DoD's $138M R&D Contract with Tecolote Research Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $138,369,406 ($138.4M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-01
End Date: 2026-02-28
Contract Duration: 2,372 days
Daily Burn Rate: $58.3K/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: ACQUISITION AND FINANCIAL SUPPORT FOLLOW-ON.
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $138.4 million to TECOLOTE RESEARCH, INC. for work described as: ACQUISITION AND FINANCIAL SUPPORT FOLLOW-ON. Key points: 1. The contract, awarded under full and open competition after exclusion of sources, raises questions about the initial exclusion process. 2. Tecolote Research, Inc. is the sole awardee, indicating a lack of broader market engagement. 3. The R&D focus in physical, engineering, and life sciences is a critical sector for defense innovation. 4. The contract's duration and value suggest a significant investment with potential long-term implications.
Value Assessment
Rating: questionable
The contract's value of $138.37 million over approximately 6.5 years requires careful benchmarking against similar R&D contracts. Without specific deliverables or performance metrics, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under 'full and open competition after exclusion of sources,' which is an unusual designation. This suggests that while competition was sought, specific sources may have been excluded initially, potentially limiting the breadth of competition and impacting price discovery.
Taxpayer Impact: The significant value of this contract means taxpayers are funding extensive R&D efforts. Ensuring the process maximized competition and achieved fair pricing is crucial for responsible stewardship of public funds.
Public Impact
Taxpayers are funding significant research and development in critical defense technologies. The contract's duration suggests a long-term commitment to a specific research path. The 'exclusion of sources' clause warrants further investigation to ensure fair competition. The lack of small business participation is noted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Competition concerns due to 'exclusion of sources'
- Lack of small business participation
- Unclear value for money without specific deliverables
Positive Signals
- Awarded under full and open competition
- Focus on critical R&D sector
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a high-priority area for the Department of Defense. Benchmarking R&D spending requires comparing contract values against the scope of research, project duration, and specific technological advancements sought.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as indicated by 'sb': false. This suggests that the prime contractor did not subcontract to small businesses or that the nature of the R&D work did not lend itself to small business participation.
Oversight & Accountability
The 'exclusion of sources' clause in the competition method requires scrutiny to ensure that the Department of Defense did not unduly limit the pool of potential bidders, thereby potentially impacting price and innovation. Robust oversight is needed to confirm the justification for any exclusions.
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 limited competition due to 'exclusion of sources'
- Lack of transparency in the initial source exclusion process
- Uncertainty regarding value for money without clear deliverables
- No small business participation noted
- Long contract duration may reduce flexibility
Tags
research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $138.4 million to TECOLOTE RESEARCH, INC.. ACQUISITION AND FINANCIAL SUPPORT FOLLOW-ON.
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 $138.4 million.
What is the period of performance?
Start: 2019-09-01. End: 2026-02-28.
What was the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding specific sources under a 'full and open competition after exclusion of sources' award typically relates to unique capabilities, proprietary data, or specific security requirements that only certain entities possess. Agencies must document these justifications thoroughly to demonstrate that the exclusion was necessary and did not unfairly restrict competition.
How does the $138.37 million contract value compare to similar R&D efforts in the physical and engineering sciences for defense applications?
Benchmarking this contract's value requires comparing it against other DoD contracts for R&D in similar fields, considering factors like project scope, duration, technological complexity, and expected outcomes. Without detailed project specifics, a precise comparison is difficult, but the amount suggests a substantial investment in advanced research.
What are the key performance indicators (KPIs) and deliverables for this contract to ensure effective use of taxpayer funds?
Effective use of taxpayer funds in R&D contracts hinges on clearly defined KPIs and measurable deliverables. These should outline expected scientific advancements, technological prototypes, or research milestones. Regular progress reviews against these metrics are essential for accountability and to ensure the contract is achieving its intended research objectives.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $212,392,503
Exercised Options: $212,390,503
Current Obligation: $138,369,406
Actual Outlays: $6,558,503
Subaward Activity
Number of Subawards: 71
Total Subaward Amount: $165,124,739
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: 2019-09-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-15
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