DoD's $110.7M Contract for Tactical Missile Systems Development with Torch Technologies Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $110,706,245 ($110.7M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2018-05-17
End Date: 2022-08-31
Contract Duration: 1,567 days
Daily Burn Rate: $70.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: WEAPON SYSTEMS DEVELOPMENT, ANALYSIS AND SIMULATION SUPPORT-TACTICAL MISSILE SYSTEMS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $110.7 million to TORCH TECHNOLOGIES INC for work described as: WEAPON SYSTEMS DEVELOPMENT, ANALYSIS AND SIMULATION SUPPORT-TACTICAL MISSILE SYSTEMS Key points: 1. Contract awarded to Torch Technologies Inc. for weapon systems development. 2. Significant investment in tactical missile systems development and simulation. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. Sector focus is Engineering Services, crucial for defense capabilities.
Value Assessment
Rating: good
The contract value of $110.7M over approximately 4.3 years appears reasonable for specialized engineering services in weapon systems development. Benchmarking against similar complex defense contracts is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Full and open competition aims to leverage market forces to secure favorable pricing, ultimately benefiting taxpayers by ensuring funds are used efficiently for critical defense needs.
Public Impact
Enhances national defense capabilities through advanced missile system development. Supports technological innovation in a critical defense sector. Creates high-skilled jobs in engineering and simulation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex development projects.
- Long-term sustainment and upgrade costs not detailed.
- Dependence on a single contractor for critical system development.
Positive Signals
- Awarded through full and open competition.
- Supports advanced technological development.
- Contract duration aligns with development lifecycle.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the development and analysis of tactical missile systems for the Department of Defense. Spending in this area is critical for maintaining a technological edge in defense.
Small Business Impact
The data indicates the prime contractor is Torch Technologies Inc., and there is no specific mention of small business participation. Further investigation is needed to determine if small businesses were subcontracted.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from a major defense agency. However, details on specific oversight mechanisms, performance reviews, and accountability measures are not provided in this data.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract value is substantial, requiring diligent oversight.
- Development projects can be prone to scope creep and cost overruns.
- Long-term sustainment costs are not explicitly detailed.
- Potential for technological obsolescence in a rapidly evolving field.
Tags
engineering-services, department-of-defense, al, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.7 million to TORCH TECHNOLOGIES INC. WEAPON SYSTEMS DEVELOPMENT, ANALYSIS AND SIMULATION SUPPORT-TACTICAL MISSILE SYSTEMS
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 $110.7 million.
What is the period of performance?
Start: 2018-05-17. End: 2022-08-31.
What is the projected return on investment for this $110.7M expenditure in tactical missile systems development?
The return on investment is primarily measured by enhanced national security and deterrence capabilities. Quantifying this in monetary terms is challenging, but the development of advanced tactical missile systems is expected to provide a significant strategic advantage, potentially reducing the likelihood of conflict and safeguarding national interests. The long-term cost savings from more effective defense systems can also be considered.
What are the key risks associated with the long-term sustainment and potential obsolescence of the developed tactical missile systems?
Key risks include escalating maintenance and upgrade costs over the system's lifecycle, the potential for rapid technological obsolescence due to advancements by adversaries, and the challenge of securing necessary spare parts and expertise as the systems age. Proactive lifecycle management, continuous technology insertion, and robust sustainment planning are crucial to mitigate these risks and ensure long-term operational effectiveness.
How effectively does this contract contribute to the Department of Defense's overall strategic goals for missile defense and deterrence?
This contract directly contributes by advancing the capabilities of tactical missile systems, which are crucial components of both offensive and defensive strategies. Improved system performance, accuracy, and range enhance deterrence posture. The development of advanced simulation and analysis capabilities also supports better strategic planning and wargaming, ensuring alignment with broader defense objectives.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 4090 MEMORIAL PKWY SW, HUNTSVILLE, AL, 35802
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $133,879,869
Exercised Options: $110,706,245
Current Obligation: $110,706,245
Subaward Activity
Number of Subawards: 1275
Total Subaward Amount: $1,614,988,860
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q18A0014
IDV Type: BPA
Timeline
Start Date: 2018-05-17
Current End Date: 2022-08-31
Potential End Date: 2023-11-15 12:11:00
Last Modified: 2025-09-19
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