DoD awards $890M R&D contract to Touchstone Research Laboratory, Ltd. for physical sciences research
Contract Overview
Contract Amount: $8,902,414 ($8.9M)
Contractor: Touchstone Research Laboratory, Ltd.
Awarding Agency: Department of Defense
Start Date: 2023-03-02
End Date: 2026-10-30
Contract Duration: 1,338 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT
Place of Performance
Location: TRIADELPHIA, OHIO County, WEST VIRGINIA, 26059
Plain-Language Summary
Department of Defense obligated $8.9 million to TOUCHSTONE RESEARCH LABORATORY, LTD. for work described as: RESEARCH AND DEVELOPMENT Key points: 1. The contract focuses on R&D in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. Touchstone Research Laboratory, Ltd. is the sole awardee under a full and open competition after exclusion of sources. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The award is for research and development, a critical but often unpredictable sector for guaranteed outcomes.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking is difficult without specific deliverables and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited initial pool of competitors. This method may not yield the most competitive pricing.
Taxpayer Impact: The significant value of $890 million warrants close scrutiny to ensure taxpayer funds are used efficiently for valuable research outcomes.
Public Impact
Significant investment in scientific research and development. Potential for technological advancements with broad applications. Focus on physical, engineering, and life sciences could impact various industries. Contract duration extends over three years, indicating a long-term research commitment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition method
- Long contract duration
Positive Signals
- Investment in critical R&D sector
- Potential for significant technological breakthroughs
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541715. Spending in this area is crucial for innovation but carries inherent risks due to the unpredictable nature of scientific discovery.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract award. The focus appears to be on a specialized research laboratory.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Navy to manage costs and ensure deliverables align with research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract structure
- Limited competition method ('after exclusion of sources')
- Broad scope of R&D without specific deliverables outlined
- Long contract duration (over 3 years)
Tags
research-and-development-in-the-physical, department-of-defense, wv, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.9 million to TOUCHSTONE RESEARCH LABORATORY, LTD.. RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is TOUCHSTONE RESEARCH LABORATORY, LTD..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $8.9 million.
What is the period of performance?
Start: 2023-03-02. End: 2026-10-30.
What specific research objectives and expected outcomes are defined within this contract to justify the significant investment?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' Specific objectives and expected outcomes would be detailed in the contract's statement of work. Without access to these details, it's difficult to fully assess the value. However, the broad nature of the NAICS code suggests potential for foundational research that could lead to future technological advancements.
How will the Department of Defense mitigate the risks associated with a Cost Plus Fixed Fee contract to prevent cost overruns?
Mitigation strategies for Cost Plus Fixed Fee contracts typically involve stringent oversight, detailed cost tracking, regular performance reviews, and clear milestones. The Department of Defense would likely implement a dedicated team to monitor expenditures, validate costs, and ensure the contractor adheres to the research plan. Establishing clear performance metrics and incentivizing efficiency can also help manage costs.
What is the anticipated return on investment or broader impact of this $890 million R&D expenditure?
The return on investment for R&D contracts is often long-term and can be indirect, manifesting as new technologies, improved defense capabilities, or economic growth. The specific impact depends on the success of the research in physical, engineering, and life sciences. Potential benefits could range from advancements in materials science to breakthroughs in medical research, ultimately contributing to national security and economic competitiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1142 MIDDLE CREEK RD, TRIADELPHIA, WV, 26059
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,902,414
Exercised Options: $8,902,414
Current Obligation: $8,902,414
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-02
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2025-12-04
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