DoD Awards $150M for R&D Support Services to Torch Technologies Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $150,430,102 ($150.4M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2026-03-31
Contract Duration: 729 days
Daily Burn Rate: $206.4K/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: PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR GB DIRECTORATE.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $150.4 million to TORCH TECHNOLOGIES INC for work described as: PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR GB DIRECTORATE. Key points: 1. Significant contract value of $150.4M for engineering, professional, and administrative support. 2. Competition method was 'Full and Open Competition after Exclusion of Sources', indicating a structured but potentially limited process. 3. Contract type is Cost Plus Fixed Fee (CPFF), which can pose cost control risks. 4. The NAICS code 541712 places this in the Research and Development sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in R&D is challenging due to variability, but the fixed fee component aims to provide some cost predictability.
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 suggests that while the competition was open, specific sources may have been excluded prior to the main solicitation, potentially limiting the breadth of competition and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical R&D support services. The effectiveness of the competition and contract type will determine the ultimate value for money.
Public Impact
Supports critical research and development activities for the Air Force. Potential for technological advancements stemming from the contracted services. Ensures continued operational readiness and modernization efforts within the DoD. Job creation and economic activity in Alabama, where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type risk
- Potential limitations in 'Exclusion of Sources' competition
Positive Signals
- Significant investment in R&D
- Awarded to a single entity, suggesting specialized capability
Sector Analysis
This contract falls under the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation and national security, with significant government investment annually.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this procurement. The contract was awarded to Torch Technologies Inc., and further analysis would be needed to determine if they are a small business or if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard DoD oversight mechanisms for contract performance, cost, and quality should be in place, but specific details on enhanced oversight are not provided.
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 overrun potential due to CPFF structure
- Limited competition due to 'Exclusion of Sources'
- Lack of transparency on specific R&D outcomes
- Potential for contractor inefficiency without strong oversight
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 $150.4 million to TORCH TECHNOLOGIES INC. PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR GB DIRECTORATE.
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 $150.4 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-03-31.
What is the expected return on investment for this $150M R&D support contract?
The return on investment (ROI) for R&D support services is typically measured by the successful development of new technologies, improved processes, or enhanced capabilities that contribute to the DoD's mission objectives. Quantifying a direct financial ROI is difficult, but the value lies in advancing scientific knowledge and ensuring future technological superiority.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this procurement?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides a profit ceiling, cost overruns can still increase the total contract price. Effective government oversight is crucial to manage these risks and ensure fair pricing.
How does the 'Exclusion of Sources' clause impact the overall effectiveness and cost-efficiency of this procurement?
The 'Exclusion of Sources' clause can limit the pool of potential bidders, potentially reducing competition and leading to higher prices or less innovative solutions if key capable vendors are excluded without clear justification. Its effectiveness depends on the rationale for exclusion; if based on specific, necessary qualifications, it can ensure the right expertise is engaged. However, it warrants scrutiny to ensure it doesn't unduly restrict competition.
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: $379,585,292
Exercised Options: $184,765,048
Current Obligation: $150,430,102
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $56,299,844
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: 2024-04-01
Current End Date: 2026-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-01-08
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