COLSA Corp awarded $325.7M for R&D services, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $325,734,418 ($325.7M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2016-11-10

End Date: 2023-05-15

Contract Duration: 2,377 days

Daily Burn Rate: $137.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: IGF::CT::IGF TASK ORDER AWARD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $325.7 million to COLSA CORP for work described as: IGF::CT::IGF TASK ORDER AWARD Key points: 1. Value for money appears fair given the contract duration and the nature of R&D services. 2. Competition dynamics indicate a moderate level of market interest with two bidders. 3. Risk indicators are moderate, typical for long-term R&D contracts. 4. Performance context is within the scope of research and development in physical, engineering, and life sciences. 5. Sector positioning is within the defense R&D landscape, supporting the Department of the Army.

Value Assessment

Rating: fair

The contract's total value of $325.7 million over approximately 6.5 years suggests an average annual spend of around $50 million. Benchmarking R&D services is complex due to the bespoke nature of the work. However, the time and materials pricing structure allows for flexibility, which can be cost-effective if managed diligently. Without specific deliverables or comparable contracts for identical research, a precise value-for-money assessment is challenging, but the pricing appears within a reasonable range for extensive R&D support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level suggests a moderately interested market for these specific R&D services. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially more competitive pricing for the government.

Taxpayer Impact: The full and open competition with two bidders provides some assurance of competitive pricing, though taxpayers might benefit from even greater competition to drive costs down further.

Public Impact

The Department of the Army benefits from advanced research and development capabilities. Services delivered include research and development in physical, engineering, and life sciences. The geographic impact is primarily in Alabama, where the contractor is located. Workforce implications include employment for scientists, engineers, and technical personnel at COLSA Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with time and materials pricing if not closely monitored.
Scope creep in R&D projects can lead to increased costs and extended timelines.
Dependence on a single contractor for critical R&D functions could pose a risk.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Long contract duration allows for sustained focus on complex R&D objectives.
Contractor's location in Alabama may support regional economic development.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is critical for technological advancement and national security, often involving significant government investment. Comparable spending in this area can vary widely based on the specific research domain and agency. The Department of Defense is a major investor in R&D, with significant portions allocated to areas like advanced materials, engineering solutions, and scientific research to maintain a technological edge.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, COLSA Corp, may engage small businesses as subcontractors, which would then provide indirect opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. The time and materials pricing structure necessitates close monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Army R&D Task Orders
Information Technology R&D
Engineering Services Contracts
Scientific Research and Development

Risk Flags

Long contract duration increases risk of obsolescence or changing requirements.
Time and Materials pricing requires diligent oversight to control costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $325.7 million to COLSA CORP. IGF::CT::IGF TASK ORDER AWARD

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 $325.7 million.

What is the period of performance?

Start: 2016-11-10. End: 2023-05-15.

What is COLSA Corp's track record with the Department of Defense, particularly in R&D contracts?

COLSA Corporation has a significant history of contracting with the Department of Defense, including numerous awards for research and development services. Their expertise often lies in areas such as systems engineering, information technology, and scientific research. Analyzing their past performance on similar R&D contracts would involve reviewing past performance evaluations, any documented issues or successes, and their ability to meet technical requirements and delivery schedules. A review of federal procurement data indicates a consistent pattern of awards to COLSA Corp across various defense agencies, suggesting a sustained relationship and perceived capability in fulfilling defense-related R&D needs. Further investigation into specific contract close-outs and performance metrics would provide a more granular understanding of their track record.

How does the average annual value of this contract compare to other R&D contracts of similar scope awarded by the Department of the Army?

This contract has an average annual value of approximately $50 million ($325.7M / 6.5 years). Comparing this to other R&D contracts awarded by the Department of the Army requires access to a comprehensive database of federal procurements. However, R&D contracts can vary significantly in value based on the complexity, duration, and specific scientific or engineering domain. For large-scale, multi-year R&D initiatives, an annual spend of $50 million is substantial but not uncommon, especially for projects requiring specialized expertise and extensive resources. Benchmarking would ideally involve identifying contracts with similar North American Industry Classification System (NAICS) codes (like 541712) and similar contract types (e.g., cost-plus, time and materials) awarded over comparable periods. Without direct comparative data, it's difficult to definitively state if this represents high or low value, but it indicates a significant investment.

What are the primary risks associated with a Time and Materials (T&M) contract for R&D services, and how are they mitigated?

Time and Materials (T&M) contracts for R&D services carry inherent risks, primarily the potential for cost overruns due to the open-ended nature of tracking labor hours and material costs. Without fixed price points for deliverables, there's a risk of scope creep and inefficient resource utilization if not managed rigorously. Mitigation strategies are crucial and typically involve strong government oversight, including detailed monitoring of timesheets, validation of material purchases, and regular progress reviews. The contracting officer's representative (COR) plays a vital role in ensuring that work performed aligns with project objectives and that costs remain reasonable and allocable. Establishing clear ceiling prices and requiring detailed reporting from the contractor are also key to controlling costs and ensuring value for taxpayer money.

What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) in understanding the contract's objectives?

The North American Industry Classification System (NAICS) code 541712 signifies that the contract's primary purpose is to fund research and development activities within the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., mechanical, electrical, civil engineering), and life sciences (excluding biotechnology, which has its own code). This classification helps define the scope of work, the types of expertise required from the contractor, and the expected outcomes, which are typically advancements in knowledge, technology, or capabilities. For the Department of the Army, this code suggests the contract supports efforts to develop new technologies, improve existing systems, or conduct fundamental research relevant to defense applications, such as advanced materials for equipment, new communication technologies, or improved operational methodologies.

How does the duration of this contract (2377 days) impact the assessment of its overall value and risk?

The contract duration of 2377 days, approximately 6.5 years, is substantial for an R&D contract. This extended period allows for the pursuit of complex, long-term research objectives that cannot be achieved in shorter timeframes. From a value perspective, it can provide stability and continuity for critical research efforts, potentially leading to more significant breakthroughs and a better return on investment compared to fragmented, short-term projects. However, a longer duration also increases the inherent risks. These include the potential for technological obsolescence, shifts in strategic priorities, contractor performance degradation over time, and the difficulty in accurately forecasting costs and resource needs over such an extended period. Robust contract management, including performance reviews and potential for modification or termination, is essential to mitigate these risks.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6728 ODYSSEY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $359,928,060

Exercised Options: $325,734,418

Current Obligation: $325,734,418

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $164,131,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: W31P4Q16A0003

IDV Type: BPA

Timeline