DHS S&T invests $42.9M in biological threat characterization, with Battelle Memorial Institute leading R&D

Contract Overview

Contract Amount: $42,883,184 ($42.9M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2018-03-29

End Date: 2022-12-31

Contract Duration: 1,738 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEPARTMENT OF HOMELAND SECURITY SCIENCE AND TECHNOLOGY CHEMICAL BIOLOGICAL DEFENSE DIVISION BIOLOGICAL THREAT CHARACTERIZATION PROGRAM

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $42.9 million to BATTELLE MEMORIAL INSTITUTE for work described as: DEPARTMENT OF HOMELAND SECURITY SCIENCE AND TECHNOLOGY CHEMICAL BIOLOGICAL DEFENSE DIVISION BIOLOGICAL THREAT CHARACTERIZATION PROGRAM Key points: 1. Contract value represents a significant investment in national biodefense capabilities. 2. The R&D focus addresses critical needs in understanding and mitigating biological threats. 3. Sole-source nature of the award warrants scrutiny for potential cost efficiencies. 4. Contract duration suggests a long-term commitment to ongoing research and development. 5. Performance metrics and deliverables will be key to assessing program success. 6. Geographic concentration in Ohio may indicate regional expertise or facility utilization.

Value Assessment

Rating: fair

The total contract value of $42.9 million over approximately five years for R&D services is substantial. Benchmarking this against similar biological threat characterization programs is challenging due to the specialized nature of the work. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not carefully managed, as contractor incentives are not directly tied to cost savings. Further analysis of the fixed fee and indirect cost rates would be necessary to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows one award, which could mean that while competition was open, Battelle Memorial Institute was the most competitive offeror. The level of competition is a positive sign for price discovery, but the number of bids received would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Homeland Security (DHS) Science and Technology Directorate benefits through enhanced capabilities in biological threat characterization. The research delivered aims to improve national security by better understanding and preparing for biological threats. The primary geographic impact is in Ohio, where Battelle Memorial Institute is headquartered and likely conducts much of the research. The contract supports a highly specialized scientific workforce in the fields of biology, chemistry, and related engineering disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may not incentivize cost control as effectively as other pricing structures.
Limited public information on specific performance metrics makes it difficult to independently assess program effectiveness.
The specialized nature of the R&D could lead to contractor lock-in if unique expertise is developed.
Reliance on a single contractor for a critical program warrants ongoing monitoring of performance and potential alternatives.

Positive Signals

Awarded through full and open competition, suggesting a robust initial selection process.
The significant investment indicates a high priority placed on biological threat research by DHS.
Battelle Memorial Institute has a strong reputation and extensive experience in R&D, particularly in defense and national security areas.
The long contract duration (over 4 years) allows for sustained focus and development of deep expertise.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for biological threat characterization is specialized, driven by government funding for national security and public health initiatives. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of biological threat research, but overall federal R&D spending in defense and homeland security is substantial, often involving large, multi-year contracts with specialized research institutions.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary. The overall impact on the small business ecosystem for this specific contract appears minimal based on the available information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's Science and Technology Directorate, with potential involvement from the Department of Defense's Air Force, as indicated by the 'sa' field. Accountability measures are typically embedded within the contract's terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract databases like FPDS, though detailed programmatic insights may be limited due to the sensitive nature of R&D in national security.

Related Government Programs

Department of Homeland Security Science and Technology Directorate Programs
Biological Threat Defense Initiatives
Chemical Biological Defense Programs
National Biodefense Strategy Implementation
Advanced Research and Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to higher costs if not managed tightly.
Limited public data on specific performance metrics hinders independent assessment of value.
Potential for contractor lock-in due to specialized R&D expertise.
Reliance on a single contractor for a critical program requires vigilant oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.9 million to BATTELLE MEMORIAL INSTITUTE. DEPARTMENT OF HOMELAND SECURITY SCIENCE AND TECHNOLOGY CHEMICAL BIOLOGICAL DEFENSE DIVISION BIOLOGICAL THREAT CHARACTERIZATION PROGRAM

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 Air Force).

What is the total obligated amount?

The obligated amount is $42.9 million.

What is the period of performance?

Start: 2018-03-29. End: 2022-12-31.

What is Battelle Memorial Institute's track record with similar government R&D contracts, particularly in biological defense?

Battelle Memorial Institute has a long and extensive history of performing research and development for various U.S. government agencies, including the Department of Defense, Department of Homeland Security, and others. They have a significant portfolio of contracts related to chemical, biological, radiological, nuclear, and explosive (CBRNE) defense, threat characterization, and advanced materials science. Their experience often involves complex, multi-disciplinary research requiring specialized facilities and expertise. Publicly available contract databases show numerous awards to Battelle for R&D services across different agencies, indicating a strong track record in securing and executing large-scale government research projects. Their established presence and capabilities in these sensitive areas suggest a high likelihood of successful performance on contracts like the one with DHS S&T.

How does the $42.9 million contract value compare to other federal investments in biological threat characterization?

The $42.9 million investment over approximately five years for biological threat characterization is a substantial commitment, reflecting the critical nature of this research area for national security. While direct comparisons are difficult due to the specialized and often classified nature of such programs, federal spending on biodefense and related R&D is significant. Agencies like DHS, DOD, and HHS collectively invest billions annually in areas such as threat detection, medical countermeasures, and preparedness. This particular contract represents a focused effort within DHS S&T's Chemical Biological Defense Division. Its value should be considered within the broader context of national biodefense funding, which fluctuates based on perceived threats and strategic priorities. The amount suggests a significant scope of work, likely encompassing advanced laboratory research, data analysis, and potentially prototype development.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for biological R&D?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially for research and development, is the potential for cost overruns and reduced incentive for the contractor to control expenses. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for completion, it does not directly reward cost savings. This can lead to a situation where the government bears the financial risk of cost increases. For complex R&D like biological threat characterization, where unforeseen challenges and scope adjustments are common, this structure requires robust government oversight to monitor costs, ensure efficiency, and validate the necessity of expenditures to mitigate financial risks to the taxpayer.

How effective is the current approach to biological threat characterization likely to be given the contract's scope and duration?

The effectiveness of the biological threat characterization program hinges on several factors beyond the contract's scope and duration. The $42.9 million investment over roughly five years provides a solid foundation for sustained research. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests a broad scientific approach. Effectiveness will depend on the clarity of program objectives, the quality of scientific execution by Battelle Memorial Institute, the adaptability of the research to evolving threat landscapes, and the successful translation of findings into actionable intelligence or countermeasures by DHS. The long duration allows for in-depth study, but continuous evaluation of research progress against defined milestones and alignment with DHS's strategic goals are crucial for ensuring the program's overall effectiveness in enhancing national security.

What are the historical spending patterns for biological threat characterization within DHS S&T?

Historical spending patterns for biological threat characterization within DHS Science and Technology (S&T) are indicative of a sustained, albeit potentially fluctuating, commitment to this area. While specific historical figures for this exact program division are not provided in the summary data, DHS S&T's overall budget consistently allocates significant resources towards chemical, biological, radiological, nuclear, and explosive (CBRNE) defense. This includes funding for research, development, and acquisition of technologies to detect, protect against, and respond to biological threats. Spending in this domain often increases following major global health events or perceived increases in threat levels. The $42.9 million awarded to Battelle represents a substantial single contract, suggesting that such focused investments are a key component of DHS S&T's strategy for addressing biological threats over multi-year periods.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807512R0002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,281,576

Exercised Options: $49,281,576

Current Obligation: $42,883,184

Actual Outlays: $7,675,147

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $6,787,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0003

IDV Type: IDC

Timeline