NAVWAR Awards $21.4M Engineering Services Contract to Tecolote Research, Inc. for Cost Estimating Support

Contract Overview

Contract Amount: $21,377,323 ($21.4M)

Contractor: Tecolote Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-27

End Date: 2026-12-17

Contract Duration: 1,147 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: NAVAL INFORMATION WARFARE SYSTEMS COMMAND (NAVWAR) 1.6 COST ESTIMATING AND ANALYSIS SUPPORT SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to TECOLOTE RESEARCH, INC. for work described as: NAVAL INFORMATION WARFARE SYSTEMS COMMAND (NAVWAR) 1.6 COST ESTIMATING AND ANALYSIS SUPPORT SERVICES Key points: 1. Contract awarded to Tecolote Research, Inc. for cost estimating and analysis support. 2. The contract has a duration of 1147 days, ending in December 2026. 3. This award falls under the Engineering Services sector. 4. The contract type is Cost Plus Fixed Fee. 5. The award value is approximately $21.4 million.

Value Assessment

Rating: good

The contract value of $21.4 million for cost estimating and analysis support appears reasonable given the 1147-day duration. Benchmarking against similar contracts for specialized engineering services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to promote price discovery and potentially lead to a more favorable price for the government.

Taxpayer Impact: The competitive nature of this award is likely to ensure taxpayer funds are used efficiently for essential cost estimating and analysis services.

Public Impact

Ensures accurate cost estimations for future Naval programs. Supports informed decision-making for defense spending. Provides specialized expertise to the Naval Information Warfare Systems Command. Contributes to the efficient allocation of defense resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can sometimes lead to cost overruns if not managed carefully.
  • Small business participation is not indicated, which could be a missed opportunity for economic development.

Positive Signals

  • Awarded under full and open competition.
  • Long-term contract provides stability for critical support services.
  • Supports a key defense agency (NAVWAR).

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government projects requiring specialized technical expertise. Spending benchmarks in this sector vary widely based on project complexity and duration.

Small Business Impact

The data indicates that this contract was not awarded to a small business. While not explicitly required for all contracts, exploring opportunities for small business subcontracting could enhance economic impact.

Oversight & Accountability

The award was made by the Naval Information Warfare Systems Command (NAVWAR), a component of the Department of the Navy. Oversight would typically involve contract management and performance monitoring by NAVWAR officials.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract structure.
  • Lack of explicit small business participation.
  • Reliance on a single contractor for critical support services.
  • Potential for cost escalation if not closely managed.

Tags

engineering-services, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to TECOLOTE RESEARCH, INC.. NAVAL INFORMATION WARFARE SYSTEMS COMMAND (NAVWAR) 1.6 COST ESTIMATING AND ANALYSIS SUPPORT 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 Navy).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2023-10-27. End: 2026-12-17.

What specific cost estimating methodologies will Tecolote Research, Inc. employ, and how do they align with industry best practices for defense contracts?

Tecolote Research, Inc. is expected to utilize established cost estimating methodologies such as parametric, analogy, and bottom-up estimating, tailored to the specific needs of NAVWAR. These methods should align with industry best practices and DoD guidelines to ensure accuracy and reliability in cost projections for complex information warfare systems and programs.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract structure in this context, and how will they be mitigated?

The primary risk with CPFF is the potential for cost overruns if the contractor's costs exceed the fixed fee, incentivizing them to manage expenses. Mitigation strategies include robust government oversight, detailed cost tracking, performance metrics, and clear definition of work scope to prevent scope creep and ensure efficient resource utilization.

How will the effectiveness of Tecolote Research's cost estimating and analysis support be measured to ensure optimal value for the Department of the Navy?

Effectiveness will be measured through key performance indicators (KPIs) such as the accuracy of cost estimates compared to actual project costs, the timeliness of deliverables, and the clarity and utility of the analysis provided. Regular performance reviews and feedback mechanisms will ensure the contractor meets or exceeds expectations, providing tangible value to NAVWAR's decision-making processes.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Solicitation ID: N0003923R3001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 420 S FAIRVIEW AVE STE 201, GOLETA, CA, 93117

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,414,732

Exercised Options: $32,538,141

Current Obligation: $21,377,323

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,391,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8684

IDV Type: IDC

Timeline

Start Date: 2023-10-27

Current End Date: 2026-12-17

Potential End Date: 2029-06-17 00:00:00

Last Modified: 2026-02-26

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