DoD's $17.5M R&D Contract with Tecolote Research Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $17,547,955 ($17.5M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-12-18
End Date: 2013-02-13
Contract Duration: 2,249 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: LRSW
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $17.5 million to TECOLOTE RESEARCH, INC. for work described as: LRSW Key points: 1. The contract awarded to Tecolote Research, Inc. for R&D services is substantial, totaling over $17.5 million. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract type (Time and Materials) can pose risks if not managed closely, potentially inflating costs. 4. The sector is Research and Development, a critical area for technological advancement but also prone to cost overruns.
Value Assessment
Rating: questionable
The Time and Materials contract type, without a clear ceiling or robust oversight, raises concerns about cost control and value for money. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the Time and Materials structure may limit the effectiveness of this competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are at risk of being overspent due to the flexible nature of Time and Materials contracts, especially in long-duration R&D projects.
Public Impact
Significant federal investment in research and development, potentially leading to technological advancements. Concerns about the efficiency and cost-effectiveness of R&D spending under this contract structure. Potential for taxpayer funds to be used inefficiently if contract terms are not strictly managed.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Time and Materials contract type
- Lack of specific performance metrics in provided data
- Long duration of the contract
Positive Signals
- Full and open competition utilized
- Awarded to a single entity, potentially indicating specialized expertise
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences (excluding biotech). Spending in this area is crucial for innovation but requires careful management to ensure efficient use of funds.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The long duration and Time and Materials nature of this contract necessitate strong oversight from the Department of the Air Force to ensure cost control and adherence to project scope. Without detailed oversight information, accountability remains a concern.
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
- Time and Materials contract type is prone to cost overruns.
- Lack of specific performance metrics or deliverables in the provided data.
- Long contract duration increases risk exposure.
- No indication of small business subcontracting.
Tags
research-and-development-in-the-physical, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to TECOLOTE RESEARCH, INC.. LRSW
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 $17.5 million.
What is the period of performance?
Start: 2006-12-18. End: 2013-02-13.
What specific R&D objectives were achieved, and how do they align with the $17.5 million investment?
The provided data lacks details on the specific research and development objectives or deliverables. To assess value, a review of project milestones, technical reports, and final outcomes would be necessary. Understanding the tangible results and their impact relative to the cost is crucial for determining if the $17.5 million investment yielded adequate returns in terms of innovation or technological advancement.
How effectively did the 'full and open competition' mitigate cost risks associated with the Time and Materials contract?
While 'full and open competition' is a positive indicator for price discovery, its effectiveness in mitigating Time and Materials cost risks is limited. This contract type inherently allows costs to fluctuate based on labor hours and material costs. The competitive process likely secured a reasonable hourly rate, but ongoing oversight is critical to prevent scope creep and ensure efficient resource utilization throughout the contract's duration.
What mechanisms were in place to ensure accountability and prevent cost overruns given the contract's duration and type?
The data does not specify the oversight mechanisms employed. For a Time and Materials contract spanning over two years, robust accountability would typically involve detailed progress reports, regular reviews of labor hours and expenditures, clear change order procedures, and potentially independent cost monitoring. Without this information, it's difficult to ascertain the effectiveness of controls against potential cost overruns.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $18,003,544
Exercised Options: $18,003,544
Current Obligation: $17,547,955
Parent Contract
Parent Award PIID: GS23F0105K
IDV Type: FSS
Timeline
Start Date: 2006-12-18
Current End Date: 2013-02-13
Potential End Date: 2013-02-13 00:00:00
Last Modified: 2013-10-17
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