NASA's Jet Propulsion Laboratory contract with Caltech exceeds $807M for R&D in planetary science

Contract Overview

Contract Amount: $807,809,090 ($807.8M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2018-10-01

End Date: 2028-09-30

Contract Duration: 3,652 days

Daily Burn Rate: $221.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PSYCHE: JOURNEY TO A METAL WORLD THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCATIONAL INSTITUTION, WHICH ESTABLISHES THE RELATIONSHIP FOR THE OPERATION OF THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) KNOWN AS THE JET PROPULSION LABORATORY. THE CONTRACTOR, JPL, IS REQUIRED TO PERFORM WORK THAT IS DESIGNATED IN TASK ORDERS ISSUED BY THE NASA MANAGEMENT OFFICE (NMO) CONTRACTING OFFICERS. NASA - SPONSORED WORK: JPL'S PRIMARY MISSION IS TO SUPPORT THE NASA SCIENCE MISSION DIRECTORATE (SMD) IN CARRYING OUT THE SPECIFIC OBJECTIVES IDENTIFIED IN THE SMD SCIENCE PLAN. THE FOUR BROAD SCIENTIFIC AREAS ARE: EARTH SCIENCE, PLANETARY SCIENCE, HELIOPHYSICS, AND ASTROPHYSICS. IN PERFORMANCE OF THIS CONTRACT, JPL SHALL: 1) SUPPLY A BROAD BASE OF SCIENTIFIC AND TECHNICAL CAPABILITIES RELEVANT TO NASA PROGRAM AND PROJECT RESPONSIBILITIES AND ASSIGNMENTS. 2) FOSTER ITS UNIQUE RELATIONSHIP WITH A TOP-TIER UNIVERSITY TO FACILITATE THE INVOLVEMENT OF SCIENTISTS, ENGINEERS, AND STUDENTS FROM THE UNIVERSITY AND RESEARCH COMMUNITIES IN NASA MISSION AND IN SUPPORTING OTHER GOVERNMENT AGENCIES. 3) SUPPORT NASA IN ENABLING PROGRAM AND INSTITUTIONAL CAPABILITIES. 4) DEVELOP SPACECRAFT AND INSTRUMENTS THAT ARE SENT TO VARIOUS DESTINATIONS WITH OUR SOLAR SYSTEM, INCLUDING EARTH ORBIT, PLANETS, PLANETARY SATELLITES, ASTEROIDS, AND COMETS. THESE MISSIONS MAY BE ORBITERS, LANDERS, OR ROVERS, AND TYPICALLY INCLUDE CUTTING-EDGE TECHNOLOGIES REQUIRED TO MEET SCIENTIFIC REQUIREMENTS. 5) PERFORM PROJECT TASKS INVOLVING: (I) AUTONOMOUS DEEP-SPACE, INNER-SPACE AND EARTH-ORBITING SPACECRAFT OR MAJOR SUBSYSTEMS, (II) EXPERIMENTS, INSTRUMENTS, OR OTHER DEVICES WHICH MAY BE CARRIED AS PAYLOAD ON SPACECRAFTS IN MISSIONS MANAGED BY OTHERS, AND/OR (III) GROUND-BASED SYSTEMS. 6) BEYOND ITS PRIMARY MISSION, JPL MAY PERFORM WORK FOR OTHER NASA MISSION DIRECTORATES OR OFFICES. 7) JPL IS ALSO RESPONSIBLE FOR THE OPERATION, RESEARCH, TECHNOLOGY INSERTION, AND MANAGEMENT OF NASA S DEEP SPACE NETWORK TO PROVIDE TELECOMMUNICATION AND OPERATION SERVICES, INCLUDING DATA ACQUISITION AND DATA DELIVERY REQUIRED TO MEET ESTABLISHED AGENCY OBJECTIVES. 8) JPL IS ALSO REQUIRED TO MAINTAIN AND CONDUCT AN EDUCATION PROGRAM IN CLOSE COORDINATION WITH THE NASA HEADQUARTERS EDUCATION OFFICE, THE ACADEMIC COMMUNITY AT LARGE, AND IN SUPPORT TO NASA STRATEGIC OBJECTIVES TO IMPROVE STUDENT RETENTION IN THE SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS (STEM) DISCIPLINES. WORK FOR NON-NASA SPONSORS: JPL MAY PERFORM WORK FOR NON-NASA SPONSORS. THIS WORK WILL BE DESIGNATED IN TASK ORDERS ISSUED BY NMO CONTRACTING OFFICERS BASED ON TASK PLANS INITIATED BY THE CONTRACTOR.

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91109

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $807.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: PSYCHE: JOURNEY TO A METAL WORLD THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCATIONAL INSTITUTION, WHICH ESTABLISHES THE RELATIONSHIP FOR… Key points: 1. This contract funds the operation of the Jet Propulsion Laboratory (JPL) as a Federally Funded Research and Development Center (FFRDC). 2. The primary focus is supporting NASA's Science Mission Directorate, particularly in planetary science. 3. The contract is structured as a Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The sector is R&D, a critical area for scientific advancement and national competitiveness.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts. Benchmarking is difficult without specific task order details, but FFRDC operations are generally high-cost, high-value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is not competed, as JPL is a unique FFRDC operated by Caltech for NASA. This limits price discovery and negotiation leverage.

Taxpayer Impact: Taxpayers fund a critical research institution, but the lack of competition may result in less cost-effective spending.

Public Impact

Supports cutting-edge space exploration and scientific discovery. Ensures continued operation of a vital national research asset. Potential for technological advancements with broad societal benefits. Funds research in critical areas like Earth and planetary science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee structure
  • Long contract duration

Positive Signals

  • Supports critical scientific mission
  • Unique FFRDC capability
  • Long-term strategic investment

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. NASA's R&D spending is crucial for scientific advancement and technological innovation, often involving unique, high-cost projects.

Small Business Impact

This contract is with a large educational institution (Caltech) for the operation of an FFRDC (JPL). There is no indication of subcontracting opportunities for small businesses within this primary agreement.

Oversight & Accountability

NASA's oversight is critical for managing the FFRDC and ensuring task orders align with scientific objectives. The FFRDC structure itself implies a level of government oversight over the contractor's operations.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Lack of competition
  • Cost Plus Fixed Fee structure
  • Potential for cost overruns
  • Long-term commitment without clear exit strategy
  • Dependence on a single contractor for critical R&D

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $807.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. PSYCHE: JOURNEY TO A METAL WORLD THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCATIONAL INSTITUTION, WHICH ESTABLISHES THE RELATIONSHIP FOR THE OPERATION OF THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) KNOWN AS THE JET PROPULSION LABORATORY. THE CONTRACTOR, JPL, IS REQUIRED TO PERFORM WORK THAT IS DESIGNATED IN TASK ORDERS ISSUED BY THE NASA

Who is the contractor on this award?

The obligated recipient is CALIFORNIA INSTITUTE OF TECHNOLOGY.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $807.8 million.

What is the period of performance?

Start: 2018-10-01. End: 2028-09-30.

How does the fixed fee component of the Cost Plus Fixed Fee contract ensure cost efficiency for NASA?

The fixed fee is negotiated at the outset and represents the contractor's profit. While it provides some incentive for the contractor to control costs to maximize profit, the 'cost plus' portion means NASA still bears the risk of all allowable costs. Effective oversight is crucial to ensure costs are reasonable and allocable to the contract objectives.

What are the risks associated with a sole-source contract for operating a critical research facility like JPL?

The primary risk is the lack of competitive pressure, which can lead to higher prices and potentially less innovation or efficiency compared to a competed contract. NASA must rely heavily on robust internal controls and performance metrics to ensure value for money and mission success.

How effectively does this contract structure support NASA's long-term scientific goals in planetary science?

The FFRDC model, with its long-term nature and sole-source arrangement, is designed to foster deep institutional knowledge and stable research capabilities essential for complex, multi-year scientific missions like those in planetary science. The contract's duration and focus on NASA's Science Mission Directorate suggest alignment with strategic objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4800 OAK GROVE DR, PASADENA, CA, 91109

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $852,193,231

Exercised Options: $852,193,231

Current Obligation: $807,809,090

Actual Outlays: $676,138,858

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 80NM0018D0004

IDV Type: IDC

Timeline

Start Date: 2018-10-01

Current End Date: 2028-09-30

Potential End Date: 2028-09-30 00:00:00

Last Modified: 2026-03-14

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