DoD awards $7.5M for specialized vehicles to Battelle Memorial Institute under a sole-source contract

Contract Overview

Contract Amount: $7,528,940 ($7.5M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2025-12-23

End Date: 2026-07-21

Contract Duration: 210 days

Daily Burn Rate: $35.9K/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 $7.5 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 to a single, non-competitive source raises questions about potential cost efficiencies. 2. Limited competition may restrict opportunities for innovative solutions from a broader market. 3. Fixed-price contract with economic price adjustment introduces potential for cost overruns due to market fluctuations. 4. Contract duration of 210 days suggests a focused, short-term requirement. 5. The award falls within the 'Automobile and Light Duty Motor Vehicle Manufacturing' sector, indicating a specific industrial focus. 6. No small business set-aside or subcontracting requirements were noted, potentially limiting small business participation.

Value Assessment

Rating: questionable

The contract value of $7.53 million for specialized vehicles appears to be a significant investment. Without comparable sole-source awards or detailed cost breakdowns, it is difficult to benchmark the value for money. The fixed-price with economic price adjustment clause introduces risk, as the final cost could exceed initial projections if material or labor costs increase significantly. The lack of competition inherently limits the ability to assess if this price represents a fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Battelle Memorial Institute, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not yield the most cost-effective outcome for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from competitive bidding, potentially leading to higher overall expenditure for this requirement.

Public Impact

The U.S. Special Operations Command is the primary beneficiary, receiving specialized vehicles for its operational needs. The contract will deliver specific types of vehicles: (7) OEM TLC76, (6) OEM TLC79, and (5) OEM TLC300. The geographic impact is primarily within Ohio, where Battelle Memorial Institute is located, though the end-use of the vehicles is likely global for SOCOM operations. The contract may have implications for a specialized segment of the automotive manufacturing workforce involved in producing these specific vehicle types.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
Economic price adjustment clause introduces uncertainty and potential for cost escalation.
Lack of small business participation may limit opportunities for smaller firms in the supply chain.

Positive Signals

Award to Battelle Memorial Institute, a known research and development organization, suggests a focus on specialized or advanced vehicle capabilities.
The contract specifies exact quantities and models, indicating a clear and defined requirement.
The contract is for delivery orders, suggesting a structured approach to fulfilling the requirement.

Sector Analysis

The contract falls under the 'Automobile and Light Duty Motor Vehicle Manufacturing' sector (NAICS 336110). This sector is characterized by the production of vehicles, and government contracts within this space often involve specialized modifications or procurement of specific models for operational use. While the overall automotive manufacturing market is vast, this contract targets a niche requirement for specialized vehicles, likely for defense or special operations purposes. Benchmarking this specific award is challenging without more detail on the vehicle specifications and modifications.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor are there explicit requirements for subcontracting with small businesses. This suggests that Battelle Memorial Institute is expected to fulfill the contract using its own resources or through larger, non-small business partners. Consequently, the direct impact on the small business ecosystem for this specific procurement is likely minimal, with limited opportunities for small firms to participate in the supply chain or provide specialized components.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. As a delivery order under a larger framework (implied by 'PROCURE'), the specific oversight might be managed by the U.S. Special Operations Command. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Vehicle Procurement
Special Operations Command Equipment Acquisition
Automotive Manufacturing Contracts
Fixed-Price with Economic Price Adjustment Contracts

Risk Flags

Sole-source award
Economic price adjustment clause
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 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 $7.5 million.

What is the period of performance?

Start: 2025-12-23. End: 2026-07-21.

What specific capabilities or modifications differentiate the OEM TLC76, TLC79, and TLC300 vehicles procured under this contract, justifying a sole-source award?

The provided data does not detail the specific modifications or unique capabilities of the OEM TLC76, TLC79, and TLC300 vehicles. A sole-source award typically implies that the contractor possesses unique technical expertise, proprietary technology, or that the requirement is so specialized that only one source can meet it. For this contract, the justification for a sole-source award would likely stem from Battelle Memorial Institute's specific role in developing, modifying, or producing these particular vehicle platforms to meet stringent U.S. Special Operations Command (SOCOM) requirements that cannot be met by other manufacturers or through a competitive process. Further documentation, such as a Justification and Approval (J&A) for other than full and open competition, would be necessary to understand the precise reasons.

How does the $7.53 million contract value compare to similar specialized vehicle procurements by the DoD or SOCOM?

Benchmarking this $7.53 million contract against similar specialized vehicle procurements is challenging without more specific details on the vehicle types, quantities, and required modifications. The data indicates the procurement of 18 vehicles in total (7+6+5) across three models. If these are highly customized or technologically advanced platforms, the cost per vehicle could be substantial. For instance, heavily armored or equipped special operations vehicles can cost hundreds of thousands of dollars each. A preliminary estimate suggests an average cost of approximately $418,000 per vehicle ($7,528,940 / 18 vehicles). This figure needs to be compared against the baseline cost of the original equipment manufacturer (OEM) vehicles and the added value of any modifications. Without access to detailed specifications and a breakdown of costs for similar SOCOM or DoD procurements of comparable specialized vehicles, a definitive comparison of value for money is not possible.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for this procurement?

The Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces several risks for the government. While it aims to protect the contractor from unforeseen increases in labor and material costs, it shifts some of that risk to the government. For this $7.53 million contract, the economic price adjustment clause means the final cost could exceed the initial $7.53 million if market prices for components, raw materials, or labor rise significantly before the contract's completion in July 2026. This uncertainty makes budget forecasting more difficult and exposes taxpayers to potential cost overruns. The government's ability to manage this risk depends on the specific indexation methods and caps defined within the contract's economic price adjustment formula, which are not detailed in the provided data.

Given the sole-source nature, what oversight mechanisms are in place to ensure Battelle Memorial Institute delivers the required vehicles effectively and efficiently?

Despite the sole-source award, standard government oversight mechanisms are expected to be in place. The U.S. Special Operations Command (SOCOM), as the contracting agency, would assign Contracting Officer's Representatives (CORs) responsible for monitoring contract performance, ensuring adherence to specifications, and verifying delivery schedules. Performance metrics and milestones would likely be established within the contract. Regular progress reports from Battelle Memorial Institute would be required. Furthermore, financial oversight would ensure that payments are made in accordance with the contract terms and that any economic price adjustments are justified and calculated correctly according to the contract's provisions. The Defense Contract Management Agency (DCMA) may also provide oversight depending on the contract's complexity and location.

What is Battelle Memorial Institute's track record with similar sole-source vehicle procurements for the Department of Defense?

Battelle Memorial Institute is a large, non-profit applied science and technology development company with a significant history of working with government agencies, including the Department of Defense (DoD). While they are known for research, development, and engineering services, their direct track record specifically in sole-source procurement of complete vehicle platforms like the OEM TLC models mentioned may be less common than their R&D or specialized systems integration work. They often partner with prime contractors or leverage their expertise in modifying existing platforms for specific mission requirements. Without access to a comprehensive contract database or specific details on Battelle's past sole-source awards for vehicle manufacturing, it's difficult to definitively assess their track record in this precise area. However, their established relationship with the DoD suggests a capacity to meet complex requirements.

How does the contract's duration of 210 days (approximately 7 months) align with the complexity of procuring and potentially modifying specialized vehicles?

A contract duration of 210 days for procuring and potentially modifying specialized vehicles like the OEM TLC76, TLC79, and TLC300 suggests a relatively streamlined process or that the vehicles may be largely off-the-shelf with minimal modifications. Procuring specific OEM models can sometimes be expedited if they are readily available. However, if significant modifications, testing, or integration of specialized equipment are required, 7 months could be a tight timeline, especially for a sole-source award where the contractor might not have had prior long-term production planning for this specific government order. The short duration could indicate an urgent operational need or that the primary effort is focused on delivery rather than extensive development. It also implies that Battelle Memorial Institute has the capacity to fulfill this requirement within the specified timeframe.

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: $7,528,940

Exercised Options: $7,528,940

Current Obligation: $7,528,940

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