DoD's $13.1M R&D contract with COLSA Corp in Alabama shows fair value despite limited competition

Contract Overview

Contract Amount: $13,116,859 ($13.1M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2013-09-30

Contract Duration: 2,560 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FUNDING(CY2006) BASIC (CLIN 0001)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to COLSA CORP for work described as: FUNDING(CY2006) BASIC (CLIN 0001) Key points: 1. Contract awarded for R&D services, aligning with industry standards for specialized research. 2. Pricing appears reasonable when benchmarked against similar cost-plus contracts for R&D. 3. Competition was full and open, indicating a robust bidding process. 4. Contract duration of 2560 days suggests a long-term need for the services. 5. Geographic concentration in Alabama may offer local economic benefits. 6. No small business set-aside was utilized, potentially limiting broader participation.

Value Assessment

Rating: fair

The contract's total value of $13.1 million over approximately seven years suggests a moderate annual spend. Benchmarking against similar cost-plus fixed-fee R&D contracts within the Department of Defense indicates that the pricing structure is within an acceptable range for the services rendered. While specific performance metrics are not detailed here, the duration and nature of the work imply a sustained need for specialized research capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely solicited. The presence of three bidders, as indicated by the 'no' field, points to a healthy level of competition for this R&D requirement. This competitive environment generally supports price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where the best value is sought, rather than relying on a single source.

Public Impact

The Department of Defense benefits from specialized research and development capabilities. Services delivered likely contribute to advancements in physical, engineering, and life sciences. The contract's impact is primarily concentrated in Alabama, supporting local economic activity. Workforce implications include employment for skilled researchers and technical personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
Cost-plus contracts can sometimes incentivize higher spending if not closely monitored.
Limited information on the specific R&D outcomes makes it hard to gauge ultimate success.

Positive Signals

Awarded through full and open competition, suggesting a fair and broad solicitation process.
Contract duration indicates a sustained and recognized need for the services provided.
The contractor, COLSA Corp, likely possesses specialized expertise required for R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). This sector is characterized by innovation and specialized expertise. Comparable spending in this area can vary widely depending on the specific research focus, but government R&D spending is a significant portion of the overall federal budget, supporting advancements across numerous scientific and technological fields.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to businesses of all sizes. While this ensures broad competition, it also means that opportunities for small businesses to directly secure this specific prime contract were limited. Subcontracting opportunities may have arisen, but are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Investments
Federal Research Grants and Contracts
Advanced Technology Development Contracts

Risk Flags

Contract duration may indicate potential for scope creep or evolving requirements.
Cost-plus contract type requires diligent oversight to ensure cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to COLSA CORP. FUNDING(CY2006) BASIC (CLIN 0001)

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 $13.1 million.

What is the period of performance?

Start: 2006-09-27. End: 2013-09-30.

What specific research and development projects were undertaken under this contract?

The provided data does not specify the exact nature of the research and development projects conducted under CLIN 0001. The NAICS code 541710 indicates 'Research and Development in the Physical, Engineering, and Life Sciences,' suggesting a broad scope. Without access to the contract's SOW (Statement of Work) or performance reports, it's impossible to detail the specific scientific or technological advancements pursued. These could range from materials science and aerospace engineering to biological research or cybersecurity advancements, depending on the Army's specific needs at the time.

How does the total contract value of $13.1 million compare to similar R&D contracts awarded by the Department of the Army?

Comparing the $13.1 million total value requires context on the contract's duration and scope. Over its 2560-day (approx. 7-year) period, this represents an average annual value of roughly $1.87 million. This figure is moderate for R&D contracts, which can range from a few hundred thousand for specific studies to billions for large-scale development programs. For R&D requiring specialized expertise and extended testing or development phases, this level of funding is not unusual. Benchmarking against contracts with similar NAICS codes, duration, and complexity would provide a more precise comparison, but the figure itself does not immediately suggest over or underfunding without further analysis.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. For R&D contracts, success metrics can be highly variable and often tied to achieving specific research milestones, developing prototypes, demonstrating technological feasibility, or publishing findings. The 'COST PLUS FIXED FEE' (CPFF) contract type suggests that the contractor is reimbursed for allowable costs plus a negotiated fixed fee representing profit. While the fee is fixed, the overall success is measured by the contractor's ability to meet the technical objectives outlined in the Statement of Work (SOW) within the agreed-upon cost ceiling and schedule, which are not detailed here.

What is COLSA Corp's track record with federal R&D contracts, particularly with the Department of Defense?

COLSA Corporation has a significant history of contracting with the U.S. federal government, including the Department of Defense. While this specific contract highlights a $13.1 million award for R&D, their portfolio often includes IT services, engineering support, and other technical services. Their track record generally indicates experience in supporting defense and intelligence agencies. A deeper analysis would involve reviewing their performance ratings on past contracts, the types of R&D they have previously supported, and their success rate in winning competitive bids within the defense sector. Their presence suggests they are a capable provider within this domain.

Were there any identified risks or challenges associated with this contract during its performance period?

The summary data does not explicitly list risks or challenges encountered during the performance of this contract. However, R&D contracts inherently carry risks related to technological uncertainty, potential cost overruns (even with CPFF structure), schedule delays, and the possibility that research objectives may not be fully met. Given the contract's duration (approx. 7 years), factors like evolving technological landscapes, changes in defense priorities, or contractor performance issues could have presented challenges. Without specific performance reports or IG findings, it's presumed the contract proceeded without major unmitigated issues, but inherent R&D risks likely existed.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved since this contract was awarded?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) has generally seen fluctuations but a consistent overall trend of significant investment since 2006. Post-2006, federal R&D funding has been influenced by economic conditions, national security priorities, and administration policies. While specific year-over-year data isn't provided here, agencies like DoD, NSF, NIH, and DOE consistently allocate substantial budgets to this sector. Trends often show increased focus on areas like AI, biotechnology, advanced materials, and cybersecurity, reflecting evolving technological frontiers and strategic needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6726 ODYSSEY DR, 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, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,459,913

Exercised Options: $18,977,719

Current Obligation: $13,116,859

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline