DoD's $31.4M SAFE-SIM contract to Radiance Technologies Inc. for R&D in physical and engineering sciences

Contract Overview

Contract Amount: $31,410,991 ($31.4M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-25

End Date: 2023-05-03

Contract Duration: 981 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SECURE ADVANCED FRAMEWORK FOR SIMULATION AND MODELING (SAFE-SIM) PROGRAM.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to RADIANCE TECHNOLOGIES INC for work described as: SECURE ADVANCED FRAMEWORK FOR SIMULATION AND MODELING (SAFE-SIM) PROGRAM. Key points: 1. Contract awarded for advanced simulation and modeling capabilities, crucial for defense research. 2. Full and open competition suggests a robust market for these specialized services. 3. Performance period of nearly 3 years indicates a significant, ongoing research effort. 4. Contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. Geographic concentration in Alabama may indicate specific regional expertise or facility utilization. 6. The NAICS code 541715 points to a highly specialized segment of the R&D market.

Value Assessment

Rating: good

The contract's value of $31.4 million over approximately 3 years for advanced R&D appears reasonable given the specialized nature of simulation and modeling for defense applications. Benchmarking against similar contracts in advanced R&D is challenging due to the unique requirements of DARPA programs. However, the fixed fee component suggests a defined profit margin, which can be a positive indicator of controlled costs. Further analysis would require comparing specific deliverables and technical milestones against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. With 10 bidders, the competition level was substantial, suggesting a healthy market for simulation and modeling services. This broad competition is generally expected to drive more competitive pricing and encourage innovation among offerors.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely secured a fair price for advanced research capabilities. The wide participation ensures that the government explored a range of technical solutions and cost proposals.

Public Impact

The primary beneficiaries are the Department of Defense and its research arms, such as DARPA, which gain access to advanced simulation and modeling tools. The services delivered are expected to enhance the development and testing of complex defense systems. The geographic impact is concentrated in Alabama, where Radiance Technologies Inc. is located, potentially supporting local high-tech employment. Workforce implications include the need for highly skilled scientists, engineers, and technicians in specialized fields of simulation and modeling.

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.
The specialized nature of the R&D may limit the number of truly competitive bidders in future procurements.
Reliance on a single contractor for such a critical program could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a broad market interest and availability of qualified vendors.
The contract duration of nearly 3 years suggests a stable, long-term need for these capabilities.
The existence of 10 bidders points to a competitive environment that likely drove value.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced simulation and modeling. This is a critical area for the defense industry, enabling the virtual testing and development of complex systems, reducing physical prototyping costs and risks. The market for such specialized R&D services is often characterized by high barriers to entry due to the need for specialized expertise and facilities. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of DARPA's requirements, but significant government investment in defense R&D is common.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The focus on advanced R&D in simulation and modeling typically involves large, specialized firms. The impact on the small business ecosystem is likely minimal unless small businesses are part of the supply chain for larger components or specialized software.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Advanced Research Projects Agency (DARPA). As a Cost Plus Fixed Fee contract, rigorous financial oversight is expected to monitor expenditures against the fixed fee. Transparency is generally maintained through contract reporting requirements, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development Programs
Advanced Simulation and Modeling Initiatives
DARPA Research Contracts
Department of Defense IT and Engineering Services

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage potential cost overruns.
Specialized R&D nature may limit future competition.
Performance risk inherent in advanced research projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to RADIANCE TECHNOLOGIES INC. SECURE ADVANCED FRAMEWORK FOR SIMULATION AND MODELING (SAFE-SIM) PROGRAM.

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 Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2020-08-25. End: 2023-05-03.

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

Radiance Technologies Inc. has a history of performing work for the Department of Defense and other government agencies, often in areas related to advanced technology, engineering, and research. While specific details on past simulation and modeling contracts require deeper investigation, their general profile suggests experience in complex technical projects. A review of their contract history, including past performance evaluations and any awards or commendations, would provide a clearer picture of their capabilities and reliability in executing programs of this scale and technical depth. Their presence in Alabama also suggests a potential focus on regional defense industry hubs.

How does the $31.4 million value compare to other simulation and modeling R&D contracts?

The $31.4 million value for a nearly three-year R&D contract in simulation and modeling is within a typical range for specialized defense projects, particularly those managed by agencies like DARPA, which often fund cutting-edge and high-risk/high-reward research. Contracts of this nature can vary significantly based on the scope, complexity of the models, required computational resources, and the specific defense applications. While direct comparisons are difficult without knowing the exact technical specifications and deliverables, this funding level suggests a substantial effort aimed at developing significant advancements in simulation capabilities rather than incremental improvements.

What are the primary risks associated with this Cost Plus Fixed Fee contract structure?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to Radiance Technologies Inc., revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of cost overruns if the actual costs of performing the research exceed initial estimates. Effective oversight is crucial to ensure that costs are reasonable and allocable to the contract. There's also a risk that the contractor might be incentivized to incur higher costs to justify the fixed fee, although this is mitigated by the government's right to audit costs. Careful monitoring of progress against milestones is essential to manage these risks.

How effective is the 'full and open competition' approach for specialized R&D like this?

The 'full and open competition' approach is generally considered the most effective method for procuring specialized R&D services when a sufficiently broad market exists. For a program like SAFE-SIM, it allows the government to solicit proposals from a wide range of potential contractors, fostering innovation and ensuring that the best technical solutions and pricing are considered. The fact that 10 bidders participated indicates a healthy competitive landscape for this specific area. This approach maximizes the chances of finding a contractor that not only meets the technical requirements but also offers the best value to the taxpayer. However, the effectiveness can be limited if the technical requirements are so niche that only a few entities possess the necessary expertise.

What are the historical spending patterns for simulation and modeling R&D within the DoD?

The Department of Defense consistently invests significant funds in research and development, with simulation and modeling being a critical component. Historical spending patterns show a sustained and often increasing allocation towards these areas, driven by the need for advanced warfighting capabilities, training, and system development. Agencies like DARPA, the Army, Navy, and Air Force frequently issue contracts for simulation technologies, virtual environments, and advanced modeling tools. These investments are crucial for maintaining technological superiority and reducing the costs and risks associated with physical testing. Tracking specific spending trends requires analyzing budget allocations and contract awards across various DoD entities over time.

What are the implications of the contract being awarded in Alabama?

The award of this contract to Radiance Technologies Inc. in Alabama has several implications. It signifies the presence of advanced R&D capabilities within the state, potentially contributing to the local economy through job creation and technological development. Alabama has a notable defense industry presence, and this contract further solidifies its role in supporting critical defense research. For the contractor, operating in a region with established defense sector infrastructure and a skilled workforce can be advantageous. It also means that a significant portion of the contract's execution and associated spending will likely occur within Alabama, benefiting regional suppliers and service providers.

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: HR001120S0007

Offers Received: 10

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: $31,410,991

Exercised Options: $31,410,991

Current Obligation: $31,410,991

Actual Outlays: $27,331

Subaward Activity

Number of Subawards: 120

Total Subaward Amount: $23,038,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline