DoD's $18.4M R&D contract for specialized cost services awarded to Tecolote Research, Inc

Contract Overview

Contract Amount: $18,411,202 ($18.4M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-27

End Date: 2012-10-20

Contract Duration: 1,668 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: IDIQ CONTRACT FOR SPECIALIZED COST SERVICES

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to TECOLOTE RESEARCH, INC. for work described as: IDIQ CONTRACT FOR SPECIALIZED COST SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1668 days indicates a significant, long-term need for these specialized services. 3. The primary service delivery location is Massachusetts, potentially impacting the local economy and workforce. 4. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 5. The North American Industry Classification System (NAICS) code 541710 points to significant investment in R&D. 6. The contract was awarded to a single vendor, Tecolote Research, Inc., highlighting their specialized expertise.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The total award amount of $18.4 million over approximately 4.5 years suggests a substantial investment in specialized cost services. However, without comparable contracts for similar specialized R&D cost analysis, it's difficult to definitively assess if the pricing represents excellent value for money. The labor hour contract type allows for flexibility but necessitates diligent oversight to ensure efficient use of resources and prevent cost overruns.

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 while the competition was broad, certain sources were initially excluded. The specific reasons for exclusion are not detailed, but this suggests a deliberate selection process. The fact that it was competed broadly implies that multiple qualified vendors had the opportunity to bid, which generally supports price discovery and potentially competitive pricing. However, the 'after exclusion of sources' clause warrants further investigation into the rationale behind the initial exclusions.

Taxpayer Impact: The broad competition, despite potential source exclusions, likely provided taxpayers with a reasonable opportunity for competitive pricing. However, understanding the impact of any excluded sources is crucial for a complete assessment of taxpayer value.

Public Impact

The Department of Defense benefits from specialized cost analysis, crucial for informed budgeting and resource allocation in complex R&D projects. The contract supports research and development activities, potentially leading to advancements in defense technologies. The primary geographic impact is in Massachusetts, where the contractor is located, potentially creating or sustaining high-skilled jobs. The services delivered are critical for ensuring the efficient and effective use of taxpayer funds in defense acquisition and R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The 'after exclusion of sources' clause in the competition type requires further clarification to ensure maximum taxpayer value.
The labor hour contract type can lead to cost uncertainty if not closely managed and monitored.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract duration suggests a sustained and critical need for the specialized services provided.
Contractor is a single entity, implying specialized expertise in cost analysis for R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541710, which covers R&D in physical, engineering, and life sciences. This is a critical area for defense modernization. Spending in this sector is often characterized by long project timelines, high innovation potential, and significant investment. Comparable spending benchmarks would typically involve analyzing other large R&D contracts within the DoD or other federal agencies focused on similar scientific and engineering domains.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. Analysis would need to focus on whether the prime contractor, Tecolote Research, Inc., engages small businesses as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, a component of the Department of Defense. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight and Inspector General jurisdiction would depend on specific contract clauses and ongoing performance reviews.

Related Government Programs

Department of Defense Research and Development Contracts
Cost Analysis Services
Engineering and Scientific R&D Support
Federal R&D Spending

Risk Flags

Potential for scope creep due to the nature of R&D.
Risk of inaccurate cost analysis impacting program decisions.
Labor hour contract type requires diligent oversight to manage costs.
Rationale for 'exclusion of sources' needs further clarity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to TECOLOTE RESEARCH, INC.. IDIQ CONTRACT FOR SPECIALIZED COST 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2008-03-27. End: 2012-10-20.

What is the track record of Tecolote Research, Inc. in performing similar cost analysis contracts for the Department of Defense?

Tecolote Research, Inc. has a significant history of performing cost analysis and related services for the Department of Defense and other federal agencies. Their expertise often lies in supporting complex acquisition programs and research and development initiatives. While specific contract performance details are not provided here, their repeated awards in this specialized niche suggest a consistent ability to meet client requirements. Further analysis would involve examining past performance reviews, any documented disputes or contract terminations, and the scale and complexity of their previous DoD engagements to fully assess their track record.

How does the value of this contract compare to other similar R&D cost analysis contracts awarded by the DoD?

Comparing the $18.4 million award value requires identifying contracts with similar scope, duration, and service complexity within the R&D cost analysis domain. Contracts for basic research or less specialized engineering support might have lower values, while those supporting major weapon system development could be significantly higher. Given the 4.5-year duration, the annual value is approximately $4 million. This figure needs to be benchmarked against other contracts providing specialized cost estimating, program protection analysis, or Earned Value Management support for R&D projects. Without access to a detailed comparative database of such specialized services, a precise value comparison is difficult, but the amount indicates a substantial, long-term requirement.

What are the primary risks associated with this type of R&D cost analysis contract?

Key risks include the potential for scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns. Another significant risk is the accuracy and reliability of the cost estimates and analyses provided, as flawed data can lead to poor programmatic decisions. For a labor-hour contract, inefficient labor utilization or inflated billing rates pose financial risks. Furthermore, the specialized nature of R&D means that unforeseen technical challenges could impact the cost analysis process. Ensuring the contractor maintains up-to-date knowledge of evolving technologies and costing methodologies is also critical.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for specialized R&D services?

This method aims to balance broad competition with the need to potentially exclude sources that may not meet specific, stringent requirements or possess unique capabilities. While 'full and open' suggests a wide net was cast, the exclusion clause implies that certain vendors were deemed unsuitable from the outset. This can be effective if the exclusions are well-justified and based on objective criteria related to specialized expertise or security. However, if exclusions are arbitrary or overly restrictive, they could limit competition and potentially lead to higher prices than a truly unrestricted full and open competition. The effectiveness hinges on the transparency and validity of the exclusion rationale.

What is the historical spending trend for specialized cost services within the Department of the Air Force or DoD?

Historical spending on specialized cost services within the Department of the Air Force and the broader DoD has generally trended upwards, reflecting the increasing complexity and cost of modern defense systems and R&D programs. Agencies rely heavily on accurate cost estimation and analysis to manage budgets effectively, particularly for long-term projects. Spending in this area is often tied to acquisition reform initiatives and efforts to improve program predictability. While specific figures fluctuate based on overall defense budgets and acquisition priorities, there is a consistent and significant investment in these analytical capabilities to ensure fiscal responsibility and program success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 420 S FAIRVIEW AVE STE 201, GOLETA, CA, 24

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $20,741,179

Exercised Options: $18,628,469

Current Obligation: $18,411,202

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872107D0002

IDV Type: IDC

Timeline