DoD awards $37.8M for C-130J EMASS, a sole-source contract for aerial spray systems

Contract Overview

Contract Amount: $37,780,638 ($37.8M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2025-03-12

End Date: 2028-01-31

Contract Duration: 1,055 days

Daily Burn Rate: $35.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: C-130J ELECTRONIC MODULAR AERIAL SPRAY SYSTEM (EMASS)

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to BATTELLE MEMORIAL INSTITUTE for work described as: C-130J ELECTRONIC MODULAR AERIAL SPRAY SYSTEM (EMASS) Key points: 1. Contract awarded to Battelle Memorial Institute for a specialized electronic modular aerial spray system. 2. Sole-source award indicates a lack of broader market competition for this specific capability. 3. The contract duration of nearly three years suggests a significant development or integration effort. 4. Cost-plus-fixed-fee structure may incentivize contractor efficiency, but requires careful oversight. 5. The absence of small business participation raises questions about broader economic impact. 6. This award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a niche sector.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging due to the lack of comparable bids. The cost-plus-fixed-fee (CPFF) pricing structure means the final cost is not fixed upfront, making it difficult to assess true value-for-money without detailed cost breakdowns and performance metrics. The awarded amount of $37.8 million for a specialized system over approximately 3 years suggests a potentially high unit cost, but this is highly dependent on the system's complexity and capabilities. Further analysis of contractor's historical performance and profit margins on similar CPFF contracts would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Defense did not solicit bids from multiple potential contractors. This typically occurs when a specific technology or capability is unique to a single provider, or when there are urgent needs that preclude a competitive process. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The absence of competition limits the government's ability to negotiate the best possible price.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive the C-130J Electronic Modular Aerial Spray System (EMASS). The system is intended for specialized aerial spraying operations, likely for purposes such as pest control, agricultural support, or environmental management. The geographic impact is not specified but is likely tied to Air Force operational bases or deployment locations. Workforce implications may include specialized technical roles for the development, integration, and maintenance of the EMASS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract requires robust oversight to manage costs effectively.
Lack of small business set-aside or participation noted.

Positive Signals

Award to a known entity (Battelle Memorial Institute) may indicate confidence in their capabilities.
Specialized nature of the system suggests a critical capability is being addressed.
Defined contract period provides a framework for delivery and performance.

Sector Analysis

The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized segment of the aerospace industry. This sector often involves custom-designed components and systems for specific aircraft applications. The market size for such niche systems is difficult to quantify but is driven by unique defense or civilian requirements. This contract represents a specific investment in enhancing the C-130J platform's capabilities for aerial application missions, fitting within the broader defense aerospace spending landscape.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is Battelle Memorial Institute a small business. The absence of subcontracting plans specifically targeting small businesses means that opportunities for small firms within this award are not explicitly mandated. This could limit the broader economic impact on the small business ecosystem within the aerospace manufacturing sector for this particular contract.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract will be critical, focusing on the contractor's cost accounting and performance against the fixed fee. The Department of the Air Force will be responsible for monitoring expenditures and ensuring the contractor meets the technical requirements within the agreed-upon cost ceiling. Transparency will depend on the level of detail provided in contract performance reports and the agency's willingness to disclose relevant information. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

C-130J Super Hercules Aircraft
Aerial Spray Systems
Aerospace Manufacturing
Defense Logistics and Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to BATTELLE MEMORIAL INSTITUTE. C-130J ELECTRONIC MODULAR AERIAL SPRAY SYSTEM (EMASS)

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 $37.8 million.

What is the period of performance?

Start: 2025-03-12. End: 2028-01-31.

What is Battelle Memorial Institute's track record with similar sole-source, CPFF contracts for specialized aircraft systems?

Battelle Memorial Institute has a history of performing complex research, development, and systems integration work for government agencies, including the Department of Defense. While specific details on their sole-source, CPFF contracts for aerial spray systems on C-130J aircraft are not publicly detailed in this context, their general profile suggests experience with large, technically demanding projects. Analyzing their past performance on similar contract types would involve reviewing contract databases for awards, performance evaluations (e.g., CPARS), and any reported cost overruns or successes. Without access to proprietary contract data or detailed performance reports, a comprehensive assessment of their specific track record for this type of work remains limited. However, their established reputation implies a baseline capability to undertake such specialized endeavors.

How does the $37.8 million cost compare to the development and procurement of similar specialized aerial spray systems for other aircraft platforms?

Direct cost comparisons for specialized aerial spray systems are difficult due to the unique nature of each system and the aircraft it's integrated with. The $37.8 million award for the C-130J EMASS is for a specific electronic modular system over approximately 3.5 years. Comparable systems on different platforms, or even different configurations for the C-130J, could vary significantly in cost based on payload capacity, spray technology, automation levels, and integration complexity. For instance, simpler agricultural spray systems on smaller aircraft might cost a fraction of this amount, while more advanced, larger-scale systems for different military applications could be substantially more expensive. The sole-source nature of this award further complicates benchmarking, as competitive pricing dynamics are absent. A thorough comparison would require detailed technical specifications and cost breakdowns of other systems, which are often not publicly available.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for a specialized system like the C-130J EMASS?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated costs and reduced incentive for the contractor to innovate or optimize pricing. The government relies heavily on the contractor's integrity and accurate cost reporting. Secondly, the Cost-Plus-Fixed-Fee (CPFF) structure, while providing flexibility for evolving requirements, carries the risk of cost overruns if the contractor's initial estimates are inaccurate or if unforeseen technical challenges arise. The fixed fee provides the contractor with a guaranteed profit margin, but the government bears the brunt of the actual costs incurred. Effective oversight is crucial to mitigate these risks, ensuring that costs are reasonable and that the contractor is diligently working towards the fixed fee without unnecessary expenditure.

What is the expected effectiveness and performance of the C-130J EMASS based on its intended purpose?

The intended purpose of the C-130J Electronic Modular Aerial Spray System (EMASS) is to provide a specialized capability for aerial spraying operations using the C-130J aircraft. While specific performance metrics are not detailed in the provided data, such systems are typically designed for precise application of liquids or granular materials over large areas. Effectiveness would be measured by factors such as spray pattern uniformity, droplet size control, application rate accuracy, operational range, payload capacity, and integration with aircraft navigation and control systems. For military applications, this could include tasks like large-scale decontamination, agricultural support in deployed environments, or environmental management. The 'electronic modular' aspect suggests advanced control and potentially adaptable configurations for different missions, aiming for enhanced precision and efficiency compared to older systems.

How does this $37.8 million award fit into the broader historical spending patterns for C-130J modifications or specialized equipment?

This $37.8 million award represents a significant, albeit specific, investment in enhancing the C-130J platform. Historical spending on C-130J modifications and specialized equipment varies widely depending on the scope of the upgrade or system. Major avionics upgrades, structural enhancements, or the integration of new mission systems can run into tens or even hundreds of millions of dollars. Smaller, component-level procurements or less complex modifications would naturally be in the lower millions or hundreds of thousands. This EMASS contract appears to be a mid-to-high value award for a specialized mission system, suggesting it addresses a critical capability gap or provides a substantial upgrade to the aircraft's utility for specific tasks. Without a broader analysis of all C-130J-related contracts, it's hard to place precisely, but it signifies a notable investment in a particular operational enhancement.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA850425RB009

Pricing Type: COST PLUS FIXED FEE (U)

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: $37,780,638

Exercised Options: $37,780,638

Current Obligation: $37,780,638

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $8,133,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA850425DB003

IDV Type: IDC

Timeline