DHS Awards $35.3M for Security Equipment Testing to Battelle Memorial Institute

Contract Overview

Contract Amount: $35,274,232 ($35.3M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Homeland Security

Start Date: 2012-07-24

End Date: 2015-09-08

Contract Duration: 1,141 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: VENDOR: TBD CONTRACT: TBD PROVIDE SUPPORT SERVICES FOR THE ACCEPTANCE TESTING OF SECURITY EQUIPMENT AND IN-LINE SCREENING SYSTEMS. POP THROUGH 4/30/2014

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.3 million to BATTELLE MEMORIAL INSTITUTE for work described as: VENDOR: TBD CONTRACT: TBD PROVIDE SUPPORT SERVICES FOR THE ACCEPTANCE TESTING OF SECURITY EQUIPMENT AND IN-LINE SCREENING SYSTEMS. POP THROUGH 4/30/2014 Key points: 1. Contract awarded for acceptance testing of security equipment and in-line screening systems. 2. Battelle Memorial Institute is the contractor for this service. 3. The contract falls under Engineering Services (NAICS 541330). 4. The total value is $35.3 million over a period of approximately 3 years.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the Cost Plus Fixed Fee structure warrant scrutiny.

Taxpayer Impact: Taxpayer funds are being used for specialized engineering services related to security equipment testing.

Public Impact

Ensures the reliability and effectiveness of security equipment used in transportation. Supports the Department of Homeland Security's mission to protect national infrastructure. Contributes to public safety by validating screening systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize higher costs.
Limited transparency on specific cost components.
Contract duration is substantial.

Positive Signals

Awarded under full and open competition.
Supports critical national security functions.
Contractor has a history in research and development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to testing and evaluation of specialized equipment. Spending in this area is crucial for maintaining national security infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the primary contractor is a large entity. There is no information on subcontracting opportunities for small businesses.

Oversight & Accountability

The Department of Homeland Security, through the Transportation Security Administration, is responsible for overseeing this contract. Standard oversight procedures for cost-reimbursement contracts should be in place.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Limited visibility into detailed cost breakdowns.
Contract duration of over three years.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.3 million to BATTELLE MEMORIAL INSTITUTE. VENDOR: TBD CONTRACT: TBD PROVIDE SUPPORT SERVICES FOR THE ACCEPTANCE TESTING OF SECURITY EQUIPMENT AND IN-LINE SCREENING SYSTEMS. POP THROUGH 4/30/2014

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 $35.3 million.

What is the period of performance?

Start: 2012-07-24. End: 2015-09-08.

What specific performance metrics are used to evaluate the effectiveness of the acceptance testing services provided by Battelle Memorial Institute?

The effectiveness of the acceptance testing services is likely evaluated through adherence to predefined testing protocols, the accuracy and completeness of test reports, and the identification of critical system failures or vulnerabilities. Performance metrics may include the number of defects found, the timeliness of test completion, and the overall quality of the final acceptance documentation submitted to the TSA.

How does the Cost Plus Fixed Fee structure mitigate risks associated with the potential for cost overruns in complex engineering services?

While Cost Plus Fixed Fee (CPFF) contracts provide flexibility for evolving project scopes, they inherently carry a risk of cost overruns. Mitigation relies heavily on robust government oversight, detailed cost tracking, and clear definition of the fixed fee. The government must actively monitor expenditures against the estimated cost and ensure the contractor operates efficiently to stay within the agreed-upon fee parameters.

What is the long-term impact of this contract on the government's ability to independently assess and procure similar security equipment in the future?

This contract leverages Battelle's expertise for acceptance testing, which can enhance the government's understanding of specific security technologies. However, over-reliance on a single contractor for critical testing could potentially limit the government's internal capacity or create a dependency. Ensuring knowledge transfer and maintaining competitive market awareness are key to long-term procurement effectiveness.

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

Solicitation ID: HSTS04-12-R-CT6021

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: $35,274,232

Exercised Options: $35,274,232

Current Obligation: $35,274,232

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0410DST3066

IDV Type: IDC

Timeline