COLSA CORP's $134M DoD contract for advanced research center support shows fair value but limited competition

Contract Overview

Contract Amount: $134,056,518 ($134.1M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2013-11-01

End Date: 2020-03-16

Contract Duration: 2,327 days

Daily Burn Rate: $57.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::CT::IGF ADVANCED RESEARCH CENTER, CORE OPERATIONS AND SUSTAINMENT AND ENGINEERING SUPPORT.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $134.1 million to COLSA CORP for work described as: IGF::CT::IGF ADVANCED RESEARCH CENTER, CORE OPERATIONS AND SUSTAINMENT AND ENGINEERING SUPPORT. Key points: 1. Contract value of $134M over 6 years suggests a significant investment in specialized research support. 2. The contract was awarded under 'full and open competition after exclusion of sources,' indicating a complex procurement process. 3. Performance period of 2327 days (approx. 6.4 years) provides a long-term outlook for sustained operations. 4. The contract type 'COST NO FEE' implies the government bears the cost of performance, with the contractor receiving no fee. 5. Geographic location in Alabama (AL) may indicate a concentration of specific defense research capabilities in the region. 6. The North American Industry Classification System (NAICS) code 541712 points to a focus on physical, engineering, and life sciences research.

Value Assessment

Rating: fair

The contract's 'COST NO FEE' structure makes direct value-for-money assessment challenging as it focuses on cost recovery rather than profit margin. Benchmarking against similar R&D support contracts is difficult without knowing the specific technical requirements and overhead. However, the duration suggests a stable, long-term need for these services. The absence of a fee might indicate a strategic decision to minimize contractor profit in favor of direct cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be broad, certain sources were excluded, potentially due to specialized requirements or prior relationships. The number of bidders is not specified, but the exclusion of sources implies a more constrained competitive landscape than a purely 'full and open' process.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may limit the range of innovative solutions and potentially lead to less aggressive pricing compared to a completely unrestricted competition.

Public Impact

The primary beneficiaries are the Department of Defense and its Missile Defense Agency, receiving critical support for advanced research. Services delivered include core operations, sustainment, and engineering support for an advanced research center. The geographic impact is concentrated in Alabama (AL), potentially fostering local expertise and employment in specialized R&D fields. Workforce implications include the employment of skilled personnel in research, engineering, and operational support roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could impact price discovery and innovation.
The 'COST NO FEE' contract type can obscure true cost efficiency and contractor performance incentives.
Lack of specific performance metrics makes it difficult to assess the quality and impact of the research support.
The long duration of the contract may reduce flexibility for the agency to adapt to evolving research needs.

Positive Signals

Sustained operational and engineering support ensures continuity for critical advanced research projects.
The contract's duration provides stability for the research center and its associated workforce.
Focus on core operations and sustainment suggests a commitment to maintaining essential research infrastructure.

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 support is highly specialized, often involving long-term engagements with significant government investment. Comparable spending benchmarks would typically be found within other large-scale defense research initiatives, where contracts for facility operations, engineering, and specialized scientific support can run into hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and specialized nature of advanced research center operations and sustainment, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available, unless specific niche services were required. The primary focus is on large-scale R&D support, typically handled by prime contractors with extensive capabilities.

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 Inspector General. Accountability measures would be tied to the contract's performance clauses, though the 'COST NO FEE' structure might shift focus from profit-driven performance to adherence to operational requirements. Transparency is generally maintained through contract databases, but detailed operational performance data may be less publicly accessible due to national security considerations.

Related Government Programs

Missile Defense Systems Research
Advanced Technology Development Contracts
Department of Defense Research Facilities
Engineering and Technical Services
Scientific Research Support Services

Risk Flags

Limited competition due to source exclusion.
Lack of performance fee complicates value assessment.
Potential for reduced innovation due to restricted bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $134.1 million to COLSA CORP. IGF::CT::IGF ADVANCED RESEARCH CENTER, CORE OPERATIONS AND SUSTAINMENT AND ENGINEERING 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 $134.1 million.

What is the period of performance?

Start: 2013-11-01. End: 2020-03-16.

What is the track record of COLSA CORP in performing similar large-scale R&D support contracts for the Department of Defense?

COLSA Corporation has a history of supporting defense and intelligence agencies with a range of services, including engineering, IT, and research support. Their experience often involves complex technical requirements and long-term engagements. While specific details on past performance for contracts of this exact nature (advanced research center operations and sustainment) would require deeper analysis of their contract history, their general profile suggests they are a capable provider for such requirements. Assessing their performance on this specific contract would involve reviewing past performance evaluations, any contract modifications, and delivery order history to understand their reliability, quality of service, and adherence to schedule and budget (where applicable).

How does the 'COST NO FEE' contract structure compare to typical R&D support contracts in terms of value and risk?

The 'COST NO FEE' (CNF) contract structure is relatively uncommon for R&D support services and differs significantly from more typical cost-plus-fee or fixed-price contracts. In a CNF contract, the contractor is reimbursed for all allowable costs incurred in performing the contract but receives no additional fee or profit. This structure places the primary risk on the government, as it bears all costs without the contractor having a direct financial incentive to control costs beyond basic operational necessity. While it can be used in specific situations, such as when the government has a strong interest in ensuring uninterrupted service or when profit is deemed inappropriate, it generally offers less transparency into contractor efficiency and can make benchmarking value more challenging compared to contracts with a defined fee structure.

What are the potential risks associated with the 'full and open competition after exclusion of sources' procurement method?

The 'full and open competition after exclusion of sources' method, while aiming for broad competition, introduces specific risks. The 'exclusion of sources' component means that certain potential bidders were deliberately not considered, which can stem from requirements for specific security clearances, proprietary technology access, or unique capabilities. The risk here is that this exclusion might inadvertently limit the pool of highly qualified offerors, potentially reducing the overall level of competition and innovation. It could also lead to a perception of favoritism or a less robust price discovery process if the excluded sources were strong competitors. Ensuring the justification for exclusion is sound and well-documented is crucial to mitigate these risks and maintain fairness.

What is the typical duration for contracts supporting advanced research centers, and how does this contract's duration compare?

Contracts supporting advanced research centers, particularly those involving core operations, sustainment, and engineering, often require long-term commitments due to the nature of research and development cycles, infrastructure investment, and workforce stability needs. Durations can range from 3 to 10 years, often including options for extension. This contract, with a performance period of approximately 6.4 years (2327 days), falls within the typical range for such long-term engagements. Shorter durations might be insufficient for meaningful research progress or could lead to frequent, costly re-procurements, while excessively long durations without review could reduce agency flexibility.

How does the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) typically align with defense spending priorities?

The NAICS code 541712 is highly relevant to defense spending priorities, as a significant portion of national defense research and development falls under physical sciences (e.g., materials, physics), engineering (e.g., aerospace, electrical, mechanical), and life sciences (e.g., biomedical, human factors). Agencies like the Department of Defense, NASA, and others heavily invest in R&D activities classified under this code to advance military capabilities, develop new technologies, and ensure technological superiority. Contracts awarded under this code often support critical innovation efforts, from basic research to applied development, directly contributing to national security objectives.

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

Pricing Type: COST NO FEE (S)

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: $150,182,157

Exercised Options: $150,182,157

Current Obligation: $134,056,518

Subaward Activity

Number of Subawards: 76

Total Subaward Amount: $12,795,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014707D0002

IDV Type: IDC

Timeline