DoD's $46.2M High Energy Laser Integration Task Order: Risk Reduction for Advanced Technologies

Contract Overview

Contract Amount: $46,257,224 ($46.3M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2017-07-05

End Date: 2022-06-24

Contract Duration: 1,815 days

Daily Burn Rate: $25.5K/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: THE OBJECTIVE OF THE HIGH ENERGY LASER (HEL) INTEGRATION AND DEMONSTRATION SUPPORT TASK ORDER IS TO INTEGRATE AND DEMONSTRATE HEL TECHNOLOGIES IN ORDER TO TEST AND VERIFY THE PERFORMANCE OF HEL COMPONENTS AND SUBSYSTEMS. THIS EFFORT WILL SERVE AS RISK REDUCTION TO SUPPORT THE ADVANCEMENT AND MATURATION OF EXISTING AND EMERGING HEL TECHNOLOGIES. IGF::OT::IGF. NUMBER OF OFFERS RECEIVED AT TO LEVEL 2. EXTENT COMPETED FOR TO - FAIR OPPORTUNITY

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to RADIANCE TECHNOLOGIES INC for work described as: THE OBJECTIVE OF THE HIGH ENERGY LASER (HEL) INTEGRATION AND DEMONSTRATION SUPPORT TASK ORDER IS TO INTEGRATE AND DEMONSTRATE HEL TECHNOLOGIES IN ORDER TO TEST AND VERIFY THE PERFORMANCE OF HEL COMPONENTS AND SUBSYSTEMS. THIS EFFORT WILL SERVE AS RISK REDUCTION TO SUPPORT THE AD… Key points: 1. Focuses on integrating and demonstrating High Energy Laser (HEL) technologies to test and verify component performance. 2. Aims to reduce risks associated with advancing existing and emerging HEL technologies. 3. Contract awarded to Radiance Technologies Inc. for Research and Development in Physical, Engineering, and Life Sciences. 4. Represents a significant investment in the maturation of directed energy weapon systems. 5. The task order duration spans over 1800 days, indicating a long-term development effort. 6. Awarded under the Department of the Army, highlighting its strategic importance within the DoD. 7. The contract type is Cost Plus Fixed Fee, common for R&D projects with evolving scopes.

Value Assessment

Rating: fair

The contract's value of $46.2 million for R&D in advanced laser technology appears reasonable given the specialized nature of the work and the long duration. Benchmarking against similar HEL integration contracts is challenging due to the niche market and proprietary nature of such advancements. However, the Cost Plus Fixed Fee structure suggests that costs could fluctuate, making precise value-for-money assessment difficult without detailed cost breakdowns. The number of offers received (2) is on the lower side for a fair opportunity competition, which might indicate limited market capacity or specific technical requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This task order was competed under a 'Fair Opportunity' basis after exclusion of sources, indicating that while some competition occurred, it was not a full and open competition from the outset. Only two offers were received at the task order level. This limited competition could potentially impact price discovery and may suggest that only a few contractors possess the highly specialized capabilities required for High Energy Laser integration and demonstration support.

Taxpayer Impact: The limited number of bidders suggests that taxpayers may not have benefited from the most competitive pricing achievable in a broader market. This could lead to higher overall costs for developing and fielding advanced laser technologies.

Public Impact

Benefits the Department of Defense by advancing critical directed energy weapon capabilities. Delivers services focused on testing, verifying, and maturing High Energy Laser technologies. Geographic impact is primarily within Alabama, where Radiance Technologies Inc. is located. Workforce implications include specialized engineering and scientific roles in R&D and defense contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition at the task order level could lead to suboptimal pricing.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The specialized nature of HEL technology may limit the pool of qualified contractors, impacting future competition.
Long contract duration (1815 days) increases the risk of scope creep or technological obsolescence.

Positive Signals

Focus on risk reduction for critical defense technologies is a positive strategic investment.
Award to a single contractor for specialized R&D can allow for focused expertise and efficient development.
The contract supports the advancement of cutting-edge military capabilities, potentially enhancing national security.
Research and Development in physical, engineering, and life sciences is crucial for technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences related to directed energy. The market for High Energy Laser (HEL) technologies is a rapidly evolving and highly specialized segment of the defense industry. Spending in this area is driven by the need for next-generation weapon systems offering speed-of-light engagement and reduced collateral effects. Comparable spending benchmarks are difficult to establish due to the proprietary nature of R&D, but significant government investment is directed towards directed energy programs across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the highly specialized and advanced nature of High Energy Laser integration, it is likely that the prime contractor, Radiance Technologies Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data, which is a common requirement for larger defense contracts to ensure broader economic participation.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the contracting officer and program management office within the Department of Defense. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is often limited for advanced R&D projects due to national security sensitivities, but contract awards and basic details are usually publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Directed Energy Weapons Programs
Advanced Technology Development
Army Research Laboratory Contracts
High Energy Laser Systems
DoD Research and Development Spending

Risk Flags

Limited competition at task order level.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration increases potential for schedule delays or scope changes.
Specialized technology may limit contractor pool for future efforts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to RADIANCE TECHNOLOGIES INC. THE OBJECTIVE OF THE HIGH ENERGY LASER (HEL) INTEGRATION AND DEMONSTRATION SUPPORT TASK ORDER IS TO INTEGRATE AND DEMONSTRATE HEL TECHNOLOGIES IN ORDER TO TEST AND VERIFY THE PERFORMANCE OF HEL COMPONENTS AND SUBSYSTEMS. THIS EFFORT WILL SERVE AS RISK REDUCTION TO SUPPORT THE ADVANCEMENT AND MATURATION OF EXISTING AND EMERGING HEL TECHNOLOGIES. IGF::OT::IGF. NUMBER OF OFFERS RECEIVED AT TO LEVEL 2. EXTENT COMPETED FOR TO - FAIR OPPORTUNITY

Who is the contractor on this award?

The obligated recipient is RADIANCE 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 $46.3 million.

What is the period of performance?

Start: 2017-07-05. End: 2022-06-24.

What is the track record of Radiance Technologies Inc. in performing similar High Energy Laser integration contracts?

Radiance Technologies Inc. has a documented history of involvement in advanced defense technologies, including directed energy and electronic warfare systems. While specific details on prior HEL integration task orders of this magnitude are not publicly detailed in this summary, their portfolio suggests capability in complex R&D and system integration. The company's experience in areas like sensor development, signal processing, and advanced materials likely positions them well for HEL-related work. Further investigation into their contract history with the DoD, particularly the Army, would reveal the extent and success of their previous engagements in similar technological domains.

How does the $46.2 million cost compare to other HEL integration efforts?

Benchmarking the $46.2 million cost for this High Energy Laser (HEL) integration and demonstration support task order against similar contracts is challenging due to the specialized and often classified nature of HEL R&D. However, considering the duration of 1815 days (nearly 5 years) and the complexity of integrating and demonstrating advanced laser technologies, the cost appears within a reasonable range for significant R&D efforts. Larger HEL programs, such as those involving full weapon system development or deployment, can run into hundreds of millions or even billions of dollars. This task order likely represents a crucial mid-stage development or risk-reduction phase.

What are the primary risks associated with this High Energy Laser integration contract?

The primary risks associated with this High Energy Laser (HEL) integration contract include technological immaturity, where the HEL components or subsystems may not perform as expected under operational conditions. There's also a risk of integration challenges, as combining different laser technologies, power systems, and targeting mechanisms can be complex. Schedule delays are a common risk in R&D projects, especially those with long durations like this 1815-day task order. Furthermore, cost overruns are a possibility with the Cost Plus Fixed Fee contract type if unforeseen technical hurdles arise. Finally, the limited competition could pose a risk if the chosen contractor faces significant performance issues, as finding alternatives might be difficult.

How effective is the 'Fair Opportunity' competition method for specialized R&D like HEL integration?

The 'Fair Opportunity' competition method, often used under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts, aims to provide a fair chance for all awardees under the IDIQ to compete for task orders. For specialized R&D like High Energy Laser (HEL) integration, where the technical requirements are highly specific and the number of capable contractors is limited, 'Fair Opportunity' can be an effective mechanism. It allows the agency to leverage existing contract vehicles while still soliciting proposals. However, receiving only two offers suggests that the market for this specific HEL integration support might be constrained, potentially limiting the benefits of competition compared to a broader, full-and-open solicitation.

What is the historical spending trend for High Energy Laser (HEL) R&D within the Department of Defense?

Historical spending trends within the Department of Defense (DoD) for High Energy Laser (HEL) Research and Development have shown a consistent and increasing investment over the past decade. Driven by the pursuit of advanced defensive and offensive capabilities, the DoD has allocated significant resources to directed energy programs, including HELs. This spending is spread across various branches (Army, Navy, Air Force) and research agencies, focusing on different aspects from component maturation to system integration and testing. The $46.2 million task order for HEL integration support aligns with this broader trend of sustained investment in directed energy technologies as a critical future capability.

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

Solicitation ID: W9113M13R0012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 350 WYNN DR NW, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,257,224

Exercised Options: $46,257,224

Current Obligation: $46,257,224

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $235,275

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M16D0004

IDV Type: IDC

Timeline