DHS S&T Directorate awards $84.5M R&D contract to Battelle Memorial Institute for threat analysis

Contract Overview

Contract Amount: $84,460,954 ($84.5M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2021-09-15

End Date: 2026-09-19

Contract Duration: 1,830 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CHARACTERIZATION AND ASSESSMENT OF THREATS BY EXPERIMENT ANALYSIS AND RESEARCH FOR THE DEPARTMENT OF HOMELAND SECURITY SCIENCE AND TECHNOLOGY DIRECTORATE PROBABILISTIC ANALYSIS OF NATIONAL THREATS, HAZARDS, AND RISKS PROGRAM

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $84.5 million to BATTELLE MEMORIAL INSTITUTE for work described as: CHARACTERIZATION AND ASSESSMENT OF THREATS BY EXPERIMENT ANALYSIS AND RESEARCH FOR THE DEPARTMENT OF HOMELAND SECURITY SCIENCE AND TECHNOLOGY DIRECTORATE PROBABILISTIC ANALYSIS OF NATIONAL THREATS, HAZARDS, AND RISKS PROGRAM Key points: 1. Contract focuses on probabilistic analysis of national threats, hazards, and risks. 2. Awarded under full and open competition, indicating broad market engagement. 3. Performance period spans nearly four years, suggesting a substantial research effort. 4. The contract type is Cost Plus Fixed Fee, common for complex R&D. 5. Research and Development in Physical, Engineering, and Life Sciences is the relevant NAICS code. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of the 'Probabilistic Analysis of National Threats, Hazards, and Risks Program'. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that costs are reimbursed, plus a fixed fee for profit. This can lead to cost overruns if not managed tightly. The total award amount of $84.5 million over approximately 1830 days (5 years) averages to about $46.15 million per year, which is a significant investment for R&D in threat analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which means that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, potentially leading to better pricing and innovation. The specific number of bidders is not provided, but the open competition suggests that multiple entities likely vied for this significant R&D opportunity.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in critical threat analysis research.

Public Impact

The Department of Homeland Security Science and Technology Directorate is the primary beneficiary, receiving advanced research to inform national security strategies. The research aims to enhance the understanding and prediction of national threats, hazards, and risks. The geographic impact is national, as the findings are intended to inform federal policy and preparedness across the United States. The contract supports a specialized workforce in research and development, particularly in areas of data analysis, modeling, and risk assessment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as they are reimbursed, potentially leading to less stringent cost control compared to fixed-price contracts.
The duration of the contract (nearly 5 years) requires sustained oversight to ensure progress and adherence to research objectives.
The complexity of threat analysis R&D can make it difficult to define clear performance metrics and assess the ultimate value of the research outcomes.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Battelle Memorial Institute, is a well-established research organization with a history of government contracts.
The contract addresses a critical national security need for understanding and mitigating threats.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense and homeland security R&D is substantial, with significant government investment aimed at maintaining technological superiority and enhancing national security capabilities. Comparable spending benchmarks would involve other large-scale R&D contracts awarded by agencies like DHS, DoD, and intelligence agencies for similar analytical or scientific research services.

Small Business Impact

The data indicates that small business participation (sb) is false and there is 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 they are not explicitly detailed in the provided information. The primary focus appears to be on large, established research institutions capable of undertaking complex R&D projects.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), given the agency listed is the Department of Defense (though the work is for DHS S&T). The CPFF structure necessitates close monitoring of costs and progress. Transparency would be facilitated through regular reporting requirements from the contractor and potential reviews by DHS S&T program managers. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Homeland Security Threat Assessment Programs
National Risk Management Frameworks
Department of Defense Research and Development Contracts
Scientific and Technical Support Services
Advanced Analytics for National Security

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Scope Creep Potential
Difficulty in Measuring R&D Success

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.5 million to BATTELLE MEMORIAL INSTITUTE. CHARACTERIZATION AND ASSESSMENT OF THREATS BY EXPERIMENT ANALYSIS AND RESEARCH FOR THE DEPARTMENT OF HOMELAND SECURITY SCIENCE AND TECHNOLOGY DIRECTORATE PROBABILISTIC ANALYSIS OF NATIONAL THREATS, HAZARDS, AND RISKS 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $84.5 million.

What is the period of performance?

Start: 2021-09-15. End: 2026-09-19.

What is the specific nature of the 'Probabilistic Analysis of National Threats, Hazards, and Risks Program' and its objectives?

The 'Probabilistic Analysis of National Threats, Hazards, and Risks Program' (often referred to as ProgrAM) aims to develop and apply advanced analytical methodologies to quantify the likelihood and impact of various threats facing the nation. This includes natural disasters, man-made hazards, and adversarial threats. The program's objectives are to provide the Department of Homeland Security (DHS) and other federal agencies with a data-driven understanding of national risks, enabling more effective resource allocation, policy development, and preparedness strategies. Battelle Memorial Institute's role is to conduct research, develop models, and perform analyses that contribute to this understanding, likely involving complex simulations, statistical modeling, and expert elicitation to assess probabilities and consequences across a wide spectrum of potential events.

How does Battelle Memorial Institute's track record compare for similar R&D contracts?

Battelle Memorial Institute has a long and extensive track record of successfully executing large-scale research and development contracts for various U.S. government agencies, including the Department of Defense, Department of Energy, and DHS. They are known for their expertise in areas such as national security, advanced materials, chemical and biological defense, and complex systems analysis. Their history includes managing significant R&D programs that require sophisticated scientific and engineering capabilities, often involving classified or sensitive research. For R&D contracts similar to this DHS S&T award, Battelle has consistently demonstrated the capacity to deliver complex analytical products and manage substantial budgets, making them a frequent and trusted awardee for such critical research initiatives.

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

The primary risk with a CPFF contract for complex R&D like threat analysis is the potential for cost escalation. Since the contractor is reimbursed for allowable costs plus a fixed fee, there is less inherent incentive to control expenses compared to fixed-price contracts. If the scope of work is not precisely defined or if unforeseen technical challenges arise, costs can increase significantly. For the government, this means the final cost could exceed initial projections, even with the fixed fee. Effective oversight, rigorous cost tracking, and clear communication channels are crucial to mitigate these risks and ensure the program stays within budget while achieving its research objectives. The fixed fee itself is intended to provide the contractor with a profit incentive, but the overall cost control relies heavily on government management and contractor diligence.

How does the $84.5 million award compare to historical DHS S&T spending on threat analysis R&D?

Without specific historical spending data for DHS S&T's threat analysis R&D programs, a direct comparison is difficult. However, $84.5 million over approximately five years represents a substantial investment, averaging over $16 million annually. DHS S&T's budget is significant, and R&D in critical areas like threat assessment is a core mission. This award suggests a continued commitment to sophisticated, data-driven approaches to understanding national risks. It is likely within the range of major R&D initiatives undertaken by the directorate, reflecting the complexity and importance of the research. To provide a precise comparison, one would need to analyze past DHS S&T solicitations and awards for similar R&D services, looking at contract values, durations, and the specific research areas covered.

What are the potential implications of this contract for future threat assessment methodologies?

This contract has the potential to significantly influence future threat assessment methodologies by advancing probabilistic modeling and risk analysis techniques. By investing in research conducted by Battelle Memorial Institute, DHS S&T is likely seeking to refine how threats are identified, quantified, and prioritized. The outcomes could lead to more sophisticated predictive models, improved data integration techniques, and a more nuanced understanding of cascading risks. These advancements could translate into more agile and effective national security strategies, better-informed policy decisions, and more efficient allocation of resources for mitigation and response efforts across various government agencies. The research may also foster new collaborations and data-sharing frameworks within the broader national security community.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $202,345,822

Exercised Options: $202,345,822

Current Obligation: $84,460,954

Actual Outlays: $12,686,569

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $6,959,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0016

IDV Type: IDC

Timeline