DoD's $177.7M research and development contract for engineering and administrative support services awarded to COLSA Corp

Contract Overview

Contract Amount: $177,728,184 ($177.7M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2015-03-01

End Date: 2020-02-29

Contract Duration: 1,826 days

Daily Burn Rate: $97.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF SCATI ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF PROGRAM EXECUTIVE OFFICER FOR MOBILITY DIRECTORATE (AFLCMC/WL)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $177.7 million to COLSA CORP for work described as: IGF::CL::IGF SCATI ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF PROGRAM EXECUTIVE OFFICER FOR MOBILITY DIRECTORATE (AFLCMC/WL) Key points: 1. Contract awarded through full and open competition, indicating a broad search for qualified bidders. 2. The contract type, Cost Plus Fixed Fee (CPFF), allows for cost reimbursement plus a fixed fee, which can incentivize cost control. 3. Performance period spans five years, suggesting a long-term need for these specialized services. 4. The contract is for research and development in physical, engineering, and life sciences, a critical area for defense innovation. 5. The awardee, COLSA Corp, has a significant contract value, suggesting established capabilities and a strong performance record. 6. The contract was issued as a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, common for flexible support services.

Value Assessment

Rating: good

The contract value of approximately $177.7 million over five years for specialized R&D support services appears reasonable given the scope and duration. While specific comparable contracts for this exact niche are not provided, the Cost Plus Fixed Fee (CPFF) structure is standard for R&D where final costs can be uncertain. The fixed fee component allows for a predictable profit margin for the contractor while the cost reimbursement ensures the government pays for actual, allowable expenses. Benchmarking against similar R&D support contracts within the Department of Defense would provide a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the initial solicitation might have had some exclusions, the final award was made after a competitive process open to all responsible sources. The presence of 12 bidders suggests a healthy level of competition for this type of specialized R&D support. A competitive environment generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received high-quality services at a competitive price. Multiple bidders mean the government had options and could select the most advantageous offer.

Public Impact

The primary beneficiaries are the Program Executive Officer for Mobility Directorate (AFLCMC/WL) within the Department of the Air Force, receiving critical advisory and assistance services. The contract supports research and development in physical, engineering, and life sciences, contributing to advancements in defense technology. Services delivered include engineering, professional, and administrative support, crucial for program management and technical execution. The contract is geographically focused on Alabama (AL), where the contractor is located, implying potential local economic impact. The contract supports specialized technical and professional roles, potentially impacting the workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently, as the contractor is reimbursed for costs incurred.
The 'after exclusion of sources' clause in the competition type warrants further investigation to understand any initial limitations on competition.
Long-term contracts like this require continuous oversight to ensure performance remains aligned with evolving R&D needs and objectives.

Positive Signals

Awarded through full and open competition, indicating a wide search for the best value.
The contract value of over $177 million suggests a significant and potentially successful long-term engagement.
The contractor, COLSA Corp, is likely experienced in providing these specialized R&D support services.
The five-year duration allows for continuity and deep integration of support services, potentially leading to greater efficiency.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for the Department of Defense, driving innovation and technological superiority. The market for R&D support services is competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks would typically involve analyzing other large-scale R&D support contracts awarded by the DoD or other federal agencies for similar scientific and engineering disciplines.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The focus is on large-scale R&D support, likely requiring specialized capabilities that may be beyond the scope of many small businesses, unless they are part of a larger subcontracting team.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure allowable costs are properly documented and reimbursed. Transparency is generally maintained through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG typically has oversight over major defense contracts to investigate fraud, waste, and abuse.

Related Government Programs

Defense Research and Development
Engineering and Technical Services
Advisory and Assistance Services
Logistics and Mobility Support
Science and Technology Research

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of service misalignment with rapidly evolving R&D needs over the five-year period.
Need for continuous oversight to ensure contractor performance and cost control.
Initial exclusion of sources may warrant review to ensure maximum competition was achieved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $177.7 million to COLSA CORP. IGF::CL::IGF SCATI ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF PROGRAM EXECUTIVE OFFICER FOR MOBILITY DIRECTORATE (AFLCMC/WL)

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 Air Force).

What is the total obligated amount?

The obligated amount is $177.7 million.

What is the period of performance?

Start: 2015-03-01. End: 2020-02-29.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' supported by this contract?

The contract data indicates the North American Industry Classification System (NAICS) code is 541712, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. This broad category suggests the work could encompass a wide range of activities, from fundamental scientific research to applied engineering development. Given the contract is for the Program Executive Officer for Mobility Directorate (AFLCMC/WL), it likely supports the development, testing, and sustainment of mobility aircraft and related systems. This could include areas like advanced materials, propulsion systems, avionics, aerodynamic research, or human factors engineering related to air mobility platforms.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types used for R&D services?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development where the extent or duration of the work cannot be determined in advance. It allows the government to reimburse the contractor for all allowable costs incurred, plus a fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee (like Cost Plus Incentive Fee or Cost Plus Award Fee), which have different incentive structures. CPFF provides cost certainty for the government regarding the contractor's profit but requires diligent oversight to manage the variable cost component. For R&D, it balances the need for flexibility with contractor incentives.

What does the 'full and open competition after exclusion of sources' designation imply about the bidding process?

This designation suggests a nuanced competitive process. Initially, the solicitation may have excluded certain sources based on specific criteria (e.g., security clearances, specialized capabilities, or prior performance). However, the 'full and open' aspect means that after these initial exclusions, the remaining pool of potential bidders was considered, and the contract was awarded through a process open to all responsible sources within that qualified pool. The presence of 12 bidders indicates that despite any initial exclusions, a substantial number of companies were still able to compete, suggesting a reasonably broad market search was conducted for this specialized service.

What are the potential risks associated with a five-year contract for R&D support services?

A significant risk with a five-year R&D support contract is the potential for scope creep or misalignment with evolving technological needs. R&D is inherently dynamic, and requirements can change rapidly. If the contract is not managed flexibly, the services provided may become outdated or less relevant by the end of the term. Another risk is contractor performance degradation over time, especially if incentives are not structured to maintain high quality. Furthermore, the CPFF structure requires vigilant oversight to prevent cost overruns and ensure that only necessary and reasonable costs are reimbursed. The long duration also means the government is committed to a specific contractor for an extended period, potentially limiting agility if a better solution emerges.

How does the contract value of approximately $177.7 million compare to typical spending in the R&D sector for the Air Force?

The contract value of $177.7 million over five years, averaging roughly $35.5 million per year, is substantial but falls within the typical range for large-scale R&D support contracts within the Department of Defense, particularly for a major command like the Air Force Life Cycle Management Center (AFLCMC). The Air Force consistently invests billions annually in R&D across various domains. This specific contract, supporting mobility directorates, addresses a critical aspect of air power. While precise benchmarks require access to detailed spending databases, this value suggests a significant, long-term requirement for specialized engineering and advisory services essential for maintaining and advancing mobility capabilities.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6728 ODYSSEY DR NW, 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: $272,545,573

Exercised Options: $252,818,732

Current Obligation: $177,728,184

Actual Outlays: $17,549

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $130,306,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS705

IDV Type: IDC

Timeline