Battelle Memorial Institute awarded $18.4M for R&D services, spanning over a decade

Contract Overview

Contract Amount: $18,421,969 ($18.4M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2000-09-27

End Date: 2011-11-16

Contract Duration: 4,067 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-OTHER R&D-B RES

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.4 million to BATTELLE MEMORIAL INSTITUTE for work described as: R&D-OTHER R&D-B RES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Fixed Fee, can lead to cost overruns if not managed carefully. 3. A long duration of over 10 years indicates a significant, ongoing need for these R&D services. 4. The award was made by the National Institutes of Health, a key agency within HHS. 5. The geographic location of the contractor is Ohio.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee structure inherently carries risk for cost control. Comparing it to similar R&D contracts would require detailed analysis of the scope of work and the specific research areas. However, the extended duration suggests a sustained need and potentially a reasonable price point over time, assuming effective management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specific R&D requirement. While not a large number of bidders, open competition generally provides a better opportunity for price discovery and ensures that the government receives offers from qualified sources.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was not awarded without exploring multiple options, potentially leading to a more competitive price than a sole-source award.

Public Impact

The primary beneficiaries are likely researchers and institutions supported by the National Institutes of Health, advancing scientific knowledge and potentially leading to new medical treatments or technologies. The services delivered are research and development, contributing to the advancement of health and science. The geographic impact is primarily in Ohio, where Battelle Memorial Institute is located, potentially supporting local employment and economic activity. Workforce implications include the employment of scientists, researchers, and support staff at Battelle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The long contract duration may lead to complacency or a lack of agility in adapting to evolving research needs if not actively managed.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair bidding process.
The contractor, Battelle Memorial Institute, is a well-established research organization with a long history, suggesting expertise.
The contract supports the mission of the National Institutes of Health, a critical government agency for health research.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on health-related research. The R&D sector is characterized by innovation and the pursuit of new knowledge. Comparable spending benchmarks would depend heavily on the specific scientific domain and the scale of the research projects undertaken. Government spending in R&D is crucial for driving technological advancements and addressing societal challenges.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the nature of R&D services and the prime contractor, it is possible that subcontracting opportunities for small businesses may exist, but this would depend on the specific research tasks and Battelle's subcontracting strategy. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH). Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are essential to ensure that costs are reasonable and that the research objectives are being met. Transparency would be facilitated through contract reporting requirements and potentially through public dissemination of research findings, depending on the nature of the R&D.

Related Government Programs

NIH Research Grants
Department of Health and Human Services R&D Contracts
Federal Science and Technology Funding

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration may lead to scope misalignment or complacency.
Limited number of bidders (2) in a full and open competition could indicate potential market limitations or high barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.4 million to BATTELLE MEMORIAL INSTITUTE. R&D-OTHER R&D-B RES

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 $18.4 million.

What is the period of performance?

Start: 2000-09-27. End: 2011-11-16.

What specific research areas did Battelle Memorial Institute focus on under this contract?

The provided data indicates the contract was for 'R&D-OTHER R&D-B RES', suggesting a broad scope within research and development. Without access to the detailed contract statement of work or performance reports, the precise research areas are not specified. Typically, contracts awarded by the National Institutes of Health (NIH) could span a wide range of biomedical and health-related fields, including but not limited to basic science, clinical research, translational research, and development of medical technologies or methodologies. Further investigation into the contract's specific task orders or associated publications would be necessary to identify the exact research domains.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of cost control?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or is expected to evolve, common in R&D. The contractor is reimbursed for all allowable costs plus a fixed fee, which represents profit. While the fixed fee provides some incentive for the contractor to control costs (as the fee doesn't increase with costs), it can also incentivize cost overruns if the contractor prioritizes completing the work over strict cost efficiency, as their profit is guaranteed. Other R&D contract types like Firm-Fixed-Price (FFP) offer better cost certainty for the government but are less suitable for R&D with uncertain outcomes. Cost-Plus-Incentive-Fee (CPIF) contracts can offer better cost control by adjusting the fee based on performance against cost targets.

What is Battelle Memorial Institute's track record with government R&D contracts?

Battelle Memorial Institute is a large, non-profit applied science and technology development company with extensive experience in government contracting, particularly in R&D. They have a long history of working with various federal agencies, including the Department of Defense, Department of Energy, and Department of Health and Human Services. Their portfolio includes a wide array of research and development projects across numerous scientific and engineering disciplines. While specific performance details for individual contracts are not publicly available in this summary, their sustained engagement with government agencies suggests a generally positive track record and capability in delivering complex R&D services.

How does the $18.4 million total award amount compare to typical NIH R&D contract values?

The total award amount of $18.4 million over approximately 11 years (from September 2000 to November 2011) averages to roughly $1.67 million per year. This figure is within the typical range for significant R&D contracts awarded by agencies like the National Institutes of Health (NIH). NIH funds a vast spectrum of research, from small grants to large, multi-year research and development contracts. The value of such contracts can vary dramatically based on the scientific field, the complexity of the research, the number of personnel involved, and the duration. This award appears to represent a substantial, but not exceptionally large, investment in applied R&D services.

What are the potential risks associated with a contract spanning over 10 years?

Contracts with durations exceeding 10 years, like this one, carry several potential risks. Firstly, the scope of work may become outdated or misaligned with evolving scientific priorities or technological advancements over such a long period, requiring significant modifications or potentially leading to inefficiencies. Secondly, there's a risk of contractor complacency, where the long-term relationship might reduce the incentive for continuous innovation or cost-saving measures. Thirdly, managing such long-term agreements requires consistent and effective government oversight to ensure accountability and adapt to changing requirements. Finally, economic uncertainties or shifts in government funding priorities over a decade can impact the contract's stability and ultimate success.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,722,879

Exercised Options: $18,422,119

Current Obligation: $18,421,969

Timeline