DoD Awards $566M for Aviation & Missile Center Engineering Services to Torch Technologies Inc
Contract Overview
Contract Amount: $566,374,619 ($566.4M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2021-01-15
End Date: 2027-01-04
Contract Duration: 2,180 days
Daily Burn Rate: $259.8K/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: 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.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $566.4 million to TORCH TECHNOLOGIES INC for work described as: 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. Key points: 1. Significant award for critical R&D in aviation and missile systems. 2. Torch Technologies Inc. is the sole awardee for these specialized engineering services. 3. Potential risk associated with a single awardee for long-term complex projects. 4. Spending falls within the R&D sector, focusing on simulation and virtual systems.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D engineering service contracts is difficult without more granular data on the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The pricing is for specialized R&D services, and the impact on taxpayers depends on the value and necessity of the acquired capabilities.
Public Impact
Enhances critical simulation capabilities for the Army's Aviation and Missile Center. Supports the development of advanced virtual simulators for training and testing. Contributes to the modernization of defense technologies in missile systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Cost Plus Fixed Fee contracts can be susceptible to cost growth.
- Long-term reliance on a single vendor for critical services.
Positive Signals
- Addresses a specific and critical need for advanced simulation.
- Award to a company with demonstrated expertise in the field.
- Supports national defense objectives.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but can be subject to long development cycles and evolving requirements.
Small Business Impact
The awardee, Torch Technologies Inc., is not identified as a small business. This contract does not appear to include specific provisions for small business participation.
Oversight & Accountability
The Department of the Army is responsible for oversight. The contract's duration and value suggest a need for robust monitoring to ensure performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 5 years).
- Sole awardee for critical R&D services.
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 $566.4 million to TORCH TECHNOLOGIES INC. 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.
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 Army).
What is the total obligated amount?
The obligated amount is $566.4 million.
What is the period of performance?
Start: 2021-01-15. End: 2027-01-04.
What specific performance metrics are in place to ensure the effectiveness of the engineering services provided for the HWIL systems?
The contract likely includes performance work statements (PWS) and key performance indicators (KPIs) to measure the success of the engineering services. These would detail deliverables, timelines, and quality standards for the development and maintenance of HWIL systems and virtual simulators. Regular reviews and acceptance criteria would be part of the oversight process to ensure the services meet the Army's mission requirements.
How was the 'exclusion of sources' justified to ensure fair pricing and avoid potential monopolies in this R&D niche?
The justification for excluding sources typically involves demonstrating that only specific contractors possess the unique capabilities, proprietary technology, or specialized expertise required for the project. This justification would need to be documented and approved, outlining why other potential sources were not viable. The contracting agency would aim to ensure that even within a limited competition, the selected vendor offered competitive terms.
What is the projected return on investment or long-term strategic value for the Department of Defense from these engineering services?
The long-term value is expected to be in enhanced readiness, improved training effectiveness, and reduced risk through advanced simulation capabilities. By refining HWIL systems and virtual simulators, the DoD can achieve more realistic testing and training scenarios, leading to better-prepared personnel and more robust weapon systems, ultimately contributing to national security.
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 › C – National Defense R&D Services
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 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: $2,036,266,784
Exercised Options: $566,374,619
Current Obligation: $566,374,619
Actual Outlays: $160,320,499
Subaward Activity
Number of Subawards: 1690
Total Subaward Amount: $913,048,386
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS621
IDV Type: IDC
Timeline
Start Date: 2021-01-15
Current End Date: 2027-01-04
Potential End Date: 2028-05-11 12:05:00
Last Modified: 2026-01-09
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 (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)
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- Technical and Management Advisory Services (tmas) 2 Tenants — $311.3M (Department of Defense)
- Technical and Engineering Support for the Weapons, Development, and Integration Directorate — $308.0M (Department of Defense)
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