DoD's $55.8M Battelle contract for R&D services awarded under full and open competition

Contract Overview

Contract Amount: $55,786,357 ($55.8M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2006-03-30

End Date: 2011-12-08

Contract Duration: 2,079 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: R&D

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $55.8 million to BATTELLE MEMORIAL INSTITUTE for work described as: Key points: 1. Contract awarded for research and development services, indicating a focus on innovation and future capabilities. 2. The contract duration of 2079 days suggests a long-term commitment to the project's objectives. 3. Awarded to Battelle Memorial Institute, a known entity in the research and development sector. 4. The use of Time and Materials pricing may present cost control challenges if not closely monitored. 5. The contract was awarded by the Department of Defense, highlighting its strategic importance. 6. The geographic location of the contractor in Ohio may have implications for local economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this $55.8 million contract is challenging without specific deliverables or performance metrics. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not managed diligently. Comparing it to similar R&D contracts would require detailed analysis of the scope of work, technical complexity, and contractor expertise. However, the significant duration suggests a substantial investment, and the absence of a small business set-aside might indicate a focus on large, specialized contractors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 7 bidders suggests a reasonably competitive environment for this type of R&D service. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the bidding process and evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving the quality of services received.

Public Impact

The Department of Defense benefits from advanced research and development capabilities, potentially enhancing national security. The contract supports the development of new technologies and methodologies relevant to defense applications. The workforce in Ohio may see indirect benefits through employment opportunities related to this contract. The research outcomes could lead to improved military equipment, strategies, or operational efficiencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs if not managed effectively.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The long duration of the contract requires sustained oversight to ensure continued relevance and efficiency.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor has a significant presence in the R&D sector.
The contract addresses critical research and development needs for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, a critical area for government innovation and technological advancement. The R&D market is characterized by specialized expertise, long project cycles, and significant investment. Comparable spending benchmarks would depend heavily on the specific technological domain, but large-scale R&D contracts for defense applications often run into tens or hundreds of millions of dollars, reflecting the complexity and strategic importance of the work.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. This suggests that the scope or nature of the R&D services required may have favored larger, more established research institutions or companies. There is no explicit information on subcontracting plans for small businesses, which could be an area for further inquiry to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Transparency is facilitated through contract award databases, but detailed project progress and specific oversight reports are often internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Advanced Technology Development
Materials Science Research
Engineering Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics makes value assessment difficult.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.8 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 Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $55.8 million.

What is the period of performance?

Start: 2006-03-30. End: 2011-12-08.

What specific research and development areas did this contract cover for the Department of Defense?

The provided data does not specify the exact research and development areas covered by this contract. However, given the contractor (Battelle Memorial Institute) and the awarding agency (Department of Defense), it likely involved advanced technological research, potentially in areas such as materials science, defense systems, cybersecurity, or emerging threats. Battelle is known for its work across a wide spectrum of scientific and engineering disciplines, often supporting national security objectives. Further details would require access to the contract's statement of work or related documentation.

How does the Time and Materials (T&M) pricing structure compare to other R&D contracts of similar scope?

Time and Materials (T&M) contracts offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the actual cost of materials used. For R&D, T&M can be suitable when the scope of work is not well-defined at the outset, allowing for adjustments as research progresses. However, it carries a higher risk of cost overruns compared to fixed-price contracts. Compared to similar R&D contracts, T&M is often used in early-stage research or when unforeseen technical challenges are anticipated. Government agencies typically implement strict oversight, ceiling limitations, and detailed reporting requirements to mitigate the cost risks associated with T&M awards.

What is Battelle Memorial Institute's track record with the Department of Defense?

Battelle Memorial Institute has a long-standing and extensive track record of working with the Department of Defense (DoD) and other government agencies on research, development, and engineering projects. They are a prominent non-profit applied science and technology development company. Their work for the DoD often spans critical areas such as national security, advanced materials, energy solutions, and chemical, biological, radiological, and nuclear (CBRN) defense. The $55.8 million contract awarded in 2006 is one of many engagements, reflecting a sustained relationship built on technical expertise and project execution capabilities.

What were the key performance indicators or deliverables expected under this contract?

The provided data does not detail the specific key performance indicators (KPIs) or deliverables for this contract. Contracts of this nature, especially those involving research and development, typically outline specific milestones, technical reports, prototypes, or data sets that the contractor is expected to produce. The success of the contract would be measured against the achievement of these defined outputs and the quality of the research conducted. Without the statement of work or performance work statement, a precise assessment of expected outcomes is not possible.

How does the $55.8 million total award amount compare to annual DoD R&D spending?

The $55.8 million awarded to Battelle Memorial Institute represents a fraction of the Department of Defense's overall Research, Development, Test, and Evaluation (RDT&E) budget. For context, the DoD's RDT&E budget typically runs into the tens of billions of dollars annually. For example, in fiscal year 2006, the DoD requested over $80 billion for RDT&E. Therefore, while $55.8 million is a substantial sum for a single contract, it is a relatively small component within the vast landscape of DoD's annual R&D investments, reflecting the agency's broad and deep commitment to technological advancement.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6700402D0002

IDV Type: IDC

Timeline