DoD's $16M R&D contract for space systems support awarded to Tecolote Research, Inc. shows fair value

Contract Overview

Contract Amount: $16,009,933 ($16.0M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-10

End Date: 2020-02-12

Contract Duration: 551 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::OT::IGF SPACE AND MISSILE SYSTEMS CENTER ACQUISITION FINANCIAL SUPPORT TEMPORARY TASK ORDER.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to TECOLOTE RESEARCH, INC. for work described as: IGF::OT::IGF SPACE AND MISSILE SYSTEMS CENTER ACQUISITION FINANCIAL SUPPORT TEMPORARY TASK ORDER. Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of 551 days for R&D services appears reasonable. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance occurred primarily in California, indicating a regional economic impact. 5. The contract falls under R&D in physical, engineering, and life sciences, a critical sector for defense. 6. No small business set-aside was utilized, which is typical for specialized R&D contracts.

Value Assessment

Rating: good

The contract's total value of approximately $16 million for 551 days of R&D support appears to be within a reasonable range for specialized technical services. Benchmarking against similar contracts for space systems acquisition support is challenging without more granular data on the specific tasks performed. However, the firm fixed-price nature of the contract suggests that the government secured a defined scope of work at a predetermined cost, which is generally a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'exclusion of sources' phrasing might initially raise questions, it typically refers to a scenario where specific sources were excluded based on pre-defined criteria (e.g., security clearances, specific technical capabilities) before the broader competition was opened. The fact that it was 'full and open' implies that multiple qualified offerors had the opportunity to bid, leading to a competitive process that should drive price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive nature of this award suggests that taxpayers benefited from a process designed to solicit the best value from a range of qualified contractors, rather than being limited to a single provider.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, receiving critical research and development support for space and missile systems. Services delivered include specialized technical and analytical support essential for the acquisition and development of advanced space technologies. The contract's geographic impact is concentrated in California, where the contractor is located and likely performed the work. The contract supports highly skilled technical and scientific jobs within the aerospace and defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause, while potentially legitimate, warrants understanding the specific criteria used to exclude potential bidders to ensure fairness.
Lack of specific performance metrics or outcome data makes it difficult to fully assess the effectiveness and impact of the R&D services provided.

Positive Signals

The use of a firm fixed-price contract type is a positive signal, indicating cost certainty for the government.
Awarded under full and open competition, suggesting a robust bidding process.
The contractor, Tecolote Research, Inc., likely possesses specialized expertise required for complex space and missile systems R&D.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on space and missile systems. This is a highly specialized and critical area for national defense, often characterized by long development cycles and significant technological innovation. The market for such services is typically dominated by a few highly capable firms with the necessary security clearances and technical expertise. Spending in this sector is driven by evolving threats, technological advancements, and strategic national priorities.

Small Business Impact

The contract data indicates that this was not a small business set-aside (ss: false, sb: false). This is common for highly specialized R&D contracts requiring advanced technical capabilities and security clearances that may not be readily available within the small business sector. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award, nor is there an immediate impact on the small business ecosystem through this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. The firm fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Space Systems Command Contracts
Missile Defense Agency Contracts
Department of Defense Research and Development Programs
Aerospace Engineering Services Contracts

Risk Flags

Potential lack of transparency in source exclusion criteria.
Limited public data on specific R&D outcomes and effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to TECOLOTE RESEARCH, INC.. IGF::OT::IGF SPACE AND MISSILE SYSTEMS CENTER ACQUISITION FINANCIAL SUPPORT TEMPORARY TASK ORDER.

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 $16.0 million.

What is the period of performance?

Start: 2018-08-10. End: 2020-02-12.

What specific R&D activities were performed under this contract?

The contract, "IGF::OT::IGF SPACE AND MISSILE SYSTEMS CENTER ACQUISITION FINANCIAL SUPPORT TEMPORARY TASK ORDER," suggests the work involved financial support and temporary task orders related to the acquisition of space and missile systems. While the specific R&D activities are not detailed in the provided data, they likely encompassed areas such as systems engineering, technical analysis, cost estimation, program management support, and potentially research into new technologies or methodologies for space and missile system development. The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' further indicates a focus on scientific and technical research rather than direct manufacturing or procurement of hardware.

How does the $16 million contract value compare to similar R&D contracts for space systems support?

Comparing the $16 million value requires context on the scope and duration of similar contracts. For specialized R&D support in the space and missile systems domain, $16 million over approximately 1.5 years (551 days) is a moderate-sized contract. Larger, multi-year programs involving extensive system development or testing could easily reach hundreds of millions or billions. Conversely, smaller, highly focused research tasks might be in the low millions. Tecolote Research, Inc. is known for providing advanced technical services, and this contract appears to align with their capabilities for supporting complex acquisition programs. Without specific details on the deliverables, a precise benchmark is difficult, but the value seems commensurate with specialized technical support for a significant defense acquisition effort.

What are the key risks associated with this type of R&D contract, and how were they mitigated?

Key risks for R&D contracts include technical feasibility (will the research yield desired results), schedule delays (research can be unpredictable), cost overruns (especially in fixed-price contracts if scope is not well-defined), and contractor performance. This contract utilized a 'firm fixed-price' (pt: FIRM FIXED PRICE) type, which is a primary mitigation strategy against cost overruns, as the contractor assumes the risk of exceeding the agreed-upon price. The 'full and open competition' (ct: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES) likely helped select a contractor with a proven track record and competitive pricing. The contract duration of 551 days (dur: 551) provides a defined timeframe, and the agency's oversight would further monitor progress and address potential issues.

What is Tecolote Research, Inc.'s track record with the Department of Defense, particularly in space and missile systems R&D?

Tecolote Research, Inc. is a well-established contractor specializing in advanced technical services, including systems engineering, analysis, and program support, particularly for defense and aerospace clients. Their work often involves complex projects for agencies like the Department of Defense (DoD) and NASA. While this specific contract was for acquisition financial support and temporary task orders, the company's general expertise aligns with the R&D needs in space and missile systems. Their history with the DoD likely includes numerous contracts supporting various weapon system development and acquisition programs, indicating a significant level of experience and trust within the agency for handling sensitive and technically demanding projects.

How does the spending on this contract compare to overall federal spending in the R&D sector for space and missile systems?

The $16 million awarded to Tecolote Research, Inc. represents a small fraction of the overall federal spending on R&D, particularly within the defense sector's space and missile systems domain. The Department of Defense alone invests tens of billions of dollars annually in research, development, testing, and evaluation (RDT&E). Contracts for space and missile systems R&D can range from tens of millions for specific technology development efforts to billions for major program development and sustainment. Therefore, while significant for the contractor and the specific task order, this $16 million contract is a component within a much larger federal R&D investment landscape aimed at maintaining technological superiority.

What does the 'exclusion of sources' clause imply for the competition level and potential fairness?

The 'full and open competition after exclusion of sources' clause suggests that while the competition was broadly open to all qualified bidders, certain pre-defined criteria were used to exclude specific entities before the main solicitation. These exclusions are typically based on factors like security clearances, specific technical expertise, past performance issues, or proprietary information requirements. The intent is often to ensure that only capable and appropriate contractors participate, thereby streamlining the process and potentially leading to better-suited solutions. However, the transparency and justification for these exclusions are critical to ensure the process remains fair and does not unduly limit competition. Without knowing the specific exclusion criteria, it's difficult to definitively assess its impact beyond ensuring a baseline level of qualification.

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

Solicitation ID: FA881118R0003

Offers Received: 1

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: $17,041,652

Exercised Options: $16,009,933

Current Obligation: $16,009,933

Subaward Activity

Number of Subawards: 168

Total Subaward Amount: $165,878,033

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