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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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