HHS awards $43.2M contract for chemistry services to Battelle Memorial Institute under full and open competition
Contract Overview
Contract Amount: $43,221,343 ($43.2M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Health and Human Services
Start Date: 2014-07-23
End Date: 2027-01-24
Contract Duration: 4,568 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGFCHEMISTRY SERVICES FOR THE NTP
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $43.2 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGFCHEMISTRY SERVICES FOR THE NTP Key points: 1. The contract value is substantial at $43.2 million, indicating significant programmatic needs. 2. Battelle Memorial Institute, a large research organization, is the sole awardee. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The sector is R&D, a critical area for scientific advancement and public health.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar R&D service contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific pricing structure and negotiation details are not provided.
Taxpayer Impact: Taxpayer funds are being used for critical research, but the cost-plus nature of the contract warrants close monitoring to ensure value for money.
Public Impact
Supports the National Toxicology Program (NTP) in its mission to advance scientific understanding of the health effects of environmental exposures. Funds research that could lead to improved public health policies and interventions. The long duration of the contract (over 12 years) suggests a sustained need for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may mask inefficiencies over time.
- Lack of detailed cost breakdowns makes value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical public health research.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight due to its complex and often unpredictable nature.
Small Business Impact
The data indicates no specific set-aside for small businesses. The awardee, Battelle Memorial Institute, is a large research organization, suggesting limited direct opportunities for small businesses as prime contractors on this specific award.
Oversight & Accountability
The contract's long duration and cost-plus structure necessitate robust oversight from HHS and NIH to ensure efficient use of funds and adherence to research objectives. Regular performance reviews and cost audits are essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of detailed cost breakdown.
- Potential for cost escalation.
- Limited visibility into performance metrics.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $43.2 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGFCHEMISTRY SERVICES FOR THE NTP
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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $43.2 million.
What is the period of performance?
Start: 2014-07-23. End: 2027-01-24.
What specific metrics are used to evaluate the cost-effectiveness and scientific impact of the research services provided under this contract?
The provided data does not detail the specific metrics for evaluating cost-effectiveness or scientific impact. Typically, such evaluations would involve reviewing research publications, adherence to project milestones, and the overall contribution to the National Toxicology Program's objectives. Further inquiry into the contract's performance work statement and reporting requirements would be necessary to ascertain these metrics.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate potential cost overruns and ensure the government receives fair value?
Cost Plus Fixed Fee contracts require diligent government oversight to manage costs. Mechanisms typically include detailed budget reviews, regular audits of contractor expenditures, and strict adherence to the contract's scope of work. The government should actively monitor indirect cost rates and ensure that the fixed fee remains appropriate relative to the effort expended and risks assumed by the contractor.
How does the long contract duration (potentially over 12 years) impact the agility and responsiveness of the research services to evolving scientific needs or priorities?
Long-duration contracts can pose challenges to agility if not structured with flexibility. While providing stability, they may slow down the incorporation of new scientific directions or technologies. The government should ensure the contract includes provisions for scope adjustments, regular reviews of evolving needs, and potentially break clauses or re-competition points to maintain responsiveness to the dynamic nature of scientific research.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NIHES2013180
Offers Received: 3
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: $79,826,007
Exercised Options: $43,221,343
Current Obligation: $43,221,343
Actual Outlays: $13,073,992
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $1,307,972
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-07-23
Current End Date: 2027-01-24
Potential End Date: 2027-01-24 00:00:00
Last Modified: 2026-01-23
More Contracts from Battelle Memorial Institute
- Battelle Memorial Institute/Pacific Northwest Laboratory Operating and Managing Contract — $30.2B (Department of Energy)
- Fox/Bio Requirement — $387.6M (Department of Defense)
- Arctic Research Support and Logistics Services (arsls) — $249.0M (National Science Foundation)
- OF the Research Effort to Evaluate the Toxic and Carcinogenic Potential of Test Agents in Laboratory Animals for the NTP — $150.1M (Department of Health and Human Services)
- IAC MAC 2080 Chemical Biological Radiological Nuclear Defense Testing and Analytics for Joint Enterprise Fielding and Surveillance — $104.9M (Department of Defense)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →