DoD's $509M R&D contract to Radiance Technologies Inc. for advanced technology development

Contract Overview

Contract Amount: $50,930,226 ($50.9M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-04-19

End Date: 2026-03-12

Contract Duration: 1,058 days

Daily Burn Rate: $48.1K/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: URIEL

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $50.9 million to RADIANCE TECHNOLOGIES INC for work described as: URIEL Key points: 1. Contract awarded for advanced technology development, indicating a focus on future capabilities. 2. The contract's duration of over 3 years suggests a significant, long-term project. 3. Awarded by the Department of the Air Force, aligning with strategic defense priorities. 4. The North American Industry Classification System (NAICS) code 541715 points to research and development in physical, engineering, and life sciences. 5. The contract type (Cost Plus Fixed Fee) suggests a need for flexibility in R&D projects where final costs may be uncertain. 6. The contract was awarded under full and open competition after exclusion of sources, implying a competitive process with specific justifications. 7. The base award amount is substantial, reflecting the complexity and scope of the research.

Value Assessment

Rating: good

The contract's value of $509.3 million over approximately 3 years for R&D is significant. Benchmarking against similar large-scale R&D contracts within the Department of Defense is challenging without more specific project details. However, the Cost Plus Fixed Fee (CPFF) structure is common for R&D where scope and costs can evolve. The base award of $48.1 million suggests an initial phase, with significant potential for growth through subsequent delivery orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the initial intent was full and open competition, specific sources were excluded, likely due to specialized capabilities or prior relationships relevant to the R&D effort. The exact number of bidders is not specified, but the 'exclusion of sources' suggests a more targeted competition than a completely open solicitation.

Taxpayer Impact: This procurement method, while potentially efficient for specialized R&D, may limit the breadth of competition, potentially impacting the most cost-effective outcome for taxpayers compared to a truly open bid process.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, gaining access to advanced technological solutions. The contract supports the development of cutting-edge technologies in physical, engineering, and life sciences. Geographic impact is likely concentrated around Radiance Technologies' facilities and potentially DoD research installations. Workforce implications include employment opportunities for scientists, engineers, and support staff at Radiance Technologies and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition raises questions about the extent of market engagement and potential missed opportunities for other innovative firms.
The CPFF contract type can lead to cost overruns if not managed rigorously, as contractor profit is fixed regardless of actual costs incurred.

Positive Signals

Award to a single contractor suggests a high degree of confidence in Radiance Technologies' specialized capabilities for this R&D effort.
The substantial funding allocated indicates a commitment to advancing critical defense technologies.
The long-term nature of the contract allows for sustained innovation and development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is highly specialized, with significant government investment. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by agencies like DARPA, AFRL, or ONR. The total potential value of $509.3 million positions this as a major R&D initiative within the defense industrial base.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large dollar value and specialized R&D nature, it is possible that subcontracting opportunities may exist for small businesses with relevant expertise, but this is not explicitly detailed in the award information. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the CPFF contract terms, requiring detailed reporting on progress, costs, and milestones. Transparency is facilitated through contract award databases, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Technology Development Programs
Department of Defense Research and Development
Air Force Science and Technology
Engineering and Physical Sciences Research
Defense Innovation Unit Initiatives

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusion may impact price discovery.
Complexity of R&D projects can lead to schedule delays.
Need for rigorous government oversight to manage evolving scope and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.9 million to RADIANCE TECHNOLOGIES INC. URIEL

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 $50.9 million.

What is the period of performance?

Start: 2023-04-19. End: 2026-03-12.

What is Radiance Technologies Inc.'s track record with large DoD R&D contracts?

Radiance Technologies Inc. has a history of securing significant contracts with the Department of Defense, particularly in areas related to advanced technology, engineering, and research. While specific details of past R&D performance require deeper investigation into contract databases and performance reviews, their ability to win a $509 million contract suggests a proven capability and a strong existing relationship with defense agencies. Analyzing their portfolio of previous awards, particularly those with similar NAICS codes and contract types (like CPFF), would provide further insight into their expertise and reliability in executing complex, long-term research and development projects for the government.

How does the $509.3 million value compare to typical DoD R&D investments in this sector?

The $509.3 million ceiling for this contract is substantial and indicative of a major R&D initiative. DoD investments in R&D are vast, often spanning billions annually across various domains. Contracts of this magnitude are typically reserved for projects with high strategic importance and long-term development horizons, such as developing next-generation weapon systems, advanced materials, or critical C4ISR capabilities. While specific benchmarks for 'physical, engineering, and life sciences R&D' can vary, a contract of this size suggests it represents a significant portion of the Air Force's or DoD's allocated budget for this particular technological area, aiming for transformative advancements rather than incremental improvements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a CPFF contract, especially for R&D, revolve around cost control and scope creep. While the contractor's profit is fixed, the government bears the risk of cost overruns if the project's technical challenges lead to higher-than-anticipated expenses. Effective management by the government is crucial to monitor expenditures and ensure the contractor remains efficient. For R&D, the inherent uncertainty in achieving specific technical objectives can make accurate cost estimation difficult, potentially leading to budget increases. Additionally, defining and managing the 'fixed fee' aspect requires careful negotiation and clear articulation of deliverables and milestones to prevent scope creep without corresponding adjustments to the fee or overall ceiling.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract's value?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced procurement approach. It implies that the agency initially intended to solicit offers from all responsible sources but subsequently identified specific reasons to exclude certain potential offerors. This exclusion could be based on factors like proprietary technology, unique capabilities, or prior development work. While it indicates some level of competition, the exclusion might limit the range of innovative solutions or competitive pricing compared to a completely open solicitation. The value achieved under such a condition depends heavily on the justification for exclusion and the remaining competitive landscape; it aims to balance specialized needs with competitive pressure.

How might this contract contribute to future Air Force technological superiority?

This contract is poised to contribute to future Air Force technological superiority by funding research and development in critical physical, engineering, and life sciences. The specific focus areas within these broad categories are not detailed, but such investments typically aim to yield breakthroughs in areas like advanced materials, artificial intelligence, cyber capabilities, directed energy, hypersonics, or improved human-machine interfaces. By investing in cutting-edge R&D, the Air Force seeks to maintain a qualitative advantage over potential adversaries, ensuring its platforms and systems remain effective and survivable in evolving threat environments. The long-term nature of the contract allows for the maturation of technologies from conceptual stages to potential fielding.

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 › 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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Radiance Technologies, Inc.

Address: 310 BOB HEATH DR NW, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $113,943,555

Exercised Options: $68,284,963

Current Obligation: $50,930,226

Actual Outlays: $305,808

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $37,973,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA875022D1005

IDV Type: IDC

Timeline