COLSA CORP awarded $42.17M for R&D services, with a 180-day duration and Cost Plus Fixed Fee contract type

Contract Overview

Contract Amount: $42,166,891 ($42.2M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2025-09-01

End Date: 2026-02-28

Contract Duration: 180 days

Daily Burn Rate: $234.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: WRIGHT PATTERSON AFB, MONTGOMERY County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to COLSA CORP for work described as: SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Value for money assessed through cost-plus-fixed-fee structure, requiring careful monitoring of indirect costs. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a robust bidding process. 3. Risk indicators include the Cost Plus Fixed Fee contract type, which can incentivize cost overruns if not managed tightly. 4. Performance context is for Research and Development in Physical, Engineering, and Life Sciences, a complex and often unpredictable sector. 5. Sector positioning within R&D services, a critical area for technological advancement and innovation.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk in cost control. While it allows for flexibility in R&D, it necessitates rigorous oversight to ensure the fixed fee remains reasonable and that costs do not escalate unnecessarily. Benchmarking CPFF contracts in similar R&D services is challenging due to the bespoke nature of research, but the total award value of $42.17M for an 180-day period suggests a significant investment per day. Further analysis would require detailed cost breakdowns and comparison to similar research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially narrowing the field of bidders. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive process aimed at achieving fair market prices.

Taxpayer Impact: The 'full and open' competition, even with exclusions, suggests that taxpayers likely benefited from a competitive pricing environment, leading to a more efficient use of funds compared to sole-source awards.

Public Impact

Benefits the Department of the Air Force through specialized engineering and professional support services. Delivers critical research and development services in physical, engineering, and life sciences. Geographic impact is centered in Ohio (OH), where the contractor is located. Workforce implications include employment for specialized engineers and researchers at COLSA CORP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in CPFF contracts if not closely monitored.
Complexity of R&D projects can lead to unforeseen challenges and budget adjustments.
Exclusion of sources in competition, even if justified, may limit optimal price discovery.

Positive Signals

Full and open competition, even with exclusions, generally promotes competitive pricing.
Contract awarded to a single entity (COLSA CORP) suggests specialized capabilities.
Clear contract end dates (2025-09-01 to 2026-02-28) provide defined project scope.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541712. This sector is characterized by innovation and the pursuit of new knowledge and applications. Spending in this area is crucial for national security and technological advancement. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D, but the total award value of $42.17M for an 180-day period indicates a substantial investment in specialized research capabilities.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, COLSA CORP, may engage small businesses as subcontractors, which would be detailed in subcontracting plans not provided here. The absence of set-aside flags suggests the focus was on specialized capabilities rather than small business promotion for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Professional Services Contracts
Air Force Science and Technology Programs
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring of expenditures.
Potential for scope creep in R&D projects.
Exclusion of sources may limit competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to COLSA CORP. SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES

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 $42.2 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-02-28.

What is COLSA CORP's track record with the Department of Defense, particularly in R&D services?

COLSA CORP has a significant history of contracting with the Department of Defense across various service categories, including R&D, engineering, and IT support. Their performance record with the DoD generally indicates a capacity to handle complex projects. Specific to R&D, their experience would involve managing research initiatives, adhering to scientific methodologies, and delivering technical reports. A detailed review of past performance evaluations and contract closeouts would provide a more granular understanding of their success rates, on-time delivery, and adherence to budget on similar R&D endeavors. Their sustained presence as a DoD contractor suggests a level of reliability and competence in meeting the department's demanding requirements.

How does the $42.17M award for 180 days compare to similar R&D contracts in the physical, engineering, and life sciences sector?

The award of $42.17M for a 180-day period translates to a daily expenditure of approximately $234,261. This rate is substantial and indicative of highly specialized R&D services. Comparing this directly to similar contracts is challenging without access to proprietary cost data and specific project scopes. However, R&D contracts, especially those involving advanced scientific research and engineering, often command high costs due to the need for specialized personnel, equipment, and facilities. The 'Cost Plus Fixed Fee' structure also means that the total cost is subject to the efficiency of the contractor's operations. Benchmarking would ideally involve comparing the cost per research hour, per deliverable, or per scientific breakthrough achieved, which are not readily available metrics from the award data alone.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risk with a CPFF contract for R&D is the potential for cost overruns if not managed diligently. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If costs escalate significantly beyond initial projections, the government may end up paying more than anticipated, especially if the scope of work expands or unforeseen technical challenges arise. For the contractor, the risk lies in underestimating costs, which could reduce their actual profit margin or even lead to a loss if the fixed fee is insufficient to cover their efforts. Effective oversight, detailed cost tracking, and clear scope definition are crucial to mitigate these risks and ensure value for the taxpayer.

How does the 'Full and Open Competition After Exclusion of Sources' impact price discovery and taxpayer value?

The 'Full and Open Competition After Exclusion of Sources' aims to balance broad competition with specific requirements. While 'full and open' suggests an intention to solicit from a wide range of qualified vendors, the 'exclusion of sources' implies that certain potential bidders were deemed ineligible or unsuitable for reasons not detailed in the award abstract. This exclusion could potentially limit the number of competitive bids received, which might, in turn, reduce the downward pressure on pricing compared to a truly unrestricted full and open competition. However, if the exclusions were based on necessary technical qualifications or security requirements, the competition among the remaining qualified bidders could still yield a fair market price and good value for taxpayers, provided the selection process was robust and transparent.

What are the implications of the 180-day duration for this $42.17M R&D contract?

A 180-day duration for a $42.17M R&D contract signifies an intensive, short-term research effort. This suggests the project is likely focused on a specific, well-defined phase of research, a critical milestone, or a rapid prototyping initiative. The high daily burn rate ($234,261/day) underscores the need for highly skilled personnel and potentially specialized equipment or facilities that are engaged for this concentrated period. Such short durations in R&D can be effective for achieving quick results or testing specific hypotheses, but they also imply that the long-term development or broader application of the research findings may be addressed in subsequent contract actions.

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: 1

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: $46,500,918

Exercised Options: $46,500,908

Current Obligation: $42,166,891

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