology Acquisition
Federal Consulting Services
Research and Development Support Contracts

Risk Flags

Time and Materials Contract Type
Limited Competition
Large Prime Contractor Award
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.7 million to BATTELLE MEMORIAL INSTITUTE. TASK ORDER UNDER THE DEVELOPMENT TEST & EVALUATION SUPPORT SERVICES BLANKET PURCHASE AGREEMENT TO BATTELLE MEMORIAL INSTITUTE FOR TIME AND MATERIALS FOR T&E PLANNING, EXECUTION, DATA COLLECTION, ANALYSIS & REPORTING.

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 $34.7 million.

What is the period of performance?

Start: 2021-09-17. End: 2026-09-16.

What is Battelle Memorial Institute's track record with the Department of Homeland Security and TSA?

Battelle Memorial Institute has a history of performing research, development, and technical support services for various government agencies, including DHS and its components. While specific details on their past performance with TSA for T&E planning and execution are not provided in this data snippet, their general reputation as a large, established research organization suggests a capacity to handle complex technical requirements. A deeper dive into their contract history with TSA would reveal the extent and nature of their previous work, including any performance issues or successes, to better assess their suitability for this specific task order.

How does the $34.7 million value compare to similar T&E support contracts awarded by TSA or DHS?

The $34.7 million value over five years for test and evaluation support is a significant investment. Without specific details on the scope of services and labor categories, direct comparison is challenging. However, T&E support contracts can range widely. For critical systems or large-scale program evaluations, such figures are not uncommon. If this contract covers a broad spectrum of testing for major transportation security technologies, the value might be considered reasonable. Conversely, if the scope is narrower, it could indicate a higher per-unit cost or less competitive pricing. Benchmarking against contracts for similar complexity and duration within DHS would provide better context.

What are the primary risks associated with a Time and Materials (T&M) contract for these services?

The primary risk with a Time and Materials (T&M) contract is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for actual material costs. This structure places the onus on the government to closely monitor contractor effort and ensure efficiency. Without robust oversight, contractors may be incentivized to extend timelines or increase labor hours, leading to costs exceeding initial estimates. For T&E planning, execution, data collection, analysis, and reporting, the variable nature of task completion and the need for specialized expertise can exacerbate these risks if not meticulously managed.

How effective is the 'competed under SAP' designation in ensuring fair market competition for this contract?

The 'competed under SAP' (Simplified Acquisition Procedures) designation indicates that the contract was awarded using procedures designed for purchases below the simplified acquisition threshold (typically $250,000, though this can vary). For a task order valued at $34.7 million, this designation is unusual and suggests it was likely awarded under a pre-existing Blanket Purchase Agreement (BPA) that itself was established through a more competitive process, or that specific exceptions apply. While BPAs can streamline procurement, competition under SAP generally involves fewer vendors and less extensive documentation than full and open competition. This limited competition may not always result in the most advantageous pricing or terms for the government compared to a broader solicitation.

What are the implications of awarding this contract to Battelle Memorial Institute for the broader T&E support market?

Awarding a significant task order like this to Battelle Memorial Institute, a large and established research organization, reinforces its position in the federal T&E support market. It signifies continued reliance on large prime contractors for specialized technical services. For smaller or niche firms, this could mean fewer direct opportunities unless they are part of Battelle's subcontracting chain. It also highlights the government's approach to procuring complex technical services, often favoring established entities with broad capabilities. The long-term nature of the contract suggests a stable revenue stream for Battelle in this domain, potentially influencing their strategic investments and focus areas.

What historical spending patterns exist for T&E support services within the TSA or DHS?

Historical spending patterns for T&E support services within TSA and DHS are likely substantial, given the agency's mission to secure transportation systems. Agencies like TSA continuously need to evaluate and test new technologies, security procedures, and operational effectiveness. Spending in this area fluctuates based on technological advancements, emerging threats, and program lifecycle stages. Without access to historical DHS/TSA procurement data, it's difficult to pinpoint exact trends. However, it's reasonable to assume consistent, significant investment in T&E to maintain and improve security postures, with contracts often awarded to specialized R&D firms and technical consultancies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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: $34,733,860

Exercised Options: $34,733,860

Current Obligation: $34,733,860

Actual Outlays: $16,683,296

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $9,726,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70T04021A7672N002

IDV Type: BPA

Timeline