DoD's $12.76M R&D contract for missile systems development awarded to Radiance Technologies Inc

Contract Overview

Contract Amount: $12,762,138 ($12.8M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2004-05-27

End Date: 2007-05-26

Contract Duration: 1,094 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200409!001785!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0066 !A!N! !N! ! !20040527!20050526!031994218!031994218!031994218!N!RADIANCE TECHNOLOGIES INC !350 WYNN DR !HUNTSVILLE !AL!35805!54840!071!28!OXFORD !LAFAYETTE !MISS !+000001862761!N!N!000019171654!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!004!E! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to RADIANCE TECHNOLOGIES INC for work described as: 200409!001785!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0066 !A!N! !N! ! !20040527!20050526!031994218!031994218!031994218!N!RADIANCE TECHNOLOGIES INC !350 WYNN DR !HUNTSVILLE !AL!35805!54840!071!28!OXFORD !LAFA… Key points: 1. Contract focused on advanced technology development for missile and space systems. 2. Awarded through full and open competition, suggesting a robust market. 3. Performance period of approximately 3 years indicates a medium-term project. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. Small business set-aside was not utilized. 6. Geographic impact is concentrated in Alabama, where the contractor is located.

Value Assessment

Rating: fair

The total award amount of $12.76 million for Research and Development in Missile and Space Systems is difficult to benchmark without more specific details on the scope of work. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost overruns if not managed tightly. The fixed fee component provides some incentive for the contractor to manage costs, but the 'cost plus' element means the government bears the majority of the cost risk. Without comparable contracts for similar advanced technology development, assessing value for money 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 bids. The presence of 4 bids suggests a reasonable level of competition for this specialized R&D requirement. This competitive process is generally expected to lead to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by considering a wide range of potential contractors, likely leading to a more efficient use of public funds.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Army, through advancements in missile and space systems technology. The contract supports the development of advanced technologies crucial for national security. The geographic impact is primarily in Huntsville, Alabama, where Radiance Technologies Inc. is headquartered. The contract likely supports a specialized workforce in R&D, engineering, and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a risk with Cost Plus Fixed Fee contracts if not closely monitored.
The specific deliverables and technological advancements are not detailed, making performance assessment difficult.
Reliance on a single contractor for this specific R&D may limit future competitive options if knowledge is highly specialized.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The contractor, Radiance Technologies Inc., has a track record in defense contracting.
The contract aims to advance critical missile and space systems technology for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technology development for missile and space systems. This is a highly specialized area within the broader defense industrial base. The market for such R&D is often characterized by a limited number of highly capable firms. Spending in this area is critical for maintaining technological superiority and national security, and contracts are typically awarded based on technical merit and innovation.

Small Business Impact

This contract was not a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The focus on advanced R&D may mean that prime contractors are large, specialized firms, potentially limiting direct opportunities for small businesses unless they are key subcontractors with niche expertise.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Inspector General (IG) investigations could be initiated if fraud, waste, or abuse is suspected. Transparency is generally maintained through contract reporting systems, though specific technical details of R&D may be sensitive.

Related Government Programs

Missile Defense Systems R&D
Advanced Technology Development Programs
Space Systems Research Contracts
Department of Defense Research and Development

Risk Flags

Cost Overrun Risk (CPFF)
Scope Definition Uncertainty (R&D)
Technological Obsolescence Risk
Limited Competition Pool for Highly Specialized R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to RADIANCE TECHNOLOGIES INC. 200409!001785!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0066 !A!N! !N! ! !20040527!20050526!031994218!031994218!031994218!N!RADIANCE TECHNOLOGIES INC !350 WYNN DR !HUNTSVILLE !AL!35805!54840!071!28!OXFORD !LAFAYETTE !MISS !+000001862761!N!N!000019171654!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !999

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 $12.8 million.

What is the period of performance?

Start: 2004-05-27. End: 2007-05-26.

What is Radiance Technologies Inc.'s overall track record with the Department of Defense, particularly in missile and space systems R&D?

Radiance Technologies Inc. has a history of contracting with the Department of Defense, often in areas related to research, development, and engineering services. While this specific contract focuses on missile and space systems, their broader portfolio may include work on sensor systems, electronic warfare, and other advanced technologies. A detailed review of their contract history would reveal the number and value of previous awards, performance ratings, and any significant issues encountered. Their presence in Huntsville, Alabama, a hub for aerospace and defense, suggests a strategic alignment with key DoD research initiatives. Further analysis would involve examining past performance metrics and any documented successes or failures in delivering on similar R&D contracts.

How does the $12.76 million award compare to other R&D contracts for similar missile and space systems development?

Benchmarking this $12.76 million award requires comparing it against contracts with similar scope, complexity, and technological objectives within the missile and space systems domain. R&D contracts can vary significantly in value, from small, targeted research efforts to large, multi-year programs. Contracts for foundational research might be smaller, while those involving prototype development or advanced system integration could be substantially larger. Given the 'advanced tech dev' nature, this contract likely represents a mid-tier investment. Without access to a database of comparable R&D projects, it's difficult to definitively state if $12.76 million is high, low, or average. However, the duration of approximately three years suggests a substantial, but not necessarily program-defining, level of investment.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for missile systems R&D?

The primary risks with a CPFF contract, especially in R&D, revolve around cost control and scope definition. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government bears the risk of cost overruns if the project's expenses exceed initial estimates. In R&D, predicting costs can be inherently difficult due to the uncertain nature of innovation and technological challenges. Scope creep is another significant risk; if the project's objectives are not clearly defined or if requirements evolve, costs can escalate rapidly. Effective oversight, detailed milestone tracking, and robust change management processes are crucial to mitigate these risks and ensure the government receives value for its investment.

What is the expected program effectiveness or outcome of this contract for advancing missile and space systems?

The expected outcome of this contract is the advancement of technology related to missile and space systems, as indicated by the 'RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV' description. The specific effectiveness hinges on the successful completion of research and development tasks outlined in the contract's statement of work. This could lead to improved system performance, new capabilities, enhanced reliability, or reduced costs for future missile and space platforms. The ultimate measure of effectiveness will be how well the developed technologies integrate into operational systems and contribute to the Department of Defense's strategic objectives in space and missile defense. Without detailed project goals, assessing specific effectiveness metrics is speculative.

How has spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) category evolved for the Department of the Army?

Spending within NAICS code 541710 for the Department of the Army has historically been substantial, reflecting the critical role of R&D in maintaining military technological superiority. This category encompasses a wide range of scientific and engineering research, from basic research to applied development. Over the years, Army R&D spending has fluctuated based on strategic priorities, budget allocations, and perceived threats. Periods of heightened geopolitical tension or focus on specific technological areas, like missile defense or advanced materials, often see increased investment. Analyzing historical spending patterns for this NAICS code would reveal trends, identify peak investment periods, and highlight shifts in research focus areas within the Army's R&D portfolio.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 350 WYNN DR, HUNTSVILLE, AL, 05

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline