DoD's $158.6M SETAS Program Awarded to Torch Technologies Inc. for R&D Support
Contract Overview
Contract Amount: $158,638,763 ($158.6M)
Contractor: Torch Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2018-05-23
End Date: 2023-08-22
Contract Duration: 1,917 days
Daily Burn Rate: $82.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SYSTEM ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT (SETAS) PROGRAM - DECISION SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35807
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $158.6 million to TORCH TECHNOLOGIES INC for work described as: SYSTEM ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT (SETAS) PROGRAM - DECISION SUPPORT Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Torch Technologies Inc. is the sole awardee for this specific delivery order. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The sector is R&D, a critical area for technological advancement but often with uncertain outcomes.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar R&D support contracts is difficult due to the specialized nature of the services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process. However, the specific exclusion of sources needs further clarification to fully assess price discovery.
Taxpayer Impact: The competitive award aims to secure the best value for taxpayers, but the CPFF structure requires diligent oversight to ensure cost efficiency.
Public Impact
Supports critical research and development efforts for the Department of the Army. Potential for advancements in physical, engineering, and life sciences. Funding allocated for system engineering and technical assistance, crucial for program success. Contract duration spans over 5 years, indicating long-term support needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Limited transparency on specific R&D outcomes and their direct impact.
- No explicit mention of small business participation.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense research and development.
- Long contract duration suggests sustained need and potential for innovation.
Sector Analysis
This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is vital for national security and technological advancement, but often involves inherent risks and long development cycles.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this R&D support domain.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Army to ensure costs are reasonable and allocable, and that the fixed fee is justified by the effort expended.
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
- Cost Plus Fixed Fee contract type.
- Lack of small business participation.
- Potential for cost overruns without strict oversight.
- Uncertainty inherent in R&D projects.
- Limited detail on specific performance metrics and expected outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $158.6 million to TORCH TECHNOLOGIES INC. SYSTEM ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT (SETAS) PROGRAM - DECISION 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 $158.6 million.
What is the period of performance?
Start: 2018-05-23. End: 2023-08-22.
What specific R&D advancements are expected from this SETAS program, and how will their success be measured?
The SETAS program is intended to provide decision support for the Army's R&D initiatives. Measuring success will likely involve tracking milestones, technical performance metrics, and the successful integration of research findings into broader defense systems. Specific expected advancements are not detailed in the provided data but would typically align with the Army's strategic R&D priorities in physical, engineering, and life sciences.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D support, and how are they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include stringent cost monitoring, detailed audits, clear definition of allowable costs, and performance-based incentives. For R&D, the inherent uncertainty of outcomes also poses a risk, which is managed through phased reviews and clear performance objectives.
How does this $158.6M investment in SETAS support align with the Department of Defense's broader technological modernization goals?
This investment likely supports the DoD's modernization by providing essential technical expertise and decision support for critical R&D projects. By ensuring effective system engineering and technical assistance, the program aims to accelerate the development and adoption of new technologies, thereby enhancing the warfighter's capabilities and maintaining a technological edge over adversaries.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4090 MEMORIAL PKWY S, HUNTSVILLE, AL, 35802
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $179,928,373
Exercised Options: $168,944,471
Current Obligation: $158,638,763
Actual Outlays: $4,152,091
Subaward Activity
Number of Subawards: 825
Total Subaward Amount: $2,444,403,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS621
IDV Type: IDC
Timeline
Start Date: 2018-05-23
Current End Date: 2023-08-22
Potential End Date: 2023-11-22 00:00:00
Last Modified: 2025-04-14
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