Battelle Memorial Institute awarded $31.8M for R&D in Physical, Engineering, and Life Sciences by HHS

Contract Overview

Contract Amount: $31,774,757 ($31.8M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2013-09-10

End Date: 2018-09-09

Contract Duration: 1,825 days

Daily Burn Rate: $17.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.8 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract awarded via Other Than Full and Open Competition, raising questions about price discovery. 2. Significant duration of 5 years suggests a long-term need for these R&D services. 3. The contract type is Time and Materials, which can pose cost control risks if not managed diligently. 4. Performance is in Georgia, indicating a specific geographic focus for this research. 5. The NAICS code 541712 points to a specialized area within R&D, requiring specific expertise. 6. The award was made under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparison to similar R&D efforts. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely monitored for labor hours and material usage. The total award amount of $31.8 million over five years averages to approximately $6.36 million annually, which needs to be assessed against the scope and deliverables of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for more streamlined procurement methods but may not always achieve the same level of competition as full and open solicitations. The data indicates 'Other Than Full and Open Competition,' suggesting that only a limited number of sources were solicited or that specific justifications were made for not pursuing broader competition. The presence of two bids (no: 2) indicates some level of competition, but the limited nature of the solicitation might have restricted the pool of potential offerors.

Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers as the government may have less leverage to negotiate favorable terms compared to a fully open solicitation with numerous bidders.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), specifically the Centers for Disease Control and Prevention (CDC), which will receive the research and development services. The services delivered are focused on Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). The geographic impact is concentrated in Georgia, where the contract performance is located. The contract supports specialized scientific and technical workforce needs within the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed effectively.
Limited competition may result in less favorable pricing for the government.
The specific nature of R&D makes it difficult to benchmark value without detailed technical and cost data.
Long contract duration (5 years) requires sustained oversight to ensure continued value and relevance.

Positive Signals

Award to a known entity (Battelle Memorial Institute) suggests potential for reliable performance.
The contract addresses a specific R&D need within a critical agency (HHS/CDC).
The existence of multiple bids, even under limited competition, indicates some market interest.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically NAICS code 541712. This sector is characterized by innovation and scientific advancement. Federal spending in R&D is crucial for driving technological progress and addressing national challenges. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by HHS or other agencies for similar scientific disciplines, considering factors like contract duration, scope, and competition level.

Small Business Impact

There is no indication that this contract included a small business set-aside (ss: false, sb: false). Therefore, small businesses were likely not specifically targeted for this procurement. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Battelle Memorial Institute, but are not explicitly mandated by the contract terms provided. The impact on the small business ecosystem is likely minimal unless Battelle actively seeks small business partners for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Disease Control and Prevention (CDC) at HHS. Accountability measures are typically embedded in the contract's performance work statement, requiring adherence to research protocols, reporting requirements, and delivery schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Institutes of Health (NIH) Research Grants
National Science Foundation (NSF) Research Awards
Department of Defense (DoD) Research and Development Contracts
Department of Energy (DOE) Science Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may impact price competitiveness.
Lack of specific deliverables in provided data makes value assessment difficult.
Need for robust government oversight on T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.8 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $31.8 million.

What is the period of performance?

Start: 2013-09-10. End: 2018-09-09.

What specific research areas are covered under this contract, and how do they align with the CDC's mission?

The contract is broadly categorized under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712). While the specific research topics are not detailed in the provided data, this classification suggests work related to scientific inquiry, technological development, and potentially applied research within these broad fields. Given the awarding agency is the Centers for Disease Control and Prevention (CDC), it is highly probable that the research directly supports the agency's mission to protect public health and safety through the control and prevention of disease, injury, and disabilities. This could encompass areas such as developing new diagnostic tools, understanding disease mechanisms, engineering solutions for health challenges, or advancing scientific methods relevant to epidemiology and public health interventions.

How does the Time and Materials (T&M) contract type compare to other R&D contract types in terms of cost efficiency for the government?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, which can be common in research and development. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts because the contractor is reimbursed for actual labor hours and material costs, plus a fixed fee or hourly rate. This necessitates robust government oversight to monitor labor effort, prevent inefficiencies, and ensure that costs remain reasonable. For R&D, while T&M offers flexibility, Cost-Plus-Fixed-Fee (CPFF) or other cost-reimbursement types with clear milestones and deliverables might offer better cost control if the R&D objectives can be reasonably defined upfront. The government's ability to manage and control costs under a T&M contract is heavily dependent on the quality of its oversight and the contractor's adherence to efficient practices.

What are the potential risks associated with 'Other Than Full and Open Competition' for this R&D contract?

Awarding an R&D contract under 'Other Than Full and Open Competition' (OTFOC) presents several potential risks. Primarily, it limits the pool of potential offerors, which can reduce the opportunity for robust price competition. This lack of competition may lead to higher prices than could be achieved through a full and open solicitation. Furthermore, OTFOC can stifle innovation by not exposing the government to a wider range of solutions or novel approaches that might be offered by companies excluded from the competition. There's also a risk that the government may not secure the best value if alternative, potentially more capable or cost-effective, contractors were not considered. Justifications for OTFOC must be strong, often citing unique capabilities, urgent needs, or specific sources required for compatibility, to mitigate these risks.

What is Battelle Memorial Institute's track record with federal R&D contracts, particularly with HHS?

Battelle Memorial Institute is a well-established research and development organization with a significant history of contracting with various U.S. federal agencies, including the Department of Health and Human Services (HHS). Their extensive experience spans numerous scientific and engineering disciplines. While specific performance details for this particular $31.8 million contract are not provided, Battelle generally has a strong reputation for delivering complex R&D services. Analyzing their broader contract portfolio with HHS and other agencies would reveal patterns in their performance, adherence to timelines, and success in meeting technical objectives. Publicly available contract databases often contain past performance information, which could be reviewed for a more comprehensive assessment of their track record.

How does the $31.8 million award amount compare to typical federal spending on R&D in the physical, engineering, and life sciences?

The $31.8 million award to Battelle Memorial Institute over five years, averaging approximately $6.36 million annually, falls within a common range for federal R&D contracts, particularly those involving specialized research and development efforts. Federal agencies like HHS, DoD, and DOE routinely award contracts in the multi-million dollar range for scientific research. The specific value is highly dependent on the complexity, duration, and scope of the research. To provide a precise comparison, one would need to benchmark against contracts with similar NAICS codes (541712), contract types (T&M, cost-reimbursement), and agencies. However, as a general figure, $6.36 million per year for dedicated R&D services is not unusually high and reflects the significant investment required for advanced scientific endeavors.

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: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $35,982,326

Exercised Options: $35,049,347

Current Obligation: $31,774,757

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD2002013M53942B

IDV Type: BPA

Timeline