TECOLOTE RESEARCH, INC. awarded $83.1M for R&D in physical and engineering sciences by the Air Force

Contract Overview

Contract Amount: $83,138,825 ($83.1M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-11-22

End Date: 2024-11-13

Contract Duration: 1,818 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: SPACE AND MISSILES SYSTEMS CENTER ACQUISITION AND FINANCIAL SERVICES FOLLOW-ON (SAFS II)

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $83.1 million to TECOLOTE RESEARCH, INC. for work described as: SPACE AND MISSILES SYSTEMS CENTER ACQUISITION AND FINANCIAL SERVICES FOLLOW-ON (SAFS II) Key points: 1. Contract value of $83.1M over five years suggests significant investment in specialized research and development. 2. The contract's 'Research and Development in the Physical, Engineering, and Life Sciences' category indicates a focus on advanced scientific and technical services. 3. A firm-fixed-price contract type aims to control costs by setting a predetermined price for the work. 4. The duration of 1818 days (approximately 5 years) points to a long-term need for these services. 5. The contract was awarded as a Delivery Order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a structured procurement process. 6. The contractor, TECOLOTE RESEARCH, INC., has a history of performing similar R&D services for the government.

Value Assessment

Rating: good

The contract's value of $83.1M over approximately five years for R&D services appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in physical and engineering sciences would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to manage costs effectively, though the ultimate value depends on the successful delivery of research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'Full and Open Competition After Exclusion of Sources' basis, which implies that while competition was sought, certain sources were initially excluded. The number of bidders is not explicitly stated in the provided data, but the 'limited' competition designation suggests fewer than a full and open competition. This could potentially impact price discovery and lead to less aggressive bidding compared to a truly open process.

Taxpayer Impact: While not a full and open competition, the process aimed to solicit bids from qualified sources. Taxpayers benefit from the specialized research conducted, but the limited competition may mean slightly higher costs than if a broader range of bidders were considered.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other Department of Defense entities requiring advanced research and development in physical and engineering sciences. The services delivered are expected to advance scientific knowledge and technological capabilities relevant to national security and defense objectives. The geographic impact is primarily centered around the contractor's location in California, but the research outcomes can have national implications. The contract supports a specialized workforce of scientists, engineers, and researchers, contributing to the high-tech R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'limited' competition aspect could lead to less competitive pricing.
The specific nature of R&D can introduce inherent risks in achieving desired outcomes within budget and schedule.
Reliance on a single delivery order under a potentially larger IDIQ could concentrate risk if the prime contractor faces performance issues.

Positive Signals

Firm-fixed-price contract type helps control costs.
The long duration indicates a sustained need and potential for stable, high-quality research.
The contractor is likely experienced in performing R&D for the government, suggesting a degree of reliability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is critical for innovation and technological advancement, particularly in defense applications. The market for such specialized R&D services is competitive, with a mix of large corporations and specialized firms vying for government contracts. Comparable spending benchmarks would typically be found within broader R&D spending reports for the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary focus is on the prime contractor, TECOLOTE RESEARCH, INC. Any subcontracting would be at the discretion of the prime contractor to fulfill the R&D requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified research outcomes. Transparency is generally maintained through contract awards databases and reporting requirements, though the specifics of the R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Research and Development Contracts
Aerospace R&D
Defense Science and Technology
Engineering Services Contracts
Space Systems Research

Risk Flags

Limited Competition
R&D Outcome Uncertainty
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.1 million to TECOLOTE RESEARCH, INC.. SPACE AND MISSILES SYSTEMS CENTER ACQUISITION AND FINANCIAL SERVICES FOLLOW-ON (SAFS II)

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 $83.1 million.

What is the period of performance?

Start: 2019-11-22. End: 2024-11-13.

What is the track record of TECOLOTE RESEARCH, INC. in performing similar R&D contracts for the Department of Defense?

TECOLOTE RESEARCH, INC. has a history of performing research and development services, particularly in areas related to aerospace and defense. While specific contract details beyond this award are not provided, their presence as a contractor for the Space and Missile Systems Center Acquisition and Financial Services Follow-On (SAFS II) suggests prior experience and a level of trust from the awarding agency. Further analysis would involve examining their past performance reviews, other awarded contracts in similar NAICS codes (like 541712), and their overall financial stability to fully assess their track record.

How does the $83.1M contract value compare to other R&D contracts in physical and engineering sciences awarded by the Air Force?

The $83.1 million contract value for TECOLOTE RESEARCH, INC. is a significant award, indicative of a substantial R&D effort. To benchmark this value, one would compare it against the average and median contract values for similar R&D services (NAICS 541712) awarded by the Department of the Air Force and the broader Department of Defense over the past several fiscal years. Factors such as contract duration, scope of work, and the specific technological domain (e.g., space systems, advanced materials) would need to be considered for a precise comparison. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents a high, low, or average investment, but its five-year duration suggests a long-term strategic commitment.

What are the primary risks associated with this firm-fixed-price R&D contract?

The primary risks associated with this firm-fixed-price R&D contract include the inherent uncertainty of research outcomes and the potential for cost overruns if the scope of work expands beyond initial estimates, despite the fixed-price nature. For the government, the risk is that the contractor may not achieve the desired research objectives within the contracted price or timeline, potentially leading to suboptimal results or delays. For the contractor, the risk lies in underestimating the complexity or cost of the research, leading to reduced profit margins or even losses if unforeseen challenges arise. The 'limited' competition also introduces a risk of less competitive pricing.

What is the expected program effectiveness or impact of the R&D services provided under this contract?

The expected program effectiveness hinges on the successful advancement of physical and engineering sciences relevant to the Department of the Air Force's mission. Given the contract's focus on R&D, the impact is likely to be in the form of new technologies, improved processes, or enhanced scientific understanding that supports future defense capabilities. The specific impact is difficult to quantify without knowing the precise research objectives, but it is intended to contribute to the Air Force's technological superiority and operational effectiveness in areas such as space systems, missile defense, or advanced materials.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved over recent years?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541712) has generally seen consistent or increasing investment, particularly within the Department of Defense, reflecting a strategic priority on maintaining technological advantage. This category encompasses a broad range of scientific endeavors crucial for national security, innovation, and economic competitiveness. Trends often show significant allocations towards defense-related R&D, space exploration, advanced manufacturing, and emerging technologies. Specific year-over-year changes can be influenced by budgetary cycles, national security priorities, and the emergence of new technological challenges or opportunities.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply for this contract?

The 'Full and Open Competition After Exclusion of Sources' procurement method indicates that the agency initially considered excluding certain sources from the competition before opening it up more broadly, or that after an initial exclusion, the competition was opened to all responsible sources. This is a less common method than standard full and open competition. It suggests that there might have been specific reasons for initial exclusions, perhaps related to specialized capabilities or prior relationships, but ultimately the agency sought to maximize competition among eligible entities. The implications for taxpayers are that while competition was pursued, it may not have been as broad as a standard full and open process, potentially affecting the final price achieved.

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: 3

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: $83,150,829

Exercised Options: $83,150,829

Current Obligation: $83,138,825

Actual Outlays: $404,655

Subaward Activity

Number of Subawards: 176

Total Subaward Amount: $957,606,528

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