DoD's $16.3M Contract for Enterprise Visibility: Tecolote Research Inc. Awarded for Computer Systems Design Services
Contract Overview
Contract Amount: $16,314,983 ($16.3M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-30
End Date: 2026-04-29
Contract Duration: 2,037 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENTERPRISE VISIBILITY AND MANAGEMENT OF OPERATING AND SUPPORT COST
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $16.3 million to TECOLOTE RESEARCH, INC. for work described as: ENTERPRISE VISIBILITY AND MANAGEMENT OF OPERATING AND SUPPORT COST Key points: 1. Contract awarded to Tecolote Research, Inc. for enterprise visibility and management of operating and support costs. 2. The contract falls under the Computer Systems Design Services NAICS code (541512). 3. Awarded via Full and Open Competition, indicating a competitive bidding process. 4. The contract duration is 2037 days, with an estimated completion date in April 2026. 5. The total award amount is $16,314,983.49.
Value Assessment
Rating: good
The contract's value of $16.3M over approximately 5.5 years appears reasonable for enterprise-level visibility and management services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the services rendered.
Public Impact
Enhances operational efficiency for the Department of Defense by providing better visibility into costs. Supports informed decision-making for resource allocation and budget management. Potential for improved cybersecurity posture through better system management. Ensures accountability in the management of operating and support costs.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Contract duration is lengthy, requiring ongoing monitoring.
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not managed tightly.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Clear objective of improving cost visibility and management.
- Experienced contractor likely to deliver specialized services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area for the DoD is substantial, focusing on maintaining and modernizing complex systems to support mission objectives.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract (ss: false, sb: false). While this specific award may not benefit small businesses directly, the prime contractor may engage subcontractors, potentially creating opportunities.
Oversight & Accountability
The Department of Defense, through Washington Headquarters Services, is the awarding agency. Oversight will be crucial to ensure Tecolote Research, Inc. meets performance expectations and manages costs effectively under the Cost Plus Fixed Fee structure.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration requires sustained oversight.
- Dependence on a single contractor for critical cost management data.
- Risk of vendor lock-in if knowledge transfer is insufficient.
Tags
computer-systems-design-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.3 million to TECOLOTE RESEARCH, INC.. ENTERPRISE VISIBILITY AND MANAGEMENT OF OPERATING AND SUPPORT COST
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 $16.3 million.
What is the period of performance?
Start: 2020-09-30. End: 2026-04-29.
What specific metrics will be used to measure the 'enterprise visibility' and 'management of operating and support cost' improvements?
The contract should define key performance indicators (KPIs) related to cost reduction, budget adherence, resource allocation accuracy, and system uptime. Regular reporting against these KPIs by Tecolote Research, Inc. will be essential for the DoD to assess the value delivered. Without clearly defined metrics, it's difficult to objectively evaluate the success of this $16.3M investment.
How will the DoD mitigate potential cost overruns inherent in a Cost Plus Fixed Fee (CPFF) contract structure?
Effective oversight by the Washington Headquarters Services is paramount. This includes rigorous review of all incurred costs, detailed performance monitoring, and proactive engagement with Tecolote Research, Inc. to ensure adherence to the fixed fee and prevent scope creep. Establishing clear milestones and deliverables tied to payments will also help manage financial risk.
What is the long-term strategy for leveraging the insights gained from this contract to optimize future IT spending within the DoD?
The data and analysis generated by Tecolote Research, Inc. should inform future IT procurement strategies, system architecture decisions, and operational efficiencies. The DoD should establish a process for institutionalizing these learnings, potentially leading to standardized cost management frameworks and more data-driven investment choices across the enterprise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Community and Regional Development R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ003420R0079
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 420 S FAIRVIEW AVE STE 201, GOLETA, CA, 93117
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,961,140
Exercised Options: $16,961,140
Current Obligation: $16,314,983
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $12,501,996
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003420D0012
IDV Type: IDC
Timeline
Start Date: 2020-09-30
Current End Date: 2026-04-29
Potential End Date: 2026-04-29 00:00:00
Last Modified: 2026-01-15
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