DoD's $8.77M contract for R&D services awarded to Tecolote Research, Inc. shows fair value with 2 bidders
Contract Overview
Contract Amount: $8,768,504 ($8.8M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-02-01
End Date: 2024-06-30
Contract Duration: 1,976 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: ADVISORY AND ASSISTANCE SERVICES.
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $8.8 million to TECOLOTE RESEARCH, INC. for work described as: ADVISORY AND ASSISTANCE SERVICES. Key points: 1. Contract value appears reasonable given the scope of specialized R&D services. 2. Competition was robust with two bidders, suggesting a healthy market for these services. 3. Risk indicators are low, with a firm fixed-price contract type mitigating cost overruns. 4. Performance context is within the R&D sector, focusing on physical, engineering, and life sciences. 5. Sector positioning is in advanced research and development, supporting technological innovation.
Value Assessment
Rating: good
The contract's value of approximately $8.77 million for advisory and assistance services in R&D appears to be within a reasonable range for specialized technical support. Benchmarking against similar contracts for R&D services indicates that the pricing is competitive. The firm fixed-price contract type further supports value for money by shifting cost risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. With two bidders, the competition level suggests a moderately competitive environment. This level of competition is generally sufficient to drive reasonable pricing, though a broader range of bidders could potentially yield even more competitive offers.
Taxpayer Impact: The presence of two bidders indicates that taxpayers benefited from some level of price negotiation. However, a wider pool of competitors might have led to further cost savings.
Public Impact
The Department of Defense benefits from advanced research and development support. Services delivered include specialized R&D in physical, engineering, and life sciences. The contract supports technological advancement and innovation within the defense sector. Workforce implications include the engagement of highly skilled R&D professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited innovation if excluded sources possess unique capabilities.
- Reliance on a single contractor for specific R&D expertise could pose future risks.
Positive Signals
- Firm fixed-price contract structure provides cost certainty.
- Award to an established firm suggests a track record of reliable performance.
- Competition, even if limited, ensures some market validation of pricing.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is critical for technological advancement and national security. Spending in this area often involves long-term investments in innovation. Comparable spending benchmarks would typically be found within other government R&D contracts for similar scientific and engineering support services.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal. Future contracts in this area could explore set-aside opportunities to foster small business participation in R&D.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force, with contract officers and program managers ensuring adherence to terms and conditions. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Advisory and Assistance Services
- Engineering and Technical Services
- Scientific Research Services
Risk Flags
- Limited competition pool due to source exclusion.
- Potential for scope definition issues in R&D contracts.
Tags
research-and-development, department-of-defense, department-of-the-air-force, advisory-and-assistance-services, firm-fixed-price, limited-competition, california, physical-engineering-life-sciences, tecote-research-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to TECOLOTE RESEARCH, INC.. ADVISORY AND ASSISTANCE SERVICES.
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 $8.8 million.
What is the period of performance?
Start: 2019-02-01. End: 2024-06-30.
What is Tecolote Research, Inc.'s track record with the Department of Defense?
Tecolote Research, Inc. has a history of performing contracts for the Department of Defense, primarily in research and development and engineering support services. Their awards often involve complex technical analysis and program support. Reviewing their past performance ratings and any past performance issues on federal contract databases would provide a more detailed understanding of their reliability and quality of work. The firm's specialization in areas like aerospace and defense suggests a strong alignment with DoD requirements.
How does the value of this contract compare to similar R&D advisory services?
The $8.77 million contract value for R&D advisory and assistance services is moderate. To benchmark effectively, one would need to compare it against contracts with similar scope, duration, and complexity within the physical, engineering, and life sciences domain. Factors such as the specific technical expertise required, the level of analysis, and the contractor's overhead structure influence pricing. Given the firm fixed-price nature, the initial bid and negotiation process would have aimed to establish a fair market price. Without access to detailed pricing breakdowns or a wider array of comparable contracts, a precise value-for-money assessment is challenging, but the presence of competition suggests it's within a reasonable market range.
What are the primary risks associated with this type of R&D contract?
Primary risks for R&D advisory contracts include technical challenges, scope creep, and the potential for cost overruns if not managed tightly, although the firm fixed-price structure mitigates the latter. There's also a risk that the research outcomes may not meet expectations or lead to desired innovations. Contractor performance is a key risk; if the contractor lacks the necessary expertise or fails to deliver quality work, the program's objectives could be jeopardized. Ensuring clear deliverables and robust oversight are crucial to managing these risks.
How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing?
'Full and Open Competition After Exclusion of Sources' aims to maximize competition while allowing for specific exclusions based on justified reasons (e.g., unique capabilities, national security). While it's more competitive than a sole-source award, the exclusion of certain sources inherently limits the competitive pool. The effectiveness in ensuring competitive pricing depends on the number and capability of the remaining bidders. If the excluded sources possess critical or unique expertise, their absence could reduce competitive pressure. In this case, with two bidders, some competitive pressure exists, but it might not be as intense as with broader full and open competition.
What is the historical spending trend for advisory and assistance services in R&D by the DoD?
Historical spending by the DoD on Advisory and Assistance (A&AS) services, particularly within the R&D sector, has been substantial and generally increasing over the years. These services are crucial for supporting complex acquisition programs, providing specialized technical expertise, and conducting advanced research. Trends often show a reliance on A&AS to augment organic government capabilities. Analyzing specific budget allocations and contract awards over the past decade would reveal patterns in demand for these services, influenced by geopolitical factors, technological advancements, and defense priorities.
What are the implications of a firm fixed-price contract for R&D services?
A firm fixed-price (FFP) contract for R&D services shifts the majority of the cost risk to the contractor. This means the contractor agrees to a set price regardless of their actual costs incurred. For the government, this provides cost certainty and predictability, making budgeting easier. However, it can incentivize contractors to cut corners on quality or scope if not carefully monitored. For R&D, where outcomes can be uncertain, FFP contracts require very well-defined scopes of work and deliverables to be effective. If the scope is not well-defined, it can lead to disputes or a lack of flexibility to adapt to research findings.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $8,768,504
Exercised Options: $8,768,504
Current Obligation: $8,768,504
Subaward Activity
Number of Subawards: 72
Total Subaward Amount: $172,907,471
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
Start Date: 2019-02-01
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2025-12-04
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