DoD's $22.1M laser tech contract with Radiance Technologies shows strong R&D investment

Contract Overview

Contract Amount: $22,124,587 ($22.1M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2018-07-03

End Date: 2024-01-02

Contract Duration: 2,009 days

Daily Burn Rate: $11.0K/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: ADVANCED TECHNOLOGIES FOR HIGH ENERGY LASER APPLICATIONS (ATHELA: THE PRIMARY FOCUS OF ATHELA IS IMPROVED PERFORMANCE AND INCREASED TECHNOLOGY READINESS LEVELS (TRLS) FOR LASER AND BEAM CONTROL TECHNOLOGIES.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to RADIANCE TECHNOLOGIES INC for work described as: ADVANCED TECHNOLOGIES FOR HIGH ENERGY LASER APPLICATIONS (ATHELA: THE PRIMARY FOCUS OF ATHELA IS IMPROVED PERFORMANCE AND INCREASED TECHNOLOGY READINESS LEVELS (TRLS) FOR LASER AND BEAM CONTROL TECHNOLOGIES. Key points: 1. Contract focuses on advancing laser and beam control technologies, aiming for higher Technology Readiness Levels (TRLs). 2. This investment supports the Department of Defense's strategic goals in advanced weaponry and defense capabilities. 3. The contract's duration and cost-plus-fixed-fee structure suggest a focus on research and development flexibility. 4. Performance context indicates a commitment to improving key defense technologies. 5. Sector positioning places this within the broader R&D landscape for defense applications.

Value Assessment

Rating: good

The contract value of $22.1 million over its period of performance appears reasonable for advanced research and development in a specialized field like high-energy lasers. Benchmarking against similar R&D contracts in defense would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where costs can be uncertain, allowing for flexibility while incentivizing the contractor to manage expenses to achieve the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific circumstances led to excluding certain potential bidders. This suggests a limited competition environment, which could potentially impact price discovery compared to full and open competition. The number of bidders (2) is relatively low, further reinforcing the limited nature of the competition.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers compared to a scenario with broader participation from multiple interested vendors.

Public Impact

The primary beneficiaries are the Department of Defense, which gains access to improved laser and beam control technologies. Services delivered include research and development to enhance performance and TRLs for critical defense systems. The geographic impact is primarily within Alabama, where Radiance Technologies is located, potentially supporting local high-tech employment. Workforce implications include specialized roles for scientists, engineers, and technicians in advanced laser technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
The CPFF contract type can incentivize cost overruns if not closely monitored.
Reliance on a limited number of bidders may pose future supply chain risks.

Positive Signals

Focus on advancing critical defense technology (high-energy lasers).
Contract awarded to a known entity in the defense sector.
Investment in R&D aligns with modernization efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for high-energy laser technology is a niche but critical area within defense, driven by the need for next-generation capabilities. Spending in this area is often characterized by long development cycles and significant investment, with contracts typically awarded to specialized R&D firms. Comparable spending benchmarks would involve looking at other DoD contracts for directed energy research.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Radiance Technologies Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet, but given the specialized nature of the R&D, subcontracting opportunities for small businesses might be limited unless they possess highly specific 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. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Directed Energy Systems
Advanced Weapons Research
Department of Defense Research and Development Programs
Laser Technology Development

Risk Flags

Limited Competition
Cost-Plus Contract Type
Potential for Cost Overruns
Lack of Small Business Set-Aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to RADIANCE TECHNOLOGIES INC. ADVANCED TECHNOLOGIES FOR HIGH ENERGY LASER APPLICATIONS (ATHELA: THE PRIMARY FOCUS OF ATHELA IS IMPROVED PERFORMANCE AND INCREASED TECHNOLOGY READINESS LEVELS (TRLS) FOR LASER AND BEAM CONTROL TECHNOLOGIES.

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 $22.1 million.

What is the period of performance?

Start: 2018-07-03. End: 2024-01-02.

What is Radiance Technologies Inc.'s track record with similar Department of Defense contracts, particularly in directed energy or laser technology?

Radiance Technologies Inc. has a history of securing contracts with the Department of Defense, often in areas related to advanced technologies, sensors, and electronic warfare. While specific details on their past performance in high-energy laser applications require deeper database analysis, their presence in this contract suggests a recognized capability. Reviewing past contract awards, performance evaluations (if publicly available), and any past performance issues would provide a clearer picture of their reliability and expertise in this specialized R&D domain. Their ability to win this contract, even under limited competition, implies a positive assessment of their capabilities by the Army.

How does the $22.1 million contract value compare to other R&D investments in high-energy laser technology by the DoD?

The $22.1 million contract value for the ATHELA program represents a significant, but not exceptionally large, investment in a specific R&D area. The Department of Defense invests billions annually in research and development across various technological domains. Contracts for high-energy laser technology can range from tens of millions for focused R&D efforts like this, to hundreds of millions or even billions for larger-scale system development and procurement programs. This contract appears to be a mid-tier investment focused on improving core technology readiness levels, suggesting it's part of a broader, multi-faceted R&D strategy rather than a sole major program.

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

The primary risks with a CPFF contract for R&D, like the ATHELA program, revolve around cost control and contractor incentives. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If not managed diligently, this can lead to cost overruns as the contractor may have less incentive to minimize expenses compared to fixed-price contracts. The government bears the risk of cost uncertainty inherent in R&D. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the effectiveness of competition and potential cost savings?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that the agency initially intended or was required to consider all responsible sources but subsequently excluded specific ones based on certain justifications (e.g., national security, unique capabilities, prior development). This implies a less robust competitive environment than true full and open competition. With only two bidders identified, the potential for aggressive price negotiation and cost savings is likely reduced. While competition occurred, the exclusion of other potential sources limits the pressure on the awarded contractor to offer the lowest possible price, potentially impacting overall value for money.

What are the potential long-term implications of advancing Technology Readiness Levels (TRLs) for laser and beam control technologies?

Advancing TRLs for laser and beam control technologies has significant long-term implications for national defense. Higher TRLs indicate that technologies are closer to being proven and deployable in operational systems. For the DoD, this means faster transition of innovative research into practical applications, potentially leading to enhanced capabilities in areas such as missile defense, counter-drone systems, directed energy weapons, and advanced sensing. It reduces the risk and cost associated with developing and fielding new systems, ultimately providing the warfighter with more advanced and effective tools, while potentially creating opportunities for future technology spin-offs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9113M13R0012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Radiance Technologies, Inc.

Address: 350 WYNN DR NW, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,140,273

Exercised Options: $29,140,273

Current Obligation: $22,124,587

Actual Outlays: $892,590

Subaward Activity

Number of Subawards: 66

Total Subaward Amount: $25,018,824

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M16D0004

IDV Type: IDC

Timeline