Battelle Memorial Institute awarded $20.7M for microelectronics research, with a 5-year performance period

Contract Overview

Contract Amount: $20,713,721 ($20.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2022-12-22

End Date: 2028-03-22

Contract Duration: 1,917 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MICROELECTRONICS EMBEDDED SYSTEM AND ASSURANCE II

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: MICROELECTRONICS EMBEDDED SYSTEM AND ASSURANCE II Key points: 1. Contract focuses on critical microelectronics and embedded systems assurance. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Long-term contract (5 years) suggests complex, ongoing research needs. 4. Competition was full and open, indicating a broad market search. 5. Contract type is Cost Plus Fixed Fee, common for R&D projects. 6. Performance period extends into 2028, aligning with strategic research goals.

Value Assessment

Rating: good

The contract value of $20.7 million over approximately five years appears reasonable for specialized R&D in microelectronics and embedded systems. Benchmarking against similar contracts in this niche field is challenging without more specific project details. However, the Cost Plus Fixed Fee structure is typical for research where final costs are not precisely predictable, aiming to balance contractor incentive with cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Air Force sought proposals from a wide range of qualified contractors. The presence of two bids indicates a degree of competition, though the exact number of proposals received is not specified. Full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best value through a broad solicitation process, potentially leading to more cost-effective research outcomes.

Public Impact

Benefits the Department of Defense by advancing critical microelectronics and embedded system security. Delivers research and development services to enhance national security capabilities. Geographic impact is primarily within Ohio, where Battelle Memorial Institute is located. Workforce implications include specialized R&D roles for scientists and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
The long performance period requires sustained oversight to ensure progress and value.
Reliance on a single contractor for such a critical area warrants careful monitoring of technical progress and intellectual property.

Positive Signals

Full and open competition suggests a robust market and potential for innovation.
Battelle Memorial Institute has a strong track record in research and development.
The contract's focus on microelectronics assurance addresses a key national security concern.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering related to microelectronics and embedded systems. The market for such specialized R&D is often dominated by a few key research institutions and defense contractors. Spending in this area is critical for maintaining technological superiority and national security, with comparable contracts often involving significant investment due to the complexity and cutting-edge nature of the work.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Given the specialized nature of microelectronics research, it is possible that larger, established research institutions like Battelle are best positioned to perform the work. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this research.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and technical officers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific research findings may be subject to security classifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Microelectronics Research Programs
Embedded Systems Security Initiatives
Defense Research and Engineering
Advanced Technology Development Contracts

Risk Flags

Long contract duration requires sustained oversight.
CPFF structure necessitates careful cost management.
Potential for evolving technological landscape over 5 years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to BATTELLE MEMORIAL INSTITUTE. MICROELECTRONICS EMBEDDED SYSTEM AND ASSURANCE II

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 $20.7 million.

What is the period of performance?

Start: 2022-12-22. End: 2028-03-22.

What is Battelle Memorial Institute's track record with similar government R&D contracts, particularly in microelectronics and embedded systems?

Battelle Memorial Institute is a well-established non-profit applied science and technology development company with extensive experience in government contracting. They have a significant history of performing research and development for various federal agencies, including the Department of Defense. Their portfolio often includes work in areas such as materials science, national security, energy, and health. Specifically in microelectronics and embedded systems, Battelle has been involved in projects related to secure hardware, trusted microelectronics, and advanced computing architectures. Their long-standing presence and diverse capabilities suggest a strong foundation for undertaking complex R&D efforts like the MICROELECTRONICS EMBEDDED SYSTEM AND ASSURANCE II contract. Reviewing their past performance reports and contract awards would provide further detail on their success rates and areas of expertise within this domain.

How does the $20.7 million contract value compare to other federal spending on microelectronics R&D?

The $20.7 million contract value for the MICROELECTRONICS EMBEDDED SYSTEM AND ASSURANCE II contract is a significant but not extraordinary amount for specialized research and development in a critical field like microelectronics. Federal spending on microelectronics R&D is substantial, driven by national security imperatives and the need for technological advancement. Agencies like the Department of Defense (DoD), National Science Foundation (NSF), and Department of Energy (DOE) invest billions annually in related research. For instance, DoD's Trusted and Secure Microelectronics initiatives often involve multi-year, multi-million dollar programs. While this specific contract is substantial for a single award, it represents a portion of the broader federal investment. Benchmarking requires comparing it to contracts with similar scope, duration, and technical objectives, which can vary widely. However, it aligns with the typical investment scale for advanced R&D in this strategic technology area.

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

The Cost Plus Fixed Fee (CPFF) contract structure, while common for research and development where costs are uncertain, carries inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred. This can potentially lead to cost overruns if the contractor's actual expenses exceed initial estimates significantly. Another risk is ensuring that the contractor maintains efficiency and avoids unnecessary expenditures to maximize their profit margin. For the contractor, the risk lies in accurately estimating the costs involved in the R&D effort. If the actual costs far exceed their estimates, their fixed fee might not adequately compensate them for the work performed. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks for both parties.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' NAICS code (541715) imply about the contract's scope?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that this contract is focused on fundamental and applied research across a broad spectrum of scientific and engineering disciplines. This includes areas like physics, chemistry, materials science, computer science, electrical engineering, mechanical engineering, and various life sciences, excluding the specific subfields of nanotechnology and biotechnology. For the MICROELECTRONICS EMBEDDED SYSTEM AND ASSURANCE II contract, this code suggests the research likely involves advanced concepts in areas such as semiconductor physics, circuit design, software engineering for embedded systems, cybersecurity principles applied to hardware, and potentially materials used in microelectronic fabrication. The exclusion of nano/biotech means the primary focus is on the engineering and physical science aspects of microelectronics and their integration into larger systems, rather than molecular-level manipulation or biological applications.

How does the 5-year duration (December 2022 - March 2028) impact the assessment of this contract's value and risk?

The 5-year duration of this contract (December 2022 to March 2028) signifies a long-term commitment to a specific research and development objective in microelectronics and embedded systems assurance. This extended period suggests the project involves complex, potentially foundational research that requires sustained effort and iterative development, rather than a short-term task. From a value perspective, a longer duration can allow for deeper exploration of research questions and the development of more robust solutions, potentially yielding greater long-term benefits. However, it also increases the risk associated with cost predictability and technological relevance. Market conditions, technological advancements, and strategic priorities can shift significantly over five years. Therefore, continuous oversight is crucial to ensure the research remains aligned with evolving needs and that costs remain justified throughout the contract's life. The extended timeline necessitates robust program management to adapt to potential changes and maintain focus on the core objectives.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA865019S1932

Offers Received: 2

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: $49,102,007

Exercised Options: $49,102,007

Current Obligation: $20,713,721

Actual Outlays: $660,368

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $147,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline