DoD awards $6.27M for strategic planning and systems support to Radiance Technologies Inc

Contract Overview

Contract Amount: $6,270,744 ($6.3M)

Contractor: Radiance Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-31

End Date: 2029-07-17

Contract Duration: 1,812 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER AWARD: STRATEGIC PLANNING, BUSINESS OPERATIONS, AND SYSTEMS SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35807

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to RADIANCE TECHNOLOGIES INC for work described as: TASK ORDER AWARD: STRATEGIC PLANNING, BUSINESS OPERATIONS, AND SYSTEMS SUPPORT SERVICES Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Awarded via full and open competition, indicating a competitive process. 3. Task order is for strategic planning, business operations, and systems support. 4. Performance period spans over 5 years, suggesting long-term needs. 5. Contract type is Cost Plus Fixed Fee, allowing for cost reimbursement with a set fee. 6. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $6.27 million for strategic planning and systems support appears reasonable given the 5-year performance period. Without specific benchmarks for similar R&D support services, a direct comparison is difficult. However, the Cost Plus Fixed Fee (CPFF) structure suggests that costs will be reimbursed, with a fixed fee for the contractor's effort. This structure can be effective for R&D where scope may evolve, but requires careful oversight to manage costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that the initial solicitation was broad, but specific sources were later excluded. This suggests a competitive process was intended, but the final award may have been to a limited pool. Further details on the exclusion criteria would be needed to fully assess the competitive landscape.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple bidders to offer competitive pricing and innovative solutions.

Public Impact

The Department of the Army will benefit from enhanced strategic planning and operational support. Services delivered include business operations and systems support, crucial for R&D functions. The contract is located in Alabama, potentially impacting the local workforce and economy. This award supports research and development activities within the physical, engineering, and life sciences sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under the CPFF structure if not closely monitored.
The 'exclusion of sources' in the competition type warrants further investigation into fairness and breadth of competition.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Long performance period indicates a sustained need and potential for stable support.
Focus on R&D aligns with strategic government objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for R&D support services is substantial, with numerous firms offering specialized expertise. Comparable spending benchmarks would typically involve analyzing other task orders for similar services awarded by the Department of Defense or other federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Radiance Technologies Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would include regular performance reviews, cost tracking, and adherence to the contract's statement of work. Transparency is generally facilitated through contract award databases, though specific details of performance and cost breakdowns may be limited.

Related Government Programs

Department of Defense Research and Development Contracts
Army Strategic Planning Services
Systems Support Services
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited clarity on the impact of 'exclusion of sources' on competition.
Need for robust government oversight of costs and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to RADIANCE TECHNOLOGIES INC. TASK ORDER AWARD: STRATEGIC PLANNING, BUSINESS OPERATIONS, AND SYSTEMS SUPPORT SERVICES

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 $6.3 million.

What is the period of performance?

Start: 2024-07-31. End: 2029-07-17.

What is Radiance Technologies Inc.'s track record with the Department of Defense, particularly in R&D support services?

Radiance Technologies Inc. has a history of contracts with the Department of Defense, often in areas related to research, development, and engineering services. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts would provide insight into their ability to manage costs and deliver on complex R&D support requirements. A review of their contract history would reveal the types of projects they have undertaken, their performance ratings, and any instances of contract disputes or challenges. This information is crucial for assessing their reliability and suitability for this specific task order, ensuring taxpayer funds are managed effectively and project goals are met.

How does the $6.27 million value compare to similar R&D support contracts awarded by the Department of the Army?

Benchmarking the $6.27 million value requires comparing it against similar task orders for strategic planning, business operations, and systems support within the R&D domain awarded by the Department of the Army or other DoD components. Factors such as the duration of the contract (over 5 years), the specific technical requirements, and the complexity of the R&D focus (physical, engineering, life sciences) are critical for a fair comparison. If similar, shorter-term contracts for less complex services have been awarded at significantly lower price points, it might suggest this contract's value is on the higher side. Conversely, if other multi-year R&D support contracts of comparable scope and complexity are valued similarly or higher, then $6.27 million could represent a fair market price.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns. While the contractor's fee is fixed, the 'cost' portion is reimbursable. If the R&D effort proves more complex or time-consuming than initially estimated, the government bears the cost of these overruns. This necessitates robust oversight from the government to ensure that all claimed costs are reasonable, allocable, and allowable, and that the contractor is managing resources efficiently. Another risk is scope creep, where the project's objectives expand beyond the original intent, leading to increased costs without a corresponding increase in the fixed fee, unless a contract modification is issued.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for price discovery and value for money?

The 'Full and Open Competition After Exclusion of Sources' designation suggests an initial intent for broad competition, which is generally positive for price discovery and value for money. However, the subsequent exclusion of specific sources introduces a layer of complexity. If the exclusion was based on objective criteria and still resulted in a sufficient number of qualified bidders, it could still yield competitive pricing. But if the exclusion significantly narrowed the field, it might have limited the competitive pressure, potentially leading to less favorable pricing for the government. Understanding the rationale behind the exclusions is key to assessing whether the final competition level truly maximized value for taxpayers.

How does this contract align with the Department of the Army's broader R&D objectives and spending patterns?

This task order aligns with the Department of the Army's broader R&D objectives by providing essential support services for strategic planning, business operations, and systems. These functions are critical for the effective execution and management of research initiatives across physical, engineering, and life sciences. Analyzing historical spending patterns within the Army's R&D budget for similar support services would reveal whether this $6.27 million award represents a typical investment or a significant deviation. Understanding this context helps determine if the contract is part of a consistent strategy or an outlier, and whether the allocated funds are being used efficiently to advance the Army's research goals.

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

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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,026,704

Exercised Options: $78,026,704

Current Obligation: $6,270,744

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,874,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS614

IDV Type: IDC

Timeline