DoD awards $6.76M for R&D services to TEC SOLUTIONS LLC, with a 364-day performance period
Contract Overview
Contract Amount: $6,763,898 ($6.8M)
Contractor: TEC Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $18.6K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: AC11-NATIONAL DEFENSE R AND D SERVICES DEPARTMENT OF DEFENSE - MILITARY BASIC RESEARCH
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $6.8 million to TEC SOLUTIONS LLC for work described as: AC11-NATIONAL DEFENSE R AND D SERVICES DEPARTMENT OF DEFENSE - MILITARY BASIC RESEARCH Key points: 1. Contract value of $6.76M for R&D services appears reasonable for the scope and duration. 2. Competition dynamics indicate a potentially favorable outcome for the government due to multiple bids. 3. Risk indicators are low, with a firm-fixed-price contract type and a defined performance period. 4. Performance context suggests a focus on basic research within physical, engineering, and life sciences. 5. Sector positioning places this contract within the broader defense research and development landscape.
Value Assessment
Rating: good
The contract value of $6.76 million for a 364-day definitive contract for R&D services is within a reasonable range for basic research. Benchmarking against similar contracts for R&D in the physical, engineering, and life sciences would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps control costs, suggesting good value if the deliverables meet expectations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under the Simplified Acquisition Procedures (SAP), with two bids received. This level of competition, while not extensive, suggests that the government received multiple offers, which typically leads to better price discovery and potentially more favorable terms than a sole-source award. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.
Taxpayer Impact: The competition, even under SAP, likely resulted in a more competitive price for taxpayers compared to a sole-source award. Receiving multiple bids helps ensure the government is not overpaying for the research and development services.
Public Impact
The Department of Defense, specifically the Department of the Air Force, is the primary beneficiary of these R&D services. The contract will deliver research and development services in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The geographic impact is primarily within Ohio, where TEC SOLUTIONS LLC is located. Workforce implications include the potential for highly skilled researchers and scientists to be engaged in critical defense research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in R&D projects if not managed tightly.
- Dependence on the specific expertise of TEC SOLUTIONS LLC for successful project completion.
Positive Signals
- Firm-fixed-price contract type mitigates cost overrun risks.
- Defined performance period provides clear project boundaries.
- Competition, even under SAP, suggests a degree of market validation for the proposed services and pricing.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment, often driven by national security imperatives. Comparable spending benchmarks would involve looking at other basic research contracts awarded by the Department of Defense or other federal agencies for similar scientific disciplines. The market size for defense R&D is substantial, with a continuous need for innovation.
Small Business Impact
This contract was competed under SAP and does not indicate a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The overall impact on the small business ecosystem would depend on whether TEC SOLUTIONS LLC, as the prime contractor, engages small businesses in its supply chain for this project.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specific research outcomes. Transparency is facilitated through federal contract databases where this award is reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Basic Research Programs
- Air Force Research Laboratory (AFRL) Contracts
- Federal R&D Spending
- Physical Sciences Research Contracts
- Engineering Sciences Research Contracts
- Life Sciences Research Contracts
Risk Flags
- Potential for R&D project delays
- Contractor performance risk
- Technical feasibility of research objectives
Tags
defense, department-of-defense, department-of-the-air-force, research-and-development, basic-research, firm-fixed-price, definitive-contract, competed-under-sap, ohio, naics-541715, tec-solutions-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.8 million to TEC SOLUTIONS LLC. AC11-NATIONAL DEFENSE R AND D SERVICES DEPARTMENT OF DEFENSE - MILITARY BASIC RESEARCH
Who is the contractor on this award?
The obligated recipient is TEC SOLUTIONS LLC.
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 $6.8 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is the track record of TEC SOLUTIONS LLC in performing similar Department of Defense R&D contracts?
A review of TEC SOLUTIONS LLC's contract history would be necessary to assess their track record. Specifically, one would look for prior awards from the Department of Defense or other federal agencies for research and development services in the physical, engineering, and life sciences. Examining past performance evaluations, on-time delivery rates, and adherence to budget on similar projects would provide insight into their capabilities and reliability. Without specific data on past performance, it is difficult to definitively assess their suitability for this contract beyond the fact that they were selected through a competitive process.
How does the awarded amount of $6.76 million compare to the average cost of similar R&D contracts awarded by the Department of Defense?
To benchmark the $6.76 million award, one would need to analyze historical data for definitive contracts with similar North American Industry Classification System (NAICS) codes (e.g., 541715) and service descriptions (Research and Development in the Physical, Engineering, and Life Sciences). Factors such as contract duration, specific research areas, and the number of bidders influence pricing. If this contract's value per day or per research task is significantly higher or lower than the average for comparable DoD R&D efforts, it would indicate potential overpricing or exceptional value. The firm-fixed-price nature suggests a defined scope, making direct comparison more feasible.
What are the primary risks associated with this specific R&D contract, and how are they being mitigated?
The primary risks for this R&D contract include potential technical challenges in achieving research objectives, the possibility of contractor underperformance, and the inherent uncertainties in scientific discovery. Mitigation strategies are evident in the contract structure: the firm-fixed-price (FFP) type caps the government's financial exposure, ensuring cost predictability. The defined 364-day performance period sets clear expectations for delivery timelines. Furthermore, the competitive award process suggests that TEC SOLUTIONS LLC was assessed as capable of meeting the technical requirements. Ongoing oversight by the Department of the Air Force will monitor progress and address any emerging issues.
How effective is the competition level (two bidders under SAP) in ensuring optimal value for taxpayers?
Having two bidders under Simplified Acquisition Procedures (SAP) provides a moderate level of competition, which is generally beneficial for taxpayers. It indicates that the government received at least two proposals, allowing for a comparison of technical approaches and pricing. This scenario is superior to a sole-source award, where price discovery is limited. However, it is less robust than a full and open competition with numerous bidders, which typically drives prices down further and fosters broader innovation. The effectiveness hinges on the quality of the proposals received and the rigor of the evaluation process by the Department of the Air Force.
What is the historical spending trend for R&D services under NAICS code 541715 by the Department of Defense?
Analyzing historical spending trends for NAICS code 541715 by the Department of Defense would reveal the overall investment in physical, engineering, and life sciences R&D. This would involve examining contract data over several fiscal years to identify patterns in contract values, award volumes, and dominant contractors. Such an analysis could show whether spending in this category is increasing, decreasing, or remaining stable, and whether the DoD relies heavily on a few large prime contractors or a diverse range of firms. Understanding these trends provides context for the current $6.76 million award, indicating if it aligns with established spending patterns or represents a deviation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 901 N STUART ST STE 504, ARLINGTON, VA, 22203
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,920,496
Exercised Options: $6,920,496
Current Obligation: $6,763,898
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-03-17
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