DoD Awards COLSA Corp $102M for Missile Defense Systems, Extending Contract to 2007

Contract Overview

Contract Amount: $211,775,010 ($211.8M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 1998-01-08

End Date: 2007-12-31

Contract Duration: 3,644 days

Daily Burn Rate: $58.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199904!2100!0337!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098C0047 !A!*!* !19990108!20020216!102067378!102067378!102067378!N!4U825!COLSA CORPORATION !6726 ODYSSEY DR NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000002938200!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!A!*!A !N!R!2!002!K!* !Z!Y!Z!* !* !N!B!*!Z!*!B!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $211.8 million to COLSA CORP for work described as: 199904!2100!0337!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098C0047 !A!*!* !19990108!20020216!102067378!102067378!102067378!N!4U825!COLSA CORPORATION !6726 ODYSSEY DR NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISO… Key points: 1. The contract value is substantial at $102,067,378, indicating a significant investment in missile defense. 2. COLSA Corporation, the sole awardee, has a strong relationship with the DoD for these specialized services. 3. The contract's duration of over 9 years (from initial award to final completion) suggests long-term strategic importance. 4. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a complex procurement history, potentially limiting broader competition.

Value Assessment

Rating: good

The contract value of $102,067,378 over its extended period appears reasonable for advanced missile defense systems development. Benchmarking against similar R&D contracts for specialized defense systems would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, it was restricted. This could impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being directed towards critical national security infrastructure, specifically missile defense. The extended duration and specific awardee suggest a focused investment.

Public Impact

Enhances national security through advanced missile defense capabilities. Supports high-tech jobs in Huntsville, Alabama, a hub for aerospace and defense. Ensures continued development and maintenance of critical defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

  • Limited competition raises questions about optimal pricing.
  • Long contract duration could lead to cost overruns if not managed effectively.
  • Reliance on a single contractor for critical systems poses a risk.

Positive Signals

  • Focus on a critical national security area.
  • Award to a company with demonstrated expertise in missile defense.
  • Potential for innovation and technological advancement in defense systems.

Sector Analysis

This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically focusing on missile and space systems. Defense spending in this area is typically high and driven by national security priorities.

Small Business Impact

The data does not indicate any specific subcontracting goals or achievements for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The 'Department of Defense' and 'Defense Contract Management Agency' are responsible for oversight. The contract's long duration necessitates robust oversight to ensure performance, cost control, and adherence to requirements.

Related Government Programs

  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Limited competition.
  • Long contract duration.
  • Potential for cost overruns.
  • Single source reliance for critical systems.

Tags

department-of-defense, al, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $211.8 million to COLSA CORP. 199904!2100!0337!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098C0047 !A!*!* !19990108!20020216!102067378!102067378!102067378!N!4U825!COLSA CORPORATION !6726 ODYSSEY DR NW !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000002938200!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!A!*!A !N!R!2!0

Who is the contractor on this award?

The obligated recipient is COLSA CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $211.8 million.

What is the period of performance?

Start: 1998-01-08. End: 2007-12-31.

What specific technological advancements or capabilities were achieved under this contract that justify the significant investment and extended duration?

The contract focused on 'RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and 'BALLISTIC MISSILE DEFENSE SYS'. While specific breakthroughs are not detailed, the investment likely supported the research, development, and testing of advanced technologies crucial for the nation's missile defense architecture, contributing to enhanced threat detection and interception capabilities.

How did the 'EXCLUSION OF SOURCES' in the competition process impact the final contract price and overall value for the government?

Excluding certain sources, even after initial full and open competition, can limit the competitive landscape. This may have resulted in a higher price than if all potential offerors had been allowed to compete. The government would have needed to justify this exclusion based on specific technical or security requirements to ensure best value.

What are the long-term implications of awarding a contract of this magnitude and duration to a single entity for critical missile defense systems?

Awarding a large, long-term contract to a single entity can foster deep expertise and streamline development. However, it also concentrates risk and can reduce flexibility if requirements change or if the contractor underperforms. Continuous monitoring and contingency planning are essential to mitigate these risks.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 6726 ODYSSEY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 1998-01-08

Current End Date: 2007-12-31

Potential End Date: 2007-12-31 00:00:00

Last Modified: 2018-04-03

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