DoD's $80.7M CSDR contract to Tecolote Research, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $80,704,060 ($80.7M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-07

End Date: 2026-02-03

Contract Duration: 1,702 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COST AND SOFTWARE DATA REPORTING (CSDR)

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 $80.7 million to TECOLOTE RESEARCH, INC. for work described as: COST AND SOFTWARE DATA REPORTING (CSDR) Key points: 1. Contract value represents a significant investment in cost and software data reporting capabilities. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 1700 days) indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The contractor, Tecolote Research, Inc., has a track record with federal contracts. 6. The North American Industry Classification System (NAICS) code 541519 suggests a focus on specialized computer-related services. 7. The contract is managed by Washington Headquarters Services, indicating its strategic importance. 8. The contract's geographic location is Washington D.C.

Value Assessment

Rating: good

The contract's total value of $80.7 million over its period of performance suggests a substantial investment. Benchmarking this against similar contracts for cost and software data reporting is challenging without more specific service details. However, the firm fixed-price nature of the award indicates an effort to establish clear cost expectations upfront. The award amount appears reasonable given the multi-year duration and the specialized nature of the services, likely encompassing complex data analysis and reporting systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was competed openly suggests that the Department of Defense sought to maximize the number of potential bidders to ensure the best possible value. While the number of bids received is not specified, open competition generally leads to more robust price discovery and a wider range of technical solutions being considered.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are likely Department of Defense components requiring robust cost and software data reporting. The services delivered are expected to enhance the accuracy and efficiency of financial and software asset management. The contract's impact is primarily within the Washington D.C. metropolitan area, where the services are likely performed. The contract supports a specialized segment of the IT services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if reporting requirements evolve significantly beyond initial specifications.
Dependence on a single contractor for critical data reporting functions could pose a risk if performance falters.
Ensuring data integrity and security throughout the contract lifecycle is paramount.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured favorable pricing.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need for these critical services.
Contractor's specialization in IT services aligns with the contract's objectives.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized areas of cost and software data reporting. The market for such services is driven by government mandates for transparency, accountability, and efficient resource management. Comparable spending benchmarks would typically involve other large, multi-year IT service contracts awarded to support complex reporting and analysis functions within federal agencies. The size of this contract suggests it addresses a significant operational requirement.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Tecolote Research, Inc., may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within Washington Headquarters Services. Accountability measures are embedded in the firm fixed-price structure and performance requirements outlined in the contract. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Contract Management Agency (DCMA) services
Federal IT acquisition and management
Software asset management
Cost accounting and reporting
Department of Defense financial management systems

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on a single contractor for critical reporting functions.
Potential for scope creep in complex data reporting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.7 million to TECOLOTE RESEARCH, INC.. COST AND SOFTWARE DATA REPORTING (CSDR)

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 $80.7 million.

What is the period of performance?

Start: 2021-06-07. End: 2026-02-03.

What is the track record of Tecolote Research, Inc. with federal contracts, particularly in IT services?

Tecolote Research, Inc. has a history of performing federal contracts, primarily within the Department of Defense. Their expertise often lies in areas such as systems engineering, program management, and technical support services. While specific details on their performance for this particular CSDR contract are not provided in the summary data, their sustained engagement with government agencies suggests a capacity to meet contractual obligations. A deeper dive into past performance reviews, contract modifications, and any past disputes would offer a more comprehensive understanding of their track record.

How does the $80.7 million contract value compare to similar federal spending on cost and software data reporting?

Directly comparing the $80.7 million value requires identifying contracts with identical or highly similar service scopes (cost and software data reporting) across federal agencies. Such contracts are often bespoke to agency needs. However, this value is substantial for a single, multi-year IT service contract. It suggests a significant and ongoing requirement for sophisticated data management and reporting capabilities within the Department of Defense. Larger IT modernization or enterprise resource planning system contracts can reach hundreds of millions or billions, but this specific contract appears focused on a critical niche function.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost overruns if the scope of 'cost and software data reporting' expands beyond initial expectations, technical challenges in implementing or maintaining the required systems, and contractor performance issues. Mitigation strategies likely involve robust contract management, clear definition of deliverables and performance standards, regular progress reviews, and the firm fixed-price structure which incentivizes the contractor to manage costs. The long duration also presents a risk of technological obsolescence, which would need to be managed through contract modifications or future procurements.

How effective is the 'full and open competition' approach in ensuring value for this type of specialized IT service?

Full and open competition is generally considered the most effective method for ensuring value, as it maximizes the pool of potential bidders, fostering price competition and encouraging innovative solutions. For specialized IT services like cost and software data reporting, this approach allows the government to solicit proposals from a wide range of companies, including those with niche expertise. The success of this approach hinges on the clarity of the solicitation's requirements and the evaluation criteria used to select the winning bid, ensuring that the 'best value' is indeed achieved, not just the lowest price.

What are the historical spending patterns for cost and software data reporting services within the Department of Defense?

Historical spending patterns for cost and software data reporting within the DoD are likely characterized by a mix of large, enterprise-wide system implementations and smaller, specialized service contracts. As IT systems evolve and regulatory requirements for financial transparency and software asset management become more stringent, spending in this area tends to increase. Contracts like this one represent a significant portion of that spending, focusing on maintaining and enhancing critical reporting functions. Analyzing past DoD budgets and contract awards for similar services would reveal trends in investment and the types of solutions procured over time.

What is the significance of the NAICS code 541519 (Other Computer Related Services) for this contract?

The NAICS code 541519 indicates that the primary services procured under this contract fall outside the more specific categories of computer systems design, custom programming, or data processing. This suggests the contract may encompass a broader range of IT-related activities, such as IT consulting, systems integration, IT support services, or specialized data analysis and reporting that doesn't fit neatly into other classifications. For this CSDR contract, it implies the services are tailored and potentially complex, requiring expertise beyond standard software development or IT infrastructure management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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: HQ003421R0075

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 S FAIRVIEW AVE, GOLETA, CA, 93117

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,915,098

Exercised Options: $80,961,686

Current Obligation: $80,704,060

Actual Outlays: $690,630

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $43,577,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F368DA

IDV Type: FSS

Timeline