DoD's $18.7M R&D contract for missile and space systems advanced tech dev awarded to Touchstone Research Laboratory

Contract Overview

Contract Amount: $18,736,648 ($18.7M)

Contractor: Touchstone Research Laboratory, Ltd.

Awarding Agency: Department of Defense

Start Date: 2005-03-03

End Date: 2010-05-31

Contract Duration: 1,915 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200506!501061!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0125 !A!N! !N! ! !20050303!20060802!101582922!101582922!101582922!N!TOUCHSTONE RESEARCH LABORATORY!RR 1 BOX 100B !TRIADELPHIA !WV!26059!80932!069!54!TRIADELPHIA !OHIO !W VIRGINIA!+000002499997!N!N!000002499997!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !20200930!B! ! !N!Z!D!N!J!1!001!N!5A!Z!N!Z! ! !N!B!Y!N! ! !A! !A!A!000!D!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: TRIADELPHIA, OHIO County, WEST VIRGINIA, 26059

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to TOUCHSTONE RESEARCH LABORATORY, LTD. for work described as: 200506!501061!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0125 !A!N! !N! ! !20050303!20060802!101582922!101582922!101582922!N!TOUCHSTONE RESEARCH LABORATORY!RR 1 BOX 100B !TRIADELPHIA !WV!26059!80932!069!54!TRIADELPHIA !OHIO… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant investment in research and development for strategic defense capabilities. 3. Long-term contract duration of over 5 years suggests a sustained need for specialized R&D. 4. The contract's focus on advanced technology development indicates a forward-looking approach to defense. 5. The sole-source nature of the award warrants scrutiny regarding potential cost efficiencies and alternatives. 6. The specific NAICS code (541710) points to a specialized niche within the R&D sector.

Value Assessment

Rating: questionable

The total award amount of $18.7 million for a 5-year R&D contract in missile and space systems is difficult to benchmark without more specific details on deliverables and scope. However, given the sole-source nature, there is a higher risk of the pricing not reflecting competitive market rates. Further analysis would be needed to compare the per-unit cost of research hours or specific technological advancements against industry standards. The absence of competition raises concerns about whether the government secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a bidding process, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, it's harder to ensure that the negotiated price represents the best value for the government's investment.

Public Impact

The primary beneficiaries are the Department of Defense and its strategic defense initiatives, particularly in missile and space systems. The contract supports the development of advanced technologies crucial for national security. The geographic impact is centered in West Virginia, where Touchstone Research Laboratory is located, potentially creating local economic benefits and employment. The contract implies a need for highly specialized scientific and engineering talent, contributing to the high-tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of transparency in the procurement process due to sole-source justification.
Long contract duration without clear performance benchmarks could obscure accountability.
Potential for cost overruns if not closely monitored due to lack of competitive pricing.
Limited visibility into alternative technological solutions that might have emerged from a competitive bid.

Positive Signals

Focus on critical R&D for advanced missile and space systems addresses a key national security need.
Contracting with a specialized firm like Touchstone Research Laboratory suggests access to unique expertise.
The sustained funding over several years indicates a commitment to advancing critical defense technologies.
The contract supports the development of potentially groundbreaking technologies for strategic defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on missile and space systems. The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific inquiry. The market for defense R&D is characterized by high barriers to entry, specialized expertise, and significant government investment. Comparable spending benchmarks are difficult to establish without knowing the specific technological advancements sought, but R&D contracts of this magnitude are common within the defense industrial base.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. Furthermore, there is no explicit mention of subcontracting plans for small businesses. This suggests that the primary focus was on securing specialized R&D capabilities from a specific entity, rather than leveraging the small business industrial base. The impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Given its sole-source nature and focus on R&D, oversight would likely emphasize technical progress, adherence to research milestones, and financial accountability. Transparency might be limited due to the non-competitive award, but internal DoD reviews and potentially Inspector General audits would be the primary accountability mechanisms. Specific details on oversight mechanisms are not provided in the data.

Related Government Programs

Missile Defense Agency (MDA) Research Programs
Advanced Technology Development Contracts
Department of Defense Research and Development
Space Systems Research
Strategic Defense Initiatives

Risk Flags

Sole-source award may not represent best value.
Lack of competition limits price discovery.
Potential for cost overruns without competitive benchmarks.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to TOUCHSTONE RESEARCH LABORATORY, LTD.. 200506!501061!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0125 !A!N! !N! ! !20050303!20060802!101582922!101582922!101582922!N!TOUCHSTONE RESEARCH LABORATORY!RR 1 BOX 100B !TRIADELPHIA !WV!26059!80932!069!54!TRIADELPHIA !OHIO !W VIRGINIA!+000002499997!N!N!000002499997!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is TOUCHSTONE RESEARCH LABORATORY, LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2005-03-03. End: 2010-05-31.

What specific technological advancements were sought under this contract, and how were they defined?

The contract data indicates the work falls under 'RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and 'MISSILE AND SPACE SYSTEMS - MDA SUPPORT'. This suggests the contract aimed to advance technologies related to missile systems and space-based defense capabilities, likely supporting the Missile Defense Agency's (MDA) mission. However, the specific technological advancements are not detailed in the provided data. Typically, such contracts would outline specific research objectives, prototypes, or feasibility studies for next-generation missile defense components, space-based sensors, or related command and control systems. The lack of detailed scope makes it difficult to assess the precise value or innovation achieved.

How was the sole-source justification for this contract determined and approved?

Sole-source justifications are typically based on specific criteria outlined in federal acquisition regulations (FAR). For this contract, the justification likely stemmed from Touchstone Research Laboratory possessing unique capabilities, proprietary technology, or being the only source capable of meeting the government's specific, urgent needs. The FAR Part 6.302 outlines circumstances for other than full and open competition, such as the availability of only one responsible source. The approval process involves rigorous review and documentation by the contracting agency to ensure the justification is valid and that competition was genuinely not feasible or not in the government's best interest.

What is the historical spending pattern for Touchstone Research Laboratory with the Department of Defense?

The provided data represents a single contract awarded in 2005. To understand the historical spending pattern, one would need to access broader contract databases covering a longer period. This single award of approximately $18.7 million over five years suggests a significant engagement for a specific R&D project. Without additional data points, it's impossible to determine if this was a one-time large award, part of a series of contracts, or indicative of a long-term relationship. Further research into federal procurement databases would be necessary to establish a comprehensive spending history.

How does the $18.7 million award compare to other R&D contracts in missile and space systems?

The $18.7 million award for a 5-year R&D contract in missile and space systems is a substantial sum, reflecting the complexity and criticality of the field. However, without specific details on the deliverables, it's challenging to make a direct comparison. Defense R&D contracts can range from a few million dollars for early-stage research to hundreds of millions or even billions for major system development. This contract appears to be in the mid-to-high range for advanced technology development, suggesting a significant scope of work. Benchmarking would require comparing it to contracts with similar objectives, technological maturity, and duration within the MDA or similar defense research programs.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risks associated with a sole-source R&D contract of this magnitude include: 1) Higher costs due to the lack of competitive pricing pressure. 2) Potential for scope creep or inefficiencies if oversight is not rigorous. 3) Limited innovation if alternative approaches from other firms are not explored. 4) Contractor lock-in, making it difficult to transition to other solutions later. 5) Dependence on a single entity's capabilities, which could be a vulnerability if the contractor faces financial or technical difficulties. Robust contract management and technical oversight 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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RR 1 BOX 100B, TRIADELPHIA, WV, 26059

Business Categories: Category Business, Small Business, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline