DoD Awards $76.8M for Specialty Engineering Support to Torch Technologies Inc
Contract Overview
Contract Amount: $76,841,155 ($76.8M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2023-06-23
End Date: 2026-12-03
Contract Duration: 1,259 days
Daily Burn Rate: $61.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: SPECIALTY ENGINEERING SUPPORT FOR SYSTEMS READINESS DIRECTORATE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $76.8 million to TORCH TECHNOLOGIES INC for work described as: SPECIALTY ENGINEERING SUPPORT FOR SYSTEMS READINESS DIRECTORATE Key points: 1. Significant contract value for specialized engineering services. 2. Competition method is 'Full and Open', indicating broad market access. 3. Potential risk associated with Time and Materials pricing structure. 4. Focus on systems readiness suggests critical defense infrastructure support.
Value Assessment
Rating: good
The contract value of $76.8M over approximately 3.5 years appears reasonable for specialized engineering support. Benchmarking against similar large-scale engineering service contracts is needed 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, suggesting a robust price discovery process. The use of a delivery order under a larger contract framework is noted.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense systems engineering, with competition aiming for cost-effectiveness.
Public Impact
Ensures continued operational readiness for key defense systems. Supports advanced technological development within the Department of Defense. Potential for job creation and economic activity in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not closely monitored.
- Contract duration extends over multiple fiscal years, requiring sustained oversight.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense systems readiness.
Sector Analysis
This contract falls within Engineering Services, a sector vital for government operations, particularly in defense. Spending benchmarks for such specialized support can vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting large prime contractors are likely involved. Further analysis would be needed to determine small business subcontracting opportunities.
Oversight & Accountability
Oversight will be crucial to manage the Time and Materials aspect of the contract, ensuring efficient use of funds and adherence to scope. The Department of the Army's Systems Readiness Directorate is the primary overseeing entity.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing structure.
- Long contract duration.
- Potential for scope creep.
- Dependence on a single prime contractor for specialized services.
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 $76.8 million to TORCH TECHNOLOGIES INC. SPECIALTY ENGINEERING SUPPORT FOR SYSTEMS READINESS 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 $76.8 million.
What is the period of performance?
Start: 2023-06-23. End: 2026-12-03.
What specific systems will this engineering support address, and what is the criticality of their readiness?
The contract specifies 'Specialty Engineering Support for Systems Readiness Directorate.' While the exact systems are not detailed, the directorate's focus implies support for critical defense platforms or infrastructure essential for national security. The criticality is high, as system readiness directly impacts operational capabilities and mission success.
How will the Time and Materials pricing model be managed to mitigate cost risks?
Effective management of the Time and Materials (T&M) pricing model will require stringent oversight, detailed tracking of labor hours and material costs, and clear definition of work scope. Regular audits and performance reviews by the contracting officer's representative (COR) are essential to prevent scope creep and ensure fair pricing against established benchmarks.
What is the expected impact of this contract on the overall defense systems readiness posture?
This contract is expected to significantly enhance the overall defense systems readiness posture by providing specialized expertise for maintenance, upgrades, and sustainment. Ensuring these systems are operational and effective is paramount for national security, and this investment aims to bolster that capability through dedicated engineering support.
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: 5
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: $212,013,254
Exercised Options: $76,841,155
Current Obligation: $76,841,155
Actual Outlays: $599,540
Subaward Activity
Number of Subawards: 246
Total Subaward Amount: $21,733,982
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: 2023-06-23
Current End Date: 2026-12-03
Potential End Date: 2029-02-06 00:00:00
Last Modified: 2026-01-13
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