DoD's $40M Directed Energy Support Contract Awarded to Radiance Technologies Inc

Contract Overview

Contract Amount: $40,025,036 ($40.0M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-22

End Date: 2026-11-21

Contract Duration: 1,825 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DIRECTED ENERGY COMMON TEST SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to RADIANCE TECHNOLOGIES INC for work described as: DIRECTED ENERGY COMMON TEST SUPPORT Key points: 1. Contract focuses on R&D for physical and engineering sciences, excluding biotech. 2. Awarded via full and open competition after exclusion of sources, indicating a competitive process. 3. Performance period spans five years, suggesting a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The primary agency is the Department of Defense, with the Department of the Army as the servicing agency. 6. The contract is a delivery order under a larger contract vehicle. 7. The geographic location for performance is Alabama.

Value Assessment

Rating: good

The contract value of $40,002,503.40 over five years appears reasonable for specialized R&D support in directed energy. While specific benchmarks for this niche are difficult to ascertain without more granular data, the Cost Plus Fixed Fee (CPFF) structure, if managed effectively, can provide a balance between contractor incentive and government oversight. The number of bids received (3) suggests a moderate level of competition, which typically leads to fair pricing. Further analysis would require comparing the fixed fee percentage and indirect cost rates to industry averages for similar CPFF contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have had some restrictions or exclusions, the final award was made after a broad competitive process. Three bids were received, suggesting a moderate level of competition for this specialized R&D requirement. The competition level is generally positive for price discovery, as multiple offerors had the opportunity to propose solutions and pricing.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The presence of multiple bidders helps ensure that the government is receiving a fair market price for the directed energy test support services.

Public Impact

The Department of Defense benefits from advanced research and development in directed energy technologies. This contract supports the development and testing of critical defense capabilities. The primary geographic impact is in Alabama, where the contractor is located. The contract likely supports a specialized workforce in R&D and engineering fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The 'after exclusion of sources' clause warrants understanding the initial exclusions to ensure full market potential was considered.
Limited number of bidders (3) could indicate a niche market or high barriers to entry, potentially limiting future competition.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The five-year performance period suggests a sustained need and potential for long-term partnership.
The contract supports critical R&D in a strategically important defense area.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a highly specialized area within the broader defense R&D market. The market for directed energy technologies is growing, driven by military applications for defense and offense. Comparable spending benchmarks would typically be found within DoD's R&D budget allocations for advanced weapons systems and technology development, often categorized under research, development, testing, and evaluation (RDT&E) accounts.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. This suggests the contract was likely awarded to a large business capable of meeting the complex R&D requirements. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract's statement of work or award documentation. The impact on the small business ecosystem is likely minimal unless subcontracting opportunities arise.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded in the CPFF structure, requiring the contractor to justify costs and the government to approve them. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Directed Energy Weapons Systems
Advanced Technology Development
Department of Defense Research and Development
Army Test and Evaluation Command
High Energy Laser Systems

Risk Flags

Potential for cost overruns in CPFF contract.
Risk of technology obsolescence in a rapidly evolving field.
Need for strong government oversight to manage R&D costs and progress.
Justification for 'exclusion of sources' needs to be clear to ensure full competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to RADIANCE TECHNOLOGIES INC. DIRECTED ENERGY COMMON TEST SUPPORT

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 $40.0 million.

What is the period of performance?

Start: 2021-11-22. End: 2026-11-21.

What is the track record of Radiance Technologies Inc. with DoD contracts, particularly in R&D?

Radiance Technologies Inc. has a significant history of performing contracts for the Department of Defense, often in specialized R&D and engineering services. While specific details on their performance for this particular 'Directed Energy Common Test Support' contract are not provided in the summary data, their general profile suggests experience in areas relevant to advanced technologies. A deeper dive into their contract history would involve examining past performance evaluations, any contract modifications, and the types of R&D projects they have successfully completed for DoD components. This would help assess their capability and reliability in delivering complex technical solutions within budget and schedule constraints, which is crucial for R&D-focused awards.

How does the $40 million contract value compare to similar directed energy R&D efforts?

Benchmarking the $40 million contract value for directed energy R&D requires comparing it against similar contracts awarded by the DoD or other federal agencies for comparable services. Directed energy is a rapidly evolving field, and R&D costs can vary significantly based on the specific technology (e.g., lasers, high-power microwaves), maturity level, and scope of work (e.g., basic research, system development, testing). Without access to a comprehensive database of directed energy R&D contracts, it's challenging to provide a precise comparison. However, $40 million over five years ($8 million annually) for specialized R&D support suggests a substantial, but not necessarily exorbitant, investment for a program of record or a critical technology development effort within the DoD's R&D portfolio.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like this one, revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently motivated to control costs, as the government agrees to reimburse all allowable costs plus a fixed fee. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is profitable, especially in R&D where outcomes can be uncertain. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong negotiation of the fixed fee based on realistic projections and the level of technical risk involved.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring value for money?

'Full and Open Competition After Exclusion of Sources' aims to balance the benefits of broad competition with the need to potentially exclude certain sources for specific, justifiable reasons (e.g., proprietary data, unique capabilities). In theory, by opening the competition broadly after initial exclusions, it should still foster significant price discovery and innovation from a wide range of capable vendors. The effectiveness in ensuring value for money depends heavily on the justification for the initial exclusions and the rigor of the subsequent competitive evaluation process. If the exclusions were minimal and well-justified, and if multiple capable bidders participated, it can lead to good value. However, if the exclusions were overly broad or poorly justified, it could limit competition and potentially reduce value.

What is the historical spending trend for directed energy R&D within the Department of Defense?

Historical spending trends for directed energy R&D within the Department of Defense have shown a consistent and increasing investment over the past decade. Driven by advancements in laser and microwave technologies, and the perceived strategic advantages they offer, DoD funding for directed energy programs has grown significantly. This includes research into various applications such as counter-UAS systems, missile defense, and electronic warfare. Budgets allocated to programs like the Army's, Navy's, and Air Force's directed energy initiatives reflect a commitment to developing and fielding these capabilities. While specific annual figures fluctuate based on program priorities and technological readiness, the overall trajectory indicates a sustained and growing emphasis on directed energy R&D.

What are the potential performance challenges for a five-year R&D contract in a rapidly evolving field like directed energy?

A five-year R&D contract in a rapidly evolving field like directed energy presents several potential performance challenges. Technology can advance quickly, potentially making initial research objectives or proposed solutions obsolete before the contract term ends. Scope creep is another risk, as new discoveries or changing requirements may lead to requests for contract modifications, impacting cost and schedule. Maintaining contractor focus and motivation over a long period, especially if initial breakthroughs are slow, can be difficult. Furthermore, ensuring the workforce remains skilled and retains knowledge across such a long duration requires proactive management. The government must be agile in adapting requirements and the contractor must be adept at managing evolving technical landscapes.

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 › 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: 3

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: $40,807,953

Exercised Options: $40,807,953

Current Obligation: $40,025,036

Actual Outlays: $2,032,017

Subaward Activity

Number of Subawards: 228

Total Subaward Amount: $23,210,271

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