DoD Awards $74.35M for Lethal Mechanism & Effects Support to Torch Technologies Inc

Contract Overview

Contract Amount: $74,350,370 ($74.4M)

Contractor: Torch Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2020-10-28

End Date: 2026-08-28

Contract Duration: 2,130 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: SYSTEMS AND WARHEADS DIVISION LETHAL MECHANISM AND EFFECTS SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $74.4 million to TORCH TECHNOLOGIES INC for work described as: SYSTEMS AND WARHEADS DIVISION LETHAL MECHANISM AND EFFECTS SUPPORT Key points: 1. Contract awarded to Torch Technologies Inc. for specialized engineering services. 2. Significant value of $74.35 million over a 5-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Services fall under Engineering Services (NAICS 541330), a critical defense sector.

Value Assessment

Rating: fair

The contract value of $74.35M over 2130 days (approx. 5.8 years) averages to about $12.8M annually. Without specific benchmarks for 'Lethal Mechanism and Effects Support', a direct pricing comparison is difficult, but the duration suggests a substantial, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Supports critical defense capabilities related to weapon systems. Long-term contract indicates sustained government need for these specialized services. Potential for technological advancements in weapon lethality and effects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Long contract duration (2130 days) requires ongoing performance monitoring.
Specific details on 'lethal mechanism and effects' are sensitive and not publicly detailed.

Positive Signals

Awarded under full and open competition.
Supports a critical national defense function.
Long-term commitment suggests stable support for essential programs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research and development for weapon systems. Spending in this area is typically high within the Department of Defense, driven by the need for advanced technological capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Therefore, large businesses likely competed for and were awarded this contract, with limited direct benefit to small businesses unless they are subcontractors.

Oversight & Accountability

The Department of the Army awarded this contract, implying oversight from this branch of the DoD. The long duration necessitates consistent performance monitoring and accountability to ensure effective use of funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration requires sustained oversight.
Lack of specific performance metrics in public data.
Nature of 'lethal mechanism and effects' implies sensitive, potentially high-risk technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.4 million to TORCH TECHNOLOGIES INC. SYSTEMS AND WARHEADS DIVISION LETHAL MECHANISM AND EFFECTS SUPPORT

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 $74.4 million.

What is the period of performance?

Start: 2020-10-28. End: 2026-08-28.

What specific technical expertise does Torch Technologies Inc. bring to 'Lethal Mechanism and Effects Support' that justified this award?

While the specific technical expertise is not detailed in the provided data, the award to Torch Technologies Inc. suggests they possess specialized knowledge and capabilities in areas such as weapon system design, ballistics, explosive effects, and related engineering disciplines critical for developing and analyzing lethal mechanisms.

What are the primary risks associated with a Time and Materials contract for complex defense engineering services?

The primary risks with Time and Materials contracts, especially for complex defense engineering, include potential cost overruns due to undefined scope or scope creep, contractor inefficiencies not being penalized, and difficulty in establishing a fixed price. Robust oversight and clear task definitions are crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness of the Department of Defense's weapon systems?

This contract is vital for ensuring the effectiveness of DoD weapon systems by providing essential support for the design, analysis, and improvement of their lethal mechanisms and effects. It allows for continuous innovation and refinement, ensuring that weapon systems meet evolving operational requirements and maintain a technological advantage.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4090 MEMORIAL PKWY SW, HUNTSVILLE, AL, 35802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,617,207

Exercised Options: $74,350,370

Current Obligation: $74,350,370

Actual Outlays: $233,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0321N

IDV Type: FSS

Timeline