EPA's $6.7M toxic substances assessment contract with Battelle Memorial Institute shows fair value despite limited competition

Contract Overview

Contract Amount: $6,714,387 ($6.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Environmental Protection Agency

Start Date: 2016-06-13

End Date: 2023-03-12

Contract Duration: 2,463 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF STATISTICAL AND TECHNICAL SUPPORT FOR THE ASSESSMENT OF TOXIC SUBSTANCES: THIS ACQUISITION PROVIDES SUPPORT TO THE OFFICE OF POLLUTION PREVENTION AND TOXICS (OPPT) OF THE OFFICE OF CHEMICAL SAFETY AND POLLUTION PREVENTION (OCSPP) IN THE

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGF STATISTICAL AND TECHNICAL SUPPORT FOR THE ASSESSMENT OF TOXIC SUBSTANCES: THIS ACQUISITION PROVIDES SUPPORT TO THE OFFICE OF POLLUTION PREVENTION AND TOXICS (OPPT) OF THE OFFICE OF CHEMICAL SAFETY AND POLLUTION PREVENTION (OCSPP) IN THE Key points: 1. Contract provides essential support for assessing toxic substances, aligning with EPA's environmental protection mission. 2. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 3. Limited competition raises concerns about optimal price discovery and potential for higher costs. 4. Battelle Memorial Institute has a significant track record, suggesting technical capability but also potential for market dominance. 5. The contract duration of over 6 years indicates a long-term need for these specialized services. 6. Geographic concentration in Ohio for performance warrants attention for broader national impact.

Value Assessment

Rating: fair

The contract's total value of $6.7 million over approximately 6.7 years suggests an average annual spend of around $1 million. Benchmarking this against similar environmental consulting services is challenging without more granular data on the specific tasks performed. However, the cost-plus-fixed-fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. The fixed fee component provides some cost control, but the variable cost component requires careful oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition,' but the data indicates only two bids were received. While not a sole-source award, this limited number of bidders suggests that the market for these highly specialized services may be constrained, or that the solicitation may not have reached a broad enough audience. Limited competition can potentially lead to less competitive pricing as the awardee faces fewer market pressures to offer the lowest possible cost.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing achievable in a broader market. This could translate to a higher overall cost for the services rendered.

Public Impact

The Office of Pollution Prevention and Toxics (OPPT) within the EPA benefits directly through enhanced capacity for assessing toxic substances. The services delivered are crucial for informing regulatory decisions and protecting public health from chemical hazards. The primary geographic impact is national, as the findings from toxic substance assessments inform EPA's nationwide policies and actions. The contract supports a specialized workforce in environmental consulting and scientific analysis, primarily located in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than could have been achieved with more bidders.
The cost-plus-fixed-fee contract type carries inherent risks of cost escalation if not rigorously managed.
The long contract duration could lead to vendor lock-in and reduced flexibility for the agency.

Positive Signals

The contract supports a critical mission of the EPA in protecting public health and the environment.
Battelle Memorial Institute is a reputable organization with demonstrated expertise in scientific and technical support.
The fixed fee component provides a degree of cost certainty for a portion of the contract value.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, a niche within the broader professional services industry. The market for specialized toxic substance assessment is driven by regulatory requirements and scientific advancements. Comparable spending benchmarks are difficult to establish without detailed task orders, but the EPA is a significant purchaser of such services. The overall market size for environmental consulting is substantial, with government contracts forming a key segment.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing specialized expertise from established entities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The Inspector General's office of the EPA would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract's performance and financial expenditures. Transparency is facilitated through contract databases, but detailed performance metrics are typically internal.

Related Government Programs

EPA Chemical Risk Assessment Programs
EPA Superfund Program
EPA Toxic Substances Control Act (TSCA) Implementation
National Toxicology Program (NTP)
Agency for Toxic Substances and Disease Registry (ATSDR)

Risk Flags

Limited Competition
Cost-Plus Contract Type Risk
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.7 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGF STATISTICAL AND TECHNICAL SUPPORT FOR THE ASSESSMENT OF TOXIC SUBSTANCES: THIS ACQUISITION PROVIDES SUPPORT TO THE OFFICE OF POLLUTION PREVENTION AND TOXICS (OPPT) OF THE OFFICE OF CHEMICAL SAFETY AND POLLUTION PREVENTION (OCSPP) IN THE

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2016-06-13. End: 2023-03-12.

What is Battelle Memorial Institute's track record with the EPA on similar contracts?

Battelle Memorial Institute has a long-standing history of supporting government agencies, including the EPA, on a wide range of scientific and technical projects. While specific details on past EPA contracts for toxic substance assessment are not provided in this data snippet, Battelle's general profile suggests extensive experience. Their work often involves complex research, analysis, and development. For this specific contract, their established presence and capabilities likely contributed to their selection. A deeper dive into historical EPA contract awards to Battelle would reveal the breadth and depth of their prior engagements, including performance ratings and any past issues.

How does the value of this contract compare to other EPA environmental consulting contracts?

Direct comparison of this $6.7 million contract value to other EPA environmental consulting contracts is challenging without knowing the specific scope of work and duration of those other contracts. Environmental consulting needs vary widely, from short-term assessments to long-term research initiatives. However, an average annual spend of approximately $1 million for specialized toxic substance assessment support suggests a significant, ongoing requirement. Larger EPA programs like Superfund or TSCA implementation might involve contracts of much higher value, while smaller, targeted studies could be less expensive. This contract appears to represent a mid-to-high tier investment for a specific, critical function within the EPA.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for toxic substance assessment?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost overruns. While the fixed fee provides a defined profit margin for the contractor, the 'cost' portion is reimbursable. If the contractor's actual costs exceed initial estimates, the government bears that expense. For toxic substance assessment, unforeseen complexities in sample analysis, research, or data interpretation could drive up costs. Effective risk mitigation requires robust government oversight, clear performance metrics, and stringent review of all incurred costs to ensure they are reasonable, allocable, and necessary for the contract's objectives.

How effective is the EPA's Office of Pollution Prevention and Toxics (OPPT) in achieving its mission with this type of support?

The effectiveness of the OPPT in achieving its mission is significantly enhanced by having dedicated support for assessing toxic substances. This contract provides the analytical and technical expertise necessary to evaluate the risks posed by chemicals, which is fundamental to OPPT's role in preventing pollution and managing chemical safety. The quality and timeliness of the assessments directly influence the EPA's ability to make informed regulatory decisions, develop risk management strategies, and protect public health. While the contract's value and duration suggest a recognized need, its ultimate effectiveness hinges on the quality of Battelle's deliverables and the EPA's utilization of those findings.

What are the historical spending patterns for toxic substance assessment support by the EPA?

Historical spending patterns for toxic substance assessment support by the EPA likely show a consistent need for such services, driven by legislative mandates like the Toxic Substances Control Act (TSCA) and ongoing scientific research priorities. Spending levels can fluctuate based on emerging chemical threats, shifts in regulatory focus, and overall budget allocations. Contracts of this nature, providing long-term technical and analytical support, are common. The EPA often relies on a mix of internal expertise and external contractors like Battelle to fulfill these complex requirements. Analyzing multi-year spending data would reveal trends in demand and the types of services most frequently procured.

What is the significance of the contract being performed in Ohio?

The performance location in Ohio signifies that the primary work under this contract is being conducted at Battelle's facilities in that state. While the impact of toxic substance assessments is national, the direct execution of the services, including laboratory work, data analysis, and reporting, is geographically concentrated. This concentration can streamline project management and leverage existing infrastructure. However, it also means that the direct economic benefits, such as job creation and local spending, are localized to Ohio. For national programs, agencies sometimes seek broader geographic distribution of work to engage diverse talent pools and spread economic impact.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-DC-14-00002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $21,055,180

Exercised Options: $15,434,772

Current Obligation: $6,714,387

Actual Outlays: $1,899,472

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $2,584,659

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline