DoD's $32M SAFE-SIM Phase IV contract awarded to Radiance Technologies Inc. for R&D services

Contract Overview

Contract Amount: $32,011,572 ($32.0M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2026-11-30

Contract Duration: 729 days

Daily Burn Rate: $43.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SECURE ADVANCED FRAMEWORK FOR SIMULATION AND MODELING (SAFE-SIM)PHASE IV

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to RADIANCE TECHNOLOGIES INC for work described as: SECURE ADVANCED FRAMEWORK FOR SIMULATION AND MODELING (SAFE-SIM)PHASE IV Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant investment in advanced simulation and modeling capabilities for defense applications. 3. Duration of 729 days suggests a substantial, long-term research and development effort. 4. Focus on physical, engineering, and life sciences R&D, excluding specialized areas. 5. Contract value of $32M indicates a high-stakes project within DARPA's portfolio. 6. Geographic focus on Alabama for contract performance.

Value Assessment

Rating: questionable

The contract's value of $32 million for a 729-day period, classified under R&D in physical, engineering, and life sciences, requires careful benchmarking. As a sole-source award, direct comparison to similar competitively bid contracts is challenging. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, can lead to cost overruns if not rigorously managed. Without more detailed cost breakdowns or performance metrics, assessing the true value for money is difficult, but the lack of competition raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Defense Advanced Research Projects Agency (DARPA) likely cited specific justifications for this approach, such as unique capabilities or proprietary technology held by Radiance Technologies Inc. The absence of a competitive bidding process means that taxpayers did not benefit from the price reductions typically achieved through market competition.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing, potentially leading to higher costs for taxpayers compared to a competitively procured contract.

Public Impact

The Department of Defense (DoD) will benefit from enhanced simulation and modeling capabilities, crucial for advanced research and development. Services delivered include research and development in physical, engineering, and life sciences, supporting innovation in defense technologies. Geographic impact is concentrated in Alabama, where the contract performance is scheduled. The contract supports specialized R&D roles, potentially impacting the scientific and engineering workforce in the relevant fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about cost-effectiveness and potential for inflated pricing.
CPFF contract type can incentivize cost increases if not closely monitored.
Sole-source award limits transparency into the contractor selection process.
Limited public information available on the specific R&D objectives and expected outcomes.

Positive Signals

Award to a single, potentially specialized contractor may indicate unique capabilities required for the project.
Focus on advanced simulation and modeling aligns with critical defense modernization needs.
Contract duration suggests a commitment to a significant, potentially impactful research endeavor.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and often high costs. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the simulation and modeling work, but R&D contracts, especially those with sole-source justifications, can represent significant investments. The market for advanced simulation and modeling is competitive, but specialized expertise can command premium pricing.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Radiance Technologies Inc., will likely perform the majority of the work. The impact on the small business ecosystem is therefore minimal, with no direct set-aside opportunities or mandated subcontracting provisions to foster small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring will be crucial to ensure adherence to the fixed fee and manage costs effectively. Transparency may be limited due to the sole-source nature of the award, but DARPA typically has robust internal review processes and may involve Inspector General oversight if specific concerns arise regarding fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Research Programs
Simulation and Modeling Technologies
Advanced Technology Development Contracts
Department of Defense Research and Development Spending

Risk Flags

Sole-source award limits competitive pricing.
CPFF contract type requires diligent cost oversight.
Limited public information on specific R&D objectives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to RADIANCE TECHNOLOGIES INC. SECURE ADVANCED FRAMEWORK FOR SIMULATION AND MODELING (SAFE-SIM)PHASE IV

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 $32.0 million.

What is the period of performance?

Start: 2024-12-01. End: 2026-11-30.

What specific simulation and modeling capabilities does SAFE-SIM Phase IV aim to develop or enhance?

The provided data does not detail the specific simulation and modeling capabilities targeted by SAFE-SIM Phase IV. However, given the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' and its awardee, Radiance Technologies Inc., it is likely focused on advanced computational methods for complex system analysis. This could include areas such as high-fidelity physics-based simulations, agent-based modeling for complex adaptive systems, or advanced visualization techniques for research data. The 'SAFE-SIM' acronym suggests a focus on safety, security, or perhaps a specific framework for simulation, but further details would be needed from DARPA's program announcements or contract statements of work to ascertain the precise objectives.

What is the justification for awarding this $32M contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or critical urgency where only one contractor can meet the requirement. For this $32 million contract awarded to Radiance Technologies Inc. for SAFE-SIM Phase IV, DARPA likely cited reasons such as Radiance Technologies possessing essential intellectual property, specialized expertise, or prior development work that makes them the only viable source. Without access to DARPA's official justification documentation (e.g., a Justification and Approval document), the precise rationale remains speculative. However, sole-source awards are generally reserved for situations where full and open competition is not feasible or not in the government's best interest.

How does the Cost Plus Fixed Fee (CPFF) contract type influence risk and cost management for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor (Radiance Technologies Inc.) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D projects like SAFE-SIM Phase IV, CPFF is often used because the scope and costs can be uncertain at the outset. The risk is shared: the government bears the cost risk (if costs exceed estimates), while the contractor has less incentive to control costs beyond what's necessary to achieve the fixed fee. Effective oversight by DARPA is critical to manage this risk, ensuring costs are reasonable and allocable, and that the fixed fee adequately compensates the contractor for their efforts without being excessive. The government's primary risk is potential cost overruns if not managed diligently.

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

Radiance Technologies Inc. has a history of performing contracts for the Department of Defense, including work with DARPA. While specific details of their past performance on simulation and modeling projects are not provided in the summary data, their selection for a significant R&D initiative like SAFE-SIM Phase IV suggests a relevant technical capability and a satisfactory performance record. Companies awarded sole-source contracts often have established relationships or demonstrated unique expertise critical to the agency's mission. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their prior work with DARPA and other agencies, including contract values and performance ratings.

What are the potential long-term implications of this $32M investment in simulation and modeling for national defense?

This $32 million investment in simulation and modeling through SAFE-SIM Phase IV has potentially significant long-term implications for national defense. Advanced simulation capabilities allow for more realistic testing and evaluation of new technologies, wargaming, and operational planning without the cost and risk associated with physical prototypes or field exercises. This can accelerate the development cycle for next-generation defense systems, improve training effectiveness, and provide deeper insights into complex threat environments. By enhancing DARPA's ability to model and simulate, this contract contributes to maintaining a technological edge and improving strategic decision-making capabilities for the DoD.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HR001125R0001

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,319,391

Exercised Options: $49,319,391

Current Obligation: $32,011,572

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $5,743,004

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline