DoD's $21.7M Battelle contract for RAIDIR program studies shows R&D focus with long-term performance period

Contract Overview

Contract Amount: $21,747,387 ($21.7M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2023-02-17

End Date: 2028-02-16

Contract Duration: 1,825 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PERFORMANCE OF STUDIES IN SUPPORT OF THE CET-RAIDIR PROGRAM.

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to BATTELLE MEMORIAL INSTITUTE for work described as: PERFORMANCE OF STUDIES IN SUPPORT OF THE CET-RAIDIR PROGRAM. Key points: 1. Contract awarded for research and development, aligning with specialized scientific needs. 2. Full and open competition suggests a robust bidding process for this requirement. 3. Long duration of 5 years indicates a sustained need for ongoing research support. 4. Cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor. 5. Focus on the RAIDIR program points to specific defense technology development objectives. 6. The contract's value is moderate within the broader R&D landscape.

Value Assessment

Rating: good

The contract value of approximately $21.7 million over five years for R&D services appears reasonable. While direct comparisons are difficult without more specific service benchmarks, the cost-plus-fixed-fee (CPFF) pricing structure is common for research and development where exact costs are uncertain. This structure aims to provide the contractor with a reasonable profit while incentivizing them to control costs. The total value should be assessed against the scope and complexity of the studies required for the CET-RAIDIR program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the use of this procurement method suggests a healthy level of interest and capability in the market for these specialized R&D services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of obtaining the best value by encouraging a wide range of offers and driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Army, which will receive research and development support for the CET-RAIDIR program. Services delivered include studies and research crucial for advancing defense technologies. The geographic impact is centered in Ohio, where Battelle Memorial Institute is located, but the research outcomes have national defense implications. The contract supports a specialized workforce in research and development, contributing to scientific and engineering expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Scope creep could increase the total cost if research objectives are not clearly defined and managed.
Dependence on a single contractor for critical R&D phases could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and fair pricing.
Long-term contract duration (5 years) indicates a stable and predictable research partnership.
Cost-plus-fixed-fee structure provides a defined profit margin, potentially encouraging focus on research quality.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by significant government investment, specialized expertise, and long development cycles. Companies like Battelle are key players in this ecosystem, providing advanced research capabilities to government agencies. Comparable spending benchmarks would involve looking at other DoD contracts for similar scientific research and analysis services.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Given the specialized nature of the R&D services and the prime contractor (Battelle Memorial Institute), it is possible that subcontracting opportunities for small businesses might be limited unless specific requirements are identified within the SOW. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Army. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable to the contract. Performance reviews will be critical to ensure the research meets the objectives of the CET-RAIDIR program. Transparency is generally maintained through contract reporting requirements, though specific public access to research findings may be restricted due to national security considerations.

Related Government Programs

Department of Defense Research and Development Programs
Army Combat Capabilities Development Command (DEVCOM)
Advanced Technology Development Contracts
Scientific and Technical Support Services

Risk Flags

Cost Overrun Potential (CPFF Structure)
Scope Definition and Management
Long-Term Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to BATTELLE MEMORIAL INSTITUTE. PERFORMANCE OF STUDIES IN SUPPORT OF THE CET-RAIDIR PROGRAM.

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 $21.7 million.

What is the period of performance?

Start: 2023-02-17. End: 2028-02-16.

What is the historical spending pattern for the CET-RAIDIR program, and how does this contract fit within that trend?

Historical spending data for the CET-RAIDIR program is not directly available in the provided information. However, this contract, valued at approximately $21.7 million over five years, represents a significant investment in research and development for the program. The duration suggests a sustained effort rather than a one-off project. To understand its trend, one would need to examine past contracts awarded for RAIDIR program support, looking at both value and duration to see if this represents an increase, decrease, or continuation of previous investment levels. Without that context, it's difficult to definitively place it within a historical trend, but its substantial value and long performance period indicate a commitment to the program's objectives.

How does Battelle Memorial Institute's track record with the Department of Defense influence the risk assessment of this contract?

Battelle Memorial Institute is a well-established research and development organization with extensive experience working with government agencies, including the Department of Defense. Their long history and specialized expertise in various scientific and engineering fields suggest a low risk of contractor failure or inability to perform. DoD contracts often involve complex technical challenges, and Battelle's proven track record indicates a high likelihood of successful project execution. However, as with any CPFF contract, the risk of cost overruns remains a factor that requires diligent oversight, regardless of the contractor's reputation. Their familiarity with government contracting processes also reduces administrative and compliance risks.

What are the key performance indicators (KPIs) likely to be used to evaluate the success of this R&D contract?

For an R&D contract like this, key performance indicators (KPIs) would likely focus on the successful completion of research objectives, adherence to timelines, and the quality of deliverables. Specific KPIs could include the timely delivery of research reports, the successful validation of hypotheses or technologies developed, the achievement of technical milestones outlined in the Statement of Work (SOW), and the overall scientific rigor of the studies conducted. For a Cost Plus Fixed Fee contract, managing costs within the estimated range, while not a direct performance KPI for the research itself, is crucial for overall contract value. The 'value for money' aspect would be assessed based on whether the research outcomes provide a significant advancement or solution relevant to the CET-RAIDIR program's goals.

Can the Cost Plus Fixed Fee (CPFF) structure be considered advantageous or disadvantageous for this specific R&D requirement?

The Cost Plus Fixed Fee (CPFF) structure is often used for R&D contracts where the scope of work is not precisely defined at the outset, or where innovation and exploration are key. For this contract supporting the CET-RAIDIR program, CPFF can be advantageous because it allows flexibility for the contractor to pursue research avenues that may emerge during the study period, without being strictly penalized for cost deviations if they are reasonable and documented. It provides the contractor with a guaranteed profit margin (the fixed fee), incentivizing them to perform the work. However, it can be disadvantageous for the government if not managed rigorously, as it places the burden of cost control on the contracting officer and program team. There is a risk of the contractor incurring higher costs than anticipated, which the government must cover, plus the fixed fee.

What is the potential impact of this contract on the broader defense technology research landscape?

This contract, focused on studies for the CET-RAIDIR program, contributes to the advancement of specific defense technologies. The research conducted by Battelle Memorial Institute could lead to innovations that enhance military capabilities, improve operational effectiveness, or provide new solutions to existing defense challenges. The outcomes of these studies may influence future technology development roadmaps, inform strategic planning within the DoD, and potentially lead to the development of new systems or upgrades. By investing in targeted R&D, the DoD aims to maintain a technological edge, and contracts like this are crucial mechanisms for achieving that objective within the broader defense technology research landscape.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $49,500,000

Exercised Options: $49,500,000

Current Obligation: $21,747,387

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $5,496,548

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