DoD's $33M SPAWAR Engineering Services Contract Awarded to Tecolote Research Inc
Contract Overview
Contract Amount: $32,969,559 ($33.0M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-06-18
End Date: 2023-12-17
Contract Duration: 2,008 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: SPAWAR 1.6 COST ESTIMATING AND ANALYSIS SUPPORT SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $33.0 million to TECOLOTE RESEARCH, INC. for work described as: SPAWAR 1.6 COST ESTIMATING AND ANALYSIS SUPPORT SERVICES Key points: 1. Contract value of $32.97M over 5 years. 2. Awarded under full and open competition. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Services fall under Engineering Services sector.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to higher costs if not managed carefully. Benchmarking against similar CPFF contracts for engineering services is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the CPFF structure may limit the direct price discovery benefits of competition.
Taxpayer Impact: Taxpayers may face increased costs if the CPFF contract is not tightly managed, potentially exceeding the value derived from the services.
Public Impact
Ensures critical engineering support for SPAWAR systems. Supports technological advancements within the Department of Defense. Provides long-term employment opportunities in the engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing risk
- Potential for scope creep
Positive Signals
- Full and open competition
- Long-term contract duration
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense system development and maintenance. Spending benchmarks for similar large-scale engineering support contracts can vary significantly based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the prime contractor is not a small business. Further analysis would be needed to determine small business subcontracting participation.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. Regular performance reviews and cost audits are essential to ensure accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee pricing structure
- Potential for cost overruns
- Lack of specific performance metrics in provided data
- Limited insight into small business subcontracting
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 million to TECOLOTE RESEARCH, INC.. SPAWAR 1.6 COST ESTIMATING AND ANALYSIS 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2018-06-18. End: 2023-12-17.
What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense engineering sector, and how does Tecolote Research's margin compare?
Profit margins for CPFF contracts in defense engineering typically range from 7% to 15%, depending on contract complexity, risk, and established relationships. Without specific profit data for this contract, a direct comparison is not possible. However, agencies should benchmark against industry standards and historical data for similar services to ensure the fixed fee is fair and reasonable.
What are the key performance indicators (KPIs) used to measure the effectiveness of Tecolote Research's cost estimating and analysis support services?
Effective KPIs would likely include accuracy of cost estimates against actual costs, timeliness of analysis reports, identification of cost-saving opportunities, and adherence to project milestones. The agency should ensure these KPIs are clearly defined in the contract and regularly monitored to assess contractor performance and the value delivered.
How does the $33M contract value compare to other similar SPAWAR engineering support contracts awarded over the past five years?
Comparing this $33M contract requires access to a broader dataset of SPAWAR and DoD engineering support contracts. Factors like contract duration, scope of services, and specific technical requirements heavily influence value. This contract's value appears substantial, suggesting a significant scope of work or long-term need for specialized engineering expertise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003917R3066
Offers Received: 2
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, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $86,842,707
Exercised Options: $60,212,309
Current Obligation: $32,969,559
Actual Outlays: $1,389,046
Subaward Activity
Number of Subawards: 669
Total Subaward Amount: $592,039,298
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D8037
IDV Type: IDC
Timeline
Start Date: 2018-06-18
Current End Date: 2023-12-17
Potential End Date: 2023-12-17 00:00:00
Last Modified: 2025-10-29
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