DHS awards $2M R&D contract for radiation monitoring devices to Radiation Monitoring Devices, Inc

Contract Overview

Contract Amount: $1,998,863 ($2.0M)

Contractor: Radiation Monitoring Devices, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-20

End Date: 2027-01-31

Contract Duration: 1,321 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CWMD OBAA CPFF CONTRACT AWARD TO RADIATION MONITORING DEVICES, INC. IN RESPONSE TO TOPIC SOLICITATION 13.

Place of Performance

Location: WATERTOWN, MIDDLESEX County, MASSACHUSETTS, 02472

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to RADIATION MONITORING DEVICES, INC. for work described as: CWMD OBAA CPFF CONTRACT AWARD TO RADIATION MONITORING DEVICES, INC. IN RESPONSE TO TOPIC SOLICITATION 13. Key points: 1. Contract focuses on research and development in physical sciences, aligning with DHS's mission. 2. Awarded via full and open competition, suggesting a potentially competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 4. Duration of over three years indicates a significant, long-term research effort. 5. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 6. The contractor, Radiation Monitoring Devices, Inc., has secured this award, indicating past performance or suitability. 7. The contract is not set aside for small businesses, suggesting larger firms were likely involved.

Value Assessment

Rating: fair

The contract value of $1.99 million over approximately 3.6 years (1321 days) for R&D services is difficult to benchmark without specific details on the scope of work and deliverables. CPFF contracts can sometimes lead to higher costs if not managed closely, as the contractor is reimbursed for allowable costs plus a fixed fee. However, the fixed fee component aims to provide an incentive for cost efficiency. Without comparable contract data for similar radiation monitoring R&D projects, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specialized R&D requirement. While three bidders is better than a sole-source award, it may not represent the full spectrum of potential competition in the market for such advanced technology.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, seeking advancements in radiation monitoring technology. The contract will deliver research and development services, potentially leading to new or improved radiation detection capabilities. The geographic impact is primarily within Massachusetts, where Radiation Monitoring Devices, Inc. is located. The workforce implications include employment for specialized researchers and scientists within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires careful oversight to ensure costs remain reasonable and the fixed fee is justified.
The limited number of bidders (3) might indicate potential barriers to entry or a niche market, warranting further investigation into competition dynamics.
The specific R&D deliverables and milestones need clear definition and monitoring to ensure the $2M investment yields tangible advancements.

Positive Signals

Awarded through full and open competition, which generally promotes fair pricing and access for qualified vendors.
The contractor, Radiation Monitoring Devices, Inc., is likely specialized in this field, suggesting expertise relevant to the requirement.
The contract duration of over three years allows for in-depth research and development, potentially leading to significant technological progress.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences research. The market for radiation detection and monitoring technology is specialized, serving government agencies, security, industrial, and medical applications. Spending in this area is driven by national security needs, regulatory compliance, and technological advancement. Comparable spending benchmarks would typically involve other government R&D contracts for sensor technology or specialized scientific equipment.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the requirement was open to all responsible sources, including large businesses, and that small business participation may not have been a primary consideration in the initial award strategy. Subcontracting opportunities for small businesses could arise if the prime contractor identifies needs that align with small business capabilities, but this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations. Key accountability measures will involve monitoring the contractor's progress against research milestones, ensuring allowable costs are properly documented and reimbursed, and verifying the fixed fee is earned. Transparency is typically maintained through contract reporting requirements, though detailed R&D progress reports may be sensitive. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Research and Development Programs
National Nuclear Security Administration Research Contracts
Department of Energy Advanced Scientific Research
Defense Advanced Research Projects Agency (DARPA) Solicitations

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technological obsolescence during long R&D period
Limited competition may impact price discovery
Need for robust oversight of R&D milestones and costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to RADIATION MONITORING DEVICES, INC.. CWMD OBAA CPFF CONTRACT AWARD TO RADIATION MONITORING DEVICES, INC. IN RESPONSE TO TOPIC SOLICITATION 13.

Who is the contractor on this award?

The obligated recipient is RADIATION MONITORING DEVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-06-20. End: 2027-01-31.

What is the specific technological advancement or capability expected from this $2 million R&D contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' related to 'CWMD OBAA CPFF CONTRACT AWARD TO RADIATION MONITORING DEVICES, INC. IN RESPONSE TO TOPIC SOLICITATION 13.' While the exact technological advancement is not detailed, the contractor's name, Radiation Monitoring Devices, Inc., strongly suggests the R&D will focus on developing or improving technologies for detecting, measuring, or analyzing radiation. This could encompass areas like enhanced sensor sensitivity, portable detection units, data processing algorithms for radiation events, or specialized equipment for Chemical, Biological, Radiological, Nuclear, and Explosive (CBRNE) threat detection, aligning with the Department of Homeland Security's Countering Weapons of Mass Destruction (CWMD) mission.

How does the Cost Plus Fixed Fee (CPFF) contract structure influence cost control and contractor incentives for this R&D project?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. For R&D, this structure is often used when the scope of work is not precisely defined or is expected to evolve. The 'cost-plus' element covers the uncertainties inherent in research, ensuring the contractor is not financially penalized for unforeseen technical challenges. The 'fixed fee' component provides the contractor with a profit incentive. To control costs, DHS will need robust oversight to ensure only reasonable and allocable costs are reimbursed. The fixed fee itself acts as a ceiling on profit, but the primary cost control mechanism relies on diligent government administration and monitoring of the contractor's expenditures and progress towards defined research objectives.

What is the typical track record of Radiation Monitoring Devices, Inc. in securing government R&D contracts, particularly with DHS?

The provided data does not include historical contract information for Radiation Monitoring Devices, Inc. To assess their track record, one would need to analyze past performance on similar government contracts, including their success in meeting technical requirements, adhering to schedules, and managing costs. Specifically, examining their prior awards from DHS or other agencies involved in radiation detection R&D would provide insight into their experience and capabilities. A review of contract databases or federal procurement records would be necessary to determine if they have a history of successful project completion, positive past performance reviews, and a pattern of winning competitive R&D awards in this specialized field.

Given the 'full and open competition' and 3 bidders, what does this imply about the market competitiveness for radiation monitoring R&D?

Awarding the contract under 'full and open competition' signifies that the government sought bids from all interested and capable sources. The fact that only three bids were received suggests that the market for this specific type of radiation monitoring R&D may be relatively niche or concentrated among a few specialized firms. While three bidders indicate some level of competition, it might not represent the full potential market. Factors contributing to a limited number of bidders could include high barriers to entry (e.g., specialized expertise, intellectual property, existing infrastructure), the specific technical requirements of the solicitation, or the overall size and duration of the contract. This level of competition is generally favorable compared to sole-source awards but could potentially be improved with broader outreach or by structuring requirements differently in future solicitations.

What are the potential risks associated with a long-duration (over 3 years) R&D contract like this?

Long-duration R&D contracts carry several potential risks. Firstly, the technological landscape can change rapidly; by the time the contract concludes, the developed technology might be outdated or superseded by advancements elsewhere. Secondly, cost overruns are a significant risk, especially with CPFF contracts, as R&D inherently involves unknowns that can drive up expenses. Thirdly, there's a risk of scope creep, where the project's objectives expand beyond the original intent, leading to increased costs and delays. Fourthly, maintaining consistent government oversight and technical expertise over the entire contract duration can be challenging. Finally, the contractor might face difficulties in retaining key personnel or maintaining focus on the project's goals over an extended period, potentially impacting the quality and timeliness of deliverables.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RWMD23R00000010

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dynasil Corporation of America

Address: 44 HUNT ST #2, WATERTOWN, MA, 02472

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

Financial Breakdown

Contract Ceiling: $3,798,143

Exercised Options: $1,998,863

Current Obligation: $1,998,863

Actual Outlays: $902,043

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline