Army Aviation and Missile Center awards $11.5M R&D contract to COLSA Corp for technical management support

Contract Overview

Contract Amount: $11,531,719 ($11.5M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-20

End Date: 2026-08-30

Contract Duration: 1,867 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: NEW TASK ORDER AGAINST EXPRESS BPA TITLED "TECHNICAL MANAGEMENT" SUPPORT FOR THE ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM), AVIATION AND MISSILE CENTER (AVMC), SOFTWARE, SIMULATION, SYSTEMS ENGINEERING, AND INTEGRATION (S3I) DIRECTORATE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to COLSA CORP for work described as: NEW TASK ORDER AGAINST EXPRESS BPA TITLED "TECHNICAL MANAGEMENT" SUPPORT FOR THE ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM), AVIATION AND MISSILE CENTER (AVMC), SOFTWARE, SIMULATION, SYSTEMS ENGINEERING, AND INTEGRATION (S3I) DIRECTORATE Key points: 1. Contract focuses on critical R&D support for Army aviation and missile systems. 2. COLSA Corp, the incumbent, has a history with this specific directorate. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Performance period extends over five years, indicating a long-term need. 5. The award was made under full and open competition, suggesting a competitive process. 6. The North American Industry Classification System (NAICS) code points to R&D in physical and engineering sciences.

Value Assessment

Rating: fair

The contract value of $11.5 million over approximately five years averages to about $2.3 million annually. Benchmarking this against similar R&D support contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not closely managed compared to fixed-price contracts. The number of bids received (6) suggests some level of competition, but the ultimate value for money will depend on the efficiency and effectiveness of the services provided by COLSA Corp.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Six bids were received, suggesting a moderately competitive environment for this specific requirement. The level of competition is generally positive for price discovery, but the specific nature of R&D support can sometimes limit the number of highly qualified bidders.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible pricing and technical solutions by allowing a wide range of contractors to compete.

Public Impact

The primary beneficiaries are the Army Combat Capabilities Development Command (DEVCOM) Aviation and Missile Center (AVMC), specifically its Software, Simulation, Systems Engineering, and Integration (S3I) Directorate. The contract delivers essential technical management support services crucial for the development and integration of aviation and missile systems. The geographic impact is primarily within Alabama, where the AVMC is located. The contract supports a workforce involved in advanced research, development, simulation, and engineering for critical defense technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not diligently managed and monitored.
The long performance period (over 5 years) requires sustained oversight to ensure continued value and performance.
The specialized nature of R&D support may limit the pool of truly comparable contracts for benchmarking purposes.
Reliance on a single task order against an existing BPA means the initial competition was for the BPA, not this specific task order.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified contractors.
Six bidders participated, suggesting a reasonable level of market interest and competition.
The incumbent contractor, COLSA Corp, likely possesses institutional knowledge beneficial for seamless support.
The contract supports critical R&D functions for national defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712, which covers R&D in the Physical, Engineering, and Life Sciences (except Biotechnology). This sector is characterized by innovation, specialized expertise, and often long development cycles. The total federal spending on R&D is substantial, with significant portions allocated to defense-related research. This contract represents a small but vital component of the Army's investment in maintaining technological superiority in aviation and missile systems.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about specific subcontracting plans for small businesses. Given the nature of the services (advanced technical management for R&D), it is possible that larger, specialized firms are the primary contractors. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army and the specific directorate (S3I) within AVMC. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, but detailed operational oversight is internal to the agency. The Inspector General's office could investigate if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Army Aviation and Missile Center Research and Development Support
DEVCOM Technical Support Contracts
Systems Engineering and Integration Services
Simulation and Software Development Support
Defense Research and Development Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for sustained and rigorous government oversight throughout the contract's duration.
Complexity of R&D services may limit direct comparability for value benchmarking.
Dependence on incumbent contractor's continued performance and institutional knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to COLSA CORP. NEW TASK ORDER AGAINST EXPRESS BPA TITLED "TECHNICAL MANAGEMENT" SUPPORT FOR THE ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM), AVIATION AND MISSILE CENTER (AVMC), SOFTWARE, SIMULATION, SYSTEMS ENGINEERING, AND INTEGRATION (S3I) DIRECTORATE

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 Army).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2021-07-20. End: 2026-08-30.

What is COLSA Corp's track record with the Army Aviation and Missile Center, particularly the S3I Directorate?

COLSA Corporation has a significant history of supporting the Army Aviation and Missile Center (AVMC) and its various directorates, including the Software, Simulation, Systems Engineering, and Integration (S3I) Directorate. This specific task order is issued against an existing Broad Area Announcement (BAA) or Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle, suggesting prior performance and established relationships. Their continued selection for task orders indicates a level of satisfaction with their performance, technical capabilities, and understanding of the AVMC's mission requirements. Analyzing past performance reviews and any documented issues or commendations related to their work with S3I would provide a more granular view of their track record.

How does the $11.5 million value compare to similar R&D technical management support contracts within the Department of Defense?

Benchmarking the $11.5 million value requires understanding the scope, duration, and specific technical requirements of the services. Contracts for R&D technical management support can vary widely. For a five-year period, $11.5 million averages to approximately $2.3 million per year. This figure is moderate for specialized R&D support within a major defense organization like AVMC. Larger, more complex R&D programs might see annual spending in the tens or hundreds of millions. Smaller, more focused support roles could be in the sub-million dollar range annually. Without detailed service descriptions and comparable contract data, a precise comparison is difficult, but it appears to be a mid-tier value for this type of specialized support.

What are the primary risks associated with a Time and Materials (T&M) contract for R&D support?

The primary risk with Time and Materials (T&M) contracts, especially for R&D support, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If project scope creeps, if efficiency is low, or if labor rates are high, costs can escalate beyond initial estimates. For R&D, where requirements can evolve, T&M offers flexibility but necessitates robust government oversight to monitor labor hours, control material costs, and ensure efficient performance. Without strict management, the government may end up paying significantly more than anticipated, diminishing the overall value for money.

What is the significance of the NAICS code 541712 for this contract?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' signifies that the core purpose of this contract is to engage in scientific research and experimental development. This includes activities like basic research, applied research, and experimental development aimed at discovering new knowledge or creating new or improved products and processes. For this Army contract, it means the work performed by COLSA Corp is focused on advancing the state-of-the-art in physical sciences and engineering relevant to aviation and missile systems, rather than routine services or product manufacturing.

How does the 'Full and Open Competition' award method impact potential cost savings for taxpayers?

Awarding a contract under 'Full and Open Competition' is generally considered the most advantageous method for taxpayers seeking cost savings. This approach maximizes the number of potential bidders by allowing all responsible sources to submit proposals. A larger pool of competitors typically drives down prices as companies vie for the contract. It also encourages innovation and efficiency as contractors seek to differentiate themselves through technical merit and cost-effectiveness. While the final price is influenced by the complexity of the requirement and the specific market conditions, full and open competition provides the best framework for achieving competitive pricing and ensuring the government receives the best value for its investment.

What are the potential implications of this contract on the development timeline of Army aviation and missile technologies?

This contract provides essential technical management support, which is critical for the efficient execution of research and development projects. By ensuring proper planning, coordination, systems engineering, and integration, the support services aim to streamline the development process. This can help prevent delays, mitigate technical challenges, and facilitate the integration of various system components. Ultimately, effective technical management support can accelerate the timeline for bringing advanced aviation and missile technologies from concept to deployment, thereby enhancing the Army's operational capabilities sooner.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

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, 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: $341,990,443

Exercised Options: $11,531,719

Current Obligation: $11,531,719

Actual Outlays: $307,921

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $45,731,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F293CA

IDV Type: FSS

Timeline