DoD's $60M Advanced Threats R&D contract awarded to Battelle Memorial Institute for JPEO CBDN

Contract Overview

Contract Amount: $60,018,298 ($60.0M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2022-03-21

End Date: 2027-03-29

Contract Duration: 1,834 days

Daily Burn Rate: $32.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED THREATS RESEARCH, DEVELOPMENT, TEST AND EVALUATION FOR THE JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR DEFENSE

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $60.0 million to BATTELLE MEMORIAL INSTITUTE for work described as: ADVANCED THREATS RESEARCH, DEVELOPMENT, TEST AND EVALUATION FOR THE JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR DEFENSE Key points: 1. Contract focuses on critical R&D for chemical, biological, radiological, and nuclear defense. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract duration of over 5 years indicates a long-term strategic investment. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. Performance is in Ohio, potentially impacting local economic and workforce development. 6. The specific NAICS code (541715) points to a specialized R&D sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and comparable R&D projects. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently. However, the fixed fee component provides some cost certainty for the contractor. The total value of $60 million over approximately five years suggests a significant investment in advanced threat research.

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 had the opportunity to submit proposals. This approach is generally favored for maximizing competition and potentially achieving better pricing and innovation. The number of bidders is not specified, but the open competition suggests a robust process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and can drive down costs through competitive pressure.

Public Impact

The primary beneficiaries are the Department of Defense and its components, receiving advanced research to counter CBRN threats. Services delivered include research, development, testing, and evaluation related to advanced threats. The geographic impact is centered in Ohio, where Battelle Memorial Institute is located. Workforce implications include employment for scientists, engineers, and support staff at Battelle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
The long duration of the contract requires sustained oversight to ensure continued value.
The specialized nature of CBRN defense R&D may limit the pool of qualified contractors.
Dependence on a single contractor for critical R&D phases could pose a risk.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Focus on advanced threats research addresses critical national security needs.
Battelle Memorial Institute is a reputable research institution with relevant expertise.
The contract duration allows for in-depth research and development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for CBRN defense research is specialized, driven by government funding and national security priorities. Comparable spending benchmarks would typically be found within other DoD R&D contracts for similar threat mitigation technologies.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a 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 award information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, which awarded it on behalf of the Department of Defense. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific R&D details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Chemical, Biological, Radiological, and Nuclear (CBRN) Defense Initiatives
Advanced Threat Detection and Mitigation Research
Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (JPEO-CBDN) Contracts

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Long-Term Project Management Complexity
Dependence on Specialized Expertise
National Security Sensitivity of R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.0 million to BATTELLE MEMORIAL INSTITUTE. ADVANCED THREATS RESEARCH, DEVELOPMENT, TEST AND EVALUATION FOR THE JOINT PROGRAM EXECUTIVE OFFICE FOR CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR DEFENSE

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 $60.0 million.

What is the period of performance?

Start: 2022-03-21. End: 2027-03-29.

What is Battelle Memorial Institute's track record in CBRN defense R&D?

Battelle Memorial Institute has a long-standing reputation and extensive experience in research and development, including significant work in chemical, biological, radiological, and nuclear (CBRN) defense. They have been involved in numerous government contracts related to threat detection, protection, and consequence management. Their expertise spans material science, biotechnology, engineering, and data analytics, making them a well-qualified entity for advanced R&D in this critical area. Past performance reviews and specific project outcomes would provide further detail on their capabilities and success rates in similar endeavors.

How does the $60 million value compare to similar CBRN R&D contracts?

The $60 million value for this five-year contract is substantial and reflects the complexity and critical nature of CBRN defense research. Without access to a comprehensive database of all CBRN R&D contracts, a direct comparison is difficult. However, major defense research initiatives often involve multi-million dollar awards over several years. This figure appears to be in line with significant R&D investments aimed at developing advanced capabilities for national security. The specific scope of work and the technological advancements sought will ultimately determine if this represents a high or low value compared to highly specialized, cutting-edge projects.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in research and development, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If the project scope expands or unforeseen technical challenges arise, costs can escalate beyond initial projections. Effective oversight is crucial to ensure that all incurred costs are reasonable, allocable, and necessary for the project's completion. The government bears the risk of cost increases, while the contractor is incentivized to manage costs to protect their fixed fee.

How effective is full and open competition in ensuring value for taxpayer money in specialized R&D?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D. It allows a broad range of potential contractors to compete, fostering innovation and potentially driving down prices through market forces. For specialized R&D, it can also uncover novel approaches or technologies that might not be apparent through more restricted solicitations. However, the effectiveness hinges on the clarity of the solicitation, the evaluation criteria, and the government's ability to assess highly technical proposals accurately. Ensuring that the most capable and cost-effective solutions are selected is paramount.

What is the historical spending trend for CBRN defense R&D within the Department of Defense?

Historical spending on Chemical, Biological, Radiological, and Nuclear (CBRN) defense R&D within the Department of Defense (DoD) has generally been significant and sustained, driven by evolving global threats and the need for advanced protective and response capabilities. Budgets in this area fluctuate based on perceived threats, technological advancements, and strategic priorities. While specific annual figures vary, the DoD consistently allocates substantial resources to R&D aimed at countering CBRN agents and mitigating their effects. This contract represents a portion of that ongoing investment, reflecting a continued commitment to addressing these critical security challenges.

What are the implications of the contract being awarded to Battelle Memorial Institute for the Ohio economy?

The award of this $60 million contract to Battelle Memorial Institute, headquartered in Ohio, is likely to have positive implications for the state's economy. It signifies continued investment in high-tech research and development within Ohio, potentially leading to job creation or retention for scientists, engineers, technicians, and support staff. Furthermore, it can stimulate local businesses through supply chain activities and foster collaborations with academic institutions or other regional technology firms. This contract reinforces Ohio's position as a hub for scientific research and defense-related innovation.

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: $77,477,119

Exercised Options: $77,477,119

Current Obligation: $60,018,298

Actual Outlays: $2,602,175

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $17,690,999

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