DoD's $91.9M DAIHSS contract to Radiance Technologies Inc. awarded under full and open competition

Contract Overview

Contract Amount: $91,915,261 ($91.9M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2019-08-20

End Date: 2025-08-19

Contract Duration: 2,191 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DISTRIBUTED, AUTOMATED, AND INTELLIGENT HARDWARE AND SOFTWARE SECURITY (DAIHSS)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $91.9 million to RADIANCE TECHNOLOGIES INC for work described as: DISTRIBUTED, AUTOMATED, AND INTELLIGENT HARDWARE AND SOFTWARE SECURITY (DAIHSS) Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract has a duration of 2191 days, indicating a long-term R&D effort. 3. Awarded as a Cost Plus Fixed Fee (CPFF) type, suggesting cost control is a key factor. 4. The contract is for hardware and software security solutions, a critical area for defense. 5. The geographic location of performance is Alabama (AL).

Value Assessment

Rating: good

The contract's value of $91.9 million over approximately six years represents a significant investment in R&D. Benchmarking this against similar large-scale, long-duration R&D contracts within the Department of Defense is challenging without more specific service details. However, the CPFF structure implies that the government aims to manage costs while allowing for flexibility in research scope. The fixed fee component provides a baseline for contractor profit, which can be assessed against industry standards for similar risk profiles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received is not detailed. Full and open competition generally leads to better price discovery and a wider range of technical solutions being considered by the agency.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to innovative solutions from a broad base of contractors.

Public Impact

The Department of Defense benefits from advanced hardware and software security solutions. This contract supports research and development activities, potentially leading to technological advancements. The contract's performance is located in Alabama, potentially creating or sustaining high-skilled jobs in the region. The DAIHSS program aims to enhance the security and resilience of defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
Long-duration R&D contracts carry inherent risks related to technological feasibility and evolving requirements.

Positive Signals

Awarded through full and open competition, maximizing potential for value and innovation.
Focus on critical hardware and software security addresses a key national defense need.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD or other federal agencies for advanced technology development, particularly in cybersecurity and systems engineering.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Radiance Technologies Inc., may still engage small businesses as subcontractors, depending on their own procurement strategies and the nature of the R&D work required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Advanced Persistent Threats (APT) Mitigation Programs
Cybersecurity Research and Development Initiatives
Defense Systems Engineering Support
Secure Software Development Lifecycle Programs

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
R&D projects carry inherent risks of technical feasibility and evolving requirements.
Long contract duration may require adjustments to evolving threat landscapes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.9 million to RADIANCE TECHNOLOGIES INC. DISTRIBUTED, AUTOMATED, AND INTELLIGENT HARDWARE AND SOFTWARE SECURITY (DAIHSS)

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 Air Force).

What is the total obligated amount?

The obligated amount is $91.9 million.

What is the period of performance?

Start: 2019-08-20. End: 2025-08-19.

What is the track record of Radiance Technologies Inc. in performing similar R&D contracts for the Department of Defense?

Radiance Technologies Inc. has a history of performing various contracts, including those related to research and development, engineering services, and technology integration for the Department of Defense and other government agencies. To assess their track record specifically for R&D contracts similar to DAIHSS, a detailed review of their past performance evaluations, contract awards, and any reported issues or successes would be necessary. This would involve examining contract databases for similar scope, value, and duration, and analyzing performance metrics if publicly available. Their experience in hardware and software security would be a key indicator of their capability to execute this specific contract successfully.

How does the awarded value of $91.9 million compare to similar R&D contracts for hardware and software security?

The $91.9 million value for this six-year R&D contract for hardware and software security is substantial, reflecting the complexity and long-term nature of such research. To benchmark this value, one would need to compare it against other large-scale, multi-year R&D efforts in cybersecurity, secure systems engineering, and advanced hardware/software development awarded by the DoD or other federal agencies. Factors such as the specific technologies being researched, the level of innovation required, and the duration of the contract significantly influence cost. Without access to detailed comparative data on similar contracts, it's difficult to definitively state if this represents exceptional value, but it aligns with significant investments in critical defense technology areas.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the government?

The primary risk for the government with a CPFF contract is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides a ceiling on profit. While the CPFF structure allows for flexibility in R&D scope, it requires robust government oversight to ensure costs are reasonable and allocable to the contract. The contractor bears some risk if costs are significantly lower than anticipated, but the primary concern for the government is ensuring efficient use of funds and preventing unnecessary expenditures. Effective management and monitoring of the contractor's spending and progress are crucial to mitigate these risks.

How effective is the 'full and open competition' approach likely to be in ensuring the best outcome for this R&D contract?

Full and open competition is generally considered the most effective method for ensuring the best outcome in federal contracting, as it allows a wide range of qualified contractors to submit proposals. This broad competition can lead to a wider array of innovative solutions, more competitive pricing, and a higher likelihood of selecting the contractor best suited for the specific R&D requirements. For a complex R&D contract like DAIHSS, this approach increases the probability that the Department of Defense will receive proposals offering cutting-edge technologies and approaches, ultimately benefiting national security. The fact that two bidders participated suggests a competitive process was indeed initiated.

What are the potential long-term implications of this contract on the development of hardware and software security technologies?

This contract has the potential to significantly advance the state-of-the-art in hardware and software security technologies critical for defense applications. By funding research and development over a multi-year period, it allows for exploration of novel concepts and solutions that might not be pursued under shorter-term or more commercially driven initiatives. The outcomes could lead to more resilient defense systems, improved protection against cyber threats, and potentially spin-off technologies applicable to other sectors. The focus on 'distributed, automated, and intelligent' security suggests an aim to create more adaptive and proactive defense mechanisms.

Are there any specific performance metrics or milestones defined in the contract that indicate program effectiveness?

The provided data does not include specific performance metrics or milestones for this contract. However, for a Cost Plus Fixed Fee (CPFF) contract, especially one involving R&D, performance is typically measured against defined objectives, technical milestones, delivery schedules for prototypes or reports, and adherence to budget. The contracting officer and program managers would establish these metrics and monitor progress throughout the contract's duration. The effectiveness of the program will ultimately be judged by the successful development and integration of the intended hardware and software security solutions.

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

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875018S7002

Offers Received: 2

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: $99,997,251

Exercised Options: $99,997,251

Current Obligation: $91,915,261

Actual Outlays: $10,736,643

Subaward Activity

Number of Subawards: 767

Total Subaward Amount: $150,585,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline