DoD's $46M R&D Contract with Tecolote Research Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $46,055,060 ($46.1M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-01-28

End Date: 2019-07-31

Contract Duration: 1,280 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::CL::IGF ACQUISITION AND FINANCIAL SUPPORT

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $46.1 million to TECOLOTE RESEARCH, INC. for work described as: IGF::CL::IGF ACQUISITION AND FINANCIAL SUPPORT Key points: 1. The contract awarded to Tecolote Research, Inc. for R&D services is for $46.06 million. 2. Competition was 'Full and Open Competition After Exclusion of Sources', raising questions about the extent of market engagement. 3. The contract's duration of 1280 days suggests a significant, long-term engagement. 4. The R&D sector (NAICS 541712) is critical for technological advancement but can be prone to cost overruns and uncertain outcomes.

Value Assessment

Rating: questionable

The contract's value of $46.06 million for R&D services needs further benchmarking against similar contracts for comparable research and development efforts. Without specific deliverables or performance metrics, assessing the value proposition is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method, 'Full and Open Competition After Exclusion of Sources', implies that while the competition was open, certain sources were excluded, potentially limiting the pool of bidders and impacting price discovery. This method requires strong justification to ensure fair market value.

Taxpayer Impact: The final taxpayer impact depends on the efficiency and effectiveness of the R&D performed and whether the exclusion of sources led to suboptimal pricing.

Public Impact

Taxpayers may be funding research with potentially limited competition, impacting cost-effectiveness. The long duration of the contract raises concerns about ongoing financial commitment and adaptability to evolving research needs. The specific R&D outcomes and their contribution to national security or technological advancement are not detailed, making public impact assessment difficult.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Spending in this sector is crucial for innovation but often involves high risk and long development cycles, making robust oversight essential.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract, suggesting it may not have directly benefited small business entities.

Oversight & Accountability

The 'Exclusion of Sources' clause warrants closer examination to ensure proper justification and adherence to procurement regulations. Oversight should focus on performance metrics and cost control throughout the contract's lifecycle.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.1 million to TECOLOTE RESEARCH, INC.. IGF::CL::IGF ACQUISITION AND FINANCIAL SUPPORT

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 $46.1 million.

What is the period of performance?

Start: 2016-01-28. End: 2019-07-31.

What specific R&D objectives were pursued under this contract, and how do they align with the Department of the Air Force's strategic goals?

The contract details are limited, but it falls under 'Research and Development in the Physical, Engineering, and Life Sciences'. Without further information on the specific project scope, it's difficult to ascertain the precise objectives. However, such contracts typically aim to advance scientific understanding, develop new technologies, or improve existing systems to meet strategic defense requirements.

How was the 'Full and Open Competition After Exclusion of Sources' justified, and what was the impact on the final contract price?

This procurement method suggests that while the competition was intended to be open, specific sources were excluded. The justification for exclusion is critical and must be based on factors like unique capabilities or national security concerns. The impact on price is uncertain; exclusion could lead to higher prices due to reduced competition, or it might be justified if only a few entities possess the necessary specialized expertise.

What mechanisms are in place to measure the effectiveness and value of the R&D outcomes delivered by Tecolote Research, Inc. under this contract?

Effectiveness and value measurement in R&D contracts are often challenging due to the inherent uncertainty of research. Key mechanisms typically include milestone-based reviews, technical performance assessments, and evaluation of deliverables against predefined objectives. The firm fixed-price nature suggests a focus on achieving specific outcomes within budget, but the true value is realized upon successful application or integration of the research findings.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $67,848,180

Exercised Options: $46,388,625

Current Obligation: $46,055,060

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $148,239,041

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA880213D0002

IDV Type: IDC

Timeline

Start Date: 2016-01-28

Current End Date: 2019-07-31

Potential End Date: 2019-07-31 00:00:00

Last Modified: 2025-03-13

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