DoD's $73M R&D contract with Radiance Technologies Inc. shows strong performance signals

Contract Overview

Contract Amount: $73,025,752 ($73.0M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2008-05-02

End Date: 2013-06-25

Contract Duration: 1,880 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: SETAC - FIXED PRICE LABOR

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $73.0 million to RADIANCE TECHNOLOGIES INC for work described as: SETAC - FIXED PRICE LABOR Key points: 1. Contract value of $73M over 5 years indicates significant investment in R&D. 2. Fixed Price Labor contract type suggests cost control and predictable spending. 3. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for defense innovation. 4. The contract was awarded under Full and Open Competition after Exclusion of Sources, implying a robust bidding process. 5. Performance period of 1880 days (approx. 5 years) allows for substantial project development and execution. 6. The contract was awarded to a single vendor, Radiance Technologies Inc., highlighting specialized capabilities.

Value Assessment

Rating: good

The contract's total value of $73M over approximately five years for R&D services appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale R&D contracts within the Department of Defense is challenging without more granular data on specific deliverables. However, the fixed-price labor structure suggests an effort to manage costs effectively. The absence of detailed performance metrics makes a definitive value-for-money assessment difficult, but the duration and scope imply a significant commitment to the research objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while the competition was open, certain sources were excluded prior to the final award. This suggests a potentially competitive initial phase, but the specifics of the exclusion criteria are not detailed. The number of bidders is not provided, which limits the assessment of the breadth of competition. A fully open competition typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of the initial bidding process, even with exclusions, likely provided the government with a range of options and pricing. However, the lack of transparency regarding the exclusion criteria and the number of bidders makes it difficult to definitively state the benefit to taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and its research initiatives, aiming to advance technological capabilities. Services delivered fall under Research and Development in Physical, Engineering, and Life Sciences, crucial for national security. The contract is geographically focused on Alabama (AL), suggesting a concentration of R&D activities in that state. This contract likely supports a specialized workforce in R&D, potentially creating or sustaining high-skilled jobs in the relevant scientific and engineering fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the R&D outcomes.
The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand its impact on market competitiveness.
Limited information on the specific R&D projects undertaken prevents a thorough analysis of their strategic importance and potential impact.

Positive Signals

The fixed-price labor contract type generally indicates a commitment to cost control and predictable spending.
The substantial contract duration suggests a long-term investment in critical research areas, potentially leading to significant technological advancements.
Awarding the contract to Radiance Technologies Inc., a known entity in defense contracting, may imply a level of trust and proven capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a vital area for defense innovation, driving advancements in areas such as materials science, advanced manufacturing, and complex systems engineering. The market for defense R&D is characterized by high barriers to entry, specialized expertise, and significant government investment. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by the DoD to specialized firms.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific contract. There is no indication of small business set-asides or subcontracting plans being a significant component. This suggests that the contract was likely awarded to a large business with the specialized capabilities required for the R&D work, potentially limiting opportunities for small businesses in this particular instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's established procurement and contract management processes. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is often limited in R&D contracts due to the sensitive nature of the research, but contract award details are generally publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Technical Services Contracts
Physical Sciences Research Contracts

Risk Flags

Competition type 'Full and Open Competition after Exclusion of Sources' requires further scrutiny.
Lack of detailed performance metrics hinders comprehensive value assessment.
Specific R&D project details are not publicly available, limiting understanding of strategic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.0 million to RADIANCE TECHNOLOGIES INC. SETAC - FIXED PRICE LABOR

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 $73.0 million.

What is the period of performance?

Start: 2008-05-02. End: 2013-06-25.

What is the specific nature of the Research and Development (R&D) being conducted under this contract?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. While the broad category is defined, the precise R&D projects are not detailed in the provided data. This typically involves scientific inquiry and experimentation aimed at discovering or improving knowledge and capabilities relevant to defense applications. Examples could range from materials science and advanced propulsion systems to sensor technology and complex system integration. Without access to the contract's SOW (Statement of Work) or specific task orders, the exact nature of the R&D remains proprietary.

How does the $73 million contract value compare to similar R&D contracts awarded by the DoD in the physical and engineering sciences?

The $73 million contract value over approximately five years is a substantial investment, indicative of a significant R&D effort. To benchmark this effectively, one would need to compare it against other large-scale R&D contracts awarded by the Department of Defense (DoD) within the same or similar NAICS codes (e.g., 541712). Factors such as contract duration, specific research areas, and the number of bidders influence pricing. While $73 million is a considerable sum, it may be within the typical range for advanced R&D projects requiring specialized expertise and long-term development cycles, especially when compared to other major defense R&D initiatives.

What are the potential risks associated with a fixed-price labor contract for R&D services?

Fixed-price labor contracts, while aiming for cost control, can present risks in R&D settings. If the scope of work is not precisely defined or if unforeseen technical challenges arise, the contractor may face pressure to cut corners, potentially impacting the quality or depth of the research. Conversely, if the labor hours required are underestimated, the contractor might incur losses. For the government, the risk lies in potentially receiving less innovative or thorough research if the contractor prioritizes meeting the fixed-price ceiling over exploring novel avenues. Effective oversight and clear communication are crucial to mitigate these risks.

What does 'Full and Open Competition after Exclusion of Sources' imply about the bidding process and potential impact on price?

This contract type suggests an initial broad solicitation ('Full and Open Competition') followed by a specific exclusion of certain sources before the final award. This implies that while the initial pool of potential bidders was large, a selection or elimination process occurred based on predefined criteria. The impact on price discovery is mixed: the initial open competition likely fostered some level of price competition. However, the subsequent exclusion of sources could limit the final number of competing bids, potentially reducing downward pressure on prices compared to a purely 'Full and Open Competition' without exclusions. The rationale for exclusions would be key to understanding the full implications.

What is the track record of Radiance Technologies Inc. in securing and performing on large DoD R&D contracts?

Radiance Technologies Inc. is a known entity within the defense contracting landscape, often involved in advanced technology and R&D. While specific performance metrics for this $73 million contract are not detailed here, their history typically includes work in areas like aerospace, defense systems, and specialized engineering. Securing a contract of this magnitude from the Department of the Army suggests a demonstrated capability and a competitive proposal. A deeper dive into their contract history, including past performance reviews and any reported issues on previous DoD contracts, would provide a more comprehensive understanding of their track record.

How does the geographic concentration in Alabama (AL) affect the distribution of R&D spending and workforce implications?

The concentration of this $73 million R&D contract in Alabama indicates a significant investment in the state's technological and scientific infrastructure. This likely benefits the local economy through job creation in specialized fields such as engineering, research science, and technical support. It may also foster collaborations with local universities and research institutions, further strengthening Alabama's position in the R&D sector. For the broader federal R&D landscape, such geographic concentration can lead to the development of regional hubs of expertise, though it might also mean less direct investment in other geographic areas for this specific project.

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: W9113M07R0006

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $74,755,565

Exercised Options: $74,755,565

Current Obligation: $73,025,752

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M08D0001

IDV Type: IDC

Timeline