NASA's Deep Space Network Contract with Caltech for JPL Operations Exceeds $1.4 Billion
Contract Overview
Contract Amount: $1,443,582,236 ($1.4B)
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: $395.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DEEP SPACE NETWORK (DSN) 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
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.44 billion to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: DEEP SPACE NETWORK (DSN) 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 OPE… Key points: 1. Contract funds the operation of the Jet Propulsion Laboratory (JPL) by Caltech for NASA. 2. Focuses on supporting NASA's Science Mission Directorate across Earth, planetary, and heliophysics. 3. This is a sole-source contract, limiting competitive opportunities. 4. The sector is R&D, specifically physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult due to the unique nature of FFRDC operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is sole-source, awarded to Caltech for operating JPL. This limits price discovery and competition, as JPL is uniquely positioned for this role.
Taxpayer Impact: Taxpayer funds are used to support critical space science missions through a long-term partnership with a specialized research institution.
Public Impact
Supports vital scientific research and exploration missions in space. Ensures continued operation of the Deep Space Network for communication with spacecraft. Funds advanced research and development in physical, engineering, and life sciences. Maintains a unique federal research center (JPL) under NASA's purview.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competition and potential cost savings.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
- Long contract duration may not adapt well to rapidly changing technological needs.
Positive Signals
- Supports critical national scientific and exploration goals.
- Leverages the specialized expertise of Caltech and JPL.
- Provides stable funding for essential space communication infrastructure.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for scientific advancement and technological innovation, with FFRDCs like JPL playing a key role.
Small Business Impact
This contract does not appear to involve significant subcontracting opportunities for small businesses, as it is a direct award to a large research institution for specialized operations.
Oversight & Accountability
NASA's oversight is critical for managing the Cost Plus Fixed Fee contract and ensuring JPL's operations align with scientific objectives. Task orders provide a mechanism for directing specific work and monitoring progress.
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
- Sole-source award limits competitive bidding.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration may not be agile enough for evolving needs.
- Lack of clear performance metrics for FFRDC operations.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.44 billion to CALIFORNIA INSTITUTE OF TECHNOLOGY. DEEP SPACE NETWORK (DSN) 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 MANAGEM
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 $1.44 billion.
What is the period of performance?
Start: 2018-10-01. End: 2028-09-30.
What is the cost-effectiveness of operating JPL through a sole-source contract with Caltech compared to alternative models?
The cost-effectiveness is difficult to definitively assess due to the sole-source nature and the unique capabilities of JPL. While competition is absent, the long-standing relationship and specialized expertise may offer efficiencies. NASA's oversight and task order management are crucial for controlling costs and ensuring value for taxpayer money in this unique FFRDC arrangement.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this long-term FFRDC operation?
The primary risks of a Cost Plus Fixed Fee structure include potential cost overruns if project expenses exceed initial estimates, as the contractor is reimbursed for allowable costs plus a fixed fee. For a long-term FFRDC like JPL, this could lead to escalating expenditures if not meticulously managed through rigorous oversight, clear task orders, and performance metrics.
How effectively does this contract enable NASA to achieve its scientific mission objectives in deep space exploration?
This contract is designed to effectively enable NASA's scientific mission objectives by ensuring the continuous operation of the Deep Space Network and the Jet Propulsion Laboratory. JPL's specialized capabilities are essential for managing complex missions, collecting data, and communicating with spacecraft across vast distances, directly supporting NASA's exploration and 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 Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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: $2,530,537,517
Exercised Options: $2,530,537,517
Current Obligation: $1,443,582,236
Actual Outlays: $1,177,286,317
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: 2026-04-04
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