COLSA CORP awarded $137M in engineering services for the Department of the Army, spanning over six years

Contract Overview

Contract Amount: $137,391,382 ($137.4M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2011-12-08

End Date: 2018-05-10

Contract Duration: 2,345 days

Daily Burn Rate: $58.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: PROFESSIONAL SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $137.4 million to COLSA CORP for work described as: PROFESSIONAL SERVICES Key points: 1. The contract utilized a Time and Materials pricing structure, which can present cost control challenges. 2. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework for services. 3. The duration of the contract (2345 days) indicates a long-term need for these engineering services. 4. The contract was awarded through full and open competition, implying a robust bidding process. 5. The primary service category is Engineering Services, aligning with the North American Industry Classification System (NAICS) code 541330. 6. The contract was awarded to COLSA CORP, a significant player in the defense contracting space.

Value Assessment

Rating: fair

The total award amount of $137.4 million over approximately six years for engineering services appears to be within a reasonable range for large-scale defense contracts. However, without specific details on the scope of work, deliverables, and labor categories, a precise value-for-money assessment is difficult. The use of Time and Materials pricing, while common, warrants scrutiny for potential cost overruns compared to fixed-price contracts. Benchmarking against similar engineering services contracts awarded by the Department of the Army or other defense agencies would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government. The specific number of bids received (10) provides a good indication that the market was engaged.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by driving down prices through market forces. A competitive environment helps prevent inflated costs and encourages contractors to offer their best value solutions.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential engineering support for its operations and projects. The services delivered likely encompass a wide range of engineering disciplines critical for military readiness and infrastructure. The contract's geographic impact is centered in Alabama, where COLSA CORP is headquartered, suggesting potential local economic benefits. The contract supports a workforce of engineers and technical professionals, contributing to specialized employment within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The long contract duration may reduce flexibility to adapt to changing technological needs or requirements.
Reliance on a single BPA call might limit opportunities for future competition on specific task orders.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract supports critical engineering services for the Department of the Army, aligning with national defense objectives.
The contractor, COLSA CORP, has a track record in providing professional services to the government.

Sector Analysis

This contract falls within the Professional Services sector, specifically Engineering Services (NAICS 541330). The defense engineering services market is substantial, driven by the continuous need for design, development, testing, and sustainment of military systems and infrastructure. Spending in this area is often characterized by long-term contracts, high technical complexity, and significant government oversight. Comparable spending benchmarks would typically involve analyzing the total annual outlays by the Department of Defense for engineering and technical support services across various branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large prime contract, COLSA CORP may engage small businesses as subcontractors to fulfill specific portions of the work, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement (PWS), requiring adherence to specific technical, schedule, and cost objectives. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues, the DoD IG generally oversees the efficiency and effectiveness of defense spending.

Related Government Programs

Department of Defense Professional Services Contracts
Army Engineering and Technical Services
Defense-wide Engineering Support
Time and Materials Contracts
BPA Call Awards

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may limit adaptability to future needs.
Need for robust government oversight to manage T&M risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $137.4 million to COLSA CORP. PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is COLSA CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $137.4 million.

What is the period of performance?

Start: 2011-12-08. End: 2018-05-10.

What is COLSA CORP's performance history with the Department of the Army on similar engineering contracts?

COLSA CORP has a history of providing professional services, including engineering and technical support, to various government agencies, including the Department of Defense. Analyzing their past performance ratings, any contract disputes, or awards for exceptional performance on similar Army contracts would provide insight into their reliability and capability. Specific data on their track record with the Army for engineering services under similar contract vehicles (like BPAs) would be crucial for a comprehensive assessment. Without access to detailed past performance evaluations, it's challenging to definitively assess their historical performance on this specific type of work.

How does the per-hour labor rate for COLSA CORP compare to market rates for similar engineering services?

A direct comparison of per-hour labor rates for COLSA CORP against market benchmarks is difficult without knowing the specific labor categories, experience levels, and geographic locations involved in this $137 million contract. However, as a Time and Materials contract awarded under full and open competition, the government likely negotiated rates considered fair and reasonable at the time of award. Benchmarking would involve comparing these negotiated rates against industry surveys (e.g., from professional associations or consulting firms) for comparable engineering roles within the defense sector. The presence of 10 bidders suggests that the rates offered were competitive enough to attract multiple proposals.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Unlike fixed-price contracts, there is less incentive for the contractor to control costs or improve efficiency, as higher costs can directly translate to higher profits. Effective risk mitigation requires robust government oversight, including detailed monitoring of labor hours, validation of material costs, and clear definition of the level of effort required. Without stringent oversight, T&M contracts can become significantly more expensive than initially anticipated.

How effective has the BPA Call mechanism been in facilitating efficient procurement for these engineering services?

Blanket Purchase Agreements (BPAs) are designed to streamline the procurement of recurring services or supplies from a specific vendor or vendors. A BPA Call, in this context, likely represents an order placed against an existing BPA. The effectiveness of this mechanism hinges on how well the underlying BPA was established – its scope, pricing, and terms. If the BPA itself was competitively established and its terms remain favorable, then using a BPA Call can indeed lead to faster award times and reduced administrative burden compared to a new full and open competition for each task. However, it's crucial that the BPA's terms continue to represent good value over its life.

What is the projected impact of this contract on COLSA CORP's revenue and market position?

A $137 million contract awarded over approximately six years represents a significant revenue stream for COLSA CORP. This substantial award would likely bolster their financial performance and solidify their position as a key provider of engineering services within the Department of the Army and the broader defense sector. Such a large contract can enhance their reputation, attract skilled personnel, and potentially serve as a springboard for securing future, similar contracts. The long duration also provides a degree of revenue stability and predictability for the company.

Are there any specific performance metrics or KPIs defined within the contract to measure success?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) established within this contract. However, for a contract of this magnitude and nature (engineering services for the Department of the Army), it is highly probable that a Performance Work Statement (PWS) or Statement of Work (SOW) would include detailed requirements and metrics. These typically cover aspects like technical performance, schedule adherence, quality of deliverables, and customer satisfaction. The effectiveness of the contract's outcome heavily relies on the clarity and measurability of these defined KPIs and the government's diligence in monitoring them.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6726 ODYSSEY DR NW, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $230,820,957

Exercised Options: $137,391,382

Current Obligation: $137,391,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W31P4Q12A0001

IDV Type: BPA

Timeline