NASA Awards $415M R&D Contract to Caltech for Physical, Engineering, and Life Sciences Research

Contract Overview

Contract Amount: $414,767,667 ($414.8M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2021-06-16

End Date: 2028-09-30

Contract Duration: 2,663 days

Daily Burn Rate: $155.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MASS CHANGE (MC) PRE-PHASE A AND PHASE A PLAN (89-109861)

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91109

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $414.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MASS CHANGE (MC) PRE-PHASE A AND PHASE A PLAN (89-109861) Key points: 1. Significant investment in fundamental research across physical, engineering, and life sciences. 2. Caltech's strong track record suggests potential for high-quality scientific output. 3. Long contract duration (2028) indicates a sustained need for these research capabilities. 4. Lack of competition raises questions about price discovery and potential value. 5. Focus on R&D aligns with national priorities for scientific advancement.

Value Assessment

Rating: questionable

The contract value of $414.7M over approximately 7 years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the services rendered compared to similar R&D contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.

Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for the research services provided.

Public Impact

Advancement of scientific knowledge in critical fields. Potential for groundbreaking discoveries and technological innovations. Long-term commitment to research infrastructure and expertise. Impact on the broader scientific community and future research directions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

  • Award to a reputable research institution
  • Focus on critical R&D areas
  • Alignment with agency mission

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be challenging to benchmark due to the unique nature of research projects.

Small Business Impact

The contract was awarded to the California Institute of Technology, a large research institution. There is no indication of small business participation in this sole-source award.

Oversight & Accountability

The contract type is Cost Plus Fixed Fee, which requires careful oversight to ensure costs are reasonable and the fixed fee is justified. NASA's oversight will be critical to managing this long-term research effort.

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 competitive bidding may lead to inflated costs.
  • Cost-plus contract type can incentivize spending.
  • Long duration increases risk of cost overruns or scope creep.
  • Difficulty in defining and measuring success in fundamental research.
  • Potential for limited transparency in sole-source procurements.

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 $414.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MASS CHANGE (MC) PRE-PHASE A AND PHASE A PLAN (89-109861)

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 $414.8 million.

What is the period of performance?

Start: 2021-06-16. End: 2028-09-30.

What is the justification for the sole-source award to Caltech, and how was the fixed fee determined?

The justification for a sole-source award typically involves unique capabilities or circumstances. For this contract, NASA would need to document why Caltech is the only entity capable of performing the required research. The fixed fee is negotiated based on anticipated costs, complexity, and risk, aiming to provide an incentive for efficient performance while ensuring a reasonable profit for the contractor.

What are the key performance indicators (KPIs) and milestones for this research contract, and how will their achievement be measured?

Key performance indicators and milestones are crucial for tracking progress in R&D contracts. NASA likely established specific scientific objectives, deliverables, and reporting requirements. Measurement would involve peer review of research findings, successful completion of experimental phases, publication of results in scientific journals, and potential development of prototypes or new methodologies, all subject to NASA's technical evaluation.

How does NASA ensure the long-term value and impact of this significant investment in basic research beyond immediate project deliverables?

NASA ensures long-term value by fostering an environment where Caltech can pursue fundamental research with broad applicability. This includes encouraging collaboration, knowledge sharing, and the potential for spin-off technologies. The agency likely monitors the broader scientific impact through publications, patents, and the training of future scientists, aiming for contributions that advance the field and benefit society over time.

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: $507,071,460

Exercised Options: $507,071,460

Current Obligation: $414,767,667

Actual Outlays: $326,608,234

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: 2021-06-16

Current End Date: 2028-09-30

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

Last Modified: 2025-12-05

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