DoD's $7.47M NASIC contract to Radiance Technologies Inc. for R&D support awarded via full and open competition

Contract Overview

Contract Amount: $7,472,922 ($7.5M)

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: $6.8K/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: NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTIC CAPABILITY SUPPORT CONTRACT

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $7.5 million to RADIANCE TECHNOLOGIES INC for work described as: NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTIC CAPABILITY SUPPORT CONTRACT Key points: 1. Contract awarded for scientific and technical intelligence analytic capability support. 2. Focus on research and development in physical, engineering, and life sciences. 3. Radiance Technologies Inc. is the prime contractor. 4. Contract duration is 1095 days. 5. Awarded as a Delivery Order under a larger contract vehicle. 6. The contract type is Cost Plus Fixed Fee. 7. This contract is not a small business set-aside.

Value Assessment

Rating: good

The total award amount of $7.47 million for a 3-year contract appears reasonable for specialized R&D support in intelligence analysis. Benchmarking against similar contracts for scientific and technical intelligence support is challenging without more specific service details. However, the Cost Plus Fixed Fee structure allows for flexibility in research while providing a defined profit margin for the contractor, suggesting a balanced approach to value.

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,' indicating that while sources were initially excluded, the final award was made through a competitive process open to all eligible offerors. The presence of two bids suggests a moderate level of competition for this specialized requirement.

Taxpayer Impact: A competitive award process, even after initial source exclusions, is generally beneficial for taxpayers as it encourages multiple firms to offer their best pricing and technical solutions, potentially leading to cost savings and improved service quality.

Public Impact

The primary beneficiaries are the Department of Defense and its intelligence agencies, receiving enhanced analytic capabilities. Services delivered include scientific and technical intelligence analysis. The geographic impact is primarily within Ohio, where the contractor is located. Workforce implications include employment for specialized researchers and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The 'after exclusion of sources' clause warrants further investigation into the initial exclusion rationale.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
The contract supports critical national security functions within the intelligence community.
The contractor, Radiance Technologies Inc., likely possesses specialized expertise for this role.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences intelligence. The market for such specialized intelligence support is niche, dominated by a few firms with deep expertise in both scientific domains and intelligence analysis. Comparable spending benchmarks are difficult to establish due to the unique nature of intelligence support services, but R&D spending by the DoD is substantial.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing specialized capabilities from larger, established firms. The impact on the small business ecosystem is likely minimal unless Radiance Technologies Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally limited for intelligence-related contracts, but standard DoD reporting mechanisms would apply.

Related Government Programs

National Air and Space Intelligence Center (NASIC) Operations
Department of Defense Intelligence Support Contracts
Scientific and Technical Intelligence Analysis
Research and Development Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Need for clear definition and management of R&D scope.
Ensuring continued competition and innovation in specialized intelligence support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 million to RADIANCE TECHNOLOGIES INC. NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTIC CAPABILITY SUPPORT CONTRACT

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 $7.5 million.

What is the period of performance?

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

What is the specific nature of the 'scientific and technical intelligence analytic capability support' being provided?

The contract aims to enhance the National Air and Space Intelligence Center's (NASIC) ability to analyze scientific and technical information relevant to national security. This likely involves supporting intelligence analysts in understanding foreign technological advancements, assessing their implications, and providing actionable intelligence. The support could range from literature reviews and data analysis to expert consultation on emerging technologies across various scientific disciplines, including physics, engineering, and life sciences. The specific deliverables would depend on NASIC's evolving intelligence requirements and priorities.

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

The CPFF structure means the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. This structure is common for R&D where the scope may evolve and precise costs are difficult to estimate upfront. For Radiance Technologies Inc., it provides an incentive to control costs to maximize their profit margin, as the fee is fixed regardless of actual costs. However, it also requires robust oversight from the Air Force to ensure costs are reasonable and allocable to the contract. The government bears the risk of cost overruns if actual costs exceed estimates, while the contractor is motivated to perform efficiently to achieve the fixed fee.

What are the implications of the 'Full and Open Competition After Exclusion of Sources' award type?

This award type suggests that initially, certain potential sources were excluded from consideration, perhaps due to specific requirements or pre-existing relationships. However, the contract was ultimately awarded through a process that allowed any responsible source to submit an offer, indicating a competitive bid was solicited and received. This implies that while there might have been an initial narrowing of the field, the final selection was based on merit and competition among eligible bidders. It aims to balance the need for specialized capabilities with ensuring fair and open competition to achieve the best value for the government.

What is Radiance Technologies Inc.'s track record in supporting intelligence analysis and R&D contracts for the Department of Defense?

Radiance Technologies Inc. has a history of providing advanced engineering, scientific, and technical services to various government agencies, including the Department of Defense. Their expertise often lies in areas such as electronic warfare, signals intelligence, and advanced sensor development. While specific details on their past performance on NASIC-like contracts require deeper database searches, their general profile suggests they are a capable provider of technical support. Their ability to secure this contract indicates a positive assessment of their past performance and technical qualifications by the Air Force.

How does this $7.47 million contract compare to other R&D support contracts awarded by the Air Force or DoD in recent years?

Without specific service details, a direct comparison is difficult. However, $7.47 million over three years for specialized intelligence R&D support is within a typical range for such niche services. Many DoD R&D contracts can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and technological complexity. Contracts for intelligence analysis support often require highly specialized expertise, which can command premium pricing. This award appears to be a moderate-sized contract for a critical but specialized function.

Are there any significant risks associated with this contract, such as technical challenges, contractor performance issues, or cost overruns?

Potential risks include the inherent uncertainties in R&D, where outcomes are not guaranteed and technical challenges can arise. The CPFF structure carries a risk of cost overruns if not managed effectively by both the contractor and the government. Contractor performance is a standard risk for any contract; however, the competitive award process and the contractor's likely prior experience mitigate this. The 'after exclusion of sources' element could indicate a potential risk if the initial exclusions were not fully justified or if they limited the pool of highly qualified bidders, though the subsequent open competition mitigates this concern.

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: 2

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: $7,472,922

Exercised Options: $7,472,922

Current Obligation: $7,472,922

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $643,246

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