DOE's $709M Battelle Contract Awarded Under Full and Open Competition, Spanning 11 Years
Contract Overview
Contract Amount: $70,924,179 ($70.9M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2010-07-30
Contract Duration: 3,941 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $70.9 million to BATTELLE MEMORIAL INSTITUTE for work described as: Key points: 1. Significant contract value of $709 million highlights major federal investment. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (11 years) may indicate complex, ongoing needs. 4. The award to Battelle Memorial Institute points to specialized research and development capabilities.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts is challenging due to inherent variability, but the fixed fee component provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently, though the CPFF structure requires diligent oversight to control costs.
Public Impact
Potential for advancements in research and development funded by taxpayers. Long-term commitment may stabilize operations for the awarded contractor. Public benefits derived from the research outcomes are a key impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires vigilant oversight to prevent cost creep.
- Long contract duration increases risk of scope creep or evolving requirements.
- Lack of specific performance metrics in provided data makes effectiveness assessment difficult.
Positive Signals
- Full and open competition promotes a fair marketplace.
- Award to a known entity (Battelle) suggests established capabilities.
- Significant investment indicates commitment to critical research areas.
Sector Analysis
This contract falls within the Research and Development sector, likely supporting scientific or technological advancements for the Department of Energy. Spending benchmarks in this sector vary widely based on the specific research area and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Full and open competition does not inherently guarantee small business participation, which would require specific set-aside goals or incentives.
Oversight & Accountability
The long duration and CPFF structure necessitate robust oversight from the Department of Energy to ensure contractor performance, cost control, and adherence to the contract's objectives. Regular audits and performance reviews are crucial.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (11 years).
- Lack of specific performance metrics.
- Potential for cost overruns.
- Limited insight into small business participation.
Tags
department-of-energy, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $70.9 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 Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $70.9 million.
What is the period of performance?
Start: 1999-10-15. End: 2010-07-30.
What specific research and development areas does this contract cover, and how do they align with DOE's strategic goals?
The provided data lacks specifics on the research areas. Understanding the alignment with DOE's strategic goals is crucial for assessing the value and impact of this $709 million investment. Without this context, it's difficult to determine if the spending is directed towards the most pressing national priorities or emerging technological needs.
How effectively has the Cost Plus Fixed Fee structure been managed to control costs and prevent overruns over the 11-year period?
Assessing the effectiveness of CPFF management requires detailed financial and performance data beyond the initial award details. Key indicators would include the final cost compared to the initial estimate, the frequency and justification of any cost adjustments, and the contractor's ability to meet milestones within budget. Without this post-award data, a definitive assessment is not possible.
What mechanisms were in place to ensure the 'full and open competition' resulted in the best possible value and innovation for the government?
While 'full and open competition' suggests a broad solicitation, its effectiveness in achieving best value depends on the evaluation criteria used, the clarity of the Statement of Work, and the rigor of the proposal review process. Ensuring true competition requires preventing restrictive specifications and actively encouraging diverse bidders. The ultimate value is realized if the chosen solution is innovative and cost-effective.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 505 KING AVE, COLUMBUS
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $330,050,231
Exercised Options: $330,050,231
Current Obligation: $70,924,179
Timeline
Start Date: 1999-10-15
Current End Date: 2010-07-30
Potential End Date: 2011-03-02 00:00:00
Last Modified: 2012-06-28
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