DoD's $19M Helicopter Icing Spray System contract awarded to Battelle Memorial Institute faced full and open competition

Contract Overview

Contract Amount: $19,082,034 ($19.1M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2011-06-09

End Date: 2017-03-31

Contract Duration: 2,122 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OBJECTIVE HELICOPTER ICING SPRAY SYSTEM (OHISS) CLOUD GENERATION SYSTEM AND DEVELOPMENT

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to BATTELLE MEMORIAL INSTITUTE for work described as: OBJECTIVE HELICOPTER ICING SPRAY SYSTEM (OHISS) CLOUD GENERATION SYSTEM AND DEVELOPMENT Key points: 1. The contract aimed to develop an Objective Helicopter Icing Spray System (OHISS) for cloud generation. 2. Awarded in 2011, the contract spanned over six years, concluding in March 2017. 3. The total value of the contract was approximately $19.1 million. 4. Battelle Memorial Institute, the sole awardee, has a history of government contracting. 5. The contract type was Cost Plus Fixed Fee (CPFF), indicating potential for cost overruns. 6. The North American Industry Classification System (NAICS) code 336413 points to aircraft parts manufacturing. 7. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

The contract's value of $19.1 million for a specialized system development is difficult to benchmark without more specific performance data. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs than fixed-price contracts if not managed carefully. However, for research and development efforts where costs are uncertain, CPFF can be appropriate. Further analysis would require comparing the delivered system's capabilities and performance against the initial objectives and any similar systems developed by other entities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With four bids received, the competition level appears adequate for a specialized development contract. This suggests that the government likely received competitive pricing and a range of technical solutions, although the specific details of the bids are not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.

Public Impact

The primary beneficiaries are the Department of Defense, specifically aviation units that require enhanced helicopter operational capabilities in icing conditions. The contract delivered a cloud generation system for testing and development of the Objective Helicopter Icing Spray System (OHISS). The geographic impact is primarily within the United States, where research and development activities were conducted and where the system is intended for deployment. Workforce implications include specialized engineers, scientists, and technicians involved in the research, development, and testing phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
The extended duration of the contract (2122 days) may indicate complexities or potential delays in development.
Lack of specific performance metrics makes it challenging to fully assess value for money.
The specialized nature of the system might limit the pool of potential future contractors, impacting future competition.
The contract was awarded to a single entity, Battelle Memorial Institute, which could raise concerns about market concentration if similar systems are needed in the future.

Positive Signals

Awarded under full and open competition, suggesting a fair and broad solicitation process.
Received multiple bids (4), indicating interest and a degree of competition in the market.
The contract addresses a specific, critical need for helicopter operations in icing conditions.
Battelle Memorial Institute is a reputable research and development organization with government contracting experience.
The contract duration, while long, allowed for comprehensive development and testing of a complex system.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized aviation systems is often characterized by high barriers to entry due to technological complexity and stringent regulatory requirements. Spending in this area is driven by the need for advanced capabilities to ensure operational effectiveness in challenging environments. Comparable spending benchmarks would involve other R&D contracts for specialized aviation components or systems.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the specialized nature of the OHISS development, it is likely that the prime contractor, Battelle Memorial Institute, utilized its own internal expertise or subcontracted with other specialized firms rather than small businesses. Further investigation would be needed to determine if any small business participation occurred.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions. Accountability measures would include regular progress reports, financial reviews, and technical milestone assessments. Transparency is generally maintained through contract award databases and public reporting, though detailed project specifics may be limited due to security or proprietary concerns.

Related Government Programs

Helicopter Component Manufacturing
Aerospace Research and Development
Defense Aviation Systems
Aircraft Parts and Auxiliary Equipment

Risk Flags

Cost Plus Fixed Fee contract type
Long contract duration
Specialized technology development

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to BATTELLE MEMORIAL INSTITUTE. OBJECTIVE HELICOPTER ICING SPRAY SYSTEM (OHISS) CLOUD GENERATION SYSTEM AND DEVELOPMENT

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2011-06-09. End: 2017-03-31.

What was the specific performance of Battelle Memorial Institute on this contract?

Detailed performance metrics for Battelle Memorial Institute on the OHISS contract are not publicly available in the provided data. However, the contract was awarded under a Cost Plus Fixed Fee (CPFF) structure, which implies that the contractor was reimbursed for allowable costs plus a fixed fee representing profit. The successful completion of the contract, as indicated by its end date, suggests that the development objectives were met to a degree acceptable by the Department of Defense. Further assessment would require access to government performance reports, technical reviews, and final acceptance documentation.

How does the $19.1 million cost compare to similar helicopter icing system development contracts?

Direct comparisons for the $19.1 million cost of the OHISS development are challenging without access to a database of similar, contemporaneous contracts for specialized helicopter icing spray systems or cloud generation technology. The uniqueness of the OHISS system and its specific development phase (R&D) mean that cost benchmarks are not readily available. Factors influencing cost include the complexity of the technology, the duration of development, and the specific performance requirements. Generally, R&D contracts for novel defense systems can vary significantly in cost based on these factors.

What were the primary risks associated with this contract, and how were they managed?

The primary risks associated with this contract likely included technological uncertainty (developing a novel system), cost overruns due to the CPFF structure, schedule delays, and potential performance issues with the developed system. Risk management would have involved close monitoring by the DCMA, regular technical reviews, adherence to development milestones, and potentially incorporating incentive clauses or performance-based metrics within the CPFF framework. The extended duration (2122 days) suggests that managing schedule and technical risks was a significant undertaking.

How effective was the 'full and open competition' in ensuring value for money?

The 'full and open competition' process, which resulted in four bids, is a positive indicator for value for money as it theoretically allows the government to select the best technical solution at a competitive price. However, the CPFF contract type introduces inherent cost uncertainty. While competition helps establish a baseline, the ultimate value for money depends on the contractor's efficiency in managing costs and the effectiveness of the government's oversight in controlling expenditures throughout the contract's lifecycle. Without detailed bid information or post-award cost performance data, a definitive assessment of value realization is difficult.

What is the historical spending pattern for OHISS or similar systems by the Department of Defense?

Historical spending patterns for the specific Objective Helicopter Icing Spray System (OHISS) are not detailed in the provided data. However, the Department of Defense (DoD) consistently invests in aviation technology to enhance operational capabilities in diverse weather conditions. Spending on systems related to icing detection, prevention, and mitigation, including specialized spray systems and cloud generation for testing, is a recurring requirement. The $19.1 million awarded to Battelle Memorial Institute represents a specific investment in R&D for this capability, and broader DoD spending in aviation R&D is substantial, often in the billions annually across various programs.

What is the significance of the NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing)?

The NAICS code 336413 signifies that the primary business activity related to this contract involves the manufacturing of parts and auxiliary equipment for aircraft, not necessarily complete aircraft. This includes components, subassemblies, and specialized equipment like the OHISS cloud generation system. This classification indicates that the contract's output is a component or system that supports broader aviation platforms, aligning with the development of specialized equipment for helicopters rather than the manufacturing of the helicopters themselves.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK10R0016

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, 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: $19,082,034

Exercised Options: $19,082,034

Current Obligation: $19,082,034

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,928,019

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline