DoD Awards $60.7M for Missile Defense R&D to Radiance Technologies Inc

Contract Overview

Contract Amount: $60,704,617 ($60.7M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2002-11-21

End Date: 2008-11-21

Contract Duration: 2,192 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200302!000253!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0069 !A!N! !N! !20021121!20031114!031994218!031994218!031994218!N!RADIANCETECHNOLOGIES INC !500 WYNN DR SUITE 504 !HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000002750000!N!N!000008960240!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !4CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!003!E! !Z!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805, UNITED STATES OF AMERICA

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to RADIANCE TECHNOLOGIES INC for work described as: 200302!000253!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0069 !A!N! !N! !20021121!20031114!031994218!031994218!031994218!N!RADIANCETECHNOLOGIES INC !500 WYNN DR SUITE 504 !HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract awarded to Radiance Technologies Inc. for missile and space systems advanced technology development. 2. The contract is for Ballistic Missile Defense Systems, indicating a focus on strategic defense. 3. This award represents a significant investment in advanced research and development within the defense sector. 4. The contract's value of $60.7 million suggests a substantial project scope and potential for long-term impact.

Value Assessment

Rating: good

The contract value of $60.7 million is substantial for R&D in this specialized field. Benchmarking against similar advanced technology development contracts for missile defense systems would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The full and open competition likely ensured taxpayer funds were used efficiently by securing competitive pricing for advanced defense technology.

Public Impact

Enhances national security through advanced missile defense capabilities. Supports technological innovation in the aerospace and defense industry. Contributes to the development of cutting-edge military technologies. Potential for job creation in specialized R&D fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (6 years), potentially leading to cost overruns if not managed effectively.
Cost-plus-fixed-fee contract type can incentivize contractor to increase costs to maximize profit.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Focus on critical national security area (missile defense).

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. Spending in this area is crucial for maintaining technological superiority and national security, with benchmarks varying widely based on project complexity and scope.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Defense, specifically the Department of the Army, is responsible for overseeing this contract. Standard DoD oversight mechanisms for R&D contracts would apply.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration (6 years).
Cost-plus-fixed-fee contract type.
Potential for scope creep in advanced R&D projects.
Reliance on a single contractor for critical technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to RADIANCE TECHNOLOGIES INC. 200302!000253!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0069 !A!N! !N! !20021121!20031114!031994218!031994218!031994218!N!RADIANCETECHNOLOGIES INC !500 WYNN DR SUITE 504 !HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000002750000!N!N!000008960240!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !4CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B

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 $60.7 million.

What is the period of performance?

Start: 2002-11-21. End: 2008-11-21.

What is the specific technological advancement expected from this contract, and how does it align with current strategic defense goals?

This contract focuses on 'RADTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and 'BALLISTIC MISSILE DEFENSE SYS'. The expected advancement is likely in areas like improved missile tracking, interception capabilities, or advanced threat detection systems. This aligns with strategic defense goals by enhancing the nation's ability to counter ballistic missile threats and maintain a strategic advantage.

Given the cost-plus-fixed-fee structure, what are the primary risks to the government regarding cost control and potential overruns?

The primary risk with a cost-plus-fixed-fee (CPFF) contract is that the contractor has less incentive to control costs compared to fixed-price contracts, as their profit is fixed. If actual costs exceed estimates, the government bears the additional expense. Effective oversight, clear performance metrics, and robust auditing are crucial to mitigate the risk of cost overruns and ensure value for taxpayer money.

How does the $60.7 million award compare to typical R&D investments in similar advanced defense technologies, and what does this suggest about its potential effectiveness?

A $60.7 million award for advanced technology development in missile defense is substantial, suggesting a project of significant scope and complexity. While specific benchmarks vary, this level of investment often indicates a critical need or a potentially groundbreaking technological advancement. The effectiveness will depend on the successful execution of the R&D plan and the resulting technology's ability to meet or exceed performance requirements.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 500 WYNN DR SUITE 504, HUNTSVILLE, AL, 35816

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline