DoD awards $173M for R&D in physical, engineering, and life sciences to Torch Technologies Inc

Contract Overview

Contract Amount: $173,005,935 ($173.0M)

Contractor: Torch Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2024-01-31

End Date: 2027-01-08

Contract Duration: 1,073 days

Daily Burn Rate: $161.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: TECHNICAL AND ENGINEERING SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35802

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $173.0 million to TORCH TECHNOLOGIES INC for work described as: TECHNICAL AND ENGINEERING SUPPORT Key points: 1. Contract value of $173M over approximately 3 years suggests significant investment in specialized R&D. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. Fixed-price contract type shifts performance risk to the contractor, incentivizing efficient delivery. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for technological advancement. 5. Contract awarded to a single entity, Torch Technologies Inc., warrants scrutiny of performance and value. 6. The contract's duration of over 1000 days allows for substantial project development and execution.

Value Assessment

Rating: good

The contract value of $173M over roughly three years for R&D services appears substantial. Benchmarking against similar large-scale R&D contracts within the Department of Defense is necessary for a precise value assessment. However, the firm fixed-price nature suggests the government has negotiated a ceiling, which is a positive indicator for cost control. Without specific per-unit cost data or detailed scope of work comparisons, a definitive value-for-money judgment is challenging, but the competitive award process provides a foundation for good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. This broad solicitation process typically encourages a wider range of bidders, fostering a more competitive environment. The number of bidders is not specified, but the open competition itself suggests an effort to achieve the best possible pricing and technical solutions by leveraging market forces.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through robust bidding and encouraging innovation from a diverse pool of contractors, leading to potentially better outcomes for the allocated funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Army, receiving advanced research and engineering support. Services delivered include research and development in physical, engineering, and life sciences, crucial for national security and technological superiority. The contract is geographically focused on Alabama, where Torch Technologies Inc. is located, potentially creating local economic benefits. Workforce implications include employment opportunities for scientists, engineers, and technical staff at Torch Technologies Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract scope is not meticulously managed.
Dependence on a single contractor, Torch Technologies Inc., for critical R&D functions.
Risk of technological obsolescence if research directions do not align with future defense needs.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a thorough vetting of potential solutions and pricing.
Long-term contract duration allows for sustained focus and development of complex R&D projects.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a high-value, knowledge-intensive area critical for maintaining a technological edge in defense. The market for such specialized R&D services is competitive, with numerous firms capable of undertaking complex scientific and engineering challenges. Comparable spending benchmarks would involve analyzing other large DoD R&D contracts awarded to specialized research firms.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Torch Technologies Inc. is likely a large business, given the contract value. There is no explicit information on subcontracting plans for small businesses, which would be a key area for oversight to ensure small business participation in this significant R&D effort.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring Torch Technologies Inc. to deliver specified research outcomes within budget. Transparency would be enhanced through regular reporting requirements and potential reviews by the Government Accountability Office (GAO) or the DoD Inspector General, particularly if performance issues or significant cost variances arise.

Related Government Programs

DoD Research, Development, Test, and Evaluation (RDT&E) appropriations
Army Science and Technology Programs
Advanced Technology Development Contracts
Engineering Services Contracts
Federal R&D Spending

Risk Flags

Contract Value
Single Source Award (post-competition)
R&D Focus
Long Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $173.0 million to TORCH TECHNOLOGIES INC. TECHNICAL AND ENGINEERING SUPPORT

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 $173.0 million.

What is the period of performance?

Start: 2024-01-31. End: 2027-01-08.

What is the specific scope of research and development covered by this $173 million contract?

The contract is broadly categorized under "Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)" (NAICS code 541715). While the specific technical areas are not detailed in the provided data, this classification suggests work could encompass a wide range of scientific and engineering disciplines. This might include areas like materials science, aerospace engineering, advanced manufacturing processes, cybersecurity research, environmental engineering, or biomedical engineering research, depending on the Army's specific requirements. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise research objectives, deliverables, and technical focus areas.

How does the $173 million contract value compare to historical spending on similar R&D services by the Department of the Army?

The $173 million contract value over approximately three years represents a significant investment. To benchmark this, one would need to analyze historical spending patterns for R&D services within the Department of the Army, particularly for contracts awarded under NAICS code 541715 or similar research-focused codes. Examining the average contract size, duration, and total annual spending on physical, engineering, and life sciences R&D over the past 5-10 years would provide context. If this contract is substantially larger or smaller than the historical average for similar scopes of work, it could indicate a shift in strategic priorities, a change in market pricing, or a unique requirement. Without access to historical spending databases and detailed contract descriptions, a precise comparison is difficult, but $173M over three years is indicative of a major R&D initiative.

What are the key performance indicators (KPIs) and deliverables expected from Torch Technologies Inc. under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for a research and development contract of this magnitude and type (firm fixed-price), typical KPIs would likely revolve around the successful completion of research milestones, adherence to project timelines, quality of research findings (e.g., peer-reviewed publications, technical reports), successful prototyping or demonstration of technologies, and potentially the transfer of intellectual property. Deliverables would commonly include interim and final research reports, technical data packages, prototype systems, and presentations of findings. The specific KPIs and deliverables would be formally outlined in the contract's Statement of Work (SOW) and performance work statement (PWS).

What is the track record of Torch Technologies Inc. in performing similar large-scale R&D contracts for the Department of Defense?

Torch Technologies Inc. has a history of performing contracts with the Department of Defense, often in areas related to engineering, technical support, and research and development. To assess their track record for this specific $173 million contract, a review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any past issues or successes would be necessary. Given their involvement in R&D, it's likely they have experience with complex technical projects. However, the scale and specific scientific domains of this new contract would require a detailed look at whether their past performance directly aligns with the requirements and complexity of the current award.

What are the potential risks associated with awarding a $173 million R&D contract to a single entity like Torch Technologies Inc.?

Awarding a large R&D contract to a single entity, even after full and open competition, carries inherent risks. These include potential contractor over-reliance, where the contractor might become indispensable, reducing future competitive leverage. There's also the risk of knowledge silos, where critical expertise resides solely with the contractor, making transitions difficult. Performance risk is another concern; if the contractor underperforms or faces financial instability, the project's progress could be severely hampered. Furthermore, a single award might limit the diversity of innovative approaches compared to a multi-award strategy, potentially missing out on alternative solutions. Robust oversight and clear performance metrics are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: 1

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $546,068,444

Exercised Options: $173,005,935

Current Obligation: $173,005,935

Actual Outlays: $4,275

Subaward Activity

Number of Subawards: 271

Total Subaward Amount: $103,720,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA23D007A

IDV Type: FSS

Timeline