DoD's $42M CALS EMD Contract with Battelle Memorial Institute Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $41,983,884 ($42.0M)
Contractor: Battelle Memorial Institute
Awarding Agency: Department of Defense
Start Date: 2015-04-30
End Date: 2020-09-30
Contract Duration: 1,980 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: IGF::OT::IGF, COMMON ANALYTICAL LABORATORY SYSTEMS (CALS) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD)
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43201
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGF, COMMON ANALYTICAL LABORATORY SYSTEMS (CALS) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) Key points: 1. The contract, valued at $41.98 million, focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded to Battelle Memorial Institute, a single entity, under a definitive contract. 3. The contract duration was 1980 days, spanning from April 2015 to September 2020. 4. The specific PSC code is missing, making direct sector benchmarking difficult. 5. This contract falls under the Department of the Army within the Department of Defense.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. The total award amount is $41.98 million.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism are not provided.
Taxpayer Impact: Taxpayer funds were used for research and development, with the ultimate benefit depending on the success of the CALS EMD project.
Public Impact
Supports the Department of Defense's research and development initiatives. Potential for technological advancements in engineering and manufacturing. Funds allocated to a single contractor, Battelle Memorial Institute. Contract duration indicates a significant, multi-year project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Missing PSC code hinders detailed benchmarking.
- CPIF contract type carries inherent cost escalation risk.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Supports critical R&D for the Department of Defense.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Without a specific PSC code, it's difficult to provide precise sector spending benchmarks, but R&D contracts can vary significantly in cost and scope.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false).
Oversight & Accountability
Oversight would typically be managed by the Department of the Army contracting officers. The CPIF structure necessitates close monitoring of costs and performance to ensure value for taxpayer money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of specific PSC code for precise benchmarking.
- CPIF contract type introduces cost overrun risk.
- Absence of detailed performance metrics hinders value assessment.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGF, COMMON ANALYTICAL LABORATORY SYSTEMS (CALS) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD)
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 $42.0 million.
What is the period of performance?
Start: 2015-04-30. End: 2020-09-30.
What were the key performance objectives and milestones for the CALS EMD project, and how were they measured to justify the incentive fee structure?
The specific performance objectives and milestones for the CALS EMD project are not detailed in the provided data. A Cost Plus Incentive Fee (CPIF) contract implies that the contractor, Battelle Memorial Institute, would receive a target cost, a target fee, and a share ratio. The final fee would be adjusted based on achieving or exceeding certain performance targets. Without knowing these targets, it's impossible to assess if the incentive structure effectively drove desired outcomes or if the fee paid was justified by performance.
Given the CPIF contract type and the $41.98 million award, what was the potential for cost overruns, and what mechanisms were in place to mitigate this risk?
CPIF contracts inherently carry a risk of cost overruns because the contractor is incentivized to incur costs to achieve performance targets, with the government sharing in the cost savings or overruns. For this $41.98 million contract, the specific share ratio between the government and Battelle Memorial Institute would determine the extent of cost overrun risk for taxpayers. Effective mitigation would rely on robust government oversight, clear definition of performance metrics, and potentially cost ceilings within the contract terms.
How did the 'full and open competition' process ensure the best value was obtained for the government in selecting Battelle Memorial Institute for this R&D effort?
A 'full and open competition' process typically involves soliciting offers from all responsible sources and ensuring a fair and equitable evaluation of proposals. For this R&D contract, the government likely evaluated proposals based on a combination of technical merit, past performance, and price. The selection of Battelle Memorial Institute suggests their proposal best met the government's requirements and offered the best overall value, balancing technical capabilities with cost considerations within the CPIF framework.
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: RESEARCH AND DEVELOPMENT › Community and Regional Development R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911SR14R0002
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $53,950,699
Exercised Options: $53,950,699
Current Obligation: $41,983,884
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $32,079,684
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2023-09-14
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