DoD Awards $371M Engineering Services Contract to Torch Technologies Inc. for Aviation and Missile Analysis
Contract Overview
Contract Amount: $371,315,035 ($371.3M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2021-01-20
End Date: 2026-11-11
Contract Duration: 2,121 days
Daily Burn Rate: $175.1K/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 (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.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $371.3 million to TORCH TECHNOLOGIES INC for work described as: 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. Key points: 1. Contract awarded to Torch Technologies Inc. for specialized engineering and professional services. 2. Focus on aviation and missile element models, simulations, and analysis. 3. Significant award value of $371.3 million over its period of performance. 4. Contract falls under Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: good
The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar R&D contracts for specialized engineering services is crucial for assessing value.
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 bidding process. This method aims to ensure fair pricing and access to a broad range of qualified contractors.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair market value, minimizing undue burden on taxpayers for these critical R&D services.
Public Impact
Enhances critical aviation and missile defense capabilities through advanced modeling and simulation. Supports the CCDC AvMC, S3I Directorate, contributing to national security. Potential for technological advancements and innovation in defense R&D. Long-term contract (2021-2026) provides stable support for ongoing projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed tightly.
- Reliance on a single awardee for specialized services may limit future competition.
- Long contract duration requires ongoing performance monitoring.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Supports critical national defense functions.
- Contractor has a history of performance in related fields.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering and professional services for advanced modeling and simulation. Spending in this area is critical for maintaining technological superiority in defense.
Small Business Impact
The contract was awarded to Torch Technologies Inc. and does not explicitly mention small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for oversight. The contract's duration and value necessitate regular performance reviews and financial audits to ensure accountability and proper use of funds.
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
- Cost Overruns Risk
- Performance Monitoring Challenges
- Limited Subcontracting Visibility
- Potential for Scope Creep
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 $371.3 million to TORCH TECHNOLOGIES INC. 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.
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 $371.3 million.
What is the period of performance?
Start: 2021-01-20. End: 2026-11-11.
What is the specific breakdown of the fixed fee and how does it compare to industry standards for similar R&D projects?
The specific breakdown of the fixed fee is not detailed in the provided data. However, assessing its reasonableness would involve comparing it against typical fixed fee percentages for cost-plus-fixed-fee contracts in the aerospace and defense R&D sector. Factors like project complexity, risk, and contractor overhead contribute to the fee. Benchmarking against similar GSA OASIS SB contracts could provide further insight into competitive pricing.
What are the key performance indicators (KPIs) used to measure Torch Technologies Inc.'s performance on this contract?
Key performance indicators (KPIs) are essential for monitoring the success of this contract. These would likely include metrics related to the accuracy and timeliness of model development, simulation results, and analysis reports. Technical performance, adherence to budget, and responsiveness to government requirements are also critical. Regular performance reviews against these KPIs ensure the contractor meets the government's needs effectively.
How will the government ensure continued innovation and prevent contractor complacency over the contract's long duration?
To ensure continued innovation and prevent complacency, the government can implement several strategies. These include incorporating performance incentives tied to innovation and exceeding expectations, conducting regular technical reviews to challenge assumptions and explore new approaches, and fostering open communication channels for feedback. Periodic market research and potential for re-competition at key milestones can also encourage ongoing improvement.
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: $579,340,444
Exercised Options: $371,415,032
Current Obligation: $371,315,035
Actual Outlays: $48,166,054
Subaward Activity
Number of Subawards: 967
Total Subaward Amount: $486,168,518
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: 2021-01-20
Current End Date: 2026-11-11
Potential End Date: 2026-11-11 00:00:00
Last Modified: 2026-03-19
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