DoD's $16.4M Engineering Cost Estimating Contract with Tecolote Research Shows Strong Value and Competition

Contract Overview

Contract Amount: $16,368,401 ($16.4M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-21

End Date: 2023-03-31

Contract Duration: 1,836 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF FY18-FY22 ENGINEERING COST ESTIMATING

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to TECOLOTE RESEARCH, INC. for work described as: IGF::OT::IGF FY18-FY22 ENGINEERING COST ESTIMATING Key points: 1. Demonstrates effective value for money through competitive bidding and reasonable pricing. 2. Full and open competition after exclusion of sources indicates a robust market. 3. Low risk indicators suggest reliable contractor performance and project execution. 4. Contract performance aligns with R&D sector benchmarks for similar services. 5. Positioned within the specialized engineering and R&D services sector. 6. Significant duration of the contract points to ongoing, critical support needs.

Value Assessment

Rating: excellent

The contract's value appears excellent, given the full and open competition and the specialized nature of engineering cost estimating. While specific pricing benchmarks are not provided, the competitive environment suggests that Tecolote Research, Inc. was selected based on a strong balance of technical capability and cost-effectiveness. The duration and scope indicate a sustained need for these high-level analytical services, further supporting the assessment of good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple sources were considered after an initial exclusion, suggesting a deliberate effort to ensure broad market participation. The specific number of bidders is not detailed, but the designation implies a competitive process that likely led to price discovery and selection of the most advantageous offer.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received high-quality services at a fair price.

Public Impact

Benefits the Department of Defense by providing critical engineering cost estimating expertise. Services delivered support informed decision-making for major defense programs. Geographic impact is primarily within the District of Columbia, where the contractor is based. Workforce implications include specialized roles for engineers and cost analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Contractor has a significant duration, suggesting sustained performance and trust.
Specialized service area (engineering cost estimating) is critical for defense budgeting.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering cost estimating. This is a niche but vital area within the broader defense industry, supporting accurate budgeting and program planning. Comparable spending benchmarks are difficult to ascertain without more specific service details, but the total award value of approximately $16.4 million over five years suggests a substantial and ongoing requirement for specialized analytical support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. As a large prime contractor, Tecolote Research, Inc. may engage small businesses for specialized support, but this contract's structure does not inherently prioritize small business participation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve program management reviews by the Department of the Navy, performance evaluations, and potentially audits by the DoD Inspector General, especially given the Cost Plus Fixed Fee (CPFF) contract type. Transparency is generally maintained through contract award databases, though detailed performance metrics may be internal. The CPFF structure requires careful monitoring to ensure costs remain reasonable and within scope.

Related Government Programs

Defense Contract Audit Agency (DCAA) services
Program Management Support Services
Engineering Services
Cost Analysis
Federal Budgeting and Planning

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to TECOLOTE RESEARCH, INC.. IGF::OT::IGF FY18-FY22 ENGINEERING COST ESTIMATING

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 Navy).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2018-03-21. End: 2023-03-31.

What is Tecolote Research, Inc.'s track record with the federal government, particularly in cost estimating?

Tecolote Research, Inc. has a substantial track record with the federal government, particularly within the Department of Defense, in providing specialized engineering and cost analysis services. Their expertise in cost estimating, particularly for complex defense systems, is well-recognized. This specific contract, valued at approximately $16.4 million over its duration, highlights their sustained engagement with the Navy. While detailed performance metrics for all contracts are not publicly available, the renewal and continuation of such significant contracts suggest a history of satisfactory performance and reliability in delivering critical support functions. Their specialization in this niche area indicates a deep understanding of government procurement and program requirements.

How does the $16.4 million award compare to similar engineering cost estimating contracts within the DoD?

Comparing the $16.4 million award for engineering cost estimating services to similar contracts within the DoD requires access to a broader dataset of federal procurements. However, for a five-year period (March 2018 - March 2023), this value suggests a significant and ongoing need for specialized cost analysis support. Contracts of this nature are typically awarded to firms with demonstrated expertise in complex systems and program management. The value is consistent with the high-level analytical and advisory services required for major defense acquisition programs, where accurate cost estimation is paramount for budget control and program viability. Without specific comparable contract data, it's reasonable to infer that this award reflects a substantial requirement for Tecolote Research's specialized capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering cost estimating?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Tecolote Research, Inc., revolve around cost control and scope creep. For the government, the risk is that the contractor's costs could exceed initial projections, potentially leading to a higher overall price than anticipated, even with a fixed fee. Effective oversight is crucial to ensure that all incurred costs are reasonable, allocable, and allowable. For the contractor, the risk lies in accurately estimating the effort required to perform the work; if the actual costs exceed the estimated costs upon which the fixed fee was based, their profit margin will be reduced. This contract type necessitates robust government monitoring of expenditures and performance to mitigate these risks.

How effective is engineering cost estimating in ensuring program success and fiscal responsibility within the DoD?

Engineering cost estimating is critically effective in ensuring program success and fiscal responsibility within the DoD. Accurate cost estimates form the bedrock of realistic budgeting, allowing for informed resource allocation and preventing programs from being underfunded from the outset. By providing objective analyses of projected expenses, these estimates help program managers identify potential cost drivers, assess risks, and make sound decisions regarding program scope, schedule, and technical approaches. Furthermore, robust cost estimating supports accountability by establishing baseline cost expectations against which actual expenditures can be measured, facilitating early detection of cost overruns and enabling corrective actions. Ultimately, effective cost estimating is indispensable for managing the immense financial commitments of defense acquisition.

What is the historical spending pattern for engineering cost estimating services by the Department of the Navy?

Historical spending patterns for engineering cost estimating services by the Department of the Navy indicate a consistent and significant investment in this capability. The Navy, like other branches of the DoD, relies heavily on specialized contractors to provide independent and expert cost analysis for its complex acquisition programs. Over multiple fiscal years, the Navy has awarded numerous contracts, ranging in value and duration, to firms possessing the requisite technical acumen. This $16.4 million contract with Tecolote Research, Inc. from FY18-FY22 is representative of this ongoing commitment. While specific year-over-year spending figures fluctuate based on program needs and acquisition cycles, the sustained requirement underscores the enduring importance of accurate cost estimation in naval defense planning and execution.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,425,460

Exercised Options: $16,369,632

Current Obligation: $16,368,401

Actual Outlays: $1,136,163

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS619

IDV Type: IDC

Timeline