DoD's $15.7M EVAMOSC contract awarded to Tecolote Research, Inc. for IT support services

Contract Overview

Contract Amount: $15,756,019 ($15.8M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-05-08

End Date: 2026-09-29

Contract Duration: 1,240 days

Daily Burn Rate: $12.7K/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 (EVAMOSC) SUPPORT SERVICES

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 $15.8 million to TECOLOTE RESEARCH, INC. for work described as: ENTERPRISE VISIBILITY AND MANAGEMENT OF OPERATING AND SUPPORT COST (EVAMOSC) SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. Performance period spans over three years, indicating a significant, long-term need for these services. 4. The contractor, Tecolote Research, Inc., has a track record that warrants examination for performance and reliability. 5. This contract falls under Computer Systems Design Services, a critical area for defense operations. 6. The award is a Delivery Order, implying it's part of a larger, potentially pre-existing contract vehicle.

Value Assessment

Rating: fair

The contract's value of $15.7 million over approximately 3.4 years (1240 days) for Computer Systems Design Services needs benchmarking against similar IT support contracts within the Department of Defense. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the duration and scope suggest a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The number of bidders and the specific evaluation criteria would provide further insight into the level of competition. A robust competition generally leads to better price discovery and potentially more favorable terms for the government. However, the specific nature of specialized IT support services can sometimes limit the pool of qualified bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of companies to bid, potentially driving down costs and improving the quality of services offered.

Public Impact

The Department of Defense benefits from enhanced enterprise visibility and management of operating and support costs. IT support services are delivered to the Washington Headquarters Services, a key administrative and operational entity. The contract's impact is primarily within the District of Columbia, where the Washington Headquarters Services are located. The contract supports the IT infrastructure and systems necessary for the efficient functioning of defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The specific performance metrics and deliverables are not detailed, making it difficult to assess performance risks.
Reliance on a single contractor for critical IT support services can pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract has a defined period of performance, allowing for periodic reassessment of needs and contractor performance.
The contractor, Tecolote Research, Inc., is likely experienced in providing similar services, based on the award.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader Information Technology (IT) industry. The IT services market is highly competitive and rapidly evolving, with significant government spending allocated to maintaining and upgrading complex systems. The $15.7 million award is moderate within the context of large federal IT procurements, but represents a substantial investment for the specific services of enterprise visibility and management of operating and support costs. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT support and systems design services awarded by defense agencies.

Small Business Impact

The 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 stemming from a small business set-aside. The primary contractor, Tecolote Research, Inc., is likely a large business, and any subcontracting would be at their discretion or as part of their overall business strategy, rather than a mandated requirement tied to this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Washington Headquarters Services. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Defense IT Support Services
Computer Systems Design Services
Enterprise Resource Planning (ERP) Support
IT Management Consulting
Washington Headquarters Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Lack of detailed performance metrics in summary data makes risk assessment challenging.
Contract duration suggests a long-term dependency on the contractor's services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to TECOLOTE RESEARCH, INC.. ENTERPRISE VISIBILITY AND MANAGEMENT OF OPERATING AND SUPPORT COST (EVAMOSC) SUPPORT SERVICES

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 $15.8 million.

What is the period of performance?

Start: 2023-05-08. End: 2026-09-29.

What is the track record of Tecolote Research, Inc. in delivering similar IT support services to the federal government, particularly within the Department of Defense?

Tecolote Research, Inc. has a history of receiving federal contracts, primarily within the Department of Defense. Analyzing their past performance on similar IT support, systems design, and management services is crucial. This includes reviewing past contract awards, performance evaluations (if publicly available), and any reported issues or successes. Understanding their experience with Cost Plus Fixed Fee contracts and their ability to manage operating and support costs effectively will provide insight into their capability to fulfill the EVAMOSC requirements. A review of their financial stability and any history of contract disputes or terminations would also be pertinent to assessing their reliability for this $15.7 million award.

How does the $15.7 million value of this contract compare to similar enterprise visibility and management support services procured by the DoD or other federal agencies?

Benchmarking the $15.7 million value requires comparing it against contracts for similar scope and duration within the Computer Systems Design Services category, specifically those focused on enterprise visibility and management of operating and support costs. Federal procurement data (e.g., FPDS) can reveal average award values for comparable services. Factors such as the complexity of the systems being managed, the level of support required (e.g., 24/7 operations), and the specific technologies involved will influence cost. If this contract's value is significantly higher or lower than comparable awards, it warrants further investigation into the scope of work, performance expectations, and market conditions.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service, and how are they being mitigated?

The primary risk with a CPFF contract is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to pay all allowable costs plus a fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if the scope of work expands without proper adjustments. Mitigation strategies include robust government oversight, detailed cost tracking and auditing, clear definition of the 'fixed fee' and its relationship to performance, and well-defined ceilings. For this EVAMOSC contract, the Washington Headquarters Services must actively monitor expenditures against the estimated costs and ensure the fixed fee remains appropriate for the services rendered throughout the contract's duration.

What is the expected impact of this contract on the Department of Defense's ability to manage its operating and support costs?

This contract is intended to improve the Department of Defense's (DoD) enterprise visibility and management of operating and support costs. By providing specialized IT support services, Tecolote Research, Inc. is expected to help the DoD gain clearer insights into where resources are being allocated for operations and maintenance. This enhanced visibility should enable better decision-making, identification of inefficiencies, and potentially lead to cost savings or more effective allocation of funds. The success of this impact hinges on the contractor's ability to deliver robust analytical tools, accurate reporting, and actionable recommendations based on the data they help manage.

How has spending on Computer Systems Design Services by the Washington Headquarters Services evolved over the past five years, and where does this $15.7M award fit in?

Analyzing historical spending patterns for Computer Systems Design Services by the Washington Headquarters Services (WHS) is essential to contextualize this $15.7 million award. Data from federal procurement databases would show the total amount WHS has spent in this category over recent years, the types of services procured, and the primary contractors. This $15.7 million award represents a significant, multi-year investment. If WHS spending in this area has been increasing, it might indicate growing needs or a strategic shift towards enhancing IT capabilities. Conversely, if it's a substantial portion of their historical spending, it highlights the critical importance of this particular contract for WHS operations.

Are there any specific performance metrics or Key Performance Indicators (KPIs) defined in the contract that will be used to measure the success of Tecolote Research, Inc.'s services?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. However, for a contract of this nature and value, it is highly probable that a Statement of Work (SOW) and associated performance standards are included. These would typically outline measurable objectives related to system uptime, data accuracy, reporting timeliness, user satisfaction, and cost management effectiveness. The effectiveness of the 'enterprise visibility and management' aspect will be directly tied to how well these KPIs are defined, monitored, and met by Tecolote Research, Inc. Government oversight will be crucial in ensuring these metrics are tracked and acted upon.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

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: $20,807,325

Exercised Options: $15,763,830

Current Obligation: $15,756,019

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $9,863,454

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