DoD's Missile Defense Agency spent $25M on R&D support, with COLSA Corp as prime

Contract Overview

Contract Amount: $25,081,538 ($25.1M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2010-07-15

End Date: 2020-03-16

Contract Duration: 3,532 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: GM SYSTEM TEST LAB (PRIME CONTRACTOR INTEGRATION LAB (PCIL)-1) SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to COLSA CORP for work described as: GM SYSTEM TEST LAB (PRIME CONTRACTOR INTEGRATION LAB (PCIL)-1) SUPPORT Key points: 1. The contract focused on research and development, specifically in physical and engineering sciences. 2. COLSA Corp, the prime contractor, provided integration lab support. 3. The contract spanned nearly a decade, indicating a long-term need for these services. 4. The award was a delivery order under a larger contract, suggesting a phased approach to acquisition. 5. The geographic location of performance was Alabama. 6. The contract type was labor hours, which can offer flexibility but requires careful monitoring of effort.

Value Assessment

Rating: fair

Benchmarking the value of this specific $25 million contract is challenging without comparable delivery orders for similar R&D support services. The labor hours contract type means the final cost is tied to the effort expended, making direct price comparisons difficult. However, the duration of nearly nine years suggests a sustained need and potentially a reasonable rate if the work was consistently required and executed efficiently. Further analysis would require understanding the specific tasks performed and comparing COLSA Corp's labor rates to industry standards for similar expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation may have been open, certain sources were later excluded, leading to a limited competition scenario. The presence of 3 bidders suggests some level of competition, but the exclusion of other potential sources raises questions about the breadth of the competitive landscape and whether the most advantageous pricing was secured.

Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers compared to full and open competition, as the pool of potential bidders is restricted.

Public Impact

The primary beneficiaries are the Department of Defense and its Missile Defense Agency, receiving critical R&D support. The services delivered likely contributed to the advancement and testing of missile defense systems. The contract's performance was geographically focused in Alabama. The contract supported specialized technical and research personnel, implying a positive impact on the skilled workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'limited competition' aspect warrants scrutiny to ensure fair pricing and maximum value.
The labor hours contract type requires diligent oversight to prevent cost overruns and ensure efficient resource utilization.
The exclusion of sources in the competition process needs clear justification to confirm it served the government's best interest.

Positive Signals

The long contract duration (nearly 9 years) suggests a stable and reliable performance by the contractor.
The contract supported critical R&D for the Missile Defense Agency, aligning with national security objectives.
The existence of 3 bidders indicates some level of market interest and capability for this specialized service.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by continuous innovation needs in areas like missile defense. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by the DoD or similar agencies for advanced technology development and system integration. The $25 million expenditure over nearly a decade places it as a moderately sized contract within this specialized niche.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. The prime contractor, COLSA Corp, is not typically considered a small business. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor may have utilized small businesses as subcontractors, which would be a secondary avenue for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, with potential involvement from the Missile Defense Agency's internal oversight bodies. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is facilitated through contract databases, but detailed performance metrics and cost breakdowns may not be publicly available.

Related Government Programs

Missile Defense Systems Development
Advanced Technology Research Contracts
Department of Defense Research and Development
Aerospace and Defense Engineering Services

Risk Flags

Limited competition may impact price competitiveness.
Labor hours contract type requires diligent oversight to control costs.
Justification for exclusion of sources needs to be clear.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to COLSA CORP. GM SYSTEM TEST LAB (PRIME CONTRACTOR INTEGRATION LAB (PCIL)-1) SUPPORT

Who is the contractor on this award?

The obligated recipient is COLSA CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2010-07-15. End: 2020-03-16.

What was the specific nature of the 'GM SYSTEM TEST LAB (PRIME CONTRACTOR INTEGRATION LAB (PCIL)-1) SUPPORT' provided by COLSA Corp?

The contract data indicates that COLSA Corp provided 'GM SYSTEM TEST LAB (PRIME CONTRACTOR INTEGRATION LAB (PCIL)-1) SUPPORT' under a research and development classification (NAICS 541712). This suggests the services involved the operation, maintenance, and potentially the development of test facilities and integration laboratories crucial for testing and validating missile defense systems. The 'PCIL-1' designation likely refers to a specific lab or project within the Missile Defense Agency's infrastructure. The labor hours contract type implies that COLSA Corp's personnel were directly engaged in performing tasks within these labs, contributing to the testing, integration, and analysis phases of missile defense technology development over the contract's nearly nine-year period.

How does the $25 million expenditure over nearly nine years compare to typical R&D support contracts for the Missile Defense Agency?

An average annual spend of approximately $2.8 million ($25M / 9 years) for R&D support is within a moderate range for specialized technical services within the defense sector. The Missile Defense Agency (MDA) often engages in large, complex, and long-term research and development programs. While some MDA contracts can reach hundreds of millions or even billions of dollars, contracts for specific support functions like integration lab services, especially awarded as delivery orders, can fall into this multi-million dollar bracket. Without access to a comprehensive database of all MDA R&D support contracts and their specific scopes, a precise benchmark is difficult. However, the sustained funding over a significant period suggests it was a critical and ongoing requirement for the agency's missile defense initiatives.

What are the potential risks associated with a 'labor hours' contract type for R&D support?

The primary risk with a 'labor hours' contract type, especially for R&D support, is the potential for cost overruns if the effort required is underestimated or if inefficiencies arise. Unlike fixed-price contracts, the government pays for the time and labor expended by the contractor's personnel. This necessitates robust oversight to ensure that the hours billed are reasonable, necessary, and directly related to the contract's objectives. For R&D, where the scope can be inherently uncertain, labor hours offer flexibility but can lead to higher total costs if not managed diligently. Risks include scope creep, inefficient task execution, and difficulty in predicting the final cost upfront, potentially impacting budget certainty for the agency.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the procurement process?

This designation suggests a multi-stage procurement process. Initially, the solicitation was likely intended for full and open competition, meaning all responsible sources were encouraged to submit offers. However, at some point after the initial solicitation, certain sources were excluded from further consideration. This exclusion could be due to various reasons, such as failure to meet specific technical qualifications, past performance issues, or specific government justifications for limiting the pool. While it started with an open intent, the exclusion narrows the field, potentially impacting the level of competition and the range of pricing achieved. It implies a deliberate decision was made to restrict the bidders, which requires justification to ensure it served the government's best interest and did not unduly limit competition.

What is the significance of the contract being a 'DELIVERY ORDER'?

The fact that this contract is a 'Delivery Order' (aw) signifies that it was issued under a previously awarded indefinite-delivery/indefinite-quantity (IDIQ) or other type of basic contract. This means the underlying contract vehicle was already established, likely through a separate competitive process. The Delivery Order then specifies the actual goods or services to be procured, the quantity, and the delivery schedule. For this $25 million contract, it implies that the Missile Defense Agency had a broader contract in place with COLSA Corp (or a parent contract vehicle) and used this Delivery Order to task specific R&D support services over the period from 2010 to 2020. This approach allows for flexibility and phased acquisition of needs over time.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014707R0001

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6726 ODYSSEY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $28,611,105

Exercised Options: $28,611,105

Current Obligation: $25,081,538

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $227,978

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014707D0002

IDV Type: IDC

Timeline