DoD's $20.16M R&D Task Order to Radiance Technologies Inc. for Commercial Services

Contract Overview

Contract Amount: $20,161,620 ($20.2M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: TASK ORDER FOR COMMERCIAL SERVICES ON EXPRESS BPA

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to RADIANCE TECHNOLOGIES INC for work described as: TASK ORDER FOR COMMERCIAL SERVICES ON EXPRESS BPA Key points: 1. Value for money assessed through comparison to similar R&D contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and firm fixed-price structure, which can shift risk to the contractor. 4. Performance context is within the Department of the Army's R&D efforts, specifically in physical and engineering sciences. 5. Sector positioning places this contract within the broader Research and Development landscape for defense applications.

Value Assessment

Rating: good

The $20.16 million task order for commercial services appears to be a reasonable investment given the scope of Research and Development in physical, engineering, and life sciences. Benchmarking against similar R&D contracts within the Department of Defense is crucial for a definitive value assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. However, without specific details on the deliverables and the contractor's historical performance on similar projects, a precise value-for-money judgment remains preliminary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was a task order on an existing BPA (Blanket Purchase Agreement) suggests that the initial competition for the BPA likely established a competitive environment. The number of bidders for this specific task order is not provided, but the 'full and open' designation implies a robust competitive process was intended.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. It ensures that the government is not limited to a single provider, thereby increasing the likelihood of obtaining the best value.

Public Impact

The Department of the Army benefits from advanced research and development services. Services delivered likely contribute to technological advancements in physical and engineering sciences. Geographic impact is centered in Alabama, where Radiance Technologies Inc. is located. Workforce implications include employment opportunities for researchers, engineers, and support staff at Radiance Technologies Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 5 years (1825 days) could lead to scope creep if not managed tightly.
Firm Fixed Price contracts can sometimes disincentivize innovation if not structured with clear performance incentives.
Reliance on a single task order for a significant R&D effort may concentrate risk.

Positive Signals

Awarded under a full and open competition, suggesting a competitive process.
Firm Fixed Price contract shifts cost overrun risk to the contractor.
Task order issued against an existing BPA may indicate streamlined procurement and established vendor relationships.

Sector Analysis

The Research and Development sector, particularly within the physical, engineering, and life sciences (NAICS 541715), is a critical area for defense modernization and technological advancement. This contract fits within the broader landscape of government investment in innovation, aiming to develop new capabilities and maintain a technological edge. Comparable spending benchmarks in this sector are highly variable, depending on the specific research area, but significant government investment is typical for advanced R&D projects.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Radiance Technologies Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this task order. The impact on the small business ecosystem would depend on whether Radiance Technologies Inc. actively seeks small business subcontractors for specialized support or components, which is not detailed here.

Oversight & Accountability

Oversight for this task order would fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the specific IG office depending on the agency involved.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Programs
Advanced Technology Development Contracts
Commercial Services Acquisition
Blanket Purchase Agreements (BPAs)

Risk Flags

Long contract duration
Potential for R&D project uncertainty
Firm Fixed Price structure requires clear scope definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to RADIANCE TECHNOLOGIES INC. TASK ORDER FOR COMMERCIAL SERVICES ON EXPRESS BPA

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 $20.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

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

Radiance Technologies Inc. has a history of performing contracts for the Department of Defense. Analyzing their past performance on similar Research and Development task orders, especially those involving commercial services and firm-fixed-price structures, would provide insight into their reliability and efficiency. Key metrics to examine would include on-time delivery, adherence to budget (if applicable beyond the fixed price), quality of deliverables, and any past performance issues or commendations. A review of their contract history would reveal the types of R&D they have supported and their success rates in achieving project milestones. This context is vital for assessing the risk associated with the current $20.16 million task order.

How does the pricing of this task order compare to similar R&D services procured by the Department of Defense?

Benchmarking the pricing of this $20.16 million task order against similar Research and Development services procured by the Department of Defense is essential for evaluating value for money. This involves comparing the per-unit costs (if applicable and definable for R&D services), labor rates, and overall contract value relative to the scope of work and expected outcomes. Factors such as the specific R&D domain (physical, engineering, life sciences), the level of innovation required, and the contractor's overhead structure influence pricing. Without access to detailed cost breakdowns or a comprehensive database of comparable R&D contract pricing, a precise comparison is challenging. However, the 'full and open competition' award method suggests that pricing was likely scrutinized against competing proposals.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this $20.16 million task order include potential scope creep over its 5-year duration, the possibility of the firm-fixed-price structure stifling innovation if not managed with clear performance metrics, and the inherent uncertainties in R&D projects. Mitigation strategies likely involve a detailed Performance Work Statement (PWS) that clearly defines deliverables and milestones, robust project management and oversight from the Department of the Army, and potentially incorporating specific incentive clauses tied to performance. The firm-fixed-price nature itself mitigates financial risk for the government regarding cost overruns, shifting that burden to Radiance Technologies Inc., provided the scope is well-defined and managed.

How effective is the 'full and open competition' approach likely to be in ensuring the best value for this R&D requirement?

The 'full and open competition' approach is generally considered the most effective method for ensuring the best value for government procurements, including R&D requirements. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that can drive down prices and encourage innovative solutions. For this $20.16 million task order, this approach increases the likelihood that the Department of the Army received proposals offering a strong balance of technical merit and cost-effectiveness. The effectiveness is further enhanced if the evaluation criteria were clearly defined and rigorously applied to assess both technical approach and price.

What is the historical spending pattern for similar R&D services by the Department of the Army?

Historical spending patterns for similar R&D services by the Department of the Army are substantial, reflecting the continuous need for technological advancement. The Army invests billions annually across various R&D categories, including physical, engineering, and life sciences. Spending can fluctuate based on strategic priorities, emerging threats, and technological breakthroughs. Analyzing past spending on contracts with NAICS code 541715, particularly those awarded under full and open competition and with firm-fixed-price terms, would reveal trends in contract values, durations, and the types of research areas prioritized. This specific $20.16 million task order represents a segment of this broader historical investment.

What are the implications of the 5-year duration for this R&D task order?

A 5-year (1825 days) duration for this R&D task order has several implications. Firstly, it allows for the potential development and maturation of complex technologies or research projects that require extended periods of investigation and testing. Secondly, it provides stability for the contractor, Radiance Technologies Inc., enabling them to allocate resources and personnel effectively over the long term. However, a longer duration also increases the risk of scope creep, potential obsolescence of initial research directions if not managed adaptively, and the need for sustained government oversight to ensure continued alignment with evolving requirements and objectives. It also means a significant portion of the budget is committed over an extended period.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,182,397

Exercised Options: $20,533,931

Current Obligation: $20,161,620

Actual Outlays: $47,967

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $770,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D008B

IDV Type: FSS

Timeline