NASA's NEO Surveyor Project Awarded $855.8M to Caltech for Physical Science R&D

Contract Overview

Contract Amount: $855,854,941 ($855.9M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2020-06-22

End Date: 2027-10-31

Contract Duration: 2,687 days

Daily Burn Rate: $318.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEAR EARTH OBJECT SURVEYOR (NEO SURVEYOR) PROJECT (71-107722)

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91109

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $855.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: NEAR EARTH OBJECT SURVEYOR (NEO SURVEYOR) PROJECT (71-107722) Key points: 1. Significant investment in space-based research and development. 2. Sole-source award to a single institution raises questions about competition. 3. Long project duration (2020-2027) requires sustained oversight. 4. Focus on near-earth object surveying aligns with scientific and potential safety goals.

Value Assessment

Rating: questionable

The contract value of $855.8M is substantial for a single R&D project. Without comparable contracts for similar scope and complexity, assessing its value for money is difficult. The cost-plus-fixed-fee structure incentivizes cost control but requires careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to the California Institute of Technology. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a competed procurement.

Public Impact

Advancement of scientific understanding of near-earth objects. Potential for early detection of objects that could pose a threat. Development of advanced technologies for space-based observation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long project duration

Positive Signals

  • Addresses a critical scientific objective
  • Awarded to a reputable research institution

Sector Analysis

This contract falls under Research and Development in Physical Sciences. The value is high for this sector, especially for a sole-source award. Benchmarks for similar large-scale, sole-source R&D projects in space exploration are scarce.

Small Business Impact

The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large research institution. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

Given the sole-source nature and significant value, robust oversight from NASA is crucial to ensure project milestones are met, costs are controlled, and the research objectives are achieved effectively. Regular performance reviews and audits are recommended.

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 competition and price discovery.
  • Cost-plus-fixed-fee contract type can lead to cost overruns.
  • Long project duration increases risk of scope creep and cost escalation.
  • Lack of small business participation noted.

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 $855.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. NEAR EARTH OBJECT SURVEYOR (NEO SURVEYOR) PROJECT (71-107722)

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 $855.9 million.

What is the period of performance?

Start: 2020-06-22. End: 2027-10-31.

What is the justification for awarding this significant R&D contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or critical urgency. For this NASA project, it's essential to understand if Caltech possesses unique expertise or technology vital for the NEO Surveyor mission. NASA's oversight should focus on rigorous cost analysis, benchmarking against similar projects where possible, and ensuring the cost-plus-fixed-fee structure is managed to prevent cost overruns while incentivizing efficient performance.

What are the primary risks associated with the long duration and cost-plus-fixed-fee structure of this contract?

The primary risks include potential cost escalation over the project's 7-year duration, especially with a cost-plus-fixed-fee structure which can offer less incentive for cost savings than fixed-price contracts. Scope creep is also a risk, potentially increasing costs without commensurate value. NASA's oversight must actively manage these risks through detailed performance metrics, regular reviews, and strict change control processes to ensure the project stays within budget and on schedule.

How will the effectiveness of the NEO Surveyor Project be measured, and what is the expected return on investment for taxpayers?

Effectiveness will be measured by the project's success in surveying near-earth objects, cataloging their characteristics, and contributing to scientific understanding and planetary defense strategies. The return on investment is primarily scientific and potentially long-term safety, rather than direct financial returns. Quantifying this ROI is challenging but hinges on the quality and impact of the scientific data generated and any mitigation strategies developed from it.

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: $922,135,406

Exercised Options: $922,135,406

Current Obligation: $855,854,941

Actual Outlays: $666,831,933

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: 2020-06-22

Current End Date: 2027-10-31

Potential End Date: 2027-10-31 00:00:00

Last Modified: 2026-03-17

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