DoD's $86.8M R&D Contract with Torch Technologies Inc. Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $86,813,949 ($86.8M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2014-04-09
End Date: 2019-03-31
Contract Duration: 1,817 days
Daily Burn Rate: $47.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::CL,CT::IGF BASE TASK ORDER
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $86.8 million to TORCH TECHNOLOGIES INC for work described as: IGF::CL,CT::IGF BASE TASK ORDER Key points: 1. Significant R&D investment by the Department of the Army. 2. Torch Technologies Inc. secured a substantial contract. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The contract falls within the Research and Development sector.
Value Assessment
Rating: good
The contract value of $86.8M over nearly 5 years is substantial. Benchmarking against similar R&D contracts requires detailed analysis of scope and deliverables, but the firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Supports advanced research and development initiatives within the Department of the Army. Potential for technological advancements and innovation stemming from the contract. Economic impact through contract spending and potential job creation in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or deliverables in provided data.
- Potential for cost overruns if scope creep occurs despite fixed price.
- Dependence on a single contractor for a significant R&D effort.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Long-term commitment indicating strategic importance.
Sector Analysis
This contract falls under the Research and Development sector, specifically in physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight would typically involve regular progress reviews, milestone tracking, and financial audits by the Department of Defense to ensure contract compliance and effective use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is extensive (over 4 years).
- Potential for R&D outcomes to be intangible or difficult to quantify.
- Lack of transparency on specific project goals and deliverables.
- No clear indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.8 million to TORCH TECHNOLOGIES INC. IGF::CL,CT::IGF BASE TASK ORDER
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 $86.8 million.
What is the period of performance?
Start: 2014-04-09. End: 2019-03-31.
What specific R&D projects were undertaken, and what were the key performance indicators for success?
The provided data lacks specifics on the R&D projects. Key performance indicators would typically include successful completion of research phases, development of prototypes, validation of technologies, and adherence to project timelines and budget. Without this detail, assessing the true value and effectiveness is challenging.
How does the $86.8M contract value compare to similar R&D efforts within the DoD for comparable technological advancements?
Benchmarking this $86.8M contract requires a detailed comparison with other DoD R&D contracts of similar scope, duration, and technological focus. Factors like the maturity of the technology, the complexity of the research, and the specific deliverables influence cost. A preliminary assessment suggests it's a significant investment, but its competitiveness hinges on the specific R&D outcomes achieved.
What mechanisms are in place to ensure accountability and prevent potential cost overruns or scope creep, given the long duration?
The firm fixed price contract type inherently limits cost overruns for the government, shifting that risk to the contractor. However, robust oversight, including regular technical reviews, milestone tracking, and change control processes, is essential to manage scope creep and ensure the contractor remains focused on the original objectives throughout the 1817-day period.
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: NEGOTIATED PROPOSAL/QUOTE
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $88,397,801
Exercised Options: $86,813,949
Current Obligation: $86,813,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q09A0021
IDV Type: IDC
Timeline
Start Date: 2014-04-09
Current End Date: 2019-03-31
Potential End Date: 2019-04-08 00:00:00
Last Modified: 2025-04-24
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