DoD Awards $111.6M for Engineering Services to Torch Technologies Inc. under Full and Open Competition
Contract Overview
Contract Amount: $111,638,671 ($111.6M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2008-07-01
End Date: 2013-12-31
Contract Duration: 2,009 days
Daily Burn Rate: $55.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $111.6 million to TORCH TECHNOLOGIES INC for work described as: SERVICES Key points: 1. Significant contract value of $111.6 million awarded. 2. Competition was full and open, indicating a competitive bidding process. 3. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $111.6 million for engineering services appears reasonable given the 5-year duration. Benchmarking against similar large-scale engineering contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The competitive award process likely resulted in a fair price, maximizing the value of taxpayer funds for essential engineering services.
Public Impact
Supports critical engineering functions for the Department of the Army. Torch Technologies Inc. is a key provider in this service area. The contract duration spans over five years, indicating long-term support needs. Awarded in Alabama, potentially impacting local economies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition
- Firm Fixed Price contract type
Sector Analysis
Engineering services are crucial for defense projects, encompassing design, development, and testing. The $111.6 million award is substantial, reflecting complex requirements. Benchmarks for similar defense engineering contracts vary widely based on scope and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Torch Technologies Inc. is likely a larger entity. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The award was made by the Department of the Army, a component of the DoD, suggesting established oversight mechanisms. The firm fixed price contract type also provides a degree of cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of specific service details
- Potential for scope creep impacting fixed price
- No explicit mention of small business subcontracting
Tags
engineering-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.6 million to TORCH TECHNOLOGIES INC. SERVICES
Who is the contractor on this award?
The obligated recipient is TORCH TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $111.6 million.
What is the period of performance?
Start: 2008-07-01. End: 2013-12-31.
What specific engineering services were provided under this contract?
The contract falls under NAICS code 541330 for Engineering Services. While the specific details are not provided, this typically includes services such as research and development, design, consulting, and technical support related to engineering disciplines for defense applications.
What is the potential for cost overruns with a Firm Fixed Price contract?
Firm Fixed Price contracts generally place the cost risk on the contractor. However, unforeseen technical challenges or scope creep, if not managed through contract modifications, could still lead to contractor financial distress or requests for equitable adjustments, indirectly impacting overall program cost.
How does the $111.6 million value compare to similar engineering service contracts awarded by the DoD?
Without specific details on the scope and duration of comparable contracts, a precise comparison is difficult. However, $111.6 million over five years for specialized engineering services to a major defense contractor is within the expected range for significant defense support contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4035 CHRIS DR SW STE C, HUNTSVILLE, AL, 35802
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $111,650,986
Exercised Options: $111,638,671
Current Obligation: $111,638,671
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q08A0019
IDV Type: IDC
Timeline
Start Date: 2008-07-01
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 12:12:00
Last Modified: 2021-12-28
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