DoD Awards $92.4M for Weapons Integration Support, Following Prior Contract

Contract Overview

Contract Amount: $92,389,910 ($92.4M)

Contractor: Torch Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-03-13

End Date: 2025-10-29

Contract Duration: 961 days

Daily Burn Rate: $96.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: FOLLOW-ON TO W31P4Q-19-F-C003 TECHNICAL AND ENGINEERING SUPPORT FOR THE WEAPONS DEVELOPMENT AND INTEGRATION DIRECTORATE.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35802

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $92.4 million to TORCH TECHNOLOGIES INC for work described as: FOLLOW-ON TO W31P4Q-19-F-C003 TECHNICAL AND ENGINEERING SUPPORT FOR THE WEAPONS DEVELOPMENT AND INTEGRATION DIRECTORATE. Key points: 1. Significant follow-on contract for technical and engineering support. 2. Awarded to Torch Technologies Inc. under full and open competition. 3. Focuses on weapons development and integration, a critical defense area. 4. Potential for long-term engagement given the 961-day duration.

Value Assessment

Rating: good

The contract value of $92.4 million over approximately 32 months suggests a substantial but potentially reasonable price for specialized engineering services. Benchmarking against similar complex defense engineering contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices and encourage innovation from multiple offerors.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense capabilities.

Public Impact

Enhances critical weapons development and integration capabilities for the Department of Defense. Supports advanced engineering and technical expertise within the Army. Contributes to national security by ensuring the effectiveness of defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex engineering projects.
Reliance on a single contractor for follow-on support.

Positive Signals

Awarded through full and open competition.
Supports critical defense technology development.
Long-term contract duration indicates sustained need.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related R&D and integration. Spending in this area is often high due to the complexity and national security implications of the work.

Small Business Impact

While the prime contractor is Torch Technologies Inc., the data does not indicate any specific subcontracting goals or participation from small businesses in this award. Further analysis would be needed to determine small business involvement.

Oversight & Accountability

The award follows a previous contract, suggesting a degree of oversight and performance evaluation. The Department of the Army's procurement process should include mechanisms for monitoring progress and ensuring contractor performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Follow-on nature may indicate limited competition in the future.
Time and Materials pricing can lead to cost uncertainty.
Complexity of weapons integration poses inherent technical risks.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.4 million to TORCH TECHNOLOGIES INC. FOLLOW-ON TO W31P4Q-19-F-C003 TECHNICAL AND ENGINEERING SUPPORT FOR THE WEAPONS DEVELOPMENT AND INTEGRATION DIRECTORATE.

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 $92.4 million.

What is the period of performance?

Start: 2023-03-13. End: 2025-10-29.

What is the specific technical scope of the 'Weapons Development and Integration Directorate' and how does this contract directly support its mission?

The Weapons Development and Integration Directorate likely focuses on the research, design, testing, and fielding of new weapon systems and the integration of existing ones into broader defense architectures. This contract provides essential technical and engineering support, which could encompass areas like systems engineering, software development, cybersecurity, testing and evaluation, and lifecycle management, all crucial for advancing and maintaining the effectiveness of military hardware.

Given this is a follow-on contract, what lessons were learned from the previous award (W31P4Q-19-F-C003) that informed this new award's structure and pricing?

Information regarding lessons learned from the prior contract (W31P4Q-19-F-C003) is not publicly available in this data. However, the follow-on nature suggests the previous performance was satisfactory. Agencies typically use past performance evaluations to inform future awards, potentially adjusting scope, pricing models, or performance metrics based on prior experiences to optimize value and mitigate risks.

How does the 'Time and Materials' contract type potentially impact cost control and taxpayer value compared to a fixed-price contract for similar engineering services?

Time and Materials (T&M) contracts offer flexibility, allowing for adjustments as project requirements evolve, which can be beneficial for R&D or uncertain scopes. However, they carry a higher risk of cost overruns as the government pays for actual labor hours and material costs. This contrasts with fixed-price contracts, which offer greater cost certainty for the government but may be less adaptable to changing technical needs, potentially leading to change orders.

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: $372,519,485

Exercised Options: $92,392,910

Current Obligation: $92,389,910

Actual Outlays: $962,205

Subaward Activity

Number of Subawards: 849

Total Subaward Amount: $93,666,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0321N

IDV Type: FSS

Timeline