COLSA Corp awarded $63.6M for CENTCOM Web Support, a sole-source R&D contract

Contract Overview

Contract Amount: $63,569,193 ($63.6M)

Contractor: Colsa Corp

Awarding Agency: General Services Administration

Start Date: 2017-07-27

End Date: 2019-02-28

Contract Duration: 581 days

Daily Burn Rate: $109.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF CENTCOM WEB SUPPORT PROGRAM AWARD

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $63.6 million to COLSA CORP for work described as: IGF::OT::IGF CENTCOM WEB SUPPORT PROGRAM AWARD Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Research and Development focus suggests innovation and specialized technical requirements. 3. Contract duration of 581 days indicates a medium-term project. 4. Awarded by GSA's Federal Acquisition Service, suggesting a shared service model. 5. No small business set-aside, potentially impacting small business participation. 6. Cost Plus Fixed Fee contract type carries inherent cost-reimbursement risks.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific R&D focus. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to higher overall spending if not tightly managed. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair market rate for the services provided. The lack of comparable contract data for this specific R&D requirement makes a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the specific task, or in cases of urgent need. The absence of competition means that price discovery through bidding was not a factor, potentially leading to less favorable pricing for the government compared to a competitive procurement.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The primary beneficiaries are the U.S. Central Command (CENTCOM) requiring web support services. Services delivered likely include development, maintenance, and enhancement of web-based systems for CENTCOM operations. Geographic impact is primarily within CENTCOM's area of responsibility, though the contractor is based in Florida. Workforce implications include employment for technical staff at COLSA Corp, potentially in specialized R&D roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can incentivize cost overruns.
Lack of transparency in the justification for sole-source award.
R&D contracts can have uncertain outcomes and cost projections.
Limited duration may indicate a need for future, potentially more expensive, follow-on contracts.

Positive Signals

Contract awarded to a single, potentially specialized, vendor for specific R&D needs.
GSA's involvement suggests adherence to federal procurement best practices.
Fixed fee component provides some cost certainty for the fee portion.
Contract duration is defined, allowing for project planning.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The IT services component, web support, is crucial for modern military operations, enabling communication, data dissemination, and command and control. Comparable spending in this area often involves significant investment in specialized software development, cybersecurity, and system integration to support complex defense missions. The market for such services is characterized by a mix of large defense contractors and specialized R&D firms.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses mentioned. This means that opportunities for small businesses to participate in this specific contract are likely limited to indirect involvement, such as through COLSA Corp's own supply chain or potential future subcontracting if not explicitly excluded. The absence of set-aside provisions means the primary award went to a large business, potentially limiting the direct economic benefit to the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the contracting officers responsible for the Federal Acquisition Service. The Inspector General's office for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is assessed through the availability of contract award data, though the justification for the sole-source award may not be publicly detailed. Accountability is managed through contract performance reviews and adherence to the terms of the Cost Plus Fixed Fee agreement.

Related Government Programs

CENTCOM IT Modernization Programs
DoD Research and Development Contracts
GSA IT Schedule Contracts
Web Services and Application Development Contracts

Risk Flags

Sole-source award lacks competitive justification.
Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
R&D focus introduces uncertainty in project outcomes and final costs.
Limited public information on the specific R&D objectives and expected deliverables.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $63.6 million to COLSA CORP. IGF::OT::IGF CENTCOM WEB SUPPORT PROGRAM AWARD

Who is the contractor on this award?

The obligated recipient is COLSA CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $63.6 million.

What is the period of performance?

Start: 2017-07-27. End: 2019-02-28.

What is the track record of COLSA Corp in performing similar R&D and web support contracts for the federal government?

COLSA Corporation has a history of performing various IT and R&D services for the federal government, including defense agencies. Their contract portfolio often includes areas like systems engineering, software development, cybersecurity, and technical support. While specific details on past CENTCOM web support contracts awarded solely to COLSA might require deeper database analysis, their general experience suggests a capability to handle complex technical requirements. However, the performance quality and cost-effectiveness on previous sole-source awards, particularly those with Cost Plus Fixed Fee structures, would be crucial indicators of their reliability and value proposition for this specific contract.

How does the awarded amount of $63.6 million compare to similar R&D web support contracts for defense commands?

Directly comparing the $63.6 million award for this specific R&D web support contract is challenging due to its sole-source nature and specialized focus. Typically, competitive procurements for similar IT services within defense commands can range widely based on scope, duration, and complexity. Sole-source awards, especially for R&D, often reflect unique requirements or proprietary technologies that command a premium. Without competitive benchmarks, it's difficult to definitively state if this amount is high or low. However, for context, large-scale IT development and support contracts for major commands can easily reach tens or hundreds of millions of dollars over their lifecycle, making this award appear moderate within that broader spectrum, albeit lacking competitive validation.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for R&D services?

The primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for R&D services are multifaceted. Sole-sourcing eliminates the competitive pressure that typically drives down costs and encourages innovation in pricing. This means the government may pay a higher price than if the contract were competed. The CPFF structure reimburses the contractor for allowable costs plus a fixed fee, which can create an incentive for the contractor to incur higher costs, as their profit (the fee) remains constant regardless of the actual expenses. For R&D, which inherently involves uncertainty, this structure can lead to cost overruns if initial estimates are inaccurate or if unforeseen technical challenges arise, increasing the total expenditure without a guaranteed increase in project success or value.

What is the expected effectiveness and impact of the web support services provided under this contract for CENTCOM's mission?

The expected effectiveness and impact of the web support services under this contract are crucial for CENTCOM's mission, which involves complex operations in a dynamic region. Reliable and secure web platforms are essential for communication, intelligence sharing, logistics management, and operational coordination. Effective web support ensures that these systems are available, perform optimally, and are updated to meet evolving operational requirements and cybersecurity threats. The R&D component suggests an aim to enhance existing capabilities or develop new web-based solutions that could improve situational awareness, streamline processes, or provide advanced analytical tools, ultimately contributing to more efficient and effective mission execution.

How has federal spending on R&D and IT support for CENTCOM evolved over the past five years?

Analyzing federal spending trends for CENTCOM's R&D and IT support over the past five years requires access to detailed historical budget data and contract awards. Generally, spending in these areas for defense commands has seen consistent investment, often increasing due to the growing reliance on technology for modern warfare, intelligence gathering, and global operations. Specific R&D initiatives related to emerging threats, cyber capabilities, and advanced communication systems are likely drivers of spending. IT support contracts are perennial needs, ensuring the operational readiness of critical infrastructure. Without specific data, it's presumed that spending has remained robust, potentially with shifts towards more specialized R&D and advanced cybersecurity solutions.

What are the implications of the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for this contract's scope?

The assignment of NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that the primary purpose of this contract is not standard IT service provision but rather innovation and discovery within these scientific domains. While the contract involves 'Web Support,' this likely means developing or enhancing web-based tools, platforms, or systems that facilitate or analyze R&D activities in physical sciences (e.g., materials science, physics), engineering (e.g., aerospace, mechanical), or life sciences. This suggests the contractor is expected to contribute novel solutions, conduct experiments, or develop prototypes, rather than merely maintaining existing web infrastructure. The R&D focus implies a higher degree of technical uncertainty and a need for specialized scientific and engineering expertise.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6728 ODYSSEY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $71,198,517

Exercised Options: $71,198,517

Current Obligation: $63,569,193

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,874,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline