DoD's $29.6M R&D Contract for Sentinel Systems Financial Management Support Awarded to Tecolote Research

Contract Overview

Contract Amount: $29,639,181 ($29.6M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-07-06

End Date: 2026-07-15

Contract Duration: 1,105 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: SENTINEL SYSTEMS DIRECTORATE FINANCIAL MANAGEMENT ADVISORY AND ASSISTANCE SERVICES SUPPORT

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to TECOLOTE RESEARCH, INC. for work described as: SENTINEL SYSTEMS DIRECTORATE FINANCIAL MANAGEMENT ADVISORY AND ASSISTANCE SERVICES SUPPORT Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Tecolote Research, Inc. is the sole awardee. 3. The contract is a fixed-price level of effort type. 4. Awarded by the Department of the Air Force. 5. Duration of the contract is over 3 years.

Value Assessment

Rating: good

The contract value of $29.6M over approximately 3 years appears reasonable for specialized financial management advisory and assistance services in the R&D sector. Benchmarking against similar contracts for high-level technical support within the DoD would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher costs than a fully open competition.

Taxpayer Impact: Taxpayer funds are being used for specialized R&D support services. The limited competition raises questions about whether the most cost-effective solution was secured for the government.

Public Impact

Supports critical R&D functions within the Department of Defense. Ensures financial management expertise is available for complex projects. Potential for innovation and efficiency gains through specialized advisory services. Long-term engagement allows for deep understanding of program needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Fixed-price contracts can shift risk to the contractor, but scope creep could be an issue.
Reliance on a single contractor for critical financial support.

Positive Signals

Specialized R&D focus aligns with defense needs.
Long contract duration suggests a stable requirement.
Fixed-price structure provides cost certainty if scope is well-defined.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. Spending in this area is crucial for technological advancement within the Department of Defense, often involving significant investment in specialized expertise and innovation.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities for small business subcontracting exist within this larger contract.

Oversight & Accountability

The award was made by the Department of the Air Force, suggesting internal oversight mechanisms are in place. However, the 'exclusion of sources' clause warrants scrutiny to ensure the limited competition was justified and properly documented.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition raises concerns about potential overpricing.
Lack of small business participation noted.
Potential for scope creep in fixed-price contracts.
Reliance on a single entity for critical financial advisory services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to TECOLOTE RESEARCH, INC.. SENTINEL SYSTEMS DIRECTORATE FINANCIAL MANAGEMENT ADVISORY AND ASSISTANCE SERVICES 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 Air Force).

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2023-07-06. End: 2026-07-15.

What specific R&D projects will this financial management support address, and how does the contractor's expertise align with those needs?

The contract supports the Sentinel Systems Directorate, implying a focus on systems related to defense surveillance or early warning. Tecolote Research, Inc. likely possesses specialized financial and program management expertise relevant to complex defense R&D programs. The specific alignment would be detailed in the Statement of Work, outlining the financial planning, budgeting, and analysis required for these advanced technological endeavors.

How was the 'exclusion of sources' justified to ensure fair and reasonable pricing despite limited competition?

Justification for excluding sources typically involves demonstrating that only specific contractors possess the unique capabilities, experience, or proprietary knowledge required for the service. For this contract, it might relate to highly specialized financial management tools or deep institutional knowledge of the Sentinel Systems Directorate's specific R&D programs. A thorough review of the Justification for Other Than Full and Open Competition (JOFOC) is necessary to validate the rationale and assess price reasonableness.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?

Key performance indicators would likely focus on the accuracy and timeliness of financial reporting, budget adherence, cost analysis, and compliance with DoD financial regulations. Effectiveness would be measured by the contractor's ability to provide actionable financial insights that support informed decision-making for the Sentinel Systems Directorate's R&D initiatives, ultimately contributing to the successful and efficient execution of program goals.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA820723R0002

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $72,139,163

Exercised Options: $37,366,669

Current Obligation: $29,639,181

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,465,448

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