DoD's Air Force Spends $70.7M on R&D Services with Torch Technologies Inc
Contract Overview
Contract Amount: $70,714,842 ($70.7M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2024-03-31
Contract Duration: 365 days
Daily Burn Rate: $193.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ADVISORY AND ASSISTANCE SERIVCES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $70.7 million to TORCH TECHNOLOGIES INC for work described as: ADVISORY AND ASSISTANCE SERIVCES Key points: 1. Significant contract value of $70.7M for advisory and assistance services. 2. Competition method indicates full and open competition after exclusion of sources. 3. Risk associated with cost-plus-fixed-fee contract type. 4. Spending falls within the Research and Development sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The award amount of $70.7M for a 1-year duration needs to be benchmarked against similar R&D services contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method suggests an initial exclusion of some sources, followed by open competition, which may impact price discovery compared to a purely full and open process.
Taxpayer Impact: The $70.7M expenditure represents taxpayer funds allocated to research and development services, with the effectiveness of this spending dependent on the outcomes achieved.
Public Impact
Taxpayers fund critical R&D services for the Air Force. Contract supports technological advancement within the Department of Defense. Potential for innovation and improved defense capabilities. Ensures specialized expertise is available for complex research tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited duration of 1 year
Positive Signals
- Full and open competition utilized
- Supports critical R&D mission
- Experienced contractor
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value for money.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to Torch Technologies Inc., and further analysis would be needed to determine the extent of small business participation as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger contract, suggesting some level of pre-award review. However, the cost-plus-fixed-fee structure necessitates robust oversight to manage costs and ensure deliverables meet expectations.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Limited duration may not allow for full project lifecycle completion.
- Potential for scope creep without stringent oversight.
- Lack of detailed performance metrics in provided data.
- Initial exclusion of sources might limit competitive pricing.
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 $70.7 million to TORCH TECHNOLOGIES INC. ADVISORY AND ASSISTANCE SERIVCES
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 Air Force).
What is the total obligated amount?
The obligated amount is $70.7 million.
What is the period of performance?
Start: 2023-04-01. End: 2024-03-31.
What is the specific research and development objective of this $70.7M contract, and how does it align with the Air Force's strategic goals?
The specific R&D objective is not detailed in the provided data. However, advisory and assistance services in the physical, engineering, and life sciences typically support the development of new technologies, systems, or processes. Alignment with strategic goals would require examining the Air Force's current modernization priorities and technological roadmaps.
What are the key performance indicators (KPIs) for this contract, and how is Torch Technologies Inc.'s performance being measured to ensure effective use of taxpayer funds?
Key performance indicators are not explicitly stated in the provided data. For a Cost Plus Fixed Fee contract, performance is typically measured against technical milestones, delivery schedules, and adherence to budget constraints. The Air Force contracting officer would be responsible for monitoring these aspects and ensuring Torch Technologies Inc. meets its contractual obligations.
Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, what was the rationale for excluding certain sources initially, and did this impact the final pricing?
The rationale for excluding sources initially is not provided. This method often stems from specific technical requirements or prior relationships that necessitate a specialized approach. While competition was eventually opened, the initial exclusion could potentially limit the breadth of competitive offers and influence the final negotiated price.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4090 MEMORIAL PKWY S, HUNTSVILLE, AL, 35802
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,396,601
Exercised Options: $79,396,601
Current Obligation: $70,714,842
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS737
IDV Type: IDC
Timeline
Start Date: 2023-04-01
Current End Date: 2024-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-08-15
More Contracts from 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) — $575.3M (Department of Defense)
- Single Award to Against GSA Oasis SB R Pool 5B for Hwil Systems of Systems to Acquire Engineering Services for the Aviation and Missile Center, S3I Directorate, Hwil / Virtual Simulators Mission Area — $566.4M (Department of Defense)
- Single Award to Against GSA Oasis SB (pool 5B) for Engineering and Professional Services Supporting Aviation and Missile Element Models, Simulations, and Analysis for the Ccdc Avmc, S3I Directorate, M&S Area — $371.3M (Department of Defense)
- Single Award to Against GSA Oasis SB R Pool 5B for Hwil Missile to Acquire Software/Systems/Simulation Engineering and Computer Resource Engineering Support for the Aviation and Missile Center, S3I Directorate, Hwil / Virtual Simulators Mission Area — $321.6M (Department of Defense)
- Technical and Management Advisory Services (tmas) 2 Tenants — $311.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)