DoD Awards $77M for Future Vertical Lift Engineering Services to Torch Technologies Inc
Contract Overview
Contract Amount: $76,978,274 ($77.0M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2023-01-06
End Date: 2027-01-05
Contract Duration: 1,460 days
Daily Burn Rate: $52.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: R&D
Official Description: PROVIDE ENGINEERING SERVICES TO THE PROGRAM OFFICE FUTURE VERTICAL LIFT.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35802
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $77.0 million to TORCH TECHNOLOGIES INC for work described as: PROVIDE ENGINEERING SERVICES TO THE PROGRAM OFFICE FUTURE VERTICAL LIFT. Key points: 1. Contract awarded for critical engineering services supporting the Future Vertical Lift program. 2. Torch Technologies Inc. is the sole awardee under full and open competition. 3. The contract duration spans four years, indicating a significant, long-term need. 4. The award falls under Research and Development in Physical, Engineering, and Life Sciences. 5. The fixed-price level-of-effort contract type aims to control costs for defined tasks.
Value Assessment
Rating: good
The $77 million award for engineering services appears reasonable given the four-year duration and the specialized nature of the Future Vertical Lift program. Benchmarking against similar R&D engineering contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for selecting the best value provider. This method generally promotes competitive pricing and innovation.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds for this critical defense initiative.
Public Impact
Supports advancement of next-generation military aviation technology. Potential for job creation and economic impact in Alabama. Ensures continued U.S. technological superiority in vertical lift capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in R&D contracts.
- Reliance on a single contractor for critical services.
Positive Signals
- Awarded under full and open competition.
- Supports a high-priority defense program.
- Fixed-price contract type can offer cost predictability.
Sector Analysis
This contract falls within the Research and Development sector, specifically engineering services for advanced aerospace systems. Spending in this area is crucial for maintaining technological advantage, with significant government investment typical for programs like Future Vertical Lift.
Small Business Impact
While the primary awardee is Torch Technologies Inc., the full and open competition process may have allowed for subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense's contracting oversight is crucial for ensuring the effective execution of this contract. Regular performance reviews and adherence to contract terms will be key to accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single contractor for critical R&D expertise.
- Technological obsolescence risk in a rapidly evolving field.
- Need for robust government oversight to ensure performance.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.0 million to TORCH TECHNOLOGIES INC. PROVIDE ENGINEERING SERVICES TO THE PROGRAM OFFICE FUTURE VERTICAL LIFT.
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 $77.0 million.
What is the period of performance?
Start: 2023-01-06. End: 2027-01-05.
What is the specific breakdown of engineering services required under this contract and how do they align with the overall Future Vertical Lift program milestones?
The contract specifies engineering services for the Program Office Future Vertical Lift. While the exact breakdown isn't detailed here, these services likely encompass design, analysis, testing, integration, and sustainment engineering critical for developing and fielding advanced vertical lift aircraft. Alignment with program milestones would be detailed in the contract's statement of work and performance metrics.
What are the key performance indicators (KPIs) used to measure the success of Torch Technologies Inc. in delivering these engineering services?
Key performance indicators for this contract would likely include adherence to schedule, meeting technical performance requirements, quality of deliverables, cost control within the fixed-price framework, and effective collaboration with the government program office. Specific KPIs would be defined in the contract's performance work statement and monitored through regular reviews.
How does the cost of these engineering services compare to industry benchmarks for similar large-scale aerospace R&D programs?
Without specific cost breakdowns and detailed scope comparisons, a precise benchmark is difficult. However, the $77 million over four years for specialized engineering on a major defense program like Future Vertical Lift suggests a significant but potentially competitive investment. Industry benchmarks for similar complex R&D efforts often involve substantial funding, making this award appear within a plausible range.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: 4
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 4035 CHRIS DR SW STE C, 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: $153,956,931
Exercised Options: $76,978,274
Current Obligation: $76,978,274
Subaward Activity
Number of Subawards: 231
Total Subaward Amount: $34,659,379
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0137
IDV Type: IDC
Timeline
Start Date: 2023-01-06
Current End Date: 2027-01-05
Potential End Date: 2028-07-05 00:00:00
Last Modified: 2025-12-11
More Contracts from Torch Technologies Inc
- Base Award 2017T-02- Labor/Travel Technical Support Requirements for the U.S. Army Research, Development, and Engineering Command, Aviation and Missile Research, Development, and Engineering Center (amrdec), System Simulation and Development Directorate (ssdd) — $575.3M (Department of Defense)
- Single Award to Against GSA Oasis SB R Pool 5B for Hwil Systems of Systems to Acquire Engineering Services for the Aviation and Missile Center, S3I Directorate, Hwil / Virtual Simulators Mission Area — $566.4M (Department of Defense)
- Single Award to Against GSA Oasis SB (pool 5B) for Engineering and Professional Services Supporting Aviation and Missile Element Models, Simulations, and Analysis for the Ccdc Avmc, S3I Directorate, M&S Area — $371.3M (Department of Defense)
- Single Award to Against GSA Oasis SB R Pool 5B for Hwil Missile to Acquire Software/Systems/Simulation Engineering and Computer Resource Engineering Support for the Aviation and Missile Center, S3I Directorate, Hwil / Virtual Simulators Mission Area — $321.6M (Department of Defense)
- Technical and Management Advisory Services (tmas) 2 Tenants — $311.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)