DoD awards $40M+ for aviation systems technical support, with 5 bids received

Contract Overview

Contract Amount: $40,056,724 ($40.1M)

Contractor: Torch Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-24

End Date: 2026-05-23

Contract Duration: 1,095 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: EXPRESS TASK ORDER FOR TECHNICAL SERVICES SUPPORT FOR AVIATION MISSION SYSTEMS AND ARCHITECTURE PROJECT MANAGEMENT OFFICE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $40.1 million to TORCH TECHNOLOGIES INC for work described as: EXPRESS TASK ORDER FOR TECHNICAL SERVICES SUPPORT FOR AVIATION MISSION SYSTEMS AND ARCHITECTURE PROJECT MANAGEMENT OFFICE Key points: 1. Contract value appears reasonable given the duration and scope of technical support required. 2. Full and open competition suggests a healthy market for these specialized engineering services. 3. Potential risks include contractor performance over the multi-year period and evolving technology needs. 4. This contract supports critical aviation mission systems, indicating a focus on defense readiness. 5. The award falls within the broader engineering services sector, a significant area of federal spending.

Value Assessment

Rating: good

The contract value of over $40 million for a 3-year period for technical support of aviation mission systems appears to be within a reasonable range for specialized engineering services. Benchmarking against similar contracts for complex defense systems support would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while common, requires careful monitoring to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates a competitive marketplace for the specialized technical services required for aviation mission systems. The number of bidders suggests that the government had a reasonable selection of qualified contractors, which typically aids in achieving fair market pricing.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential defense support services.

Public Impact

The Department of the Army benefits from enhanced technical support for its aviation mission systems. Services delivered include project management and technical support for aviation systems and architecture. The contract is geographically focused on Alabama, where the contractor is located. This contract likely supports a specialized workforce of engineers and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely managed.
Ensuring continued technological relevance and adaptation throughout the contract's duration.
Dependency on a single contractor for critical aviation systems support over three years.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Multiple bidders participated, suggesting a healthy market for these services.
Contract supports critical defense aviation systems, aligning with national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a substantial segment of federal procurement. The market for defense aviation systems support is specialized, requiring contractors with deep technical expertise and security clearances. Federal spending in this area is driven by the need to maintain and modernize complex military platforms and associated infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Torch Technologies Inc., further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this delivery order.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are reported.

Related Government Programs

Aviation Systems Support
Defense Engineering Services
Project Management Support
Technical Services Contracts
Department of the Army Procurement

Risk Flags

Potential for cost growth due to T&M contract type.
Ensuring contractor maintains pace with rapidly evolving aviation technology.
Dependency on contractor performance over a multi-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to TORCH TECHNOLOGIES INC. EXPRESS TASK ORDER FOR TECHNICAL SERVICES SUPPORT FOR AVIATION MISSION SYSTEMS AND ARCHITECTURE PROJECT MANAGEMENT OFFICE

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 $40.1 million.

What is the period of performance?

Start: 2023-05-24. End: 2026-05-23.

What is the track record of Torch Technologies Inc. in performing similar aviation systems support contracts for the Department of Defense?

Torch Technologies Inc. has a history of performing various technical and engineering support services for the Department of Defense. While specific details on past aviation mission systems projects would require deeper database analysis, their presence in this sector suggests experience. Reviewing past performance evaluations and contract histories within federal procurement databases like FPDS or SAM.gov would provide a clearer picture of their performance trends, including on-time delivery, quality of work, and adherence to budget on comparable contracts. This information is crucial for assessing their capability to successfully execute the current $40M+ award over its 3-year duration.

How does the awarded amount of $40,056,723.92 compare to historical spending on similar aviation systems technical support contracts?

The awarded amount of approximately $40 million for a 3-year delivery order for aviation mission systems and architecture project management support is substantial. To benchmark this value, one would compare it against similar contracts awarded by the Department of Defense or other military branches for comparable services. Factors such as the specific technical requirements, duration, and the level of expertise needed influence pricing. A preliminary comparison suggests this is a significant but not necessarily outlier value for specialized, long-term defense technical support. A detailed analysis would involve identifying contracts with similar scope, duration, and agency over the past 5-7 years to establish a more precise average or range.

What are the primary risks associated with this Time and Materials (T&M) contract type for aviation systems support?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs, plus a fee. This structure can lead to higher-than-anticipated costs if project scope creeps, inefficiencies arise, or labor rates escalate unexpectedly. For aviation systems support, where technical requirements can evolve rapidly, effective oversight is critical to control the number of hours billed and ensure that all work is necessary and reasonable. The government must actively monitor progress, validate labor charges, and manage scope changes rigorously to mitigate these risks and ensure value for money.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for this aviation systems support contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that encourages contractors to offer their best pricing and technical solutions. With five bids received for this aviation systems support contract, the Department of the Army likely benefited from a robust price discovery process. This level of competition increases the likelihood that the selected offeror provides services at a fair and reasonable price, while also driving innovation and quality. The government's ability to define clear requirements and evaluation criteria is paramount to maximizing the value derived from this competitive approach.

What are the potential long-term implications of this contract on the development and maintenance of the Army's aviation mission systems?

This contract has significant long-term implications for the Army's aviation mission systems by providing sustained technical expertise and project management. By securing specialized support for three years, the Army can ensure continuity in the development, integration, and sustainment of critical aviation platforms and architectures. This continuity is vital for maintaining operational readiness and adapting to evolving threats and technologies. The contractor's role in project management can streamline complex acquisition and upgrade processes, potentially accelerating the fielding of new capabilities and improving the overall lifecycle management of these high-value assets. The success of this contract could influence future strategies for acquiring similar support services.

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: $95,062,037

Exercised Options: $40,056,724

Current Obligation: $40,056,724

Subaward Activity

Number of Subawards: 213

Total Subaward Amount: $24,048,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0321N

IDV Type: FSS

Timeline