DoD's $95M NASIC contract for intelligence analysis awarded to Radiance Technologies Inc

Contract Overview

Contract Amount: $9,503,473 ($9.5M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2024-02-02

End Date: 2027-02-01

Contract Duration: 1,095 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTICAL CAPABILITY SUPPORT

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $9.5 million to RADIANCE TECHNOLOGIES INC for work described as: NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTICAL CAPABILITY SUPPORT Key points: 1. Contract focuses on critical scientific and technical intelligence analysis for national security. 2. Radiance Technologies Inc. has a history of supporting defense intelligence initiatives. 3. The contract type, Cost Plus Fixed Fee, allows for flexibility but requires careful cost monitoring. 4. Competition was conducted after exclusion of sources, suggesting specific capabilities were sought. 5. The contract duration of three years indicates a medium-term need for these services. 6. Geographic location in Ohio may point to specific facility or workforce considerations.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. The base award amount of $8.68 million for the initial period suggests a significant but not unprecedented investment for specialized intelligence analysis. Comparing it to similar contracts for scientific and technical intelligence support would require access to proprietary pricing data. However, the fixed fee component provides some predictability, though overall costs can escalate based on allowable expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have been broad, specific criteria or circumstances led to the exclusion of certain potential bidders, resulting in a limited pool of competitors. The exact reasons for exclusion are not detailed, but it typically implies that only a select number of contractors possessed the unique qualifications or capabilities required for this specialized intelligence support.

Taxpayer Impact: The limited competition suggests that taxpayers may not have benefited from the most aggressive pricing that a broader, more open competition could have generated. However, it also implies that the selected contractor was deemed uniquely capable of meeting the government's specific, potentially sensitive, requirements.

Public Impact

The primary beneficiaries are the National Air and Space Intelligence Center (NASIC) and the broader Department of Defense, receiving enhanced scientific and technical intelligence analysis. Services delivered include critical support for understanding foreign aerospace technology, capabilities, and intentions. The geographic impact is centered in Ohio, where NASIC facilities are located, potentially supporting local technical expertise. Workforce implications include the potential for highly skilled analysts and researchers, both within Radiance Technologies and potentially through subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The 'after exclusion of sources' competition method limits transparency into the full competitive landscape.
Reliance on a single contractor for critical intelligence analysis could pose a risk if performance falters.

Positive Signals

Radiance Technologies Inc. has a demonstrated track record in defense and intelligence support.
The contract addresses a critical national security need for advanced technical intelligence.
The fixed fee component provides a baseline cost control measure.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on scientific and technical intelligence analysis. The market for such specialized services is dominated by a few key defense contractors with deep expertise in intelligence gathering, analysis, and technology assessment. Spending in this area is driven by national security priorities and the constant need to stay ahead of evolving global technological threats. Comparable spending benchmarks are difficult to establish due to the classified nature of much intelligence work, but contracts of this magnitude are typical for supporting major intelligence centers like NASIC.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, Radiance Technologies Inc., as a prime contractor, may choose to subcontract portions of the work to small businesses to leverage specialized skills or meet broader economic goals, though this is not explicitly required by the contract terms provided.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force and NASIC contracting officials. Performance monitoring, financial audits, and adherence to contract terms will be key accountability measures. Transparency is generally limited for intelligence-related contracts; however, standard government contracting oversight processes, including potential reviews by the Government Accountability Office (GAO) or the Inspector General, would apply to ensure proper use of funds and contract compliance.

Related Government Programs

National Air and Space Intelligence Center (NASIC) Operations
Department of Defense Intelligence Information Systems
Scientific and Technical Intelligence Support Services
Aerospace Technology Analysis Programs
Intelligence Community Information Technology Enterprise (IC ITE)

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Transparency
Key Personnel Retention
National Security Impact of Service Disruption

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to RADIANCE TECHNOLOGIES INC. NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTICAL CAPABILITY 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 Air Force).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2024-02-02. End: 2027-02-01.

What is Radiance Technologies Inc.'s track record with similar intelligence analysis contracts?

Radiance Technologies Inc. has a significant history of supporting U.S. defense and intelligence agencies with a range of services, including intelligence analysis, systems engineering, and technical support. While specific details on past contracts are often classified or not publicly disclosed, their portfolio typically includes work with entities like the Air Force, Navy, and various intelligence community components. Their experience often involves providing specialized expertise in areas such as threat assessment, technology intelligence, and mission support. This background suggests they possess the necessary clearances, personnel, and understanding of the intelligence environment to execute the NASIC contract effectively. Publicly available contract awards indicate consistent engagement in similar domains over several years.

How does the pricing structure (Cost Plus Fixed Fee) compare to other intelligence analysis contracts?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development, and complex services where the scope of work may evolve or is difficult to define precisely at the outset. In CPFF contracts, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility for the government if requirements change, but it carries a higher risk of cost growth. Conversely, it provides more cost certainty than a Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) structure, which incorporate performance-based incentives or award fees. For intelligence analysis, CPFF is often chosen to allow for exploration and adaptation to new intelligence findings without constant contract renegotiation, though it necessitates robust government oversight to manage costs.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential cost overruns inherent in the CPFF structure, requiring diligent government oversight of allowable expenses. The 'after exclusion of sources' competition method, while potentially necessary for specialized capabilities, limits the potential for competitive pricing and may reduce the incentive for maximum efficiency. There's also a risk related to the contractor's ability to maintain the highly specialized personnel required for scientific and technical intelligence analysis, given the competitive market for such talent. Finally, any disruption in service delivery could have significant national security implications due to the critical nature of NASIC's mission.

How effective is the competition method used for this contract in ensuring value for taxpayers?

The competition method, 'Full and Open Competition After Exclusion of Sources,' presents a mixed picture for taxpayer value. On one hand, it ensures that the government can select a contractor with highly specific, potentially unique, capabilities essential for a critical mission like scientific and technical intelligence analysis. This specificity might be unattainable through a broader competition. However, by excluding sources, the government inherently limits the number of potential bidders, which can reduce competitive pressure on pricing and potentially lead to higher costs than if a wider range of capable firms competed. The value for taxpayers hinges on whether the selected contractor's specialized capabilities truly justify the potentially higher price point and whether the fixed fee adequately compensates the contractor without excessive profit.

What are the historical spending patterns for scientific and technical intelligence analysis at NASIC?

Historical spending patterns for scientific and technical intelligence analysis at NASIC are not publicly detailed due to the classified nature of the work. However, it is understood that NASIC receives substantial funding to maintain its role as a primary source of foreign scientific and technical intelligence for the DoD and the intelligence community. Spending typically fluctuates based on geopolitical events, emerging technological threats, and shifts in national intelligence priorities. Contracts for analysis and support services, like the one awarded to Radiance Technologies, represent a significant portion of NASIC's operational budget. The consistent need for such analysis suggests a sustained level of investment over time, likely in the tens to hundreds of millions of dollars annually across various contracts.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,909,472

Exercised Options: $9,503,473

Current Obligation: $9,503,473

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,232,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA860422DB008

IDV Type: IDC

Timeline