DoD Awards $7.4M for Vehicle Parts to Battelle Memorial Institute, Limited Competition
Contract Overview
Contract Amount: $7,389,433 ($7.4M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Defense
Start Date: 2025-12-18
End Date: 2026-07-16
Contract Duration: 210 days
Daily Burn Rate: $35.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: PROCURE (7) OEM TLC76, (6) OEM TLC79, AND (5) OEM TLC300.
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $7.4 million to BATTELLE MEMORIAL INSTITUTE for work described as: PROCURE (7) OEM TLC76, (6) OEM TLC79, AND (5) OEM TLC300. Key points: 1. Contract awarded for specific OEM vehicle parts (TLC76, TLC79, TLC300). 2. Battelle Memorial Institute is the sole awardee. 3. High risk due to limited competition and fixed-price with economic price adjustment terms. 4. Spending falls under the Automobile and Light Duty Motor Vehicle Manufacturing sector.
Value Assessment
Rating: questionable
The contract's fixed-price with economic price adjustment structure introduces uncertainty in final costs. Benchmarking against similar OEM parts contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The award was not competed, indicating potential limitations in market research or a specific justification for sole-sourcing. This lack of competition may have led to a higher price than could have been achieved through open bidding.
Taxpayer Impact: Taxpayer funds may be at risk of overpayment due to the absence of competitive pricing discovery.
Public Impact
Special Operations Command receives critical vehicle components. Potential for higher costs impacts overall defense budget allocation. Lack of transparency in pricing due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 35 / 10
Warning Flags
- Limited competition
- Economic price adjustment
- Lack of transparency
Positive Signals
- Specific OEM parts procured
- Clear delivery timeline
Sector Analysis
This contract falls within the Automobile and Light Duty Motor Vehicle Manufacturing sector. Spending benchmarks for specialized OEM parts can vary significantly based on exclusivity and demand, making direct comparison challenging without further context.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses. The award to Battelle Memorial Institute, a large research and development organization, suggests no direct benefit to small businesses in this instance.
Oversight & Accountability
Oversight is crucial given the limited competition and economic price adjustment clause. The Department of Defense and U.S. Special Operations Command must ensure rigorous monitoring of costs and performance to mitigate potential risks.
Related Government Programs
- Automobile and Light Duty Motor Vehicle Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Limited competition
- Economic price adjustment
- Potential for cost overruns
- Lack of small business participation
Tags
automobile-and-light-duty-motor-vehicle-, department-of-defense, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to BATTELLE MEMORIAL INSTITUTE. PROCURE (7) OEM TLC76, (6) OEM TLC79, AND (5) OEM TLC300.
Who is the contractor on this award?
The obligated recipient is BATTELLE MEMORIAL INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $7.4 million.
What is the period of performance?
Start: 2025-12-18. End: 2026-07-16.
What is the justification for limiting competition on this vehicle parts procurement?
The justification for limiting competition is not provided in the data. Typically, such limitations require a specific rationale, such as unique technical requirements, urgent needs, or the unavailability of alternative sources. Further investigation into the contract file would be necessary to understand the specific reasons behind this decision.
How will the economic price adjustment clause impact the final cost to taxpayers?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specified economic factors, such as material costs or labor rates. This means the final cost could exceed the initial $7.4 million estimate, potentially increasing the burden on taxpayers if these economic factors rise significantly.
What is the potential impact of using OEM-specific parts on long-term vehicle maintenance and cost?
Reliance on Original Equipment Manufacturer (OEM) specific parts can ensure compatibility and quality but often comes at a premium price compared to aftermarket alternatives. This can lead to higher long-term maintenance costs and potentially limit options for future repairs or upgrades if OEM supply chains become constrained or prices increase.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile and Light Duty Motor Vehicle Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $7,389,433
Exercised Options: $7,389,433
Current Obligation: $7,389,433
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: H9240324D0002
IDV Type: IDC
Timeline
Start Date: 2025-12-18
Current End Date: 2026-07-16
Potential End Date: 2026-07-16 00:00:00
Last Modified: 2025-12-18
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