DoD's $87.4M Cyber Platforms Contract with Radiance Technologies Faces Scrutiny for Efficiency
Contract Overview
Contract Amount: $87,351,560 ($87.4M)
Contractor: Radiance Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2018-09-29
End Date: 2023-09-28
Contract Duration: 1,825 days
Daily Burn Rate: $47.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CYBER PLATFORMS AND CAPABILITIES-EFFICIENCY (CPAC-E)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $87.4 million to RADIANCE TECHNOLOGIES INC for work described as: CYBER PLATFORMS AND CAPABILITIES-EFFICIENCY (CPAC-E) Key points: 1. The contract awarded to Radiance Technologies Inc. for Cyber Platforms and Capabilities-Efficiency (CPAC-E) totals $87.4 million. 2. Awarded under full and open competition after exclusion of sources, the contract aims to enhance defense capabilities. 3. The efficiency aspect of the contract raises questions about cost-effectiveness and value for taxpayer money. 4. The R&D sector context suggests innovation, but performance metrics are crucial for assessing success.
Value Assessment
Rating: questionable
The contract's efficiency focus is difficult to benchmark without clear performance indicators. The cost-plus-fixed-fee structure may incentivize cost accumulation rather than efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, suggesting a competitive process. However, the specific pricing mechanisms and their impact on achieving efficiency goals require further examination.
Taxpayer Impact: The significant investment of $87.4 million necessitates a clear demonstration of efficiency gains to ensure taxpayer funds are used effectively.
Public Impact
Enhances critical cyber defense capabilities for the Department of Defense. Supports research and development in advanced technological solutions. Potential for significant improvements in operational efficiency and security. Contract duration of five years allows for sustained development and integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear efficiency metrics.
- Potential for cost overruns in CPFF contracts.
- Limited transparency on performance outcomes.
Positive Signals
- Awarded through competitive bidding.
- Addresses a critical national security need.
- Long-term contract for sustained development.
Sector Analysis
This contract falls within the Research and Development in Physical, Engineering, and Life Sciences sector, specifically focusing on cyber capabilities. Benchmarks for efficiency in R&D contracts are often tied to milestone achievement and technological advancement rather than direct cost savings.
Small Business Impact
The provided data does not indicate any specific provisions or awards to small businesses under this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is managed by the Defense Contract Management Agency. The effectiveness of oversight will depend on rigorous monitoring of performance metrics and adherence to the contract's efficiency objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Ambiguous 'efficiency' definition.
- CPFF contract risks cost overruns.
- Potential for performance drift without strict oversight.
- Limited visibility into R&D outcomes.
- Dependence on contractor's internal metrics.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.4 million to RADIANCE TECHNOLOGIES INC. CYBER PLATFORMS AND CAPABILITIES-EFFICIENCY (CPAC-E)
Who is the contractor on this award?
The obligated recipient is RADIANCE TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $87.4 million.
What is the period of performance?
Start: 2018-09-29. End: 2023-09-28.
What specific metrics are being used to measure the 'efficiency' gains promised by this contract?
The contract's focus on 'efficiency' requires clearly defined metrics. Without explicit performance indicators related to speed, resource utilization, or cost reduction in cyber operations, it is challenging to assess whether the $87.4 million investment is yielding tangible improvements. Transparency regarding these metrics is crucial for accountability.
How does the Cost Plus Fixed Fee (CPFF) structure align with achieving cost efficiency in R&D?
The CPFF structure can incentivize contractors to incur costs to achieve a fixed profit. While suitable for R&D where scope can be uncertain, it may not inherently drive cost efficiency. Robust oversight and clear performance targets are essential to ensure the contractor remains focused on achieving efficiency rather than simply maximizing costs.
What is the expected return on investment for the $87.4 million allocated to cyber platforms and capabilities efficiency?
The return on investment is expected to manifest in enhanced cybersecurity posture, reduced operational costs through optimized systems, and improved response times to threats. Quantifying this ROI requires tracking specific improvements in cyber defense metrics and operational efficiencies post-implementation, which may take time to materialize.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Radiance Technologies, Inc.
Address: 350 WYNN DR NW, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,357,437
Exercised Options: $87,357,437
Current Obligation: $87,351,560
Actual Outlays: $11,628,037
Subaward Activity
Number of Subawards: 189
Total Subaward Amount: $280,782,853
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA875018D0005
IDV Type: IDC
Timeline
Start Date: 2018-09-29
Current End Date: 2023-09-28
Potential End Date: 2023-09-28 00:00:00
Last Modified: 2025-09-15
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