DoD's $387.6M Battelle Memorial Institute contract for facilities support services awarded in 2007, ending in 2020

Contract Overview

Contract Amount: $387,605,644 ($387.6M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2007-12-03

End Date: 2020-09-22

Contract Duration: 4,677 days

Daily Burn Rate: $82.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: FOX/BIO REQUIREMENT

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $387.6 million to BATTELLE MEMORIAL INSTITUTE for work described as: FOX/BIO REQUIREMENT Key points: 1. The contract's long duration and cost-plus incentive fee structure warrant scrutiny for potential cost overruns. 2. While the contractor is a reputable research institute, the value for money over 13 years needs detailed analysis. 3. The full and open competition suggests a robust market, but the number of bids is not specified. 4. Performance context is limited without specific metrics on facilities support quality and efficiency. 5. This contract falls within the broad category of facilities support services, a common government need. 6. The absence of small business involvement is noted, suggesting potential missed opportunities for smaller enterprises.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for facilities support services over such an extended period. The cost-plus incentive fee (CPIF) structure can incentivize efficiency but also carries risks of cost escalation if not managed tightly. The total value of $387.6 million over nearly 13 years averages approximately $30 million annually, which may be reasonable for large-scale facilities management, but requires deeper analysis of the scope of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the provided data does not specify the number of bids received or the evaluation process. A robust competition is generally expected to drive better pricing and service quality, but the long duration of the contract might have influenced the competitive landscape over time.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can lead to more cost-effective solutions and better value.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive essential facilities support services. Services delivered likely include maintenance, repair, operations, and potentially specialized facility management for DoD installations. The geographic impact is concentrated in Ohio, where the contractor is based and likely where services were primarily rendered. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and administrative roles, potentially supporting local economies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended contract duration (nearly 13 years) increases the risk of scope creep and potential for cost inefficiencies over time.
Lack of specific performance metrics makes it difficult to assess the true value for money and contractor performance.
The cost-plus incentive fee structure, while intended to align incentives, can lead to higher costs if not rigorously overseen.
No indication of small business participation suggests a potential lack of focus on broader economic inclusion goals.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should have yielded a fair price.
The contractor, Battelle Memorial Institute, is a well-established research and development organization with a strong reputation.
The contract's long duration implies a stable, ongoing need for these services, indicating a critical function for the agency.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services essential for the operation and maintenance of government facilities. This sector includes everything from building operations and maintenance to groundskeeping and custodial services. Government spending in this area is substantial, reflecting the vast real estate portfolio managed by federal agencies. Comparable spending benchmarks would typically involve analyzing annual spending on facilities management across different agencies and contract types.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary contractor, Battelle Memorial Institute, likely handled the majority of the work directly. This could represent a missed opportunity to engage the small business ecosystem, which often provides specialized and cost-effective solutions in the facilities support sector.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers responsible for ensuring contractor performance and adherence to contract terms. The CPIF structure implies performance-based oversight to manage incentive payouts. Transparency would depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance and Repair Contracts
Base Operations Support Services
Government Property Management
Logistics and Support Services
Department of Defense Procurement

Risk Flags

Extended contract duration
Cost-plus contract type
Lack of specific performance metrics
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $387.6 million to BATTELLE MEMORIAL INSTITUTE. FOX/BIO REQUIREMENT

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $387.6 million.

What is the period of performance?

Start: 2007-12-03. End: 2020-09-22.

What specific facilities support services were included under this contract?

The provided data classifies this contract under NAICS code 561210, 'Facilities Support Services.' This broad category typically encompasses a range of services necessary for the operation and maintenance of facilities. These can include, but are not limited to, building operations and maintenance, custodial services, grounds maintenance, pest control, refuse collection, security systems maintenance, and potentially specialized services related to the specific type of facility managed. Without more detailed contract documentation, the precise scope of services delivered by Battelle Memorial Institute under this specific award remains general.

How does the $387.6 million total contract value compare to similar facilities support contracts awarded by the DoD?

Comparing the $387.6 million total value over nearly 13 years (approximately $30 million annually) to similar facilities support contracts requires access to a broader dataset of DoD contracts within the same period and for comparable services. Facilities support needs vary significantly based on the type and size of installations. However, for large-scale, long-term support contracts at major military installations, this value could be within a typical range. A more precise comparison would necessitate identifying contracts with similar scopes of work, geographic locations, and contract types (e.g., CPIF) to establish a robust benchmark for value for money.

What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract of this magnitude and duration?

A Cost Plus Incentive Fee (CPIF) contract, especially one spanning nearly 13 years and valued at $387.6 million, carries inherent risks. The primary risk is cost overrun, as the government agrees to pay the contractor's allowable costs plus a fee that is adjusted based on performance against targets. If cost targets are not well-defined or if oversight is insufficient, the contractor may have less incentive to control costs strictly. Additionally, the long duration increases the potential for scope creep, changes in requirements, and market fluctuations that could impact the original cost estimates and incentive structures, potentially leading to a higher final cost than initially anticipated.

What was the performance history of Battelle Memorial Institute on this contract?

The provided data does not include specific performance metrics or ratings for Battelle Memorial Institute on this contract. While the contract was awarded through full and open competition and completed its term, assessing the contractor's performance history would require access to contract performance reports, award fee determinations (if applicable), and any documented issues or commendations. Without this information, it is difficult to evaluate the quality of services delivered and the effectiveness of the contractor in meeting the Department of Defense's requirements.

How has federal spending on Facilities Support Services (NAICS 561210) evolved over the period this contract was active (2007-2020)?

Federal spending on Facilities Support Services (NAICS 561210) has generally seen fluctuations but remained a significant category throughout the 2007-2020 period. This era encompassed periods of both increased military operations and subsequent drawdowns, influencing the demand for support services. While specific year-over-year data for this exact NAICS code across all agencies is complex to aggregate without specialized tools, overall government spending on services, including facilities management, has trended upwards over the long term, driven by the need to maintain a vast federal infrastructure. The $387.6 million awarded to Battelle represents a portion of this broader spending trend.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, COLUMBUS, OH, 43201

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $390,410,395

Exercised Options: $390,410,395

Current Obligation: $387,605,644

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0011

IDV Type: IDC

Timeline