DoD's Air Force awards $23.3M for acquisition and financial services to support Space Force mission

Contract Overview

Contract Amount: $23,342,597 ($23.3M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-07

End Date: 2026-08-31

Contract Duration: 662 days

Daily Burn Rate: $35.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS EFFORT REQUESTS CONTINUED SUPPORT SDACP ACQUISITION AND FINANCIAL SERVICES 3 SAFS3 UNDER IDIQ CONTRACT FA880923DB001. THIS EFFORT REQUESTS AA AND AS CONSISTING OF ACQUISITION AND FINANCIAL SERVICES IN SUPPORT OF THE SSC SZ MISSION.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to TECOLOTE RESEARCH, INC. for work described as: THIS EFFORT REQUESTS CONTINUED SUPPORT SDACP ACQUISITION AND FINANCIAL SERVICES 3 SAFS3 UNDER IDIQ CONTRACT FA880923DB001. THIS EFFORT REQUESTS AA AND AS CONSISTING OF ACQUISITION AND FINANCIAL SERVICES IN SUPPORT OF THE SSC SZ MISSION. Key points: 1. Contract provides essential acquisition and financial support for critical Space Force operations. 2. The contract is a cost-plus-fixed-fee type, which can lead to cost overruns if not managed carefully. 3. The duration of 662 days suggests a medium-term need for these specialized services. 4. The specific NAICS code (541715) indicates a focus on R&D in physical, engineering, and life sciences. 5. The contract is a delivery order under an existing IDIQ, implying a pre-established relationship and framework. 6. The awardee, Tecolote Research, Inc., has a track record in supporting government R&D and acquisition efforts.

Value Assessment

Rating: fair

The contract value of $23.3 million over approximately 22 months represents a significant investment in specialized support services. Benchmarking this against similar contracts for acquisition and financial support within the Department of Defense is challenging without more specific service details. However, the cost-plus-fixed-fee structure warrants careful monitoring to ensure costs remain within reasonable bounds and do not escalate beyond initial projections. The absence of a clear per-unit cost makes direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one contractor was solicited and awarded the contract. While sole-source awards can be justified for specialized expertise or urgent needs, they limit price discovery and potentially reduce competitive pressure that could drive down costs for the government. The lack of competition here means taxpayers do not benefit from the potential cost savings that a competitive bidding process might yield.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for these services, as there was no opportunity for multiple vendors to bid and offer more cost-effective solutions.

Public Impact

The primary beneficiaries are the Space Force (SSC SZ mission) and the Department of the Air Force, receiving critical acquisition and financial services. Services delivered include acquisition support and financial services, essential for the operational readiness and management of complex space programs. The geographic impact is primarily within California, where the contract is managed or services are potentially delivered. Workforce implications include the employment of skilled professionals in acquisition, finance, and potentially R&D support roles at Tecolote Research, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Cost-plus-fixed-fee contract type carries inherent risk of cost overruns if not rigorously managed.
Limited public information on specific deliverables makes it difficult to fully assess performance and value.
The contract's focus on R&D support within a specific NAICS code may not align with broader small business innovation goals.

Positive Signals

Award to a single, potentially specialized contractor can ensure continuity of essential services for a critical mission.
The contract is a delivery order under an existing IDIQ, suggesting a streamlined process and potentially pre-vetted capabilities.
The duration indicates a sustained need, allowing for focused development of expertise and efficient service delivery.
Support for Space Force missions is crucial for national security and technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in the Physical, Engineering, and Life Sciences. This sector is characterized by innovation, specialized expertise, and often long-term project cycles. The Department of Defense is a major investor in this sector, seeking advancements in technology for national security. Comparable spending benchmarks are difficult to establish without more granular detail on the specific R&D areas supported, but overall federal R&D spending is substantial, with significant portions allocated to defense-related initiatives.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a sole-source award, it bypasses the typical competitive processes where small businesses might have opportunities to bid or subcontract. There is no explicit mention of subcontracting goals for small businesses within the provided data. This means the direct impact on the small business ecosystem for this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the relevant contracting activity within the Department of Defense. As a delivery order under an IDIQ, the underlying contract likely has established oversight mechanisms. The cost-plus-fixed-fee nature necessitates robust financial oversight to track expenditures and ensure compliance with the fixed fee. Transparency is limited by the sole-source nature and the proprietary aspects of R&D support, but contract modifications and performance reports would be subject to internal DoD review and potentially Inspector General oversight if performance issues or fraud are suspected.

Related Government Programs

Space Force Acquisition Support
Department of Defense R&D Contracts
Air Force Financial Services Contracts
IDIQ Contract Modifications
Cost-Plus-Fixed-Fee Service Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Potential for cost overruns
Limited competition impacts price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to TECOLOTE RESEARCH, INC.. THIS EFFORT REQUESTS CONTINUED SUPPORT SDACP ACQUISITION AND FINANCIAL SERVICES 3 SAFS3 UNDER IDIQ CONTRACT FA880923DB001. THIS EFFORT REQUESTS AA AND AS CONSISTING OF ACQUISITION AND FINANCIAL SERVICES IN SUPPORT OF THE SSC SZ MISSION.

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 $23.3 million.

What is the period of performance?

Start: 2024-11-07. End: 2026-08-31.

What is the specific nature of the acquisition and financial services provided under this contract?

The provided data indicates the contract requests 'AA AND AS CONSISTING OF ACQUISITION AND FINANCIAL SERVICES IN SUPPORT OF THE SSC SZ MISSION.' While 'AA' and 'AS' are not explicitly defined, in a defense context, they often relate to administrative assistance and acquisition support, or potentially analytical and advisory services. The 'SSC SZ Mission' refers to a specific mission within the Space Systems Command (SSC) of the Space Force. Therefore, the services likely encompass a range of activities such as contract management, procurement support, financial analysis, budget tracking, and potentially program management assistance tailored to the unique needs of Space Force operations and the specific mission it supports. The NAICS code 541715 suggests these services are in direct support of research and development activities within the physical, engineering, and life sciences.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D support services?

Cost-plus-fixed-fee (CPFF) contracts are common in R&D and complex service environments where the scope of work is not precisely defined at the outset, or where innovation and exploration are key. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers greater flexibility for the government to adapt to evolving requirements but carries a higher risk of cost overruns if cost controls are not stringent. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. Firm-Fixed-Price (FFP) contracts offer the most cost certainty for the government but are less suitable for R&D with uncertain outcomes. For R&D support, CPFF is often chosen when the government needs the contractor's expertise to navigate technical uncertainties, but it requires diligent oversight to manage costs effectively.

What are the potential risks associated with a sole-source award for these critical support services?

The primary risk of a sole-source award, as seen in this contract ('NOT AVAILABLE FOR COMPETITION'), is the lack of price competition. This can lead to the government paying a higher price than might be achievable through a competitive bidding process. Without multiple vendors vying for the contract, there is less incentive for the awarded contractor to offer the most cost-effective solution. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single provider, potentially limiting access to innovative solutions from other capable firms. This can also create a barrier for new entrants into the market. For taxpayers, the risk is a less efficient use of public funds due to potentially inflated costs and reduced pressure for optimal performance.

What is Tecolote Research, Inc.'s track record with similar government contracts, particularly within the DoD or Space Force?

Tecolote Research, Inc. has a history of securing contracts with various U.S. government agencies, including the Department of Defense. Their contract portfolio often includes support services related to research, development, test, and evaluation (RDT&E), as well as program management and engineering support. While specific details on their work with the Space Force or for the SSC SZ mission under this particular IDIQ are not provided in the summary data, their general profile suggests experience in providing technical and analytical services to defense organizations. A deeper dive into contract databases like SAM.gov or FPDS would reveal the scope, value, and performance history of their past awards, allowing for a more precise assessment of their suitability and past performance in similar roles.

How does the $23.3 million contract value compare to historical spending on acquisition and financial support for the Space Force or similar missions?

Directly comparing the $23.3 million value of this specific delivery order to historical spending on acquisition and financial support for the Space Force or similar missions requires access to comprehensive historical spending data, which is not fully detailed here. However, $23.3 million over approximately 22 months (662 days) translates to roughly $1.06 million per month. This figure represents a significant investment for specialized support services. The Space Force, being a relatively new branch, has substantial and growing budget allocations for its operations, R&D, and acquisition programs. Therefore, a contract of this magnitude for critical support functions is plausible within the broader context of Space Force's overall financial landscape. Benchmarking would ideally involve analyzing spending trends for similar support functions across different Space Force programs or comparable defense agencies over multiple fiscal years.

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: $63,896,976

Exercised Options: $29,406,282

Current Obligation: $23,342,597

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $10,945,286

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