DoD's $19.4M contract for engineering and material support awarded to Radiance Technologies Inc

Contract Overview

Contract Amount: $19,357,153 ($19.4M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-12

End Date: 2026-04-12

Contract Duration: 639 days

Daily Burn Rate: $30.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: U&C CONTRACT TO SUPPORT ENGINEERING AND MATERIAL REQUIRED FOR SMDC RTC.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to RADIANCE TECHNOLOGIES INC for work described as: U&C CONTRACT TO SUPPORT ENGINEERING AND MATERIAL REQUIRED FOR SMDC RTC. Key points: 1. Contract awarded for specialized engineering and material support services. 2. Radiance Technologies Inc. selected for this definitive contract. 3. The contract duration spans approximately 639 days. 4. Services are categorized under Research and Development in Physical, Engineering, and Life Sciences. 5. The contract is a Cost Plus Fixed Fee type. 6. The award is for support of SMDC RTC. 7. The contract is not competitively procured.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and comparison to similar sole-source R&D efforts. The fixed fee component suggests some cost control, but the overall price is subject to the actual costs incurred. Given the lack of competition, it's difficult to ascertain if the pricing represents optimal value for the government. Further analysis of the fee structure and historical performance of Radiance Technologies on similar contracts would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery and the government's ability to secure the most cost-effective solution through market forces.

Taxpayer Impact: Taxpayers may not benefit from the competitive pricing that could have been achieved through an open bidding process. The absence of competition could lead to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiary is the Space and Missile Defense Command (SMDC) RTC, which will receive essential engineering and material support. The services delivered are critical for research and development in physical, engineering, and life sciences. The contract is geographically focused on Alabama (AL), indicating potential local economic impact. The contract supports specialized technical work, likely requiring a skilled engineering and scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
Lack of transparency in the sole-source justification requires further review.
Performance metrics and deliverables need rigorous oversight to ensure value.
Limited public information on the specific R&D objectives and expected outcomes.

Positive Signals

Radiance Technologies Inc. is a known entity in the defense sector.
The contract specifies a fixed fee, providing some predictability in contractor profit.
The contract duration is defined, allowing for planning.
The award is for critical R&D support for SMDC RTC.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, supporting advancements in areas like missile defense. The market for specialized R&D services in the defense sector is highly competitive, though often involves sole-source or limited competition awards for unique capabilities. Comparable spending in this sub-sector can vary widely based on the specific technological focus and program maturity.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Radiance Technologies voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and the Department of Defense (DoD) contracting officers. As a Cost Plus Fixed Fee contract, rigorous monitoring of incurred costs and the fixed fee earned by Radiance Technologies will be crucial. Transparency regarding the justification for the sole-source award and performance reporting will be key accountability measures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Space and Missile Defense Command (SMDC) Initiatives
Defense Logistics Agency Support Contracts
Engineering and Material Support Services

Risk Flags

Sole-source award requires justification.
Cost Plus Fixed Fee contract type necessitates robust cost monitoring.
Lack of competitive bidding may impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to RADIANCE TECHNOLOGIES INC. U&C CONTRACT TO SUPPORT ENGINEERING AND MATERIAL REQUIRED FOR SMDC RTC.

Who is the contractor on this award?

The obligated recipient is RADIANCE TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2024-07-12. End: 2026-04-12.

What is the specific technical scope of work for Radiance Technologies Inc. under this contract?

The provided data indicates the contract is 'TO SUPPORT ENGINEERING AND MATERIAL REQUIRED FOR SMDC RTC.' This suggests the scope involves providing technical expertise, design, development, testing, and potentially the procurement or fabrication of materials necessary for the Space and Missile Defense Command's Research, Technology, and Concepts (RTC) activities. The specific nature of these engineering and material requirements would likely be detailed in the contract's statement of work, which is not publicly available in this summary. This could range from conceptual design and prototyping to advanced material analysis and integration support for missile defense systems.

How does the $19.4 million value compare to similar sole-source R&D contracts within the DoD?

Direct comparison of this $19.4 million sole-source R&D contract to similar DoD contracts is challenging without access to a comprehensive database of sole-source R&D awards with detailed scope and duration. However, R&D contracts, especially those involving specialized engineering and material support for advanced defense systems like missile defense, can range significantly in value. Sole-source awards often command higher prices due to the lack of competition and the specialized nature of the required services. To provide a robust comparison, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (like 541715) awarded on a sole-source basis by agencies like the DoD, considering factors like contract duration, specific technological focus, and the contractor's historical performance and pricing.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee contract for R&D?

The primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for R&D include potential cost overruns and a lack of competitive pricing. Since the contract is sole-source, the government does not benefit from competitive bidding, which could lead to a higher overall cost than if multiple vendors had competed. The CPFF structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can create an incentive for the contractor to incur higher costs, as their profit is fixed regardless of the actual cost incurred. Effective oversight, stringent cost controls, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value.

What is Radiance Technologies Inc.'s track record with the DoD, particularly on R&D contracts?

Radiance Technologies Inc. is a known entity within the defense contracting landscape, often involved in advanced technology development and engineering services. While specific details of their track record on R&D contracts with the DoD are not provided in this summary, their selection for this $19.4 million contract suggests a level of established capability and past performance that the DoD deems sufficient. A deeper dive into contract databases (like FPDS or SAM.gov) would reveal the extent of their previous awards, performance ratings, and the types of R&D projects they have supported for the DoD and other federal agencies. This information is crucial for assessing their reliability and expertise.

How does the geographic location (Alabama) impact the contract's execution and potential economic benefits?

The contract's designation for Alabama (AL) suggests that Radiance Technologies Inc. likely has a significant operational presence or facility in the state, or that the work will be performed there. This can lead to direct economic benefits within Alabama through job creation, utilization of local resources, and potential subcontracting opportunities with Alabama-based businesses. For the DoD, having contractors with established facilities in strategic locations can sometimes streamline operations and leverage existing infrastructure. The specific impact depends on the scale of operations and the extent to which local suppliers and workforce are utilized for this particular contract.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRRA224R0063

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

Financial Breakdown

Contract Ceiling: $22,500,000

Exercised Options: $22,500,000

Current Obligation: $19,357,153

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,201,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline