GSA awards $15.3M contract to Tecolote Research for R&D cost estimating services

Contract Overview

Contract Amount: $15,347,537 ($15.3M)

Contractor: Tecolote Research, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-01-12

End Date: 2026-01-11

Contract Duration: 730 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COST ESTIMATING SERVICES IN SUPPORT OF FINANCIAL MANAGEMENT AND SPACE SENSING DIRECTORATES

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $15.3 million to TECOLOTE RESEARCH, INC. for work described as: COST ESTIMATING SERVICES IN SUPPORT OF FINANCIAL MANAGEMENT AND SPACE SENSING DIRECTORATES Key points: 1. Contract focuses on specialized cost estimating for financial management and space sensing. 2. Tecolote Research, Inc. is the sole awardee under full and open competition. 3. Performance period spans two years, indicating a need for ongoing support. 4. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 5. This award falls under R&D in Physical, Engineering, and Life Sciences. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking this specific contract's value is challenging without more detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure means the government pays for actual costs plus a fixed fee, which can lead to cost overruns if not managed carefully. Comparing it to similar R&D cost estimating services would require access to more granular data on labor hours, rates, and overhead applied by other firms for comparable tasks. The total value of $15.3 million over two years suggests a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was generally open, specific sources may have been excluded for defined reasons, or it could be a specific clause within a broader full and open competition. The number of bidders is not specified, but the 'full and open' designation suggests a competitive process was intended.

Taxpayer Impact: A full and open competition generally aims to achieve the best value for taxpayers by allowing a wide range of qualified contractors to bid, potentially driving down prices through market forces.

Public Impact

The primary beneficiaries are the GSA's Financial Management and Space Sensing Directorates, which will receive expert cost estimating support. This support is crucial for accurate budgeting, program planning, and financial oversight of complex R&D initiatives. The services delivered will enhance the government's ability to make informed decisions on resource allocation for space sensing technologies and financial operations. The contract supports specialized technical expertise within the federal acquisition workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type introduces potential for cost growth if not rigorously monitored.
Limited transparency on the specific exclusion of sources within the 'full and open' competition.
Scope of work for 'space sensing' is broad and could encompass high-risk R&D areas.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
Tecolote Research, Inc. likely possesses specialized expertise in R&D cost estimating.
The contract duration of two years allows for sustained support and relationship building.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The market for R&D cost estimating services is specialized, serving government agencies and large corporations that require expert analysis for complex projects. Comparable spending benchmarks are difficult to establish without knowing the specific sub-disciplines within space sensing and the exact nature of the financial management support required. However, R&D services represent a significant portion of federal contracting.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a specialized R&D service, the prime contractor is likely a large business with the necessary expertise. Further investigation would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

Oversight will likely be managed by the contracting officers and program managers within the GSA's Federal Acquisition Service and the relevant directorates. Accountability measures would be tied to the delivery of accurate cost estimates and adherence to the contract's terms and conditions. Transparency is generally facilitated through contract award databases, though detailed cost breakdowns may be proprietary.

Related Government Programs

NASA R&D Contracts
DoD Cost Analysis Support
Federal Budgeting and Financial Management Services
Space Technology Development Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Need for detailed oversight of allowable costs.
Ambiguity in 'Full and Open Competition After Exclusion of Sources' clause.
Broad scope of 'space sensing' requires careful definition and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.3 million to TECOLOTE RESEARCH, INC.. COST ESTIMATING SERVICES IN SUPPORT OF FINANCIAL MANAGEMENT AND SPACE SENSING DIRECTORATES

Who is the contractor on this award?

The obligated recipient is TECOLOTE RESEARCH, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2024-01-12. End: 2026-01-11.

What is Tecolote Research, Inc.'s track record with federal cost estimating contracts, particularly for R&D and space-related programs?

Tecolote Research, Inc. has a significant history of supporting federal agencies, including NASA and the Department of Defense, with cost estimating and program analysis services. Their expertise often spans complex engineering and R&D projects. While specific contract details for every award are not publicly available, their presence in this specialized field suggests a substantial portfolio of relevant experience. For this particular contract, the General Services Administration (GSA) likely vetted their capabilities and past performance during the procurement process. Further analysis would involve reviewing historical contract awards to GSA and other agencies for similar services to assess the scale and nature of their previous work, looking for patterns in contract types, values, and performance ratings.

How does the $15.3 million value compare to similar R&D cost estimating contracts awarded by GSA or other agencies?

The $15.3 million value over two years for R&D cost estimating services is substantial, indicating a significant scope of work. To benchmark this, one would compare it against other contracts for similar services, such as program support, financial analysis, and specialized engineering consulting, awarded to firms with comparable expertise. For instance, contracts supporting NASA's major space programs or DoD's advanced research projects often involve multi-million dollar cost estimating components. Without specific details on the deliverables and the complexity of the 'space sensing' and 'financial management' directorates supported, a direct comparison is difficult. However, this value suggests a high level of specialized support is required, potentially involving complex modeling and analysis.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns. While the contractor is paid for actual allowable costs plus a fixed fee, the government bears the risk of cost increases if the project scope expands or unforeseen technical challenges arise. The contractor has less incentive to control costs compared to fixed-price contracts, as their fee is predetermined. For cost estimating services, this could manifest if the complexity of the programs being estimated is underestimated, leading to increased labor hours and expenses. Robust government oversight, clear definition of the fee structure, and stringent monitoring of allowable costs are crucial to mitigate these risks and ensure value for money.

What is the expected impact of this contract on the government's ability to manage its R&D investments in space sensing?

This contract is expected to significantly enhance the government's ability to manage its R&D investments in space sensing by providing expert, independent cost analysis. Accurate cost estimates are fundamental for effective budgeting, resource allocation, and program planning. By leveraging Tecolote Research's expertise, the GSA and potentially other agencies relying on these estimates can gain a clearer understanding of the financial implications of various space sensing initiatives. This improved financial foresight can lead to more realistic program goals, better risk management, and ultimately, more efficient use of taxpayer funds in developing and acquiring critical space technologies.

How has GSA's spending on R&D cost estimating services evolved over the past five years?

Analyzing GSA's spending evolution on R&D cost estimating services requires accessing historical contract data. Generally, federal spending on R&D and associated support services tends to fluctuate based on national priorities, technological advancements, and budget allocations. For GSA, which acts as a procurement agent for many agencies, spending on such services would likely mirror broader trends in federal R&D investment. An increase in spending might indicate a growing emphasis on complex R&D projects, particularly in areas like space sensing, or a strategic decision to bolster internal cost estimating capabilities. Conversely, a decrease could suggest shifts in agency priorities or a move towards different contracting mechanisms. Detailed analysis would involve querying federal procurement databases for relevant NAICS codes and contract types awarded by GSA.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA23R0008

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 420 S FAIRVIEW AVE STE 201, GOLETA, CA, 93117

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,180,794

Exercised Options: $26,892,828

Current Obligation: $15,347,537

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,286,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS619

IDV Type: IDC

Timeline