Army R&D contract for force projection tech awarded to Battelle Memorial Institute for $31.7M

Contract Overview

Contract Amount: $31,718,241 ($31.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2020-09-22

End Date: 2026-05-30

Contract Duration: 2,076 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, ANALYSIS, DEVELOPMENT, AND PLANNING OF FORCE PROJECTION TECHNOLOGIES AND LABORATORIES UNITED STATES ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND, GROUND VEHICLE SYSTEMS CENTER

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $31.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: RESEARCH, ANALYSIS, DEVELOPMENT, AND PLANNING OF FORCE PROJECTION TECHNOLOGIES AND LABORATORIES UNITED STATES ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND, GROUND VEHICLE SYSTEMS CENTER Key points: 1. Contract focuses on research and development for advanced ground vehicle systems. 2. The contract duration spans nearly six years, indicating a long-term need. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The specific NAICS code points to advanced physical and engineering sciences research. 6. The geographic location of the contractor is Ohio.

Value Assessment

Rating: good

The contract value of $31.7 million over approximately six years suggests a moderate investment in specialized R&D. Benchmarking against similar contracts in advanced engineering and physical sciences research is challenging without more specific project details. However, the Cost Plus Fixed Fee structure aims to provide a balance between contractor incentive and cost control for the government. The award amount appears reasonable for a multi-year R&D effort in a specialized field.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized R&D services. This process is designed to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government accesses the best available technology and expertise at a fair price.

Public Impact

The U.S. Army Combat Capabilities Development Command (DEVCOM) Ground Vehicle Systems Center is the primary beneficiary, advancing its technological capabilities. Services delivered include research, analysis, development, and planning for force projection technologies. The contract supports the development of next-generation ground vehicle systems, enhancing military readiness. Workforce implications include specialized R&D roles for scientists, engineers, and technical staff.

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.
The long duration of the contract requires sustained oversight to ensure objectives are met.
The specialized nature of the R&D may limit the pool of potential future contractors.
Dependence on a single contractor for critical R&D phases can pose a risk.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
The fixed fee component provides some cost certainty for the government.
The contract supports critical advancements in military technology.
The contractor, Battelle Memorial Institute, has a strong reputation in R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced defense R&D is highly specialized, with significant government investment. Comparable spending benchmarks would typically be found within DoD's broader R&D budgets for ground systems and emerging technologies. The total contract value of $31.7 million over nearly six years represents a focused investment in a specific technological area.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary focus was on technical capability and competitive pricing. While Battelle Memorial Institute is a large research organization, there may be opportunities for small businesses to participate as subcontractors, depending on the specific technical needs and Battelle's subcontracting strategy. The impact on the small business ecosystem is likely indirect unless specific subcontracting plans are mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Contracting Command and the DEVCOM Ground Vehicle Systems Center. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Research and Development Programs
Ground Vehicle Modernization
Advanced Technology Development
Force Projection Capabilities
Defense Research and Engineering

Risk Flags

Potential for cost overruns in CPFF contracts.
Need for sustained, rigorous oversight due to contract length.
Risk of technological obsolescence if R&D is not agile.
Dependence on contractor expertise for specialized R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to BATTELLE MEMORIAL INSTITUTE. RESEARCH, ANALYSIS, DEVELOPMENT, AND PLANNING OF FORCE PROJECTION TECHNOLOGIES AND LABORATORIES UNITED STATES ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND, GROUND VEHICLE SYSTEMS CENTER

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 $31.7 million.

What is the period of performance?

Start: 2020-09-22. End: 2026-05-30.

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

Battelle Memorial Institute has a long and extensive history of performing research and development for various U.S. government agencies, including the Department of Defense. They are known for their work in advanced materials, engineering, and scientific research. Analyzing their past performance on Cost Plus Fixed Fee contracts, particularly those involving complex engineering and development for military applications, would provide further insight. Their established presence and broad capabilities suggest a strong capacity to execute this type of contract, though specific performance metrics on prior, directly comparable contracts would be needed for a definitive assessment of their track record for this particular project.

How does the $31.7 million contract value compare to similar R&D efforts for ground vehicle systems?

The $31.7 million contract value for nearly six years of R&D in force projection technologies for ground vehicles is a significant but not exceptionally large sum within the context of major defense acquisition programs. Large-scale platform development or acquisition contracts can run into billions of dollars. However, for specialized R&D focused on specific technological advancements or system components, this value is substantial and reflects the complexity and duration of the research. Benchmarking requires comparing it to other contracts for similar R&D scope, duration, and technological maturity within the ground vehicle domain, which are often proprietary or not publicly detailed to this level of specificity.

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

The primary risks with a CPFF contract for advanced R&D include potential cost overruns if the fixed fee is not adequately calculated or if unforeseen technical challenges significantly increase the base cost. While the fixed fee provides an incentive for the contractor to control costs, there's a risk that the contractor might cut corners on quality or scope to protect their fee if costs escalate unexpectedly. For the government, the risk lies in ensuring the fixed fee accurately reflects the effort and that the contractor's cost accounting is rigorous and transparent. Effective government oversight is crucial to mitigate these risks and ensure value for money.

How effective is full and open competition in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including specialized R&D. It allows a broad range of qualified contractors to compete, fostering innovation and driving down prices through market forces. For specialized R&D, this means the government can access a wider pool of expertise and potentially discover novel solutions at competitive rates. However, the effectiveness is contingent on the clarity of the solicitation, the government's ability to accurately define requirements, and the presence of multiple capable bidders. In highly niche R&D areas, the number of competitors might be limited, potentially reducing the competitive pressure.

What is the historical spending trend for R&D in force projection technologies within the U.S. Army?

Historical spending trends for R&D in force projection technologies within the U.S. Army generally reflect evolving military doctrine, technological advancements, and geopolitical priorities. Budgets for such areas can fluctuate based on strategic needs, such as countering emerging threats or modernizing legacy systems. The Army consistently invests in R&D to maintain a technological edge, with significant portions allocated to areas like advanced materials, autonomous systems, and enhanced soldier capabilities. Specific figures for 'force projection technologies' are often aggregated within broader R&D categories, making precise historical tracking challenging without detailed budget analysis across multiple fiscal years and program elements.

What are the implications of the contract's duration (2076 days) for program continuity and contractor performance?

A contract duration of 2076 days (approximately 5.7 years) indicates a long-term commitment to the research and development objectives. This extended period allows for in-depth investigation, iterative development, and testing of complex technologies, which is often necessary in R&D. For program continuity, it suggests a stable funding environment for this specific technological area, enabling the contractor to build institutional knowledge and invest in specialized resources. For contractor performance, the long duration provides ample opportunity to demonstrate sustained capability and deliver on milestones. However, it also necessitates robust contract management and performance monitoring throughout the period to ensure objectives remain aligned with evolving requirements and to address any performance issues promptly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $37,982,562

Exercised Options: $37,982,562

Current Obligation: $31,718,241

Actual Outlays: $2,841,639

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $240,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0005

IDV Type: IDC

Timeline