NASA's $339M Caltech Contract for R&D in Physical, Engineering, and Life Sciences Awarded via Not Competed Method

Contract Overview

Contract Amount: $33,942,333 ($33.9M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-12

End Date: 2012-09-30

Contract Duration: 3,306 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: VIM

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $33.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: VIM Key points: 1. Significant investment in advanced research and development. 2. Sole-source award to a single, highly specialized institution. 3. Potential for high-value scientific breakthroughs. 4. Long contract duration suggests complex, ongoing projects.

Value Assessment

Rating: questionable

The contract's cost-plus award fee structure can incentivize performance but may lead to higher costs than fixed-price contracts. Without comparable benchmarks, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

Awarded directly to Caltech without competition, likely due to specialized expertise. This limits price discovery and potentially increases costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are directed to a single entity, raising questions about whether the best possible price and value were achieved.

Public Impact

Advancement of scientific knowledge and technological innovation. Potential for spin-off technologies benefiting the public. Support for high-level research careers and infrastructure at Caltech.

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

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 often involves high risk and specialized expertise, making direct comparisons challenging.

Small Business Impact

The contract was awarded directly to a large research institution (Caltech) and does not appear to involve small business participation as prime contractors. Subcontracting opportunities for small businesses are not detailed.

Oversight & Accountability

The 'NOT COMPETED' award type suggests limited justification for bypassing competitive procedures. Oversight would focus on ensuring Caltech meets performance objectives and manages costs effectively under the award fee structure.

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

  • Lack of competitive bidding
  • Potential for cost overruns due to CPAF structure
  • Limited transparency on performance metrics and award fee determination
  • Long contract duration may obscure initial value proposition

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $33.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. VIM

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 $33.9 million.

What is the period of performance?

Start: 2003-09-12. End: 2012-09-30.

How was the justification for a sole-source award determined to be in the government's best interest, given the significant value?

The justification for a sole-source award typically rests on the unique capabilities, specialized knowledge, or proprietary technology possessed by the contractor that cannot be replicated by others. For a research institution like Caltech, this might involve specific facilities, established research programs, or unique expertise critical to NASA's mission objectives that would be impractical or impossible to obtain through a competitive bidding process.

What mechanisms are in place to ensure cost control and prevent overruns in a Cost Plus Award Fee (CPAF) contract for R&D?

CPAF contracts include a base fee plus an award fee determined by contractor performance against pre-defined criteria. NASA likely established specific metrics related to research milestones, scientific outcomes, and budget adherence. Regular performance reviews and audits are crucial to monitor progress, control costs, and ensure the award fee accurately reflects achieved value, incentivizing efficiency.

What is the long-term strategic value of this specific R&D investment for NASA and the nation?

The long-term value depends on the specific research outcomes achieved. Investments in physical, engineering, and life sciences R&D can lead to breakthroughs in areas like space exploration technology, materials science, propulsion systems, or even medical advancements with terrestrial applications. The success hinges on Caltech's ability to deliver novel solutions and discoveries aligned with NASA's strategic goals.

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: $35,533,695

Exercised Options: $35,533,695

Current Obligation: $33,942,333

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-12

Current End Date: 2012-09-30

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

Last Modified: 2020-10-19

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