NIH awards $17.7M R&D contract to Battelle Memorial Institute for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $17,679,716 ($17.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2012-09-30

Contract Duration: 3,303 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: Key points: 1. Contract value of $17.7 million over 9 years suggests a significant, long-term investment in research and development. 2. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a broad scope of scientific inquiry. 3. A Cost Plus Fixed Fee (CPFF) contract type can incentivize cost control while allowing for flexibility in research scope. 4. The contract was awarded under full and open competition, implying a robust selection process. 5. The duration of over 9 years (3303 days) points to a sustained need for the services provided. 6. The contract was awarded to a single entity, Battelle Memorial Institute, suggesting specialized capabilities.

Value Assessment

Rating: good

The total award of $17.7 million over approximately 9 years averages to about $1.97 million per year. This figure needs to be benchmarked against similar R&D contracts within the physical, engineering, and life sciences sectors to fully assess value. The CPFF structure means that while the contractor's fee is fixed, the total cost can vary based on actual expenses, making direct value comparison challenging without detailed cost breakdowns. However, the sustained funding over a long period suggests a perceived value by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a wider pool of potential contractors and can foster competitive pricing. The presence of 6 bids suggests a healthy level of interest and competition for this R&D requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely researchers and institutions within the physical, engineering, and life sciences fields who will utilize the services or outcomes of this contract. The contract supports advancements in scientific knowledge and technological innovation across multiple disciplines. The geographic impact is primarily centered in Ohio, where Battelle Memorial Institute is located, but the research outcomes can have national and global implications. The contract supports a specialized workforce in scientific research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for all allowable costs.
The long duration of the contract could present risks if research priorities shift significantly over the 9-year period.
Reliance on a single contractor for such a long-term, broad R&D effort might limit exposure to emerging technologies or alternative approaches from other firms.

Positive Signals

Awarded under full and open competition, indicating a thorough vetting process and potential for competitive pricing.
The significant funding amount suggests a high level of confidence in the contractor's capabilities and the project's importance.
The long contract duration allows for sustained focus and deep development in complex research areas.
Battelle Memorial Institute is a well-established research institution, implying a strong track record and expertise.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710. This sector is characterized by innovation, scientific discovery, and the pursuit of new knowledge. Spending in this area is crucial for technological advancement and economic competitiveness. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by agencies like NIH, NSF, or DoD for similar scientific endeavors.

Small Business Impact

There is no indication that this contract included small business set-asides. As a large R&D contract awarded to a major research institute, the primary focus is likely on specialized expertise rather than small business participation. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures would be tied to the achievement of research milestones and adherence to the Cost Plus Fixed Fee terms. Transparency is generally maintained through contract awards databases and agency reporting, though specific research progress details might be proprietary.

Related Government Programs

National Institutes of Health Research Grants
Department of Defense Research and Development Contracts
National Science Foundation Research Projects
Biomedical Research Initiatives

Risk Flags

Long contract duration may lead to evolving research priorities.
CPFF contract type requires diligent cost oversight.
Potential for research to become outdated over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.7 million to BATTELLE MEMORIAL INSTITUTE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2003-09-15. End: 2012-09-30.

What is Battelle Memorial Institute's track record with NIH and similar federal agencies for R&D contracts?

Battelle Memorial Institute has a substantial history of performing research and development for various U.S. federal agencies, including NIH, DoD, and DOE. Their extensive experience spans diverse scientific and engineering disciplines. For NIH specifically, Battelle has likely been involved in numerous projects related to life sciences, health, and biomedical research. A detailed review of federal procurement databases (like FPDS or SAM.gov) would reveal the specific types, values, and performance history of their past contracts with NIH and other agencies. This would allow for an assessment of their reliability, technical expertise, and ability to manage complex R&D efforts within budget and schedule.

How does the $17.7 million award compare to other R&D contracts in the physical, engineering, and life sciences?

The $17.7 million award over approximately 9 years represents an average annual value of roughly $1.97 million. This figure places it as a moderately large contract within the R&D sector. However, to truly benchmark its value, it needs comparison against similar contracts awarded by NIH or other agencies (like NSF, DoD) for research in the physical, engineering, and life sciences. Contracts can vary widely based on scope, duration, and specific research objectives. For instance, basic research grants might be smaller, while large-scale, multi-disciplinary development programs could be significantly larger. Without specific comparable contract data, it's difficult to definitively state if $17.7 million represents excellent or fair value, but it indicates a substantial commitment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a CPFF contract for R&D is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. While the fixed fee incentivizes efficiency, the contractor has less financial risk related to cost overruns compared to fixed-price contracts. This can potentially lead to higher overall costs if the government does not maintain rigorous oversight of allowable expenses and project scope. For R&D, where the path to success is often uncertain and costs can be unpredictable, CPFF is common to encourage innovation without unduly burdening the contractor. However, effective government oversight is crucial to manage costs and ensure the fixed fee remains appropriate for the work performed.

How does the long duration (over 9 years) impact the effectiveness and relevance of the R&D?

A long contract duration, such as over 9 years, can be both a benefit and a risk for R&D effectiveness. On the positive side, it allows for sustained focus, deep exploration of complex scientific problems, and the development of long-term research capabilities. This is particularly valuable for projects requiring extensive experimentation, data collection, or iterative development. However, a significant risk is that scientific fields, technological landscapes, and even agency priorities can evolve rapidly over such a long period. The research funded today might become less relevant or even obsolete by the end of the contract term. Effective R&D management over this duration requires built-in flexibility, regular reviews of project relevance, and mechanisms to adapt to emerging scientific discoveries or shifts in strategic direction.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code encompass?

NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' is a broad category encompassing scientific research and experimental development across a wide spectrum of disciplines. This includes fundamental research, applied research, and development activities. 'Physical and Engineering Sciences' covers fields like chemistry, physics, materials science, computer science, electrical engineering, mechanical engineering, and civil engineering. 'Life Sciences' includes biology, medicine, agriculture, and environmental science. Contracts under this code support innovation in areas ranging from new drug discovery and medical devices to advanced materials, software development, and sustainable energy solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $10,503,952

Exercised Options: $10,503,952

Current Obligation: $17,679,716

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 266030061

IDV Type: IDC

Timeline