DoD Awards $37.9M Missile Systems Tech Support Task Order to Torch Technologies Inc
Contract Overview
Contract Amount: $37,944,406 ($37.9M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2023-01-13
End Date: 2026-09-03
Contract Duration: 1,329 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EXPRESS TASK ORDER FOR MISSILE SYSTEMS TECHNICAL SUPPORT TECHNICAL SUPPORT FOR NON-STANDARD MISSILE DIVISION, SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $37.9 million to TORCH TECHNOLOGIES INC for work described as: EXPRESS TASK ORDER FOR MISSILE SYSTEMS TECHNICAL SUPPORT TECHNICAL SUPPORT FOR NON-STANDARD MISSILE DIVISION, SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) Key points: 1. Significant contract value for specialized missile systems technical support. 2. Full and open competition indicates a potentially competitive market. 3. Risk associated with long-term technical support for critical defense systems. 4. Spending falls within Engineering Services sector, requiring specialized expertise.
Value Assessment
Rating: good
The contract value of $37.9M over approximately 3.5 years appears reasonable for specialized technical support. Benchmarking against similar complex engineering services contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to better pricing.
Taxpayer Impact: Taxpayer funds are being used for essential technical support of missile systems, ensuring operational readiness and security. The competitive award aims to maximize value for the investment.
Public Impact
Ensures continued technical expertise for critical missile defense systems. Supports national security objectives through specialized engineering services. Potential for technology transfer and knowledge sharing within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term reliance on a single vendor for critical technical support.
- Potential for scope creep or unquantified future requirements.
- Dependency on specialized knowledge held by the contractor.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost overruns.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector characterized by high technical expertise and specialized knowledge. Spending benchmarks for similar defense-related engineering support contracts are typically substantial due to the complexity and criticality of the services.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small businesses had an opportunity to participate in the subcontracting process.
Oversight & Accountability
The award was made under a Delivery Order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this task order and its alignment with the parent contract's objectives.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term contract duration.
- High contract value.
- Critical defense system support.
- Potential for contractor dependency.
- Lack of small business participation noted.
Tags
engineering-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.9 million to TORCH TECHNOLOGIES INC. EXPRESS TASK ORDER FOR MISSILE SYSTEMS TECHNICAL SUPPORT TECHNICAL SUPPORT FOR NON-STANDARD MISSILE DIVISION, SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD)
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 $37.9 million.
What is the period of performance?
Start: 2023-01-13. End: 2026-09-03.
What is the specific technical support provided under this task order, and how does it contribute to the operational readiness of the Non-Standard Missile Division?
The task order provides technical support for missile systems, crucial for the Non-Standard Missile Division's operational readiness. This likely includes maintenance, troubleshooting, system upgrades, and engineering analysis to ensure the missiles are functional and effective. The specific nature of 'non-standard' implies unique challenges requiring specialized expertise to maintain and enhance these critical defense assets.
Given the long duration (over 3 years) and significant value, what are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include contractor performance failure, obsolescence of missile systems requiring support, and potential cost overruns if the firm-fixed-price model proves inadequate for unforeseen technical challenges. Mitigation strategies likely involve robust performance monitoring, clear contract deliverables, and contingency planning for emergent technical issues within the scope of the contract.
How does the pricing of this task order compare to industry benchmarks for similar missile systems technical support, and what does this suggest about the overall value for taxpayers?
Without specific per-unit cost data or detailed service breakdowns, a precise benchmark is difficult. However, the full and open competition suggests a competitive pricing environment. The firm-fixed-price structure aims to control costs. The value for taxpayers hinges on the contractor's ability to deliver the required specialized support effectively within the agreed-upon price, ensuring the longevity and reliability of critical defense assets.
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: FIRM FIXED PRICE (J)
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: $86,728,705
Exercised Options: $37,944,406
Current Obligation: $37,944,406
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $3,741,150
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
Start Date: 2023-01-13
Current End Date: 2026-09-03
Potential End Date: 2028-07-12 00:00:00
Last Modified: 2026-03-24
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