DoD's Air Force awards $69M R&D contract to Tecolote Research for advisory services
Contract Overview
Contract Amount: $68,951,070 ($69.0M)
Contractor: Tecolote Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-12-19
End Date: 2029-12-18
Contract Duration: 1,825 days
Daily Burn Rate: $37.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: ADVISORY AND ASSISTANCE SERVICES.
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $69.0 million to TECOLOTE RESEARCH, INC. for work described as: ADVISORY AND ASSISTANCE SERVICES. Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Tecolote Research, Inc. is the sole awardee. 3. The contract runs for five years, ending in December 2029. 4. Awarded under full and open competition after exclusion of sources. 5. Contract type is Cost Plus Incentive Fee.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee structure aims to align contractor performance with government objectives. The base value is $37.78M, with potential for growth up to $68.95M, indicating flexibility based on performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition After Exclusion of Sources' method suggests a competitive process was initiated, but specific sources were later excluded. This could impact price discovery if the exclusion narrowed the field significantly.
Taxpayer Impact: Taxpayer funds are being used for specialized R&D advisory services, with the incentive fee structure aiming for efficient use of resources.
Public Impact
Supports critical research and development initiatives within the Department of the Air Force. Potential for technological advancements stemming from the R&D services. Ensures specialized expertise is available for complex scientific and engineering challenges. Long-term nature of the contract provides stability for the awarded company and project continuity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential impact of source exclusion on competition.
- Cost overruns possible with Cost Plus Incentive Fee contracts.
- Dependence on a single contractor for critical advisory services.
Positive Signals
- Clear performance objectives through incentive fee structure.
- Long-term engagement allows for deep expertise development.
- Competition, even with exclusions, suggests an effort for best value.
Sector Analysis
This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' sector. Spending in this area is crucial for innovation and national security, with benchmarks varying widely based on specific research domains.
Small Business Impact
The contract was awarded to Tecolote Research, Inc., which is not indicated as a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's duration and value suggest a need for robust oversight to ensure performance objectives are met and costs remain controlled, particularly given the Cost Plus Incentive Fee structure.
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
- Potential for cost overruns due to CPIF structure.
- Limited visibility into the rationale for source exclusion.
- Dependence on a single entity for critical advisory functions.
- Contract performance hinges on effective government oversight.
Tags
research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.0 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 $69.0 million.
What is the period of performance?
Start: 2024-12-19. End: 2029-12-18.
What specific R&D areas will Tecolote Research advise on, and how does this align with Air Force strategic priorities?
The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the exact R&D areas are not detailed, the Air Force's strategic priorities often include advanced materials, aerospace technologies, cyber capabilities, and complex systems engineering. Advisory services would likely support the planning, execution, and evaluation of projects within these critical domains to ensure alignment and maximize technological advantage.
What were the specific reasons for excluding other sources after initial full and open competition, and what was the impact on the final price?
The data indicates 'Full and Open Competition After Exclusion of Sources'. The specific reasons for exclusion are not provided but typically involve technical qualifications, past performance, or unique capabilities required for the specific advisory role. The impact on price is difficult to ascertain without knowing the number and caliber of excluded bidders; however, excluding potential competitors could theoretically lead to a less competitive price than a truly open bid.
How will the Cost Plus Incentive Fee structure be monitored to ensure effective cost control and incentivize desired outcomes?
Effective monitoring of a Cost Plus Incentive Fee (CPIF) contract involves establishing clear, measurable performance metrics and target costs agreed upon by both the government and the contractor. The Air Force contracting officer and technical team will track actual costs against targets and evaluate performance against the defined metrics. Incentive fees are then awarded based on the degree to which cost and performance targets are met or exceeded, requiring diligent oversight to prevent cost overruns and ensure the contractor is motivated to achieve the government's objectives efficiently.
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: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA881024RB004
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $228,222,238
Exercised Options: $223,025,358
Current Obligation: $68,951,070
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $136,651,655
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: 2024-12-19
Current End Date: 2029-12-18
Potential End Date: 2029-12-18 00:00:00
Last Modified: 2025-12-18
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