DoD Awards $321.6M for Missile Simulation Support to Torch Technologies Inc
Contract Overview
Contract Amount: $321,613,093 ($321.6M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2021-02-01
End Date: 2027-07-21
Contract Duration: 2,361 days
Daily Burn Rate: $136.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 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.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $321.6 million to TORCH TECHNOLOGIES INC for work described as: 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. Key points: 1. Significant investment in advanced missile simulation and engineering support. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process. 3. Risk associated with long-term contracts and reliance on specialized engineering support. 4. Sector focus on Research and Development (R&D) in physical and engineering sciences.
Value Assessment
Rating: good
The contract value of $321.6 million over approximately 6.5 years appears substantial for specialized simulation and engineering support. Benchmarking against similar R&D contracts for complex systems would be necessary for a precise assessment.
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,' indicating a competitive process that considered multiple bidders but may have had specific criteria for exclusion. This method aims for best value and price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense research and development, aiming to enhance missile defense capabilities through advanced simulation and engineering.
Public Impact
Enhances national defense capabilities through advanced simulation technology. Supports technological advancement in missile defense systems. Contributes to the development of highly specialized engineering expertise within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration (over 6 years) may pose budget and scope management risks.
- Reliance on a single vendor for critical simulation and engineering support.
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
Positive Signals
- Addresses a critical need for advanced missile simulation.
- Utilizes a competitive procurement process.
- Supports technological innovation in a key defense area.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The contract was awarded to Torch Technologies Inc., and the data indicates it is not a small business set-aside. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Army's Aviation and Missile Center is overseeing this contract. Standard oversight mechanisms for large R&D contracts, including performance reviews and financial audits, are expected to be in place.
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
- Potential for scope creep in long-term R&D contracts.
- Dependency on a single contractor for critical simulation capabilities.
- Cost overruns inherent in Cost Plus Fixed Fee contracts.
- Ensuring continued technological relevance of simulation over the contract's lifespan.
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 $321.6 million to TORCH TECHNOLOGIES INC. 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.
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 $321.6 million.
What is the period of performance?
Start: 2021-02-01. End: 2027-07-21.
What is the specific breakdown of software, systems, and engineering support required under this contract?
The contract specifies a need for software/systems/simulation engineering and computer resource engineering support for the Aviation and Missile Center's HWIL/Virtual Simulators Mission Area. A detailed breakdown would likely be found in the contract's Statement of Work (SOW), outlining specific deliverables, technical requirements, and performance metrics for each category of support.
How does the 'Full and Open Competition After Exclusion of Sources' process ensure optimal value and mitigate risks compared to standard full and open competition?
This procurement method allows for competition among all responsible sources but permits the exclusion of specific sources based on pre-defined criteria, often related to specialized capabilities or past performance. While aiming for competitive pricing, the exclusion aspect requires careful justification to ensure it doesn't unduly limit competition or lead to suboptimal value.
What are the key performance indicators (KPIs) used to measure the effectiveness of Torch Technologies Inc.'s support in enhancing simulation capabilities?
Effectiveness is likely measured through KPIs related to simulation accuracy, fidelity, system uptime, timely delivery of engineering support, successful integration of software and systems, and adherence to project milestones. Performance metrics would be detailed in the contract's SOW and performance work statement.
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: 2
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: $1,073,012,335
Exercised Options: $321,613,093
Current Obligation: $321,613,093
Actual Outlays: $76,791,922
Subaward Activity
Number of Subawards: 1127
Total Subaward Amount: $363,909,380
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: 2021-02-01
Current End Date: 2027-07-21
Potential End Date: 2028-05-09 12:05:00
Last Modified: 2025-12-29
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