DoD's $12.6M INATS OXIME MCM PROD. DEV. contract awarded to Battelle Memorial Institute shows strong R&D focus

Contract Overview

Contract Amount: $12,588,258 ($12.6M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2022-06-30

Contract Duration: 1,372 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INATS OXIME MCM PROD. DEV.

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to BATTELLE MEMORIAL INSTITUTE for work described as: INATS OXIME MCM PROD. DEV. Key points: 1. Contract awarded for product development in a critical defense area, indicating a focus on advanced capabilities. 2. The contract's duration of 1372 days suggests a complex, multi-phase development process. 3. Awarded via full and open competition, implying a robust selection process among potential offerors. 4. The Cost Plus Fixed Fee (CPFF) pricing structure is common for R&D but requires careful oversight to manage costs. 5. The North American Industry Classification System (NAICS) code 541712 points to significant investment in physical, engineering, and life sciences research. 6. The contract's geographic focus on Ohio (OH) may indicate a concentration of specialized research facilities or workforce in that region.

Value Assessment

Rating: good

The contract value of approximately $12.6 million for product development in a specialized R&D area appears reasonable given the scope and duration. Benchmarking against similar advanced development contracts is challenging due to the specific nature of 'INATS OXIME MCM PROD. DEV.', but the fixed fee component suggests a defined profit margin for the contractor. The CPFF structure necessitates diligent monitoring of cost incurrence to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. The fact that it was competed suggests that multiple entities were capable of performing the required research and development. The level of competition, while not explicitly detailed by the number of bidders, generally leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive advanced product development for critical applications. The services delivered involve research and development, likely focusing on chemical, biological, radiological, and nuclear (CBRN) defense or related countermeasures. The geographic impact is concentrated in Ohio, where Battelle Memorial Institute is headquartered, potentially creating or sustaining high-skilled jobs in the region. Workforce implications include the employment of scientists, engineers, and technicians involved in advanced R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to ensure costs remain within reasonable bounds and do not escalate unnecessarily.
The specialized nature of the R&D may limit the number of potential follow-on contractors if knowledge transfer is not managed effectively.
Defining clear performance metrics for R&D can be challenging, potentially leading to ambiguity in assessing project success.

Positive Signals

Award through full and open competition suggests a thorough evaluation process and potential for innovative solutions.
The contractor, Battelle Memorial Institute, is a well-established research organization with a strong track record in defense-related R&D.
The contract's focus on product development indicates a move towards tangible outcomes and operational readiness.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is characterized by significant government investment, driven by national security needs. Companies like Battelle Memorial Institute are key players in this ecosystem, often collaborating with government agencies to advance technological capabilities. Comparable spending benchmarks in this niche are difficult to ascertain without more specific details on the 'INATS OXIME MCM PROD. DEV.' subject matter, but R&D contracts can range from millions to billions depending on complexity and strategic importance.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. Furthermore, the 'sb: false' flag suggests no specific subcontracting goals for small businesses were mandated within this award. This implies that the primary contractor, Battelle Memorial Institute, will likely manage the majority of the work internally or subcontract to other large businesses, potentially limiting direct opportunities for small businesses on this specific project.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures would involve regular progress reports, financial reviews, and performance evaluations against contract milestones. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Research and Development
Chemical, Biological, Radiological, and Nuclear (CBRN) Defense Programs
Advanced Materials Development
Product Innovation and Maturation

Risk Flags

Cost Plus Fixed Fee contract requires diligent cost oversight.
Specialized R&D may present technical challenges.
Potential for knowledge transfer risks in niche technology areas.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to BATTELLE MEMORIAL INSTITUTE. INATS OXIME MCM PROD. DEV.

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 Army).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2018-09-27. End: 2022-06-30.

What is the specific nature of 'INATS OXIME MCM PROD. DEV.' and its significance to national security?

The acronym 'INATS OXIME MCM PROD. DEV.' likely refers to a specific product development initiative related to countermeasures or detection systems for chemical, biological, radiological, or nuclear (CBRN) threats. 'INATS' could denote an 'Integrated Non-Traditional' system, 'OXIME' might relate to a chemical compound class used in antidotes or detection, and 'MCM' could stand for 'Missile Countermeasures' or 'Medical Countermeasures'. 'PROD. DEV.' clearly indicates product development. The significance to national security lies in enhancing the protection of military personnel and potentially civilian populations against evolving CBRN threats. Such developments are critical for maintaining operational readiness and responding effectively to WMD incidents.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of risk and value?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development contracts where the scope of work can be uncertain or evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This structure shifts some cost risk to the government, as the final cost is not predetermined. However, the fixed fee provides the contractor with a predictable profit margin. Compared to fixed-price contracts, CPFF offers more flexibility for R&D but requires robust government oversight to control costs. Compared to Cost Plus Incentive Fee (CPIF), the profit is fixed regardless of performance, potentially offering less incentive for cost efficiency unless coupled with strong performance metrics.

What is Battelle Memorial Institute's track record in similar defense R&D contracts?

Battelle Memorial Institute is a highly reputable non-profit applied science and technology development company with extensive experience in defense-related research and development. They have a long history of working with various branches of the U.S. military and intelligence agencies on complex projects, including areas like CBRN defense, advanced materials, autonomous systems, and cybersecurity. Their track record includes developing and transitioning numerous technologies from concept to fielded systems. Given their established expertise and facilities, Battelle is a logical choice for specialized R&D initiatives like the INATS OXIME MCM PROD. DEV. contract, suggesting a lower performance risk associated with their selection.

What are the potential performance risks associated with this contract, and how might they be mitigated?

Potential performance risks for this R&D contract include technical challenges in achieving desired product specifications, delays in development timelines, and difficulties in scaling up production. The specialized nature of the 'INATS OXIME MCM PROD. DEV.' could also pose a risk if key personnel or critical knowledge are not retained. Mitigation strategies would involve rigorous project management, clear definition of milestones and deliverables, regular technical reviews, and proactive risk assessment by both the government and the contractor. Establishing strong communication channels and fostering a collaborative relationship between the government program office and Battelle are crucial for early identification and resolution of potential issues.

How does the $12.6 million award compare to historical spending on similar defense R&D initiatives?

The $12.6 million award for 'INATS OXIME MCM PROD. DEV.' represents a moderate investment for a specific product development effort within the defense R&D sector. While precise comparisons are difficult without knowing the exact technological domain, this amount is typical for advanced technology development projects that are beyond basic research but not yet full-scale production. Larger, more complex R&D programs, especially those involving system integration or major technological breakthroughs, can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused research tasks might be awarded for sums in the low millions. This contract appears to be a significant, but not exceptionally large, investment in a specialized capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QY18R0043

Offers Received: 1

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: $14,177,907

Exercised Options: $14,177,907

Current Obligation: $12,588,258

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $4,546,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU402

IDV Type: IDC

Timeline