DARPA awards Battelle Memorial Institute $11.8M for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $11,855,332 ($11.9M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2021-09-17

End Date: 2026-09-09

Contract Duration: 1,818 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to BATTELLE MEMORIAL INSTITUTE for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract focuses on advanced research and development, aligning with DARPA's mission to foster innovation. 2. The contract type (Cost Plus Fixed Fee) suggests a focus on research where costs may be uncertain. 3. A duration of 1818 days indicates a long-term, complex research endeavor. 4. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', implying a specific justification for limiting initial bidders. 5. The North American Industry Classification System (NAICS) code 541715 points to a broad scope within R&D. 6. The awardee, Battelle Memorial Institute, is a known entity in the research and development sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. However, for complex R&D where the scope is not fully defined, this contract type can be appropriate. Further analysis would require understanding the specific research objectives and comparing Battelle's proposed costs against similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a specific reason or prior relationship that justified this approach. The number of bidders is not specified, but the exclusion of sources implies a potentially narrower competitive landscape than a truly 'full and open' competition.

Taxpayer Impact: The exclusion of sources may limit the potential for the most competitive pricing, as fewer entities were considered. Taxpayers may not benefit from the broadest possible price discovery in such a scenario.

Public Impact

This contract supports advanced scientific and technological research, potentially leading to breakthroughs in physical, engineering, and life sciences. The primary beneficiaries are likely the research community and the Department of Defense, through advancements in technology and capabilities. The geographic impact is centered in Ohio, where Battelle Memorial Institute is located, potentially supporting local high-skilled jobs. The contract fosters innovation and development within the R&D sector, contributing to the nation's technological competitiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' raises questions about the breadth of competition and potential for cost savings.
Cost Plus Fixed Fee contracts require diligent oversight to ensure cost efficiency and prevent scope creep.
The long duration of the contract necessitates sustained monitoring of progress and adherence to research objectives.

Positive Signals

Award to Battelle Memorial Institute, a reputable research organization, suggests a focus on quality and expertise.
The contract supports critical R&D for DARPA, aligning with national security and technological advancement goals.
The specific NAICS code indicates a focus on a well-defined area of scientific inquiry.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences R&D. This is a significant area of federal spending, particularly for agencies like DARPA that aim to develop cutting-edge technologies. The market for such specialized R&D services is competitive, with a mix of large research institutions and smaller specialized firms. Comparable spending benchmarks would depend heavily on the specific research area and deliverables, but federal R&D spending in this broad category is in the billions annually.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the nature of advanced R&D and the awardee, it is unlikely that small businesses are primary recipients, though they could potentially be involved as subcontractors. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under DARPA's program managers and contracting officers. As a Cost Plus Fixed Fee contract, rigorous financial and progress monitoring is essential. Transparency would be facilitated through standard federal contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DARPA Research Projects
Department of Defense Research and Development
Federal R&D Spending
Battelle Memorial Institute Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns inherent in CPFF contracts.
Need for robust oversight due to long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to BATTELLE MEMORIAL INSTITUTE. DARPA RESEARCH PROJECT

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2021-09-17. End: 2026-09-09.

What specific research objectives does this contract aim to achieve?

The provided data does not detail the specific research objectives of this DARPA contract. However, the NAICS code 541715 indicates the research falls under 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. DARPA's mission is to make pivotal early investments in breakthrough technologies for national security. Therefore, this contract likely supports exploratory research aimed at developing novel capabilities or understanding fundamental scientific principles with potential future defense applications. Without access to the contract's SOW (Statement of Work) or technical details, the precise nature of the research remains undisclosed in the public data.

How does the $11.8 million award compare to similar R&D contracts awarded by DARPA or other agencies?

Comparing the $11.8 million award requires context on the scope and duration. DARPA funds a wide range of R&D projects, from small, focused efforts costing hundreds of thousands to large, multi-year programs exceeding tens or hundreds of millions. A definitive contract of this value over approximately five years (1818 days) suggests a substantial, but not exceptionally large, research undertaking. To benchmark effectively, one would need to identify contracts with similar NAICS codes, contract types (like CPFF), and research areas. However, $11.8 million is a significant investment, indicative of a project with potentially high impact or complexity, fitting within the typical scale of DARPA's advanced technology development efforts.

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

The primary risk with a CPFF contract, especially for R&D, is cost overrun. While the contractor receives a fixed fee, the government bears the actual allowable costs. If the research proves more complex or expensive than initially estimated, the total cost to the government can escalate significantly. Another risk is 'scope creep,' where the project's objectives may expand without adequate adjustments to the fee or timeline, leading to increased costs. Contractor performance and efficiency are also risks; the fixed fee provides less incentive for cost-saving measures compared to fixed-price contracts. Robust government oversight is crucial to mitigate these risks by closely monitoring expenditures, progress, and adherence to the defined research scope.

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

Battelle Memorial Institute is a well-established and highly regarded non-profit applied science and technology development company with a long history of performing research and development for U.S. government agencies, including DARPA, the Department of Defense, and others. They consistently receive substantial federal funding for a wide array of research projects across various scientific and engineering disciplines. Their track record generally indicates strong technical capabilities and successful project execution. However, like any large contractor, specific contract performance can vary, and a detailed review of their past performance on similar DARPA contracts would provide a more granular assessment.

How does the 'Full and Open Competition After Exclusion of Sources' impact taxpayer value?

The 'Full and Open Competition After Exclusion of Sources' clause suggests that while the competition was intended to be open, specific potential bidders were deliberately excluded. The rationale for exclusion is not provided but could be based on factors like prior performance, specialized capabilities, or security requirements. This exclusion inherently limits the pool of competitors. While it might ensure that highly qualified or uniquely capable entities participate, it potentially reduces the competitive pressure that drives down prices. Taxpayers may therefore receive less value if the excluded sources could have offered a more competitive bid, or if the selected contractor does not face sufficient market pressure to optimize costs throughout the contract's lifecycle.

What is the significance of the 1818-day duration for this R&D contract?

A duration of 1818 days, approximately five years, is significant for an R&D contract. It indicates that the research is expected to be complex, long-term, and potentially involve multiple phases or developmental stages. Such durations are common for foundational research or technology maturation efforts where breakthroughs are not guaranteed on a short timeline. This extended period allows for in-depth investigation, iterative development, and adaptation to research findings. For taxpayers, a longer duration implies a sustained investment in a particular research area, suggesting a strategic commitment by DARPA to achieve specific, albeit potentially distant, technological goals.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001121S0014

Offers Received: 8

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: $12,845,563

Exercised Options: $12,845,563

Current Obligation: $11,855,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline