DoD's $72.7M SETA Contract with Radiance Technologies Faces Scrutiny Over Cost and Competition
Contract Overview
Contract Amount: $72,675,412 ($72.7M)
Contractor: Radiance Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2020-10-30
End Date: 2024-07-30
Contract Duration: 1,369 days
Daily Burn Rate: $53.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SYSTEM ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT PROGRAM - ASSESSMENT, SIMULATION, AND TRANSITION SUPPORT SERVICES.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35807
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $72.7 million to RADIANCE TECHNOLOGIES INC for work described as: SYSTEM ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT PROGRAM - ASSESSMENT, SIMULATION, AND TRANSITION SUPPORT SERVICES. Key points: 1. The contract value of $72.7 million for SETA support is significant, requiring careful oversight. 2. Radiance Technologies Inc. is the sole awardee under a full and open competition after exclusion of sources, raising questions about the breadth of competition. 3. The contract's duration of 1369 days (nearly 4 years) suggests a long-term need for these specialized R&D services. 4. The R&D sector (NAICS 541712) often involves complex, high-value services where cost control and performance metrics are critical.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Benchmarking against similar SETA contracts is crucial to assess if the $72.7 million price tag is reasonable for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'full and open competition after exclusion of sources' is an unusual designation. It implies that while the competition was open, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The effectiveness of the competition method directly impacts taxpayer value. If the exclusion of sources limited competition, taxpayers may have paid more than necessary.
Public Impact
Taxpayers are funding critical R&D support services for the Department of Defense. The contract's focus on assessment, simulation, and transition support suggests it impacts the development and readiness of defense systems. The long-term nature of the contract means sustained financial commitment from the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Ambiguity in competition method ('exclusion of sources')
- CPFF contract type can incentivize cost increases
- Lack of clear per-unit cost benchmark
Positive Signals
- Contract awarded under a 'full and open' framework
- Supports critical R&D functions for the DoD
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a high-cost area for government spending. Benchmarks for SETA support services can vary widely based on specialization and contract type.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The CPFF structure necessitates robust oversight to ensure costs are reasonable and allocable. The 'exclusion of sources' clause warrants a review to confirm its justification and adherence to procurement regulations.
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
- Potential for limited competition due to 'exclusion of sources'
- Cost control risks associated with CPFF contract type
- Lack of transparency on specific performance metrics
- Unclear justification for source exclusion
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.7 million to RADIANCE TECHNOLOGIES INC. SYSTEM ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT PROGRAM - ASSESSMENT, SIMULATION, AND TRANSITION 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 $72.7 million.
What is the period of performance?
Start: 2020-10-30. End: 2024-07-30.
What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?
The justification for excluding specific sources needs to be clearly documented and aligned with federal procurement regulations. If the exclusion significantly narrowed the competitive field, it could have led to a higher price than a truly unrestricted full and open competition. Understanding the rationale is key to assessing if the government received the best possible value.
How are costs being managed and validated under the Cost Plus Fixed Fee (CPFF) structure to prevent potential overruns and ensure efficient use of taxpayer funds?
Effective management of a CPFF contract requires rigorous monitoring of direct costs, indirect costs, and fee. The agency must have strong internal controls and auditing processes to validate incurred costs against the contract's scope. Regular performance reviews and cost analysis are essential to identify and mitigate any potential for cost creep or inefficiencies.
What performance metrics are in place to measure the effectiveness of Radiance Technologies' SETA support services, and how are these linked to the fixed fee?
Performance metrics for SETA contracts should be clearly defined, measurable, and tied to the specific objectives of the assessment, simulation, and transition support. Linking these metrics to the fixed fee incentivizes the contractor to meet or exceed performance expectations. Regular reporting and evaluation against these metrics are crucial for ensuring the government receives the intended value and impact from the services.
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: 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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,599,163
Exercised Options: $78,599,163
Current Obligation: $72,675,412
Actual Outlays: $3,938,547
Subaward Activity
Number of Subawards: 654
Total Subaward Amount: $51,182,037
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS614
IDV Type: IDC
Timeline
Start Date: 2020-10-30
Current End Date: 2024-07-30
Potential End Date: 2024-07-30 00:00:00
Last Modified: 2025-12-31
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