DoD's $60.9M Program Management Contract Awarded to Battelle Memorial Institute Faces Limited Competition
Contract Overview
Contract Amount: $60,894,961 ($60.9M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Defense
Start Date: 2020-04-15
End Date: 2024-06-30
Contract Duration: 1,537 days
Daily Burn Rate: $39.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507317119!1.0 PROGRAM MGMT, 2.0 STAFFIN
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $60.9 million to BATTELLE MEMORIAL INSTITUTE for work described as: 8507317119!1.0 PROGRAM MGMT, 2.0 STAFFIN Key points: 1. The contract focuses on program management and staffing, indicating a need for specialized expertise. 2. Battelle Memorial Institute, a large research and development organization, is the sole awardee. 3. The absence of competition raises concerns about potential overpricing and limited innovation. 4. The sector is Defense, specifically logistics and equipment, with a firm fixed-price structure.
Value Assessment
Rating: questionable
The firm fixed-price contract for program management and staffing lacks clear benchmarks for comparison due to its specialized nature and sole-source award. Without competitive bids, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition for this significant contract value may result in taxpayers paying more than necessary for program management and staffing services.
Public Impact
Taxpayers may be overpaying for program management and staffing due to the lack of competitive bidding. The sole-source nature of the award limits opportunities for other qualified firms to contribute and innovate. The long duration of the contract (over 4 years) means potential cost inefficiencies could persist.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency
Positive Signals
- Firm fixed-price contract
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting the Defense Logistics Agency with program management and staffing. Spending benchmarks in this area are highly variable based on the specific program's complexity and duration.
Small Business Impact
The contract was awarded to Battelle Memorial Institute, a large research and development organization, and there is no indication of small business participation. This award does not appear to support small business goals.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a fair price. Accountability mechanisms should be robust given the lack of competitive pressure.
Related Government Programs
- Service Establishment Equipment and Supplies Merchant Wholesalers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price discovery.
- Potential for inflated costs due to lack of competition.
- Limited opportunities for small businesses.
- Long contract duration may reduce incentive for innovation.
- Lack of transparency in the procurement process.
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 $60.9 million to BATTELLE MEMORIAL INSTITUTE. 8507317119!1.0 PROGRAM MGMT, 2.0 STAFFIN
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 $60.9 million.
What is the period of performance?
Start: 2020-04-15. End: 2024-06-30.
What specific program management and staffing services are being provided under this contract, and how are they critical to the Defense Logistics Agency's mission?
The contract covers program management and staffing, essential for overseeing complex defense logistics operations. These services likely involve strategic planning, resource allocation, personnel management, and ensuring the efficient execution of supply chain and equipment support for military operations. Their criticality lies in maintaining operational readiness and supporting national security objectives by ensuring the smooth functioning of defense logistics.
Given the sole-source award, what measures are in place to ensure Battelle Memorial Institute is not overcharging for its services?
While a firm fixed-price contract provides some cost certainty, the absence of competition necessitates robust oversight. The Defense Contract Audit Agency (DCAA) or equivalent may conduct audits to verify costs and ensure fair pricing. The contract terms should include performance metrics and clear deliverables, allowing the agency to hold the contractor accountable for performance and potentially negotiate future pricing based on demonstrated value and efficiency.
How does the long contract duration (over 4 years) impact the potential for innovation and adaptability in the services provided?
A long contract duration can sometimes stifle innovation if not managed proactively. While it provides stability, it may reduce the incentive for the contractor to introduce cutting-edge solutions or adapt quickly to evolving needs without additional contract modifications. The agency must actively engage with Battelle to encourage continuous improvement and ensure the services remain aligned with current and future defense requirements throughout the contract's life.
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: $60,894,961
Exercised Options: $60,894,961
Current Obligation: $60,894,961
Actual Outlays: $9,609,213
Contract Characteristics
Commercial Item: PRODUCTS 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: 2020-04-15
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2023-07-10
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 Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)