DoD's $98.4M Battelle Contract for Site 3 Long Island Equipment & Supplies: Not Competed
Contract Overview
Contract Amount: $98,416,650 ($98.4M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Defense
Start Date: 2020-04-12
End Date: 2021-03-31
Contract Duration: 353 days
Daily Burn Rate: $278.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507310584!SITE 3 LONG ISLAND, NY
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $98.4 million to BATTELLE MEMORIAL INSTITUTE for work described as: 8507310584!SITE 3 LONG ISLAND, NY Key points: 1. Significant contract value of $98.4 million awarded to Battelle Memorial Institute. 2. Lack of competition raises questions about price discovery and potential value. 3. Defense Logistics Agency awarded this delivery order under a non-competitive process. 4. Contract covers Service Establishment Equipment and Supplies Merchant Wholesalers.
Value Assessment
Rating: questionable
The contract's value of $98.4 million is substantial. Without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar contracts for equipment and supplies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive procurement.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential equipment and supplies.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Defense Logistics Agency's reliance on non-competitive awards warrants scrutiny. Ensuring fair market value for defense supplies is crucial for efficient resource allocation. Transparency in procurement processes is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Contract awarded to a known entity (Battelle Memorial Institute)
- Clear contract duration and delivery period
Sector Analysis
This contract falls under the wholesale trade of service establishment equipment and supplies. Spending in this sector is critical for military readiness, but competitive sourcing is key to cost efficiency.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The non-competitive nature of this award suggests a potential gap in oversight regarding the justification for sole-source procurement and the subsequent price reasonableness.
Related Government Programs
- Service Establishment Equipment and Supplies Merchant Wholesalers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- No clear indication of small business participation
Tags
service-establishment-equipment-and-supp, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.4 million to BATTELLE MEMORIAL INSTITUTE. 8507310584!SITE 3 LONG ISLAND, NY
Who is the contractor on this award?
The obligated recipient is BATTELLE MEMORIAL INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $98.4 million.
What is the period of performance?
Start: 2020-04-12. End: 2021-03-31.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research report conducted to validate the necessity of this approach?
The justification for a sole-source award is critical for ensuring taxpayer value. Without a competitive process, agencies must demonstrate that only one source can fulfill the requirement. A thorough market research report would typically validate the necessity of a sole-source approach, assess potential alternatives, and provide a basis for price negotiation. The absence of this information raises concerns about the procurement's integrity and cost-effectiveness.
How does the $98.4 million contract value compare to industry benchmarks for similar equipment and supplies, especially considering the lack of competition?
Benchmarking this $98.4 million contract against industry standards is challenging due to its sole-source nature. Typically, competitive bids provide a clear market price. Without competition, the government relies on negotiation and historical data, which may not reflect true market value. A detailed cost analysis comparing the contract's line items to publicly available data or similar non-competitive contracts would be necessary to assess potential overpricing.
What mechanisms are in place to ensure the effectiveness and quality of the 'Service Establishment Equipment and Supplies' provided under this contract, given the non-competitive award?
Ensuring effectiveness and quality in a non-competed contract relies heavily on robust contract management and performance monitoring. The Defense Logistics Agency should have stringent inspection and acceptance procedures, clear performance metrics, and regular reviews of Battelle Memorial Institute's deliverables. Feedback mechanisms and post-delivery evaluations are crucial to identify any shortcomings and ensure the supplies meet the required standards for military service establishment.
Industry Classification
NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Service Establishment Equipment and Supplies Merchant Wholesalers
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPE8EJ20R1234
Pricing Type: FIRM FIXED PRICE (J)
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: $98,416,650
Exercised Options: $98,416,650
Current Obligation: $98,416,650
Actual Outlays: $20,585,194
Contract Characteristics
Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE8EJ20D0501
IDV Type: IDC
Timeline
Start Date: 2020-04-12
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2025-04-24
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