Air Force awards $36.7M contract to Tecolote Research for nuclear weapons cost estimating
Contract Overview
Contract Amount: $36,669,962 ($36.7M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-16
End Date: 2023-07-15
Contract Duration: 1,825 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: R&D
Official Description: SERVICE CONTRACT TO DEVELOP, DOCUMENT, PRESENT, DELIVER, AND MAINTAIN COMPLETE, TIMELY, AND WELL SUPPORTED COST ESTIMATING PRODUCTS TO SUPPORT ACQUISITION AND SUSTAINMENT OF AIR FORCE NUCLEAR WEAPONS CENTER PROGRAMS.
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $36.7 million to TECOLOTE RESEARCH, INC. for work described as: SERVICE CONTRACT TO DEVELOP, DOCUMENT, PRESENT, DELIVER, AND MAINTAIN COMPLETE, TIMELY, AND WELL SUPPORTED COST ESTIMATING PRODUCTS TO SUPPORT ACQUISITION AND SUSTAINMENT OF AIR FORCE NUCLEAR WEAPONS CENTER PROGRAMS. Key points: 1. Contract focuses on critical cost estimating for Air Force nuclear programs. 2. Tecolote Research, Inc. is the sole awardee. 3. Spending spans five years, indicating a long-term need. 4. The sector is R&D, specifically focused on physical sciences and engineering.
Value Assessment
Rating: good
The contract value of $36.7 million over five years appears reasonable for specialized R&D services supporting complex nuclear weapons programs. Benchmarking against similar large-scale, long-term R&D contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher costs than a truly open competition.
Taxpayer Impact: Taxpayer funds are being used for specialized technical services essential for national security programs. The effectiveness of the competition method will influence the overall value for money.
Public Impact
Ensures accurate cost projections for vital Air Force nuclear programs. Supports the acquisition and sustainment lifecycle of nuclear weapons. Contributes to informed decision-making in defense budgeting and resource allocation. Highlights the government's reliance on specialized contractors for technical expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may reduce cost savings.
- Long-term contract duration requires ongoing performance monitoring.
Positive Signals
- Addresses a critical need for specialized R&D services.
- Supports national security through nuclear weapons program sustainment.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this area is crucial for technological advancement and maintaining a competitive edge in defense capabilities. Benchmarks for similar R&D contracts would be necessary for a precise comparison.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). The specialized nature of the work likely requires large, established firms with specific expertise, potentially limiting opportunities for small businesses in this particular procurement.
Oversight & Accountability
The contract's duration and specialized nature necessitate robust oversight to ensure deliverables meet requirements and costs remain justified. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for reduced competition impacting price.
- Long-term reliance on a single contractor.
- Complexity of nuclear weapons programs introduces inherent risks.
- Need for stringent oversight due to specialized nature.
Tags
research-and-development-in-the-physical, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.7 million to TECOLOTE RESEARCH, INC.. SERVICE CONTRACT TO DEVELOP, DOCUMENT, PRESENT, DELIVER, AND MAINTAIN COMPLETE, TIMELY, AND WELL SUPPORTED COST ESTIMATING PRODUCTS TO SUPPORT ACQUISITION AND SUSTAINMENT OF AIR FORCE NUCLEAR WEAPONS CENTER PROGRAMS.
Who is the contractor on this award?
The obligated recipient is TECOLOTE RESEARCH, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $36.7 million.
What is the period of performance?
Start: 2018-07-16. End: 2023-07-15.
What specific cost estimating products are being developed, and how do they improve upon existing methods for Air Force nuclear weapons programs?
The contract aims to develop, document, present, deliver, and maintain cost estimating products. These likely include sophisticated models, databases, and analytical tools designed to provide accurate, timely, and well-supported cost projections for the acquisition and sustainment phases of complex nuclear weapons programs. The improvement lies in providing enhanced data-driven insights for better acquisition decisions and budget planning, potentially reducing cost overruns and improving program efficiency.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the overall cost-effectiveness and risk mitigation for this contract?
This method implies that while the initial solicitation was open, certain sources were excluded, leading to a limited competition. This can increase risk by potentially excluding highly capable vendors or innovative solutions, and may reduce cost-effectiveness if the limited pool of bidders faces less pressure to offer competitive pricing. Effective price negotiation and justification are critical to mitigate these risks.
What are the key performance indicators (KPIs) used to measure the success and effectiveness of Tecolote Research's cost estimating products and services?
Key performance indicators likely include the accuracy and timeliness of cost estimates, the completeness and clarity of documentation, the successful delivery of products, and the overall support provided to acquisition and sustainment programs. Effectiveness would be measured by how well these products enable informed decision-making, contribute to budget adherence, and support the successful lifecycle management of Air Force nuclear weapons programs.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA820717R0004
Offers Received: 2
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
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: $41,597,161
Exercised Options: $41,395,860
Current Obligation: $36,669,962
Actual Outlays: $600,911
Subaward Activity
Number of Subawards: 122
Total Subaward Amount: $241,453,779
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
Start Date: 2018-07-16
Current End Date: 2023-07-15
Potential End Date: 2024-01-15 00:00:00
Last Modified: 2026-01-14
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