Air Force awards $9.8M R&D contract to Tecolote Research for physical sciences research

Contract Overview

Contract Amount: $9,846,723 ($9.8M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-27

End Date: 2011-10-26

Contract Duration: 1,825 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: BASIC AWARD

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to TECOLOTE RESEARCH, INC. for work described as: BASIC AWARD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for the services. 3. The primary contractor, Tecolote Research, Inc., has a track record with federal agencies. 4. The NAICS code 541712 points to specialized research and development services. 5. The contract was awarded as a Time and Materials type, which can pose cost control challenges. 6. The award was made by the Department of the Air Force, a major DoD component.

Value Assessment

Rating: fair

The contract value of $9.8 million over five years averages to approximately $1.97 million per year. Benchmarking this against similar R&D contracts in physical sciences is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to higher costs if not closely managed compared to fixed-price contracts. The number of bids received (3) is on the lower side for a full and open competition, which might suggest less aggressive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. Three bids were received, which is a moderate level of competition. While more bidders could potentially drive prices lower, three bids suggest that the opportunity was known and at least a few companies were interested and capable of performing the work.

Taxpayer Impact: A competitive process, even with three bidders, generally provides better price discovery for taxpayers than a sole-source award. It allows for a comparison of technical approaches and pricing, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially broader Department of Defense initiatives requiring advanced physical science research. The services delivered are focused on research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is primarily within California, where the contractor is located, but the research outcomes could have national security implications. Workforce implications include employment for scientists, engineers, and research support staff at Tecolote Research, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
A relatively low number of bids (3) in a full and open competition might indicate limited market interest or high barriers to entry.
The specific nature of R&D can make it difficult to define scope upfront, potentially leading to scope creep and increased costs.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors.
The contractor, Tecolote Research, Inc., is an established entity with federal contracting experience.
The contract supports critical research and development for the Department of the Air Force.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. The market for specialized R&D services is often characterized by a mix of large corporations and smaller, highly specialized firms. Federal spending in this area is crucial for maintaining technological superiority and advancing scientific knowledge. Comparable spending benchmarks would depend heavily on the specific sub-discipline of physical sciences being researched.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Transparency is generally provided through contract award databases like FPDS. Accountability measures are inherent in the contract terms, performance metrics, and payment schedules. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development
Air Force Science and Technology Programs
Physical Sciences Research Contracts
Federal R&D Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Moderate competition level (3 bidders) may limit price discovery.
Specific R&D outcomes and effectiveness are not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to TECOLOTE RESEARCH, INC.. BASIC AWARD

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 $9.8 million.

What is the period of performance?

Start: 2006-10-27. End: 2011-10-26.

What is the track record of Tecolote Research, Inc. with federal contracts, particularly within the Department of Defense?

Tecolote Research, Inc. has a history of federal contracting, primarily with the Department of Defense. While specific details of past performance on similar R&D contracts are not provided in this summary, their presence as a contractor suggests they have met the necessary qualifications and performance standards for previous awards. Further investigation into their contract history, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment. Their ability to secure this $9.8 million contract indicates a level of trust and capability recognized by the Air Force.

How does the $9.8 million award compare to typical R&D contract values in physical sciences?

The $9.8 million value for a 5-year R&D contract in physical sciences is within a common range, though the specific sub-field of research significantly influences typical contract values. Contracts for fundamental research can vary widely, from smaller grants to multi-million dollar programs. This award averages approximately $1.97 million annually, which is a substantial but not extraordinary figure for specialized R&D efforts. Benchmarking requires detailed comparison with contracts for similar research objectives, complexity, and duration within the physical sciences domain.

What are the primary risks associated with a Time and Materials (T&M) contract for R&D services?

The primary risk with a Time and Materials contract for R&D is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined or if the project takes longer than anticipated, costs can escalate beyond initial projections. Effective oversight, detailed tracking of labor hours, and robust management of material costs are crucial to mitigate these risks and ensure value for money.

What does the level of competition (3 bidders) imply for the effectiveness of the procurement process?

Receiving three bids in a full and open competition suggests a moderately effective procurement process. It indicates that the opportunity was advertised and that at least three capable entities were interested and submitted proposals. While more bidders could potentially lead to greater price competition and innovation, three bids generally provide a reasonable basis for price and technical evaluation. A lower number of bids might raise concerns about market awareness, barriers to entry, or the attractiveness of the contract requirements.

What is the historical spending trend for R&D contracts under NAICS code 541712 by the Department of the Air Force?

Analyzing historical spending trends for NAICS code 541712 by the Department of the Air Force requires access to comprehensive federal procurement data. Generally, the Air Force, like other branches of the DoD, invests significantly in R&D to maintain technological superiority. Spending in this specific R&D category would fluctuate based on strategic priorities, technological advancements, and budget allocations. A detailed analysis would involve examining multi-year spending patterns, identifying major contractors, and understanding the types of R&D projects funded under this code.

Are there any specific performance metrics or deliverables outlined in this contract that can be used to assess program effectiveness?

The provided summary data does not detail specific performance metrics or deliverables for this contract. Typically, R&D contracts include milestones, technical reports, prototypes, or demonstrations as key deliverables. The effectiveness of the program would be assessed against these defined objectives and the quality of the outcomes. Without access to the full contract statement of work, it is impossible to evaluate the program's effectiveness based on specific performance criteria.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1 S LOS CARNEROS RD # 125, GOLETA, CA, 24

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,761,076

Exercised Options: $11,761,076

Current Obligation: $9,846,723

Parent Contract

Parent Award PIID: GS23F0105K

IDV Type: FSS

Timeline