DoD's $57.4M R&D Contract with Battelle Memorial Institute Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $57,356,278 ($57.4M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Defense
Start Date: 2016-03-31
End Date: 2021-04-30
Contract Duration: 1,856 days
Daily Burn Rate: $30.9K/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::IGF
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $57.4 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGF Key points: 1. Significant R&D investment by the Department of the Army. 2. Battelle Memorial Institute, a major research organization, is the contractor. 3. Contract awarded via full and open competition, suggesting broad market engagement. 4. The contract spans over 1800 days, indicating a substantial, long-term project.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Without specific performance metrics or comparable contract data, assessing the value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes competitive pricing. However, the CPFF structure requires diligent oversight to ensure cost efficiency and prevent unnecessary expenditures.
Taxpayer Impact: Taxpayer funds are being utilized for significant research and development, with the effectiveness and ultimate return on investment dependent on project outcomes and cost management.
Public Impact
Supports advanced research and development initiatives within the Department of Defense. Potential for technological advancements and innovation stemming from the research. Contractor's expertise in R&D is leveraged for critical government needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Lack of specific performance metrics makes value assessment difficult.
- Long duration of the contract requires sustained oversight.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Contractor is a reputable research institution.
- Focus on R&D aligns with strategic defense needs.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful management due to the inherent uncertainties in research outcomes and potential for cost overruns.
Small Business Impact
The contract was awarded under full and open competition, which does not inherently exclude small businesses from participating as subcontractors. However, the primary awardee is a large research institute, and specific subcontracting opportunities for small businesses are not detailed in the provided data.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight from the Department of the Army to ensure cost control, adherence to scope, and achievement of research objectives. Regular performance reviews and audits are critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (1856 days).
- Lack of detailed performance metrics.
- Potential for cost overruns without strong oversight.
Tags
research-and-development-in-the-physical, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.4 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is BATTELLE MEMORIAL INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $57.4 million.
What is the period of performance?
Start: 2016-03-31. End: 2021-04-30.
What specific research objectives does this contract aim to achieve, and how will their successful completion be measured?
The provided data does not detail the specific research objectives or the metrics for measuring success. Further investigation into the contract's statement of work and performance work statement would be necessary to understand the intended outcomes and how they will be evaluated. This information is crucial for assessing the true value and effectiveness of the awarded funds.
What are the potential risks associated with the Cost Plus Fixed Fee structure in this R&D context, and what mitigation strategies are in place?
The primary risk of a CPFF contract is the potential for the contractor to incur costs exceeding the initial estimates, leading to higher overall spending. Mitigation strategies typically involve stringent cost monitoring, detailed reporting requirements, and clear definition of allowable costs. The fixed fee component incentivizes the contractor to manage costs within the estimated range to maximize their profit.
How does the $57.4 million investment align with the Department of the Army's broader R&D priorities and strategic goals?
Without access to the Department of the Army's strategic R&D roadmaps, it's difficult to definitively assess alignment. However, R&D contracts of this magnitude generally support significant technological advancements or address critical capability gaps. Understanding the specific research area (NAICS 541712) provides some context, suggesting a focus on physical, engineering, or life sciences research relevant to defense applications.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W911QY16R0011
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 505 KING AVE, 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: $59,370,588
Exercised Options: $59,286,649
Current Obligation: $57,356,278
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $54,945,450
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU402
IDV Type: IDC
Timeline
Start Date: 2016-03-31
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2024-03-12
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