Army awards $575M for technical support to Torch Technologies Inc. for R&D
Contract Overview
Contract Amount: $575,268,246 ($575.3M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2018-01-04
End Date: 2022-06-20
Contract Duration: 1,628 days
Daily Burn Rate: $353.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: BASE AWARD 2017T-02- LABOR/TRAVEL TECHNICAL SUPPORT REQUIREMENTS FOR THE U.S. ARMY RESEARCH, DEVELOPMENT, AND ENGINEERING COMMAND, AVIATION AND MISSILE RESEARCH, DEVELOPMENT, AND ENGINEERING CENTER (AMRDEC), SYSTEM SIMULATION AND DEVELOPMENT DIRECTORATE (SSDD)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $575.3 million to TORCH TECHNOLOGIES INC for work described as: BASE AWARD 2017T-02- LABOR/TRAVEL TECHNICAL SUPPORT REQUIREMENTS FOR THE U.S. ARMY RESEARCH, DEVELOPMENT, AND ENGINEERING COMMAND, AVIATION AND MISSILE RESEARCH, DEVELOPMENT, AND ENGINEERING CENTER (AMRDEC), SYSTEM SIMULATION AND DEVELOPMENT DIRECTORATE (SSDD) Key points: 1. Significant contract value for technical support services. 2. Torch Technologies Inc. is the sole awardee. 3. Contract duration spans over 4 years. 4. Focus on R&D for aviation and missile systems.
Value Assessment
Rating: good
The contract value of $575M over approximately 4.5 years suggests a substantial investment. Benchmarking against similar R&D technical support contracts would be necessary for a precise value assessment, but the scale indicates a significant requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical R&D support.
Public Impact
Supports critical Army aviation and missile research and development. Ensures continued technical expertise for advanced system simulation. Impacts the technological advancement of defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in long-term R&D contracts.
Positive Signals
- Awarded through full and open competition.
- Supports a critical defense research command.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought through subcontracting.
Oversight & Accountability
Oversight would typically involve regular performance reviews and financial audits by the Army Contracting Command 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
- Long contract duration increases potential for scope creep.
- Reliance on a single contractor for critical R&D support.
- Potential for evolving R&D needs not fully captured in initial scope.
- Limited visibility into specific performance metrics.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $575.3 million to TORCH TECHNOLOGIES INC. BASE AWARD 2017T-02- LABOR/TRAVEL TECHNICAL SUPPORT REQUIREMENTS FOR THE U.S. ARMY RESEARCH, DEVELOPMENT, AND ENGINEERING COMMAND, AVIATION AND MISSILE RESEARCH, DEVELOPMENT, AND ENGINEERING CENTER (AMRDEC), SYSTEM SIMULATION AND DEVELOPMENT DIRECTORATE (SSDD)
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 $575.3 million.
What is the period of performance?
Start: 2018-01-04. End: 2022-06-20.
What specific technical support tasks are included in this contract?
The contract specifies technical support requirements for the U.S. Army Research, Development, and Engineering Command's Aviation and Missile Research, Development, and Engineering Center. This likely includes areas such as system simulation, development, testing, analysis, and integration support for aviation and missile systems.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators are not detailed in the provided data. However, for R&D technical support, KPIs would typically focus on meeting research milestones, delivering accurate technical analyses, successful system integration, adherence to project timelines, and quality of technical documentation.
How does the firm fixed price (FFP) structure mitigate risk for the government?
A firm fixed price contract shifts the risk of cost overruns to the contractor. This structure provides cost certainty for the government, as the price is set regardless of the contractor's actual costs, encouraging efficient performance.
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: $626,494,341
Exercised Options: $575,268,246
Current Obligation: $575,268,246
Subaward Activity
Number of Subawards: 2275
Total Subaward Amount: $13,428,758,044
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q09A0021
IDV Type: IDC
Timeline
Start Date: 2018-01-04
Current End Date: 2022-06-20
Potential End Date: 2023-07-03 12:07:00
Last Modified: 2025-09-26
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