NASA's Gravity Probe B Contract Awarded to Stanford for $68.6M, No Competition
Contract Overview
Contract Amount: $68,587,460 ($68.6M)
Contractor: THE Leland Stanford Junior University
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-09-21
End Date: 2008-09-30
Contract Duration: 1,470 days
Daily Burn Rate: $46.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: GRAVITY PROBE B SCIENCE MISSION INTERIAM CONTRACT
Place of Performance
Location: STANFORD, SANTA CLARA County, CALIFORNIA, 94305
Plain-Language Summary
National Aeronautics and Space Administration obligated $68.6 million to THE LELAND STANFORD JUNIOR UNIVERSITY for work described as: GRAVITY PROBE B SCIENCE MISSION INTERIAM CONTRACT Key points: 1. The contract value of $68.6 million for the Gravity Probe B science mission is significant. 2. Stanford University is the sole awardee, indicating a lack of competition. 3. The absence of competition raises potential concerns about price discovery and value for taxpayer money. 4. This contract falls within the R&D sector, specifically for advanced scientific research.
Value Assessment
Rating: questionable
The contract is a 'Cost No Fee' type, which typically offers less incentive for cost control compared to fixed-price contracts. Without competitive bidding, it's difficult to benchmark the pricing against similar scientific research contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, meaning there was no open bidding process. This sole-source award limits price discovery and may not ensure the government receives the best possible value.
Taxpayer Impact: The lack of competition for a $68.6 million contract raises questions about the efficient use of taxpayer funds, as alternative, potentially more cost-effective solutions may not have been explored.
Public Impact
Taxpayers funded a major scientific research project without competitive bidding. The project aimed to test Einstein's theory of general relativity using a space-based experiment. The long duration of the contract (over 3 years) suggests a substantial investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type (Cost No Fee)
- Potential for cost overruns without oversight
Positive Signals
- Awarded to a reputable research institution (Stanford)
- Supports fundamental scientific research
Sector Analysis
This contract is in the Research & Development sector, specifically for advanced physics research. Spending in this area is often characterized by unique requirements and limited contractor pools, but competition is still generally sought.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to a large research institution.
Oversight & Accountability
The 'Cost No Fee' structure requires diligent oversight from NASA to ensure costs are reasonable and allocable to the contract's objectives. Without competition, the agency's oversight role is even more critical.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Cost-reimbursement contract
- Potential lack of cost efficiency
- Limited transparency in pricing
Tags
national-aeronautics-and-space-administr, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $68.6 million to THE LELAND STANFORD JUNIOR UNIVERSITY. GRAVITY PROBE B SCIENCE MISSION INTERIAM CONTRACT
Who is the contractor on this award?
The obligated recipient is THE LELAND STANFORD JUNIOR UNIVERSITY.
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 $68.6 million.
What is the period of performance?
Start: 2004-09-21. End: 2008-09-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into NASA's procurement records would be necessary to determine the specific rationale.
How does the 'Cost No Fee' contract type impact risk for the government?
A 'Cost No Fee' contract means the contractor is reimbursed for allowable costs but receives no profit. This reduces the financial risk for the contractor, potentially leading to less incentive for aggressive cost management. The government bears the risk of cost overruns, making robust oversight crucial to ensure efficiency and prevent unnecessary expenditures.
What is the expected scientific return on investment for this $68.6 million expenditure?
The Gravity Probe B mission aimed to test two key predictions of Einstein's theory of general relativity. While the scientific goals were ambitious and potentially groundbreaking, the 'return on investment' in a monetary sense is not directly applicable to fundamental research. The value lies in advancing scientific knowledge, which has long-term, indirect societal benefits.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST NO FEE (S)
Contractor Details
Address: 651 SERRA ST, STANFORD, CA, 18
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $58,971,460
Exercised Options: $58,971,460
Current Obligation: $68,587,460
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-09-21
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2010-09-20
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