Airbase Technologies IV Contract Awarded to Torch Technologies Inc for $34.9M, Focusing on R&D

Contract Overview

Contract Amount: $34,909,961 ($34.9M)

Contractor: Torch Technologies Inc

Awarding Agency: General Services Administration

Start Date: 2020-06-15

End Date: 2025-12-15

Contract Duration: 2,009 days

Daily Burn Rate: $17.4K/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: AIRBASE TECHNOLOGIES IV EOD AND UNMANNED SYSTEMS TECHNOLOGIES

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $34.9 million to TORCH TECHNOLOGIES INC for work described as: AIRBASE TECHNOLOGIES IV EOD AND UNMANNED SYSTEMS TECHNOLOGIES Key points: 1. Value for money assessed through competitive bidding and comparison to similar R&D contracts. 2. Competition dynamics indicate a robust process, potentially leading to better pricing. 3. Risk indicators are being monitored, with a focus on performance and delivery timelines. 4. Performance context is crucial for understanding the long-term impact of this R&D investment. 5. Sector positioning places this contract within the broader landscape of defense and technology R&D. 6. The contract's duration and phased approach suggest a strategic investment in evolving technologies.

Value Assessment

Rating: good

The contract value of $34.9 million over its period of performance appears reasonable for specialized R&D services in EOD and unmanned systems. Benchmarking against similar government R&D contracts for advanced technology development suggests that the pricing structure, likely involving cost-plus fixed fee elements, is within expected ranges. However, a detailed cost analysis would be required to confirm optimal value for money, especially considering the research-intensive nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, specific sources may have been excluded for defined reasons. The presence of 3 bidders suggests a degree of competition, but the exclusion of other potential sources warrants further investigation to ensure maximum price discovery and innovation were achieved.

Taxpayer Impact: The limited competition, even after an initial exclusion of sources, may mean taxpayers did not benefit from the lowest possible price that a fully open competition might have yielded. However, if the excluded sources were not capable or relevant, the achieved price could still represent good value.

Public Impact

The primary beneficiaries are likely defense agencies and military personnel who will receive advanced EOD and unmanned systems technologies. Services delivered include research and development, prototyping, and testing of cutting-edge systems. The geographic impact is centered in Florida, where the contractor is located, potentially creating local economic benefits. Workforce implications include the employment of highly skilled engineers, scientists, and technicians in specialized R&D fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects if not closely managed.
Risk of technology obsolescence if development timelines are not met.
Dependence on a limited number of bidders could impact future competition.

Positive Signals

Focus on critical defense capabilities (EOD and unmanned systems).
Award to a contractor with demonstrated expertise in relevant technological areas.
Long-term investment in technological advancement for national security.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D, particularly in areas like unmanned systems and explosive ordnance disposal, is highly specialized and driven by government funding. Comparable spending benchmarks would typically be found within defense budgets allocated to advanced technology development and acquisition programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. The primary contractor, TORCH TECHNOLOGIES INC, will likely manage its own supply chain, and any subcontracting would be at their discretion, not mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting agency, the General Services Administration (GSA), through its Federal Acquisition Service. Accountability measures would be embedded in the contract terms, including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is generally facilitated through contract award databases, though specific R&D details may be sensitive.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Unmanned Systems research initiatives
Explosive Ordnance Disposal (EOD) technology development
Department of Defense R&D spending

Risk Flags

Limited competition may impact price optimization.
R&D projects carry inherent risks of failure or delays.
Need for clear performance metrics to assess R&D success.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $34.9 million to TORCH TECHNOLOGIES INC. AIRBASE TECHNOLOGIES IV EOD AND UNMANNED SYSTEMS TECHNOLOGIES

Who is the contractor on this award?

The obligated recipient is TORCH TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $34.9 million.

What is the period of performance?

Start: 2020-06-15. End: 2025-12-15.

What is the track record of TORCH TECHNOLOGIES INC with government contracts, particularly in R&D?

TORCH TECHNOLOGIES INC has a history of securing government contracts, primarily within the defense and aerospace sectors. Their expertise often lies in specialized engineering, research, and development services. While specific details on past R&D performance for EOD and unmanned systems would require deeper analysis of contract histories, their presence in this domain suggests a capacity to handle complex technical requirements. Reviewing past performance evaluations and any reported issues on previous contracts would provide a clearer picture of their reliability and effectiveness in delivering on similar projects.

How does the $34.9M contract value compare to similar R&D efforts in unmanned systems and EOD?

The $34.9 million contract value for AIRBASE TECHNOLOGIES IV is a significant investment, but its comparability to similar R&D efforts depends heavily on the scope, duration, and specific technological advancements targeted. R&D contracts in cutting-edge fields like advanced unmanned systems and sophisticated EOD solutions can range widely. Contracts involving basic research might be smaller, while those encompassing full-scale development, prototyping, and extensive testing could easily reach or exceed this figure. Benchmarking would require identifying contracts with similar objectives, contractor capabilities, and award periods within the Department of Defense or other relevant agencies.

What are the primary risks associated with this R&D contract, and how are they being mitigated?

The primary risks associated with this R&D contract include technological uncertainty (the research may not yield the desired outcomes), schedule delays (development timelines can be unpredictable), cost overruns (R&D is inherently difficult to budget precisely), and potential obsolescence if the technology is surpassed during development. Mitigation strategies likely involve robust project management, phased development with clear milestones, regular performance reviews, strong technical oversight from the government, and flexibility within the contract to adapt to evolving requirements. The Cost Plus Fixed Fee (CPFF) contract type also implies shared risk between the government and the contractor.

What is the expected program effectiveness and impact of the technologies developed under this contract?

The expected program effectiveness hinges on the successful development and integration of advanced EOD and unmanned systems technologies. If successful, these technologies could significantly enhance warfighter safety by reducing exposure to explosive threats, improve operational efficiency through autonomous capabilities, and provide critical intelligence, surveillance, and reconnaissance (ISR) data. The impact could be a substantial leap in battlefield capabilities, offering a strategic advantage. The effectiveness will be measured by the technology's performance in realistic scenarios, its reliability, and its ability to meet the specific operational needs outlined by the end-users.

How has federal spending in the EOD and unmanned systems R&D sector evolved over the past five years?

Federal spending in the EOD and unmanned systems R&D sector has generally seen a consistent upward trend over the past five years, driven by evolving geopolitical threats and the recognized strategic importance of these technologies. Agencies like the Department of Defense have prioritized investments in autonomous systems, counter-drone capabilities, and advanced EOD tools to maintain technological superiority. This growth reflects a broader shift towards leveraging AI, robotics, and advanced sensor technologies in defense applications. Specific budget allocations can fluctuate based on program priorities and emerging threats, but the overall trajectory indicates sustained and increasing investment in these critical R&D areas.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type signifies a competitive process that was initiated with the intent of allowing all responsible sources to submit offers. However, specific sources were subsequently excluded based on predefined criteria, which could include factors like specialized capabilities, prior performance, or specific security requirements. This approach aims to balance the benefits of broad competition with the need to ensure that only qualified and relevant entities participate, potentially streamlining the evaluation process while still seeking competitive pricing and innovative solutions from a vetted pool of offerors.

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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4090 MEMORIAL PKWY SW, HUNTSVILLE, AL, 35802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,518,603

Exercised Options: $39,212,932

Current Obligation: $34,909,961

Actual Outlays: $-29,591

Subaward Activity

Number of Subawards: 337

Total Subaward Amount: $20,308,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS439

IDV Type: IDC

Timeline