NASA's $41.2M contract with Caltech for microgravity research shows long-term investment in scientific exploration

Contract Overview

Contract Amount: $41,206,068 ($41.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-24

End Date: 2009-05-31

Contract Duration: 2,076 days

Daily Burn Rate: $19.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MICROGRVTY RES PRG ISSRC

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $41.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MICROGRVTY RES PRG ISSRC Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of the contract suggests a sustained commitment to the research area. 3. Sole-source award may limit competitive pricing and innovation opportunities. 4. Research and Development (R&D) sector is critical for technological advancement and scientific discovery. 5. California is a hub for aerospace and research, potentially indicating a strategic location choice. 6. The contract's value is substantial, reflecting the complexity and importance of microgravity research.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and sole-source award. The 'COST PLUS AWARD FEE' (CPAF) contract type can lead to higher costs if not managed carefully, as it incentivizes the contractor to meet cost and performance targets with potential for award fees. Without comparable sole-source R&D contracts for microgravity research, a direct price comparison is difficult. However, the duration and scope suggest a significant investment, and the value should be assessed against the scientific outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities or when there is a compelling justification for not seeking competition. In this case, the California Institute of Technology (Caltech) is a highly specialized research institution with extensive experience in space research, particularly microgravity. The lack of competition means that NASA did not benefit from a bidding process that could have potentially driven down costs or spurred innovation from multiple sources.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not explore potentially lower prices that could have resulted from a competitive bidding process. While Caltech's expertise may justify the award, the absence of competition removes a key mechanism for ensuring the best possible price for government funds.

Public Impact

The primary beneficiaries are NASA and the scientific community, gaining insights into microgravity's effects on various physical, engineering, and life science phenomena. The research conducted under this contract contributes to advancing fundamental scientific knowledge and potentially developing new technologies applicable to space exploration and terrestrial applications. The geographic impact is primarily within California, where Caltech is located, but the scientific findings have global implications. The contract supports highly skilled researchers and technical staff at Caltech, contributing to the specialized workforce in aerospace and scientific research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure on pricing and innovation.
  • Cost-Plus Award Fee (CPAF) structure can lead to higher costs if not rigorously managed.
  • Long contract duration (over 6 years) increases the risk of cost overruns or scope creep without diligent oversight.

Positive Signals

  • Award to a highly reputable institution (Caltech) suggests strong technical capability and potential for high-quality research.
  • Focus on R&D aligns with NASA's mission to advance scientific understanding and space exploration.
  • The contract's value indicates a significant investment in a critical area of scientific inquiry.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences under microgravity conditions. This is a highly specialized niche within the broader aerospace and scientific research market. The market for microgravity research is relatively small, dominated by a few key institutions and government agencies like NASA. Comparable spending benchmarks are difficult to establish due to the unique nature of microgravity research and the sole-source award. However, NASA's overall R&D spending is substantial, and contracts like this represent a significant portion of its investment in scientific advancement.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded sole-source to a large research institution. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized research at a major university suggests that the primary performers are likely to be internal to Caltech, rather than through a broad network of small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPAF) contract, NASA would be responsible for monitoring the contractor's performance against established cost and technical targets to determine award fees. Transparency would be expected through regular reporting from Caltech. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract funds.

Related Government Programs

  • NASA Research Grants
  • Space Science Research Programs
  • Aerospace Technology Development
  • University Research Partnerships

Risk Flags

  • Sole-source award may indicate limited market availability or specific justification.
  • Cost Plus Award Fee (CPAF) requires diligent oversight to manage costs and ensure value.
  • Long contract duration increases potential for cost escalation and scope creep.

Tags

nasa, research-and-development, california, sole-source, cost-plus-award-fee, delivery-order, science, aerospace, microgravity, university-research, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $41.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MICROGRVTY RES PRG ISSRC

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 $41.2 million.

What is the period of performance?

Start: 2003-09-24. End: 2009-05-31.

What is the track record of the California Institute of Technology (Caltech) in securing and managing large federal research contracts, particularly with NASA?

The California Institute of Technology (Caltech) has a long and distinguished history of securing and managing significant federal research contracts, especially with NASA. As a premier research institution, Caltech consistently ranks among the top universities for federal research and development funding. Its involvement in space science and engineering is extensive, including managing NASA's Jet Propulsion Laboratory (JPL) under a unique contract. Caltech has a proven track record in complex, long-term research projects, demonstrating robust project management capabilities, scientific expertise, and the ability to attract and retain top talent. Their success in obtaining grants and contracts from agencies like NASA is a testament to their strong research proposals, scientific output, and institutional capacity to handle large-scale, high-impact scientific endeavors.

How does the value of this $41.2 million contract compare to other NASA microgravity research initiatives or similar R&D efforts?

Comparing the $41.2 million value of this specific contract to other NASA microgravity research initiatives or similar R&D efforts is complex due to the specialized nature of the work and the sole-source award. NASA's overall R&D budget is substantial, encompassing a wide array of projects from fundamental science to technology development. Microgravity research, while critical, represents a niche within this budget. Contracts for such research can vary significantly in value depending on the scope, duration, and specific scientific objectives. A $41.2 million award over its duration (approximately 6 years) suggests a significant, multi-faceted research program. To provide a precise comparison, one would need to analyze the scope of work, deliverables, and funding levels of other NASA microgravity programs or comparable sole-source R&D awards to institutions of similar caliber. However, the figure indicates a substantial investment in advancing knowledge in this specialized field.

What are the primary risks associated with a sole-source, Cost Plus Award Fee (CPAF) contract for long-term research and development?

Sole-source contracts, by definition, eliminate competition, which can lead to higher prices than might be achieved through a competitive bidding process. There's also a risk that without competitive pressure, the contractor may have less incentive to innovate or seek the most cost-effective solutions. The Cost Plus Award Fee (CPAF) structure introduces its own set of risks. While it aims to incentivize performance by offering award fees for meeting or exceeding targets, it can also lead to increased costs if the base cost plus potential award fees exceed initial estimates. Effective oversight is crucial to ensure that costs are reasonable and that award fees are genuinely earned based on exceptional performance, not just meeting minimum requirements. For long-term R&D, the extended duration amplifies these risks, requiring sustained vigilance from the contracting agency to manage scope, cost, and performance effectively over the project's lifecycle.

What specific scientific advancements or technological applications are anticipated from this microgravity research program?

The anticipated scientific advancements and technological applications from this microgravity research program are broad, given its focus on physical, engineering, and life sciences. In the physical sciences, research could lead to a better understanding of fluid dynamics, material properties, and combustion under conditions absent of gravity, potentially enabling the development of new materials or manufacturing processes. In engineering, insights gained could inform the design of spacecraft systems, life support, and structures for space habitats. For life sciences, studying the effects of microgravity on biological systems (cells, tissues, organisms) is crucial for understanding human health in space and could yield breakthroughs in areas like bone density loss, muscle atrophy, and immune system function, with potential applications for aging and disease research on Earth. Ultimately, the program aims to expand fundamental knowledge and support future space exploration endeavors.

How has NASA's spending on microgravity research evolved over time, and does this contract represent a significant shift or continuation?

NASA's spending on microgravity research has evolved significantly since the early days of space exploration. Initially focused on understanding the basic effects of spaceflight on humans and equipment, it has grown into a more sophisticated field encompassing a wide range of scientific disciplines. NASA has consistently invested in microgravity research through various programs, including those on the Space Shuttle, the International Space Station (ISS), and dedicated research grants. This $41.2 million contract, awarded in 2003 and spanning until 2009, represents a substantial, long-term commitment to a specific area of microgravity R&D. Its value and duration suggest it was part of a continued, significant investment in understanding the fundamental science and engineering challenges related to operating and living in space, rather than a radical departure from historical spending patterns. Such contracts are vital for maintaining the scientific momentum and technological development necessary for NASA's ongoing and future missions.

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: 1

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: $45,153,050

Exercised Options: $45,153,050

Current Obligation: $41,206,068

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-24

Current End Date: 2009-05-31

Potential End Date: 2009-05-31 00:00:00

Last Modified: 2020-01-06

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