DoD's $13.6M Engineering Cost Estimating Support contract awarded to Tecolote Research, Inc. for R&D services
Contract Overview
Contract Amount: $13,595,697 ($13.6M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2026-03-31
Contract Duration: 1,096 days
Daily Burn Rate: $12.4K/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: FY23 ENGINEERING COST ESTIMATING SUPPORT
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $13.6 million to TECOLOTE RESEARCH, INC. for work described as: FY23 ENGINEERING COST ESTIMATING SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately three years allows for sustained support. 3. Cost Plus Fixed Fee pricing structure may incentivize cost control by the contractor. 4. The contract falls under R&D in Physical, Engineering, and Life Sciences, a critical sector for innovation. 5. The awarding agency is the Department of the Navy, indicating a specific defense need. 6. The contractor, Tecolote Research, Inc., has a track record in government contracting. 7. The contract value is substantial, reflecting the complexity and importance of cost estimating. 8. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract value of approximately $13.6 million over three years for engineering cost estimating support appears reasonable given the specialized nature of the services. Benchmarking against similar R&D support contracts is challenging without more specific service details, but the fixed fee component suggests a degree of price certainty. The contractor's experience in this niche is a positive indicator for value delivery.
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,' which typically means that all responsible sources were permitted to submit a bid. The specific exclusion of sources might indicate a pre-existing IDIQ or a specific set of qualified vendors. The level of competition, while stated as full and open, could be influenced by the specialized nature of cost estimating expertise required.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.
Public Impact
The Department of the Navy benefits from enhanced accuracy in its cost estimations for future research and development projects. This contract supports the development and acquisition of advanced defense technologies by providing critical cost analysis. The services delivered are essential for informed decision-making in program management and budget allocation within the Navy. The geographic impact is primarily within the District of Columbia, where the contractor is based, but the benefits extend to Navy operations nationwide. The contract supports specialized engineering and analytical roles, potentially impacting a highly skilled workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The specialized nature of cost estimating may limit the pool of qualified bidders in future procurements.
- Reliance on a single delivery order under a potentially larger IDIQ structure warrants monitoring for scope creep or performance issues.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contractor, Tecolote Research, Inc., has demonstrated experience in government contracting.
- The fixed fee component provides a degree of cost predictability for the government.
- The contract duration allows for sustained and integrated support for the Navy's cost estimating needs.
Sector Analysis
The Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541712) is a vital area for technological advancement, particularly within the defense industry. This contract for engineering cost estimating support fits within this sector by providing the analytical backbone for R&D investments. Comparable spending in this sector often involves significant investments in areas like aerospace, advanced materials, and complex systems engineering, where accurate cost projections are paramount for budget control and program success.
Small Business Impact
There is no indication that this contract involved small business set-asides, as the contractor is Tecolote Research, Inc., which is likely a large business. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if Tecolote Research, Inc. chooses to engage them for specialized support. The primary impact appears to be on larger, specialized R&D service providers rather than the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring the contractor to meet defined milestones and deliverables within the agreed-upon fixed fee. Transparency is generally maintained through contract reporting requirements and the Federal Procurement Data System (FPDS), though specific performance metrics are not publicly detailed.
Related Government Programs
- Defense Research and Development
- Engineering Services
- Cost Analysis Support
- Naval Systems Command Contracts
- Federal R&D Spending
Risk Flags
- Potential for cost overruns in CPFF contracts if not managed closely.
- Accuracy of cost estimates is paramount and subject to unforeseen variables.
- Specialized nature of service may limit future competition.
- Reliance on a single delivery order requires monitoring for scope and performance.
Tags
defense, department-of-defense, department-of-the-navy, research-and-development, engineering-services, cost-estimating, full-and-open-competition, delivery-order, cost-plus-fixed-fee, district-of-columbia, tecolote-research-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.6 million to TECOLOTE RESEARCH, INC.. FY23 ENGINEERING COST ESTIMATING SUPPORT
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 $13.6 million.
What is the period of performance?
Start: 2023-03-31. End: 2026-03-31.
What is Tecolote Research, Inc.'s track record with the Department of Defense and other federal agencies?
Tecolote Research, Inc. has a significant history of contracting with the Department of Defense and other federal agencies, primarily in areas related to research, development, test, and evaluation (RDT&E) support, including cost estimating, systems engineering, and program management. Their contract history often involves complex, high-value projects requiring specialized technical expertise. A review of their past performance indicates a consistent ability to secure and execute contracts within the defense and aerospace sectors. This specific contract for engineering cost estimating support aligns with their core competencies, suggesting a strong likelihood of successful performance based on their established track record.
How does the $13.6 million contract value compare to similar engineering cost estimating support contracts within the DoD?
The $13.6 million contract value for engineering cost estimating support over approximately three years is within a typical range for specialized R&D support services within the Department of Defense. However, direct comparisons are difficult without knowing the exact scope, complexity, and specific deliverables. Contracts for similar services can range from a few million dollars for focused, short-term support to tens or even hundreds of millions for large-scale, multi-year program support. Given that this is a delivery order, it might represent a portion of a larger IDIQ vehicle, making its standalone value a component of a broader procurement strategy. The fixed fee structure suggests a defined scope, which helps in assessing its relative value.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for engineering cost estimating?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering cost estimating involve potential cost overruns if the contractor's actual costs exceed the estimated costs, although the fixed fee itself is not subject to change. The government bears the risk of increased costs, while the contractor is incentivized to control costs to ensure their fixed fee is profitable. For cost estimating, a key risk is the accuracy and completeness of the estimates provided by the contractor, which could be influenced by unforeseen technical challenges or incomplete data. Effective oversight and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment.
How effective is engineering cost estimating support in ensuring program success and fiscal responsibility within the Navy?
Engineering cost estimating support is critically important for ensuring program success and fiscal responsibility within the Navy. Accurate cost estimates are foundational for realistic budgeting, resource allocation, and informed decision-making throughout a program's lifecycle, from initial concept to sustainment. Without reliable estimates, programs risk being underfunded, leading to delays, scope reductions, or outright failure. Effective cost estimating helps identify potential cost drivers, assess risks, and develop mitigation strategies, thereby promoting efficient use of taxpayer funds and increasing the likelihood of achieving program objectives within budgetary constraints. This contract directly contributes to these vital functions.
What are the historical spending patterns for engineering cost estimating support services within the Department of the Navy?
Historical spending patterns for engineering cost estimating support services within the Department of the Navy show a consistent and significant investment in these capabilities. The Navy, like other major defense organizations, relies heavily on specialized contractors to provide independent and expert cost analysis for its complex acquisition programs, particularly in R&D and major system development. Spending in this area fluctuates based on the number and scale of major programs in development or sustainment phases. While specific historical figures for this exact service category are not provided, the overall trend indicates a sustained need for such expertise, often procured through IDIQ vehicles and individual delivery orders like the one awarded to Tecolote Research, Inc.
What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?
The NAICS code 541712 signifies that this contract is specifically for research and development activities within the physical, engineering, and life sciences, excluding biotechnology. For this contract, it means the engineering cost estimating support is directly tied to R&D projects undertaken by the Department of the Navy. This code highlights the contract's focus on innovation, scientific advancement, and the development of new technologies or methodologies. It implies that the cost estimating services are crucial for evaluating the financial viability and resource requirements of cutting-edge research initiatives, ensuring that R&D investments are strategically managed and aligned with national security objectives.
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: $25,453,911
Exercised Options: $14,230,633
Current Obligation: $13,595,697
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
Start Date: 2023-03-31
Current End Date: 2026-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-09-12
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