NASA's $185.6M OSS New Millennium Program contract with Caltech awarded without competition

Contract Overview

Contract Amount: $185,636,515 ($185.6M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-11

End Date: 2012-09-30

Contract Duration: 3,307 days

Daily Burn Rate: $56.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: OSS NEW MILLENNIUM PRGM

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $185.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: OSS NEW MILLENNIUM PRGM Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. Sole-source award to California Institute of Technology raises questions about competition. 3. Long contract duration (2003-2012) suggests a complex, multi-year research effort. 4. Cost-plus award fee contract type can incentivize cost overruns if not managed tightly.

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar R&D efforts.

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 cost efficiency.

Taxpayer Impact: The lack of competition may have resulted in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Funding advanced research and development in critical scientific fields. Potential for groundbreaking discoveries and technological advancements. Investment in a leading research institution, fostering scientific expertise. Long-term commitment to a specific program may indicate strategic importance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

  • Awarded to a reputable research institution
  • Focus on R&D in physical, engineering, and life sciences

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for innovation but can be difficult to benchmark due to the unique nature of research projects.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the contractor (California Institute of Technology) and the agency (NASA) are large entities. There is no indication of small business subcontracting.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. NASA's oversight would be critical in managing the cost-plus award fee structure to ensure value for money and prevent unnecessary expenditures.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • Cost-plus award fee contract type can lead to cost overruns.
  • Long contract 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 $185.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. OSS NEW MILLENNIUM PRGM

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 $185.6 million.

What is the period of performance?

Start: 2003-09-11. End: 2012-09-30.

What specific research objectives did the OSS New Millennium Program aim to achieve, and how did Caltech's unique capabilities justify a sole-source award?

The OSS New Millennium Program aimed to develop and flight-test new technologies for future space missions. Caltech's extensive expertise in advanced propulsion, materials science, and space systems engineering likely made them the sole qualified entity for this specific, cutting-edge research, justifying the sole-source award despite the lack of competition.

How effectively was the Cost Plus Award Fee structure managed to control costs and incentivize performance over the 9-year duration?

Effective management of a Cost Plus Award Fee contract requires rigorous oversight of expenditures and clearly defined performance metrics. NASA would need to demonstrate robust tracking of costs against budget and objective evaluation of Caltech's progress against award fee criteria to ensure taxpayer funds were used efficiently and program goals were met.

What tangible scientific or technological advancements resulted from the $185.6 million investment, and how do these compare to potential outcomes from a competed R&D effort?

The tangible outcomes would be specific technological prototypes, scientific data, and publications stemming from the program. Assessing the value against a competed effort is challenging, but a competitive process might have yielded diverse approaches or potentially lower costs through innovation in research methodologies.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 51

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $187,542,600

Exercised Options: $187,542,600

Current Obligation: $185,636,515

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-11

Current End Date: 2012-09-30

Potential End Date: 2012-09-30 00:00:00

Last Modified: 2020-10-19

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