COLSA CORP Awarded $39.6M for Missile Defense Agency Operations, Primarily in Alabama

Contract Overview

Contract Amount: $39,613,796 ($39.6M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2020-03-17

End Date: 2022-09-16

Contract Duration: 913 days

Daily Burn Rate: $43.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: OPERATION OF THE ARC - LABOR

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $39.6 million to COLSA CORP for work described as: OPERATION OF THE ARC - LABOR Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Significant portion of the contract value is tied to operations in Alabama. 3. The contract was awarded on a non-competitive basis. 4. Duration of the contract spans over two years. 5. The award type is a delivery order under a larger contract. 6. The pricing structure is Cost No Fee, indicating potential for cost overruns.

Value Assessment

Rating: fair

The contract's value of $39.6 million for operational support in R&D is substantial. However, the 'Cost No Fee' pricing structure warrants scrutiny as it places the cost risk on the government. Without comparable contract data for similar operational support services within the Missile Defense Agency or broader DoD, it is difficult to definitively benchmark the value for money. The absence of competition further complicates a precise value assessment.

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 limits the opportunity for price discovery and potentially higher costs for the government. The rationale for a sole-source award, if documented, would be critical to understanding why full and open competition was not pursued.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as competitive pressures are absent, potentially resulting in less favorable pricing than if multiple bids were solicited.

Public Impact

The primary beneficiary is the Missile Defense Agency, receiving operational support for its research and development initiatives. Services delivered likely include technical support, program management, and potentially specialized scientific or engineering assistance. The contract has a significant geographic impact, with operations concentrated in Alabama. Workforce implications may include employment opportunities for scientists, engineers, and support staff in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Cost No Fee pricing structure shifts cost risk to the government.
Lack of transparency in the justification for sole-source award.
Limited public data on performance metrics and outcomes for this specific contract.

Positive Signals

Award supports critical Missile Defense Agency operations.
Contract duration indicates a sustained need for services.
Concentration of work in Alabama may support local economy.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Missile Defense Agency is a key player in national security R&D, and contracts like this support the development and maintenance of advanced defense systems. Comparable spending in this sector often involves significant investments in innovation and technology, with contract values varying widely based on project scope and complexity.

Small Business Impact

There is no indication that this contract included small business set-asides or subcontracting requirements. As a sole-source award, the opportunities for small businesses to participate through subcontracting are likely limited unless explicitly included by the prime contractor, COLSA CORP. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Missile Defense Agency's program management and the Department of Defense's broader oversight mechanisms. Transparency is limited due to the sole-source nature and the 'Cost No Fee' structure, which requires diligent monitoring of expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Department of Defense Research and Development
Aerospace and Defense Contracting
Alabama Economic Development

Risk Flags

Sole-source award
Cost-plus pricing structure (Cost No Fee)
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.6 million to COLSA CORP. OPERATION OF THE ARC - LABOR

Who is the contractor on this award?

The obligated recipient is COLSA CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $39.6 million.

What is the period of performance?

Start: 2020-03-17. End: 2022-09-16.

What is the specific nature of the 'OPERATION OF THE ARC - LABOR' services provided under this contract?

The data provided indicates the contract is for 'OPERATION OF THE ARC - LABOR' and falls under the NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This suggests the labor services are directly related to supporting R&D activities for the Missile Defense Agency's 'ARC' program or facility. While the exact nature of 'ARC' is not specified, it likely refers to a specific project, system, or operational component within the MDA's portfolio. The services could encompass a wide range of activities, including scientific research, engineering support, technical analysis, testing, and program management necessary to advance missile defense technologies and capabilities. The 'Cost No Fee' structure implies that the contractor is reimbursed for allowable costs incurred, plus a predetermined fee, but the fee itself is fixed and not tied to cost savings or performance incentives.

How does the $39.6 million contract value compare to similar operational support contracts for R&D within the Department of Defense?

Benchmarking this $39.6 million contract value against similar operational support contracts for R&D within the Department of Defense is challenging without more specific details on the scope of services and the specific R&D area. However, for large-scale R&D programs, especially those related to national security and advanced technologies like missile defense, contract values in the tens of millions are not uncommon. The 'Cost No Fee' structure, while common in certain types of R&D and cost-reimbursement contracts, can lead to higher overall expenditures if not managed tightly, as the government bears the risk of cost overruns. To provide a more precise comparison, one would need to identify contracts with similar NAICS codes, agencies, and service descriptions, and analyze their pricing structures and total awarded amounts over comparable periods.

What are the primary risks associated with a sole-source 'Cost No Fee' contract for operational support?

The primary risks associated with a sole-source 'Cost No Fee' contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to operate efficiently. The government misses out on potential cost savings that could arise from a competitive bidding process. Secondly, the 'Cost No Fee' (CNF) pricing structure places the financial risk of cost overruns squarely on the government. While the contractor's fee is fixed, they are reimbursed for all allowable costs incurred in performing the contract. This can incentivize less cost-conscious behavior from the contractor, as they are guaranteed their fee regardless of how efficiently they manage expenses. Effective oversight and robust cost-tracking mechanisms are crucial to mitigate these risks.

What is COLSA CORP's track record with the Missile Defense Agency and similar government contracts?

COLSA Corporation has a significant history of contracting with the U.S. government, particularly within the defense sector. They have been awarded numerous contracts across various agencies, including the Department of Defense, NASA, and others, often in areas related to engineering, IT, research and development, and technical services. Their work with the Missile Defense Agency (MDA) specifically would likely involve supporting various aspects of missile defense system development, testing, and operations. A detailed review of their contract history with the MDA would reveal the types of services provided, contract values, performance ratings (if publicly available), and any past performance issues or commendations. This information is crucial for assessing their capability and reliability in fulfilling the current contract's requirements.

What are the potential implications of this contract's concentration in Alabama?

The concentration of this $39.6 million contract's operations in Alabama has several potential implications. Economically, it signifies a significant investment in the state, likely creating or sustaining jobs for scientists, engineers, technicians, and administrative staff within the region. This can boost the local economy through direct employment and indirect spending. For the Missile Defense Agency, having a key operational support contractor based in Alabama may facilitate closer collaboration and oversight, especially if other MDA facilities or related defense industries are located nearby. It also means that a substantial portion of federal R&D spending is directed towards a specific geographic area, potentially fostering a specialized workforce and technological ecosystem within Alabama related to missile defense.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ085920R0001

Pricing Type: COST NO FEE (S)

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: $69,576,994

Exercised Options: $58,768,584

Current Obligation: $39,613,796

Actual Outlays: $3,648,913

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $4,602,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ085920D0001

IDV Type: IDC

Timeline