DoD's $25.2M Space Systems Contract Awarded to Tecolote Research, Inc. for R&D Support
Contract Overview
Contract Amount: $25,202,916 ($25.2M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-01
End Date: 2026-08-31
Contract Duration: 1,095 days
Daily Burn Rate: $23.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SPACE SYSTEMS COMMAND ACQUISITION AND FINANCIAL SUPPORT SERVICE
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87102
Plain-Language Summary
Department of Defense obligated $25.2 million to TECOLOTE RESEARCH, INC. for work described as: SPACE SYSTEMS COMMAND ACQUISITION AND FINANCIAL SUPPORT SERVICE Key points: 1. The contract is for acquisition and financial support services for space systems. 2. Tecolote Research, Inc. is the sole awardee, indicating a lack of competition. 3. The R&D focus is on physical, engineering, and life sciences, excluding nano/biotech. 4. The contract duration is 3 years, with a total value of $25.2 million.
Value Assessment
Rating: questionable
Pricing information is not available for this contract. Without a competitive bidding process, it is difficult to assess if the pricing is fair and reasonable compared to market rates for similar R&D support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The specialized nature of space systems R&D support means limited contractors may possess the required expertise. The Department of Defense relies on this contract for critical acquisition and financial support for space systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited transparency on pricing
- Potential for cost overruns
Positive Signals
- Supports critical space systems acquisition
- Long-term contract provides stability
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding nanotechnology and biotechnology. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
There is no indication that small businesses were involved in this contract award. The focus appears to be on specialized R&D support, which may favor larger, established firms.
Oversight & Accountability
Oversight is crucial for this contract, especially given the limited competition. The Department of Defense should ensure robust monitoring of performance and costs to maintain accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of detailed pricing justification
- Potential for cost overruns
- Limited oversight visibility
Tags
research-and-development-in-the-physical, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to TECOLOTE RESEARCH, INC.. SPACE SYSTEMS COMMAND ACQUISITION AND FINANCIAL SUPPORT SERVICE
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 $25.2 million.
What is the period of performance?
Start: 2023-09-01. End: 2026-08-31.
What specific factors led to this contract being designated as 'not available for competition'?
The designation 'not available for competition' typically arises when only one responsible source is capable of providing the required services, or when there's a compelling urgency that precludes a competitive process. For specialized R&D support in complex fields like space systems, unique expertise or proprietary technology held by a single entity might necessitate a sole-source award.
How will the Department of Defense ensure cost-effectiveness without a competitive bidding process?
Without competition, cost-effectiveness relies heavily on robust negotiation, detailed cost analysis, and stringent performance monitoring. The DoD should employ experienced contract specialists to scrutinize Tecolote Research's proposed costs, establish clear performance metrics, and conduct regular audits to ensure the government receives fair value for its investment.
What are the potential risks associated with awarding a significant R&D contract on a sole-source basis?
The primary risks include inflated pricing due to lack of market pressure, potential for complacency from the contractor regarding innovation and efficiency, and a missed opportunity to foster competition and develop a broader base of qualified suppliers. There's also a risk that the government might not be aware of more cost-effective or innovative solutions available elsewhere.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 420 S FAIRVIEW AVE, GOLETA, CA, 93117
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,916,217
Exercised Options: $34,665,334
Current Obligation: $25,202,916
Actual Outlays: $559,761
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $8,298,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA880923DB001
IDV Type: IDC
Timeline
Start Date: 2023-09-01
Current End Date: 2026-08-31
Potential End Date: 2028-08-31 00:00:00
Last Modified: 2026-01-12
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