DoD's $72M R&D contract to Tecolote Research, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $72,159,338 ($72.2M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-04

End Date: 2021-07-03

Contract Duration: 1,794 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: R&D

Official Description: CADE SUPPORT IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $72.2 million to TECOLOTE RESEARCH, INC. for work described as: CADE SUPPORT IGF::OT::IGF Key points: 1. Contract awarded for research and development services, aligning with the physical, engineering, and life sciences sector. 2. The contract was secured through a full and open competition, suggesting a broad market solicitation. 3. Tecolote Research, Inc. is the sole awardee, indicating a single entity was selected for this specific task order. 4. The contract duration spans nearly five years, from August 2016 to July 2021. 5. The award type is Fixed Price Award Fee, which incentivizes performance while managing cost. 6. The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) NAICS code. 7. The primary place of performance is Washington D.C.

Value Assessment

Rating: good

The contract's value of approximately $72 million over nearly five years for R&D services appears reasonable given the scope. Benchmarking against similar large-scale R&D contracts within the Department of Defense is necessary for a definitive value-for-money assessment. The Fixed Price Award Fee structure suggests an attempt to balance cost control with performance incentives, which can be effective if award criteria are well-defined and measurable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this method generally promotes a competitive environment, which can lead to better pricing and innovation. The selection of a single awardee suggests that Tecolote Research, Inc. presented the most advantageous offer based on the evaluation criteria.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The primary beneficiary is the Department of Defense, which receives advanced research and development support. The services delivered are critical for advancing scientific and technological capabilities within the defense sector. The geographic impact is centered in Washington D.C., the location of the primary place of performance. The contract supports specialized scientific and engineering workforce needs within the R&D domain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee criteria are not strictly managed.
Dependence on a single contractor for critical R&D tasks could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed Price Award Fee structure can incentivize contractor performance and efficiency.
Contract duration of nearly five years allows for sustained R&D efforts.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The Department of Defense is a significant investor in R&D to maintain technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by DoD and other federal agencies for similar scientific and engineering services, considering factors like contract type, duration, and specific research areas.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). As it was awarded under full and open competition, there is no explicit requirement for subcontracting with small businesses mandated by the contract terms. The impact on the small business ecosystem would depend on whether Tecolote Research, Inc. voluntarily engages small businesses as subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Defense. Accountability measures are embedded in the Fixed Price Award Fee structure, which links payment to performance against defined criteria. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Federal Contract Research Center (FCRC) Support
Advanced Technology Development Contracts
Engineering and Technical Services Contracts

Risk Flags

Potential for cost growth if award fee criteria are not rigorously managed.
Dependence on a single contractor for critical R&D tasks.
Complexity of R&D may lead to unforeseen technical challenges or delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.2 million to TECOLOTE RESEARCH, INC.. CADE SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is TECOLOTE RESEARCH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $72.2 million.

What is the period of performance?

Start: 2016-08-04. End: 2021-07-03.

What is the track record of Tecolote Research, Inc. with the Department of Defense?

Tecolote Research, Inc. has a history of performing contracts for the Department of Defense, often in areas related to research, development, test, and evaluation (RDT&E). Their expertise typically lies in providing advanced engineering and scientific support services. Analyzing their past performance on similar DoD contracts, including any past performance evaluations or awards, would provide further insight into their reliability and capability. This specific contract, valued at over $72 million, suggests a significant engagement with the DoD, indicating a level of trust and proven performance in delivering complex R&D services.

How does the $72 million contract value compare to similar R&D contracts awarded by the DoD?

The $72 million contract value for nearly five years of R&D services is substantial but falls within the typical range for large-scale, specialized research and development efforts undertaken by the Department of Defense. DoD frequently awards contracts in the tens or hundreds of millions of dollars for advanced technological development, systems engineering, and scientific research. To provide a precise comparison, one would need to benchmark against contracts with similar NAICS codes (e.g., 541712), contract types (Fixed Price Award Fee), and specific research domains. However, the magnitude suggests a significant investment in a particular area of R&D.

What are the primary risks associated with this Fixed Price Award Fee contract?

The primary risks associated with this Fixed Price Award Fee (FPAF) contract revolve around the effective management of the award fee component and potential performance issues. For the government, there's a risk that the award fee criteria may not be sufficiently stringent or measurable, leading to higher-than-expected costs if the contractor receives a substantial award fee without commensurate exceptional performance. For the contractor, the risk lies in not meeting the performance targets, thereby forfeiting potential award fee amounts. Additionally, as with any large R&D contract, there's an inherent risk of technical challenges, schedule delays, or cost growth if unforeseen complexities arise during the research and development process.

How effective is the 'full and open competition' strategy for R&D contracts of this nature?

Full and open competition is generally considered the most effective strategy for R&D contracts of this nature as it maximizes the potential for innovation and cost savings by allowing all qualified sources to compete. For complex R&D efforts, a broad solicitation can uncover unique capabilities and approaches that might not be apparent through more restricted methods. While it requires a robust evaluation process to select the best offer, the potential benefits include better pricing, access to cutting-edge technology, and a wider range of solutions. The success of this strategy hinges on clearly defined requirements and evaluation criteria that accurately assess technical merit, past performance, and price.

What is the historical spending trend for R&D services under NAICS code 541712 by the Department of Defense?

Historical spending by the Department of Defense under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences except Biotechnology) has consistently been substantial, reflecting the DoD's ongoing need for technological advancement. While specific annual figures fluctuate based on strategic priorities and budget allocations, this sector represents a significant portion of the DoD's R&D investment. Analyzing trends over the past decade would likely show a steady demand for these services, driven by national security requirements and the rapid pace of technological change. This particular contract, awarded in 2016, aligns with this broader pattern of consistent investment in scientific and engineering R&D.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003416R0170

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

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: $72,159,338

Exercised Options: $72,159,338

Current Obligation: $72,159,338

Actual Outlays: $8,380,879

Subaward Activity

Number of Subawards: 553

Total Subaward Amount: $1,672,155,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F052CA

IDV Type: FSS

Timeline