DoD Awards $13.6M for Data Engineering Services to Torch Research, LLC, with No Competition

Contract Overview

Contract Amount: $13,629,913 ($13.6M)

Contractor: Torch Research, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-12

End Date: 2026-07-12

Contract Duration: 1,461 days

Daily Burn Rate: $9.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA ENGINEERING SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to TORCH RESEARCH, LLC for work described as: DATA ENGINEERING SERVICES Key points: 1. Significant contract value of $13.6 million for data engineering. 2. Sole-source award to Torch Research, LLC, raises competition concerns. 3. Contract duration extends to July 2026, impacting long-term value. 4. Focus on Computer Systems Design Services within the IT sector.

Value Assessment

Rating: questionable

The contract value of $13.6 million for data engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for computer systems design services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to a higher cost for taxpayers.

Taxpayer Impact: The lack of competition for a $13.6 million contract suggests potential overspending and reduced value for taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation and service quality without market pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Specific service requirement met
Contract awarded

Sector Analysis

This contract falls under the Information Technology sector, specifically Computer Systems Design Services. The average contract value for this NAICS code can vary widely, but a $13.6 million sole-source award warrants scrutiny.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award raises questions about the oversight process and whether adequate justification was provided to bypass competitive procedures.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks transparency.
Potential for overpayment due to no competition.
Limited market research evident.
Long contract duration increases risk exposure.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to TORCH RESEARCH, LLC. DATA ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is TORCH RESEARCH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2022-07-12. End: 2026-07-12.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without further documentation, the specific rationale remains unclear, making it difficult to assess the necessity of bypassing competition.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts of this magnitude carry risks of inflated pricing, reduced service quality due to lack of competitive pressure, and missed opportunities for innovation from a broader market. There's also a risk of vendor lock-in and a lack of accountability if performance issues arise, as switching providers would require a new sole-source justification.

How does the lack of competition impact the overall effectiveness and value for money of this contract?

The lack of competition significantly hinders the government's ability to secure the best possible value for money. Without competing bids, there's no market validation of the price, potentially leading to overpayment. Effectiveness can also be compromised if the sole-source provider faces no pressure to innovate or improve services, as there are no alternative vendors to choose from.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6600122R0063

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5250 WEST 116TH PL, LEAWOOD, KS, 66211

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

Financial Breakdown

Contract Ceiling: $16,337,946

Exercised Options: $13,680,786

Current Obligation: $13,629,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline