DoD's $49M Laser Component R&D Contract Awarded to Radiance Technologies Inc

Contract Overview

Contract Amount: $49,126,709 ($49.1M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2019-08-23

End Date: 2024-08-22

Contract Duration: 1,826 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TEST AND EVALUATION OF MANUFACTURING ADVANCEMENTS OF COMPONENTS FOR HIGH ENERGY LASERS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $49.1 million to RADIANCE TECHNOLOGIES INC for work described as: RESEARCH, DEVELOPMENT, TEST AND EVALUATION OF MANUFACTURING ADVANCEMENTS OF COMPONENTS FOR HIGH ENERGY LASERS. Key points: 1. Contract focuses on critical advancements in high-energy laser components. 2. Radiance Technologies Inc. secured this significant research and development award. 3. The contract duration spans five years, indicating a long-term investment. 4. Awarded under full and open competition after exclusion of sources. 5. The North American Industry Classification System (NAICS) code is 541712. 6. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' category. 7. The contract type is Cost Plus Fixed Fee, common for R&D projects. 8. The base contract value is approximately $26.9M, with potential for growth.

Value Assessment

Rating: good

The contract's value of $49.1M over five years for R&D in advanced laser components appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in defense is challenging due to unique technological requirements. However, the Cost Plus Fixed Fee structure allows for flexibility while incentivizing cost control through the fixed fee component. The award to Radiance Technologies Inc., a known entity in defense contracting, suggests a level of confidence in their capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was open, specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or security clearances. The number of bids received is not explicitly stated, but the 'full and open' designation generally implies a competitive process designed to solicit multiple offers.

Taxpayer Impact: This competitive approach, even with exclusions, aims to ensure that the government receives the best value by considering a range of qualified offerors, potentially leading to more favorable pricing for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, seeking to enhance laser technology capabilities. The services delivered involve research, development, testing, and evaluation of advanced laser components. The geographic impact is primarily within Alabama, where Radiance Technologies Inc. is located. This contract supports a specialized workforce in advanced manufacturing and laser technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The 'exclusion of sources' clause warrants scrutiny to ensure it doesn't unduly limit competition.
Specific performance metrics and deliverables are not detailed, making outcome assessment difficult.
The long duration could pose risks if technology evolves rapidly, making the developed components obsolete.

Positive Signals

Award to an established contractor like Radiance Technologies Inc. suggests a degree of proven capability.
The focus on advanced laser components aligns with critical national defense modernization efforts.
Full and open competition, even with exclusions, is a positive indicator for seeking competitive pricing.
The contract supports innovation in a strategically important technological area.

Sector Analysis

This contract operates within the defense sector's Research and Development (R&D) segment, specifically focusing on advanced materials and components for directed energy systems. The market for high-energy laser technology is highly specialized, driven by government defense procurement. Spending in this area is often characterized by long development cycles and significant investment in intellectual property. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D and the proprietary technologies involved.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Radiance Technologies Inc., is expected to perform the majority of the work, and the direct impact on the small business ecosystem may be limited unless they proactively engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with specific oversight likely managed by the Department of the Army. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed R&D progress reports are often sensitive and not publicly disclosed.

Related Government Programs

Directed Energy Systems R&D
Advanced Manufacturing Technologies
High Energy Laser Systems
Department of Defense Research Contracts
Army R&D Procurement

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence given long R&D cycles.
Limited transparency on specific performance metrics and deliverables.
Need to ensure 'exclusion of sources' does not unduly restrict competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.1 million to RADIANCE TECHNOLOGIES INC. RESEARCH, DEVELOPMENT, TEST AND EVALUATION OF MANUFACTURING ADVANCEMENTS OF COMPONENTS FOR HIGH ENERGY LASERS.

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 $49.1 million.

What is the period of performance?

Start: 2019-08-23. End: 2024-08-22.

What is the track record of Radiance Technologies Inc. in similar R&D contracts with the Department of Defense?

Radiance Technologies Inc. has a history of securing contracts with the Department of Defense, often in areas related to advanced technologies, sensors, and electronic warfare. Their experience typically involves research, development, and testing of complex systems. While specific details on past laser component R&D contracts are not provided here, their general profile suggests they are a capable contractor for this type of specialized work. A deeper dive into their contract history would reveal the scale and success rates of their previous R&D endeavors, providing further context for their suitability for this current award.

How does the $49.1M contract value compare to other R&D investments in high-energy laser components?

The $49.1M contract value for five years of R&D in high-energy laser components is substantial, reflecting the complexity and strategic importance of this technology. Direct comparisons are difficult as R&D investments vary widely based on project scope, maturity, and specific technological goals. However, this figure suggests a significant commitment by the Department of the Army to advancing this capability. It is likely within the expected range for major defense R&D programs focused on cutting-edge technologies, where development costs can be high due to specialized expertise, equipment, and testing requirements.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as all allowable costs are reimbursed. The 'fixed fee' provides profit, but if costs escalate significantly, the government bears the burden. For this R&D project, risks include potential cost overruns if unforeseen technical challenges arise, leading to increased expenditures beyond initial estimates. Effective oversight and robust cost accounting by the government are crucial to mitigate these risks and ensure the project stays within budget while achieving its technical objectives.

How does the 'full and open competition after exclusion of sources' procurement method impact price discovery and potential savings?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with the need for specialized capabilities. While 'full and open' suggests an intention to solicit from all responsible sources, the 'exclusion of sources' clause implies that certain entities were deemed ineligible from the outset. This could be due to specific technical requirements, security concerns, or other criteria. If the exclusions are justified and the remaining pool of competitors is sufficiently robust, it can still lead to effective price discovery and competitive pricing. However, if the exclusions significantly limit the number of bidders, it could potentially reduce competitive pressure and lead to higher prices than under a truly unrestricted full and open competition.

What are the potential long-term implications of this contract for the development of directed energy weapons?

This contract is likely a foundational step towards enhancing the capabilities of directed energy weapons. Advancements in high-energy laser components are critical for improving the power, efficiency, range, and reliability of such systems. Successful R&D under this contract could lead to next-generation laser weapon prototypes, potentially offering advantages in speed-of-light engagement, reduced collateral damage, and lower operational costs compared to traditional munitions. The outcomes could significantly influence future defense strategies and the U.S. military's technological edge in this rapidly evolving field.

What is the historical spending trend for R&D in laser technology within the Department of Defense?

Historical spending by the Department of Defense (DoD) on laser technology R&D has been significant and generally increasing, driven by its perceived strategic importance. The DoD invests heavily in directed energy programs, including high-energy lasers, for various applications such as missile defense, counter-drone systems, and force protection. While specific annual figures fluctuate based on program priorities and budget allocations, there has been a consistent trend of substantial investment over the past decade. This contract represents a continuation of that trend, focusing on critical component advancements necessary for future laser systems.

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

Solicitation ID: W9113M13R0012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Radiance Technologies, Inc.

Address: 350 WYNN DR NW, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,129,202

Exercised Options: $49,129,202

Current Obligation: $49,126,709

Actual Outlays: $5,220,821

Subaward Activity

Number of Subawards: 170

Total Subaward Amount: $29,412,424

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M16D0004

IDV Type: IDC

Timeline