GSA awards $36.9M contract to Tecolote Research for R&D support services

Contract Overview

Contract Amount: $36,941,091 ($36.9M)

Contractor: Tecolote Research, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-12-01

End Date: 2026-12-10

Contract Duration: 1,105 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: MILCOMM PNT CG FINANCIAL SUPPORT SERVICES AAS

Place of Performance

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

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $36.9 million to TECOLOTE RESEARCH, INC. for work described as: MILCOMM PNT CG FINANCIAL SUPPORT SERVICES AAS Key points: 1. Contract provides critical financial support for R&D activities. 2. Tecolote Research, Inc. is the sole awardee. 3. Contract duration extends over three years. 4. The contract type is Firm Fixed Price, indicating defined costs. 5. Awarded under GSA's Federal Acquisition Service. 6. The North American Industry Classification System code is 541712. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $36.9 million over approximately three years appears reasonable for specialized R&D financial support services. Benchmarking against similar contracts for technical and management support in the R&D sector would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under full and open competition after exclusion of sources, indicating that while competition was sought, certain sources may have been excluded based on specific criteria. The presence of two bids suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved with broader participation. However, the fixed-price nature helps mitigate some risk.

Public Impact

Federal agencies requiring specialized financial support for research and development projects will benefit from these services. The contract facilitates the smooth execution of complex R&D initiatives. Services are likely to be delivered across various government research facilities. The contract supports a specialized workforce in financial analysis and R&D administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially lead to higher costs for taxpayers.
Lack of transparency regarding the exclusion of sources might raise concerns about fairness.

Positive Signals

Firm Fixed Price contract type helps control costs and manage budget.
Award to an established entity suggests a degree of reliability.
Contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. This is a critical area for government innovation and technological advancement. Spending in this sector often involves highly specialized expertise and can be subject to long-term investment cycles. Comparable spending benchmarks would typically be found within agency-specific R&D budgets and broader federal science and technology investment reports.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small business participation in this specific contract are likely limited. The focus is on a large prime contractor capable of handling complex R&D financial support services.

Oversight & Accountability

Oversight will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are inherent in the firm fixed-price contract type, which places the onus on the contractor to deliver within the agreed-upon cost. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Federal Research and Development Spending
Government Financial Management Services
Defense Research and Engineering Support
NASA Research Support Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns (mitigated by FFP)
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.9 million to TECOLOTE RESEARCH, INC.. MILCOMM PNT CG FINANCIAL SUPPORT SERVICES AAS

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 $36.9 million.

What is the period of performance?

Start: 2023-12-01. End: 2026-12-10.

What is Tecolote Research, Inc.'s track record with government contracts, particularly in R&D financial support?

Tecolote Research, Inc. has a history of performing services for various government agencies, including the Department of Defense and NASA. Their expertise often lies in program management, systems engineering, and financial analysis for complex technical programs. While specific details on past R&D financial support contracts would require deeper database analysis, their general profile suggests they are well-positioned for this type of work. Past performance reviews and contract awards can be found in federal procurement databases, which would offer insights into their reliability, quality of service, and adherence to contract terms.

How does the $36.9 million contract value compare to similar R&D financial support services contracts?

The $36.9 million contract value for approximately three years of R&D financial support services is within a typical range for specialized government contracting. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and complexity, as well as the specific agencies served. Factors such as the level of financial analysis required, the number of projects supported, and the specific R&D domains involved can significantly influence pricing. Without access to a detailed database of comparable contracts, it's difficult to definitively state if this represents excellent or fair value, but it does not appear to be an outlier.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost overruns (mitigated by the firm fixed-price structure), contractor performance issues (mitigated by GSA oversight and performance clauses), and the risk of insufficient competition leading to suboptimal pricing. The 'full and open competition after exclusion of sources' designation suggests a deliberate selection process, but the limited number of bidders (two) could indicate potential market concentration or barriers to entry. Mitigation strategies involve robust contract management, clear performance standards, and potentially future efforts to broaden the competitive landscape for similar services.

How effective is the GSA's Federal Acquisition Service in managing R&D support contracts?

The GSA's Federal Acquisition Service (FAS) is a major procurement entity within the government, responsible for a vast array of goods and services, including complex professional services like R&D support. FAS utilizes established procurement processes, including competitive bidding and contract administration, to ensure value and compliance. Their effectiveness is generally measured by their ability to procure necessary services efficiently, at competitive prices, and with minimal disruption. While specific performance metrics for FAS in managing R&D support contracts are not detailed here, their long-standing role suggests a functional capacity, though continuous improvement and oversight are always necessary.

What are the historical spending patterns for R&D financial support services by the General Services Administration?

The General Services Administration (GSA) procures a wide range of services, including financial and administrative support, across various federal agencies. Historical spending on R&D financial support services by GSA would be part of their broader contract portfolio. Analyzing GSA's spending trends would reveal the extent to which they rely on external contractors for such specialized functions, the average contract values, and the types of R&D sectors they typically support. This specific contract represents a portion of that historical spending, contributing to the overall trend of federal agencies outsourcing specialized support functions.

What is the significance of the NAICS code 541712 for this contract?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' precisely categorizes the nature of the services being procured. This code signifies that the contract is intended to fund and support scientific and engineering research and development activities that do not fall under the biotechnology umbrella. It helps in classifying the contract for statistical purposes, identifying the relevant industry sector, and potentially finding comparable contracts or companies operating within this specialized field.

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: 47QFPA23R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $166,427,409

Exercised Options: $58,435,911

Current Obligation: $36,941,091

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $14,886,523

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