Air Force awards $16.1M R&D contract to Tecolote Research, Inc. for specialized engineering services

Contract Overview

Contract Amount: $16,116,096 ($16.1M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-31

End Date: 2012-11-16

Contract Duration: 1,935 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: DELIVERY ORDER AWARD (BRIDGE)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to TECOLOTE RESEARCH, INC. for work described as: DELIVERY ORDER AWARD (BRIDGE) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. The duration of the contract (1935 days) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical sciences. 5. The award was a Delivery Order (DO) under a larger contract vehicle. 6. The contractor, Tecolote Research, Inc., has a track record with the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific $16.1 million delivery order is challenging without knowing the scope of work and the parent contract it falls under. However, Time and Materials contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts. The number of bids received (2) is on the lower side for a full and open competition, which might suggest less aggressive pricing than if more bidders had participated. Further analysis would require comparing the labor rates and material costs to industry standards for similar R&D services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. However, only two bids were received. While the process was open, the limited number of bidders could suggest potential limitations in the market for these specialized services or perhaps a lack of aggressive marketing by the procuring agency to attract more competition. This could impact price discovery and potentially lead to higher costs than if a more robust competitive environment existed.

Taxpayer Impact: The limited number of bidders in this full and open competition may mean taxpayers did not benefit from the most competitive pricing achievable. A broader range of bids could have driven down costs through aggressive proposals.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, which receives specialized research and development support. The services delivered fall under Research and Development in the Physical, Engineering, and Life Sciences, contributing to technological advancements. The geographic impact is primarily within California, where the contractor is located. Workforce implications include employment for skilled researchers and engineers at Tecolote Research, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials contract type.
Limited competition (2 bidders) may not have yielded the most cost-effective outcome for taxpayers.
Lack of detailed performance metrics in the provided data makes assessing effectiveness difficult.

Positive Signals

Awarded through full and open competition, adhering to principles of broad market access.
Contractor has experience within the Department of Defense, suggesting familiarity with government requirements.
Long contract duration implies a sustained need and potential for stable support.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is crucial for innovation and technological advancement across various industries. Comparable spending benchmarks are difficult to establish without a precise definition of the R&D services provided, but government R&D spending is a significant portion of the federal budget, supporting advancements in defense, technology, and science.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Tecolote Research, Inc., is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Air Force's contracting officer and program managers. Accountability measures are usually embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Science and Technology Programs
Engineering and Technical Services Contracts
Time and Materials Contract Awards

Risk Flags

Potential cost overruns due to T&M contract type.
Limited competition may impact price.
Scope definition clarity for R&D services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to TECOLOTE RESEARCH, INC.. DELIVERY ORDER AWARD (BRIDGE)

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 $16.1 million.

What is the period of performance?

Start: 2007-07-31. End: 2012-11-16.

What is the specific nature of the research and development services provided under this contract?

The provided data indicates the contract falls under NAICS code 541712, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. However, the specific nature of the R&D services is not detailed. This could range from fundamental research to applied engineering solutions, materials science, or advanced physics. Without further documentation, such as the Statement of Work (SOW) or contract line item numbers (CLINs), the precise technical domain remains unspecified. Understanding the exact R&D focus is crucial for assessing its alignment with Air Force strategic goals and for benchmarking its value against similar specialized research efforts.

How does the $16.1 million award compare to other R&D contracts awarded by the Air Force for similar services?

Comparing this $16.1 million award requires identifying comparable R&D contracts within the Air Force, specifically those under NAICS 541712 and potentially involving similar technical areas. The duration of 1935 days (over 5 years) suggests a significant, long-term project. A preliminary comparison indicates that R&D contracts of this magnitude are common within the Department of Defense, particularly for advanced technology development. However, without knowing the specific deliverables and the competitive landscape for these particular services, a precise value-for-money assessment relative to peers is difficult. Factors like the number of bidders (2) and the Time and Materials (T&M) pricing structure also influence this comparison, as T&M contracts can be more variable in final cost than fixed-price awards.

What are the potential risks associated with the Time and Materials (T&M) contract type for this R&D effort?

The primary risk associated with a Time and Materials (T&M) contract type for R&D services 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 tightly defined, or if the project encounters unforeseen complexities, the contractor may incur more labor hours or material costs than initially anticipated, leading to a final award amount exceeding initial estimates. Effective oversight, detailed tracking of labor hours and materials, and clear communication between the government and contractor are essential to mitigate these risks and ensure the project stays within budget and delivers value.

What is Tecolote Research, Inc.'s track record with federal R&D contracts, particularly with the Department of Defense?

Tecolote Research, Inc. has a history of performing work for the federal government, including the Department of Defense. While the provided data confirms this specific award, a deeper dive into contract databases would reveal the extent and nature of their past performance. Companies specializing in R&D often build a portfolio of contracts demonstrating expertise in specific scientific or engineering domains. A positive track record typically involves successful project completion, adherence to schedules and budgets, and positive performance reviews. Understanding their past performance on similar R&D contracts, especially those involving complex engineering or scientific challenges, provides insight into their capability to execute this current award effectively.

How does the limited number of bidders (2) in a 'full and open competition' impact the government's ability to secure competitive pricing?

A 'full and open competition' theoretically allows any responsible source to bid, aiming to maximize competition. However, receiving only two bids suggests that the market for these specific R&D services might be limited, or that other potential bidders chose not to participate for various reasons (e.g., perceived difficulty, lack of resources, strategic focus). When competition is limited to only two bidders, the government has less leverage to negotiate aggressive pricing compared to a scenario with numerous competing proposals. The government must still evaluate proposals based on technical merit and price, but the pricing floor may be higher with fewer options, potentially resulting in less cost savings for taxpayers than if a more robust competitive field had emerged.

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: 2

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: $19,065,564

Exercised Options: $18,958,518

Current Obligation: $16,116,096

Parent Contract

Parent Award PIID: GS23F0105K

IDV Type: FSS

Timeline