Army awards $34.6M contract for missile and space systems R&D to COLSA CORP

Contract Overview

Contract Amount: $34,596,516 ($34.6M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2001-05-23

End Date: 2006-09-30

Contract Duration: 1,956 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200108!002154!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0101CR025 !A!N!*!N! !20010523!20010930!102067378!102067378!932928799!N!COLSA CORPORATION !6726 ODYSSEY DR NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000699550!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!U!2!001!E! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to COLSA CORP for work described as: 200108!002154!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0101CR025 !A!N!*!N! !20010523!20010930!102067378!102067378!932928799!N!COLSA CORPORATION !6726 ODYSSEY DR NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract awarded for research and development in missile and space systems. 2. COLSA CORP, a known defense contractor, secured this award. 3. The contract duration is over 1900 days, indicating a long-term project. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 6. The primary place of performance is Alabama, potentially benefiting the local economy.

Value Assessment

Rating: fair

The total award amount is $34.6 million. Without specific benchmarks for similar missile and space systems R&D contracts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses COLSA for allowable costs plus a fixed fee, which can lead to cost overruns if not managed carefully. The contract's duration of over 1900 days suggests a significant scope of work.

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 a bid. The number of bidders is not specified in the provided data, but the competitive nature of the award suggests that the Army sought the best value through a bidding process. This approach generally aims to foster price discovery and encourage competitive pricing.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value for the services rendered.

Public Impact

The primary beneficiary is the U.S. Army, which will receive research and development services for missile and space systems. The contract supports advancements in defense technology, specifically in missile and space applications. The geographic impact is primarily in Alabama, where the contractor is located and likely where the work will be performed. This contract likely supports a workforce of scientists, engineers, and technical staff within COLSA CORPORATION.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to maximize profit if not closely monitored.
The long duration of the contract increases the risk of scope creep or changing requirements over time.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance on similar projects.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
COLSA CORPORATION is an established entity in the defense sector, implying some level of expertise.
The contract is for Research and Development, indicating investment in future technological capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on defense applications related to missile and space systems. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical services. Spending in this area is critical for maintaining a technological edge in national defense. Comparable spending benchmarks would typically be found within defense R&D budgets allocated by agencies like the Department of Defense.

Small Business Impact

The provided 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 stemming from a set-aside provision. The primary focus is on the large business contractor, COLSA CORPORATION. Any subcontracting opportunities would be at the discretion of the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Specific oversight mechanisms would include contract administration by the awarding office (USA AVIATION AND MISSILE COMMAND) and potentially audits by the Defense Contract Audit Agency (DCAA) and the Department of Defense Inspector General. Transparency is generally maintained through contract awards databases, though detailed performance reports are often internal.

Related Government Programs

Missile Defense Systems
Space Systems Development
Advanced Weapons Research
Department of Defense Research and Development Programs
Army Aviation and Missile Command Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration may increase exposure to changing requirements or scope creep.
Lack of specific performance data in the provided snippet requires further investigation into contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to COLSA CORP. 200108!002154!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0101CR025 !A!N!*!N! !20010523!20010930!102067378!102067378!932928799!N!COLSA CORPORATION !6726 ODYSSEY DR NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000699550!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!A!

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 $34.6 million.

What is the period of performance?

Start: 2001-05-23. End: 2006-09-30.

What is COLSA CORPORATION's track record with the Department of Defense, particularly on Cost Plus Fixed Fee contracts?

COLSA CORPORATION has a significant history of contracting with the Department of Defense. While the provided data does not detail their specific track record on Cost Plus Fixed Fee (CPFF) contracts, their continued awards suggest a level of performance that meets DoD requirements. CPFF contracts are common for R&D where the scope is not fully defined, but they require diligent oversight to manage costs effectively. A deeper analysis would involve reviewing past performance evaluations and any documented issues on similar contracts awarded to COLSA by the DoD to assess their reliability and cost control capabilities.

How does the $34.6 million award compare to typical spending on missile and space systems R&D by the Army?

The $34.6 million award represents a moderate investment in missile and space systems R&D. The U.S. Army, as part of the Department of Defense, allocates billions annually to research and development across various domains. Contracts of this magnitude are typical for specific research projects or technology development phases. To benchmark this value, one would compare it against the average award size for similar NAICS codes (e.g., 541710) and contract types (CPFF) within the Army's R&D portfolio over the past several fiscal years. Without access to broader DoD spending data, it's difficult to definitively state if this represents high or low spending relative to the overall R&D budget.

What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D in missile and space systems?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in missile and space systems revolve around cost control and scope definition. For the government, the risk is that the contractor may not have strong incentives to control costs, as allowable expenses are reimbursed, and the profit (fixed fee) is predetermined. This can lead to cost overruns if the contractor's efficiency is low or if unforeseen technical challenges arise, increasing the allowable costs. For the contractor, the risk lies in accurately estimating the costs and the fixed fee to ensure profitability, especially in R&D where outcomes can be uncertain. Effective oversight, clear milestones, and robust cost accounting are crucial to mitigate these risks.

What is the expected program effectiveness or outcome of this R&D contract?

The expected program effectiveness and outcome of this R&D contract are centered on advancing the U.S. Army's capabilities in missile and space systems. This could involve developing new technologies, improving existing systems, or conducting fundamental research to understand novel concepts. Specific outcomes might include enhanced missile guidance, improved space-based communication or surveillance, or breakthroughs in materials science for aerospace applications. The effectiveness will ultimately be measured by the successful transition of developed technologies into operational systems or by the knowledge gained that informs future defense strategies and acquisitions. The long duration suggests a focus on foundational or complex developmental research rather than immediate deployment.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' sector (NAICS 541710) trended over the past decade?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' sector (NAICS 541710) has generally seen consistent, and often increasing, investment over the past decade, particularly within defense and health agencies. While specific figures fluctuate based on national priorities, budget cycles, and geopolitical events, R&D remains a critical area for government investment. Defense R&D, which this contract falls under, is often prioritized to maintain technological superiority. Broader trends show a significant portion of this spending directed towards areas like advanced materials, cybersecurity, artificial intelligence, and aerospace technologies, aligning with the nature of this contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 6726 ODYSSEY DR NW, HUNTSVILLE, AL, 05

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Timeline