DHS awards $31.6M engineering services contract to Battelle Memorial Institute for acceptance testing

Contract Overview

Contract Amount: $31,597,174 ($31.6M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Homeland Security

Start Date: 2010-11-10

End Date: 2012-07-23

Contract Duration: 621 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ACCEPTANCE TESTING AT ORIGNAL EQUIPMENT MANUFACTURER LOCATIONS ASSOCIATED WITH TSE AS WELL AS COMMERCIAL AIRPORTS LOCATED THROUGHOUT THE CONTINENTAL UNITED STATES AND ITS TERRITORIES.

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.6 million to BATTELLE MEMORIAL INSTITUTE for work described as: ACCEPTANCE TESTING AT ORIGNAL EQUIPMENT MANUFACTURER LOCATIONS ASSOCIATED WITH TSE AS WELL AS COMMERCIAL AIRPORTS LOCATED THROUGHOUT THE CONTINENTAL UNITED STATES AND ITS TERRITORIES. Key points: 1. Contract value of $31.6M for engineering services represents a significant investment in transportation security infrastructure. 2. The contract was awarded under full and open competition, suggesting a robust market for these specialized services. 3. The duration of 621 days indicates a substantial and complex testing requirement. 4. The use of Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 5. The geographic scope includes continental US and territories, highlighting the national importance of the services. 6. The contractor, Battelle Memorial Institute, is a well-established research and development organization.

Value Assessment

Rating: good

The contract value of $31.6 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale acceptance testing contracts for critical infrastructure would provide further context. The CPFF structure necessitates diligent oversight to manage costs effectively and ensure value for money. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically drives better pricing and innovation. The level of competition is a positive sign for price discovery and ensures the government receives proposals from a range of capable providers.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to result in more cost-effective solutions and a higher quality of service delivery.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving critical acceptance testing services. Services delivered include acceptance testing at original equipment manufacturer locations and commercial airports. The geographic impact covers the continental United States and its territories, ensuring nationwide security standards. The contract supports specialized engineering and technical expertise, potentially impacting the workforce in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The duration of the contract (621 days) may present challenges in adapting to rapidly evolving technological requirements.
Acceptance testing at multiple OEM locations and airports could lead to logistical complexities and potential delays.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
The contractor, Battelle Memorial Institute, has a strong reputation in research and development, suggesting technical competence.
The contract addresses critical national security needs within the transportation sector.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the broader professional, scientific, and technical services industry. The market for specialized engineering and testing services supporting government agencies, particularly in transportation security, is substantial. Comparable spending benchmarks would involve analyzing other large-scale testing and evaluation contracts awarded by agencies like DHS, DoD, and DOT for critical infrastructure.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the specialized nature of the engineering services and the prime contractor's profile, it is possible that small businesses may be involved as subcontractors, but this is not explicitly detailed in the provided data. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). Mechanisms likely include contract performance reviews, financial audits, and technical inspections. Transparency is facilitated through contract award databases, but detailed performance reports may be internal. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Research and Development Contracts
Transportation Security Administration Equipment Testing
Federal Engineering Services Contracts
Cost-Plus-Fixed-Fee Contracts
Acceptance Testing Services

Risk Flags

Cost Overrun Risk (CPFF Structure)
Scope Creep Potential
Technical Complexity
Logistical Challenges (Geographic Dispersion)
Contractor Performance Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.6 million to BATTELLE MEMORIAL INSTITUTE. ACCEPTANCE TESTING AT ORIGNAL EQUIPMENT MANUFACTURER LOCATIONS ASSOCIATED WITH TSE AS WELL AS COMMERCIAL AIRPORTS LOCATED THROUGHOUT THE CONTINENTAL UNITED STATES AND ITS TERRITORIES.

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2010-11-10. End: 2012-07-23.

What is Battelle Memorial Institute's track record with similar government contracts, particularly within DHS or TSA?

Battelle Memorial Institute has a significant history of performing research, development, testing, and evaluation services for various government agencies, including the Department of Homeland Security and its components like the TSA. Their expertise often lies in advanced scientific and engineering solutions. Reviewing past performance evaluations and contract histories for Battelle on similar large-scale testing and engineering projects would provide insight into their reliability, technical proficiency, and ability to manage complex, geographically dispersed testing requirements. Specific data on past performance ratings, any contract disputes, or successful project completions would be crucial for a comprehensive assessment.

How does the $31.6 million contract value compare to similar acceptance testing contracts for transportation security infrastructure?

The $31.6 million contract value for acceptance testing services over approximately two years appears substantial, reflecting the critical nature of transportation security. To benchmark this value, one would compare it to other large-scale testing and evaluation contracts awarded by agencies like the TSA, Federal Aviation Administration (FAA), or even the Department of Defense for similar complex systems or infrastructure. Factors such as the specific technologies being tested, the number of testing locations, the required expertise, and the contract duration are key comparison points. Without access to a database of comparable contracts, it's difficult to definitively state if this represents excellent or fair value, but the competitive award suggests it was deemed reasonable at the time of procurement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract, especially one valued at $31.6 million and lasting over 600 days, is the potential for cost overruns. While the fixed fee provides the contractor with an incentive to control costs to maximize their profit, the 'cost plus' element means the government ultimately bears the direct costs incurred. Risks include scope creep, unforeseen technical challenges, inefficient resource management by the contractor, or inadequate government oversight. Effective risk mitigation requires stringent monitoring of expenditures, regular progress reviews, clear definition of work, and robust change control processes to ensure the fixed fee remains appropriate for the work performed and that overall costs stay within acceptable limits.

How effective are the current oversight mechanisms for ensuring the quality and timeliness of the acceptance testing?

The effectiveness of oversight mechanisms for this contract depends heavily on the specific procedures implemented by the TSA and DHS. Standard oversight practices typically include regular progress meetings, site inspections, review of test plans and reports, and performance evaluations. For a CPFF contract, financial oversight is also critical, involving audits of contractor expenditures. The timeliness and quality of the acceptance testing are directly influenced by the diligence and expertise of the government personnel responsible for oversight. Without specific details on the TSA's oversight plan and performance metrics for this contract, it's challenging to provide a definitive assessment of effectiveness, but the contract's duration and scope necessitate robust management.

What is the historical spending pattern for acceptance testing services by the TSA or DHS in the years preceding this award?

To understand the historical spending pattern, one would need to analyze federal procurement databases (like FPDS or USASpending) for contracts awarded by the TSA and DHS for 'acceptance testing' or similar engineering services (e.g., verification, validation, quality assurance) in the years prior to November 2010. This analysis would reveal the typical contract values, durations, types of services procured, and the agencies or contractors most frequently awarded such work. Understanding these patterns helps contextualize the $31.6 million award, indicating whether it represents an increase, decrease, or continuation of previous spending levels for these critical security functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $31,597,174

Exercised Options: $31,597,174

Current Obligation: $31,597,174

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0410DST3066

IDV Type: IDC

Timeline