DoD Awards $280.8M SETA Contract to Radiance Technologies for R&D Support

Contract Overview

Contract Amount: $280,784,689 ($280.8M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $153.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $280.8 million to RADIANCE TECHNOLOGIES INC for work described as: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES Key points: 1. Significant contract value indicates substantial need for specialized R&D support services. 2. Radiance Technologies, a single awardee, suggests a potentially limited competitive landscape for this specific requirement. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces cost-plus risk, requiring robust oversight. 4. The R&D sector (NAICS 541712) is critical for technological advancement but can be complex to benchmark.

Value Assessment

Rating: good

The contract value of $280.8M over five years for SETA support is substantial. Benchmarking CPFF contracts in R&D is challenging due to inherent cost variability, but the value appears aligned with complex research support needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific justification for limiting the pool of potential offerors. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: While competition was limited, the value suggests a significant investment in critical R&D capabilities, aiming for specialized expertise that justifies the procurement approach.

Public Impact

Supports critical research and development efforts within the Department of Defense. Ensures specialized technical assistance is available for complex engineering projects. Potential for technological advancements stemming from the supported R&D activities. Impacts the efficiency and effectiveness of defense research programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type requires diligent cost monitoring.
Limited competition may reduce price pressure.
Contract duration of five years requires ongoing performance evaluation.

Positive Signals

Award to a single entity suggests specialized expertise.
Focus on R&D supports innovation and future capabilities.
Clear period of performance ensures sustained support.

Sector Analysis

This contract falls within the Research and Development sector, specifically physical, engineering, and life sciences. Spending in this area is crucial for national security and technological advancement, often involving complex, long-term projects with unique cost structures.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and was awarded to Radiance Technologies Inc., which is not explicitly identified as a small business in this context. Therefore, direct small business participation appears limited for this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Army to ensure costs are reasonable and fixed fees are earned appropriately. Monitoring performance and expenditures will be key to accountability.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost-plus contract type introduces inherent cost escalation risks.
Limited competition may result in suboptimal pricing.
Complexity of R&D services makes performance and cost benchmarking challenging.
Long contract duration requires sustained vigilance in oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $280.8 million to RADIANCE TECHNOLOGIES INC. SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES

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 Army).

What is the total obligated amount?

The obligated amount is $280.8 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-30.

How does the pricing structure of this CPFF contract compare to industry benchmarks for similar R&D SETA services, considering the specific technical requirements?

Benchmarking CPFF contracts in R&D is inherently difficult due to the variable nature of research costs and the specialized expertise required. However, the total contract value of $280.8M over five years suggests a significant investment. A detailed review of Radiance Technologies' proposed labor rates, indirect costs, and fixed fee against historical data for comparable SETA services within DoD R&D would be necessary for a precise comparison.

What specific factors led to the 'exclusion of sources' in this full and open competition, and what is the potential impact on overall cost-effectiveness?

The exclusion of sources typically occurs when only a limited number of contractors possess the unique capabilities, security clearances, or specialized knowledge required for a specific project. While this ensures the right expertise, it can reduce competitive pressure, potentially leading to higher costs than if a broader range of vendors were involved. The justification for exclusion needs to be robust to ensure value for taxpayer money.

How will the Department of the Army ensure effective oversight and accountability for this large, cost-plus contract to maximize the value of taxpayer investment?

Effective oversight will involve rigorous monitoring of Radiance Technologies' costs, performance metrics, and adherence to the contract's technical scope. The Army should implement regular reviews, audits, and performance evaluations. Clear communication channels and defined deliverables are essential. Utilizing earned value management (EVM) techniques can provide insights into project progress and financial performance, ensuring accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: 6

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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $291,107,147

Exercised Options: $291,107,147

Current Obligation: $280,784,689

Actual Outlays: $20,304,422

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $181,835,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS430

IDV Type: IDC

Timeline