COLSA CORP awarded $14M for R&D services, with 3 bidders indicating moderate competition

Contract Overview

Contract Amount: $14,028,491 ($14.0M)

Contractor: Colsa Corp

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2015-07-24

Contract Duration: 3,220 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BASIC EFFORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806, UNITED STATES OF AMERICA

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to COLSA CORP for work described as: BASIC EFFORT Key points: 1. Contract awarded for research and development services, focusing on physical, engineering, and life sciences. 2. The contract utilized a full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was employed, which can incentivize cost control but requires careful oversight. 4. The contract duration was substantial at 3220 days, indicating a long-term need for these R&D services. 5. Awarded by the Department of the Army, this contract aligns with broader defense research initiatives. 6. The North American Industry Classification System (NAICS) code 541710 points to specialized scientific research and development activities.

Value Assessment

Rating: fair

The contract's value of approximately $14 million over its duration suggests a significant investment in R&D. Without specific benchmarks for comparable R&D contracts in physical, engineering, and life sciences, a precise value-for-money assessment is challenging. The CPFF structure necessitates close monitoring to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'full and open competition after exclusion of sources,' with three bidders participating. This indicates that while the competition was open, there might have been specific criteria or exclusions that narrowed the field. Three bidders suggest a moderate level of competition, which is generally better than a sole-source award but may not achieve the most aggressive pricing possible compared to a broader competition with more participants.

Taxpayer Impact: A moderate level of competition with three bidders means taxpayers likely received a reasonable price, but there may be room for further cost savings if competition were broader.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, receiving advanced R&D support. Services delivered include specialized research and development in physical, engineering, and life sciences, contributing to technological advancements. The geographic impact is centered in Alabama (AL), where the contract was awarded, potentially supporting local technical expertise and employment. Workforce implications include the employment of scientists, engineers, and researchers by COLSA CORP to fulfill the contract's R&D objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF structure requires diligent oversight to prevent cost overruns and ensure the fixed fee is justified.
The 'exclusion of sources' in the competition method warrants understanding the specific reasons for exclusion to ensure fairness and prevent potential limitations on competition.
Long contract duration (3220 days) increases the risk of scope creep or evolving requirements not being adequately addressed without robust change management.

Positive Signals

The use of 'full and open competition' (even with exclusions) indicates an effort to solicit offers from qualified sources.
Awarding to COLSA CORP suggests they possess the necessary technical capabilities for complex R&D tasks.
The contract's focus on R&D aligns with strategic government objectives for technological advancement.

Sector Analysis

The Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710) is a critical area for government innovation, particularly within defense. This contract represents a portion of the broader federal investment in scientific advancement, aiming to develop new technologies and enhance existing capabilities. Comparable spending benchmarks would typically be found within agency-specific R&D portfolios or broader federal R&D spending reports, often segmented by scientific discipline or agency mission.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary contractor, COLSA CORP, is responsible for any subcontracting. Analysis of subcontracting to small businesses would require further investigation into the contractor's subcontracting plan and actual performance, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The CPFF structure necessitates rigorous financial and performance monitoring. Transparency is generally facilitated through contract award databases, but detailed oversight reports or Inspector General findings related to this specific contract would require further research.

Related Government Programs

Department of Defense Research and Development
Army Science and Technology Programs
Federal Research Grants and Contracts
Physical Sciences Research
Engineering Research
Life Sciences Research

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition may impact price discovery
Need for robust oversight of R&D expenditures

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to COLSA CORP. BASIC EFFORT

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 $14.0 million.

What is the period of performance?

Start: 2006-09-29. End: 2015-07-24.

What is COLSA CORP's track record with similar R&D contracts for the Department of Defense?

COLSA CORP has a history of performing various services for the Department of Defense, including R&D, engineering, and technical support. Their track record with similar R&D contracts would need to be assessed by examining past performance reviews, contract awards, and any documented issues or successes. A deeper dive into their portfolio would reveal their experience in physical, engineering, and life sciences specifically, and their ability to manage CPFF contracts effectively. Analyzing their past performance metrics, such as on-time delivery, budget adherence, and technical quality, would provide a clearer picture of their reliability and capability for this specific $14 million award.

How does the $14 million contract value compare to other R&D contracts in the physical, engineering, and life sciences sector awarded by the Army?

The $14 million contract value for COLSA CORP falls within a moderate range for R&D services in the physical, engineering, and life sciences sector. The Department of the Army awards numerous R&D contracts, with values ranging from small, specialized grants to multi-billion dollar programs. This specific contract's value suggests a focused effort rather than a large-scale, multi-year program. To benchmark effectively, one would compare it against contracts with similar NAICS codes (541710) and contract types (CPFF) awarded over a comparable period. Without access to a comprehensive database of all Army R&D procurements, it's difficult to definitively state if $14 million represents a high, low, or average investment for this type of service.

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

The primary risks associated with a CPFF contract for R&D services revolve around cost control and contractor incentive. While the fixed fee provides a ceiling for profit, the 'cost plus' portion means the government reimburses the contractor's allowable costs. This can create an incentive for the contractor to incur higher costs, as their fee is a percentage of those costs (or a fixed amount regardless of cost, but the risk of cost overrun still lies with the government). For R&D, where outcomes can be uncertain and requirements may evolve, managing scope creep and ensuring cost efficiency is paramount. The government must implement robust oversight to scrutinize costs, ensure they are reasonable and allocable, and prevent unnecessary expenditures. The risk for taxpayers is that the total cost could exceed initial estimates if not managed diligently.

How effective is 'full and open competition after exclusion of sources' in ensuring competitive pricing for R&D services?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring competitive pricing for R&D services is nuanced. It signifies an intent to compete broadly among qualified sources but acknowledges that certain entities or approaches might be excluded based on specific criteria (e.g., security, unique capabilities, prior work). While it's more competitive than a sole-source award, the exclusion of potential bidders can limit the number of offers received. If the exclusions are justified and the remaining pool of bidders is still robust, competitive pricing can be achieved. However, if the exclusions significantly reduce the number of viable competitors, the pricing might not be as aggressive as in a truly unrestricted full and open competition. The presence of three bidders in this case suggests a moderate level of competition, likely yielding a reasonable, but perhaps not the absolute lowest possible, price.

What are the historical spending patterns for R&D services under NAICS code 541710 by the Department of the Army?

Historical spending patterns for R&D services under NAICS code 541710 by the Department of the Army typically show significant and consistent investment. The Army relies heavily on scientific and technological advancements to maintain military superiority, making R&D a core function. Spending in this area often fluctuates based on strategic priorities, emerging threats, and budget allocations. Over the years, the Army has funded a wide array of research, from basic scientific inquiry to applied research and development of specific technologies. Analyzing historical data would reveal trends in funding levels, the types of R&D projects prioritized (e.g., materials science, cyber, aerospace), and the primary contractors involved. This $14 million contract represents a single data point within that broader historical context of substantial and ongoing investment in R&D.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

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, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,655,229

Exercised Options: $14,083,633

Current Obligation: $14,028,491

Contract Characteristics

Cost or Pricing Data: YES

Timeline