DoD's $14.2M task order to Battelle Memorial Institute for AFTOC services raises value-for-money questions due to sole-source award

Contract Overview

Contract Amount: $14,231,270 ($14.2M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2026-06-30

Contract Duration: 1,186 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PKS - ROSS - CARMONA PAREDES - AFTOC TASK ORDER 01

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to BATTELLE MEMORIAL INSTITUTE for work described as: PKS - ROSS - CARMONA PAREDES - AFTOC TASK ORDER 01 Key points: 1. The contract's value-for-money is difficult to assess without competitive bidding. 2. Sole-source awards can limit price discovery and potentially increase costs. 3. The duration of the contract (nearly 3.5 years) suggests a significant need for these services. 4. Performance context is limited as this is a single task order. 5. The contract falls within the IT services sector, specifically data processing and hosting. 6. The awardee, Battelle Memorial Institute, is a well-established research and development organization.

Value Assessment

Rating: questionable

Benchmarking the value of this $14.2 million task order is challenging due to its sole-source nature. Without a competitive process, it's difficult to determine if the pricing reflects fair market value or if alternative, more cost-effective solutions were considered. The firm-fixed-price contract type provides some cost certainty, but the lack of competition prevents a robust comparison against similar contracts or market rates for computing infrastructure and data processing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded on a sole-source basis, meaning it was not competed among multiple potential vendors. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from various companies. The lack of competition means that the Department of the Air Force did not explore a range of pricing and technical solutions that would likely emerge from an open bidding environment.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the potential savings and innovation that competition can drive. Without a competitive benchmark, it is harder to ensure that federal funds are being used in the most economical way.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel who rely on the AFTOC (Air Force Technical Operations Center) services. The services delivered are related to computing infrastructure, data processing, and web hosting, crucial for military operations and intelligence. The geographic impact is primarily within the Department of the Air Force's operational sphere, though the exact locations of service delivery are not specified. Workforce implications are tied to the personnel at Battelle Memorial Institute performing the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for cost savings.
Sole-source awards can reduce transparency in the procurement process.
The long duration of the contract could indicate a lack of flexibility to adapt to changing technological needs without re-competition.

Positive Signals

The awardee, Battelle Memorial Institute, is a reputable organization with a history of government contracting.
The firm-fixed-price contract type offers cost predictability for the government.
The contract addresses critical IT infrastructure and data processing needs for the Air Force.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computing infrastructure, data processing, and web hosting services. This is a critical area for government operations, supporting everything from administrative functions to advanced intelligence and operational command. The market for these services is large and competitive, with numerous providers offering cloud hosting, data management, and IT support. However, specialized government requirements or existing infrastructure integrations can sometimes lead to sole-source or limited competition awards.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem through this specific award. The focus appears to be on a large, established entity capable of fulfilling the specialized IT needs of the Department of the Air Force.

Oversight & Accountability

Oversight for this task order would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specific services for an agreed-upon price. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to scrutinize the justification for not competing the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Air Force Network Integration Center (AFNIC) contracts
DoD Cloud Computing Services
Defense Information Systems Agency (DISA) IT contracts
Intelligence Community IT Infrastructure Support

Risk Flags

Sole-source award bypasses competition.
Lack of transparency in procurement justification.
Potential for non-optimal pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to BATTELLE MEMORIAL INSTITUTE. PKS - ROSS - CARMONA PAREDES - AFTOC TASK ORDER 01

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 Air Force).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-06-30.

What is the specific justification for awarding this task order on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it is impossible to fully assess the necessity of bypassing the competitive process for this $14.2 million task order for AFTOC services.

How does the pricing of this task order compare to similar IT infrastructure and data processing contracts within the DoD?

Direct comparison of pricing is difficult without knowing the specific services and performance metrics included in this $14.2 million task order. However, the absence of competition means there is no benchmark against which to measure the fairness of Battelle Memorial Institute's pricing. In a competitive environment, multiple bids would provide a range of prices for similar services, allowing the DoD to select the most cost-effective option. The firm-fixed-price nature offers some cost control, but the lack of competitive bids prevents a true value assessment.

What are the key performance indicators (KPIs) for this contract, and how is Battelle Memorial Institute's performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the performance measurement methodology for this task order. For IT infrastructure and data processing contracts, common KPIs might include system uptime, data processing speed, security compliance, and response times for technical support. The effectiveness of the contract hinges on the Air Force's ability to monitor and enforce these performance standards, ensuring that the $14.2 million investment yields the expected operational benefits.

What is Battelle Memorial Institute's track record with sole-source IT service contracts of this magnitude?

Battelle Memorial Institute is a large, established research and development organization that frequently contracts with the federal government. While their overall track record is extensive, specific data on their performance with sole-source IT service contracts of this $14.2 million magnitude is not provided. Their reputation suggests a capacity to deliver complex technical services, but the sole-source nature of this award means that their ability to secure such contracts without competition is a key factor, rather than their performance in a competitive bid scenario.

What is the historical spending pattern for AFTOC-related IT services within the Department of the Air Force?

The provided data focuses on a single task order and does not offer historical spending patterns for AFTOC-related IT services. To understand historical spending, one would need to analyze procurement data over several fiscal years for similar services, potentially including contracts awarded competitively and through other means. This would reveal trends in contract values, awardees, and the proportion of sole-source versus competed awards, providing context for the current $14.2 million task order.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $16,594,782

Exercised Options: $14,291,959

Current Obligation: $14,231,270

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,550,072

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA701423D0003

IDV Type: IDC

Timeline