NASA's $18.4M JPL contract to Caltech for R&D in physical sciences shows long-term engagement

Contract Overview

Contract Amount: $18,431,605 ($18.4M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-11

End Date: 2009-09-27

Contract Duration: 2,208 days

Daily Burn Rate: $8.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: ULYSSES

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $18.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: ULYSSES Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Long duration suggests a sustained need for specialized research capabilities. 3. Cost-plus award fee structure incentivizes performance but can lead to cost overruns. 4. Focus on physical sciences research aligns with JPL's core mission. 5. Geographic concentration in California may limit broader economic impact. 6. Lack of competition indicates potential for higher costs compared to a bid environment.

Value Assessment

Rating: fair

This contract's value is difficult to benchmark due to its specialized nature and sole-source award. The cost-plus award fee structure, while common for R&D, can be less predictable in terms of final cost compared to fixed-price contracts. Without competitive bids, it's challenging to definitively assess if the pricing represents excellent value for money. However, the long duration and consistent funding suggest the agency found the performance and outcomes to be satisfactory over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the California Institute of Technology, which manages NASA's Jet Propulsion Laboratory (JPL). This approach is often used when a specific entity possesses unique capabilities or a long-standing relationship essential for the research. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bidders had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The sole-source nature limits opportunities for cost savings that could arise from a competitive procurement process.

Public Impact

Benefits the California Institute of Technology through research funding and operational support for JPL. Delivers advanced research and development in physical, engineering, and life sciences, crucial for space exploration and scientific discovery. Geographic impact is concentrated in California, supporting a high-tech research ecosystem. Workforce implications include employment for scientists, engineers, and support staff at JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition.
  • Cost-plus award fee structure can lead to cost uncertainty.
  • Long contract duration may mask inefficiencies if not actively managed.

Positive Signals

  • Award to a highly reputable research institution (Caltech/JPL).
  • Focus on critical R&D aligned with NASA's mission.
  • Long-term engagement suggests consistent satisfactory performance.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for government-funded innovation, often characterized by long project timelines and specialized expertise. Comparable spending in this sector involves significant investment in scientific discovery and technological advancement, with agencies like NASA, NSF, and DoD being major funders. The market is often dominated by universities and specialized research institutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large research institution like Caltech typically means prime contract work is performed by the institution's own staff or through collaborations with other large entities, rather than through a structured small business subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's Jet Propulsion Laboratory (JPL) management, given Caltech's role as the managing institution. As a cost-plus award fee contract, performance metrics and cost controls would be subject to regular review. Transparency is generally maintained through NASA's public reporting, though specific R&D details might be proprietary. Inspector General oversight would apply to ensure compliance and prevent fraud, waste, and abuse.

Related Government Programs

  • NASA Jet Propulsion Laboratory Operations
  • NASA Research and Technology Development
  • Federal Funding for Scientific Research
  • University Research Partnerships

Risk Flags

  • Sole-source award limits price competition.
  • Cost-plus contract type can lead to higher final costs.
  • Long contract duration requires sustained oversight.

Tags

research-and-development, nasa, caltech, jet-propulsion-laboratory, california, sole-source, cost-plus-award-fee, physical-sciences, engineering, life-sciences, delivery-order, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $18.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. ULYSSES

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 $18.4 million.

What is the period of performance?

Start: 2003-09-11. End: 2009-09-27.

What is the historical spending trend for this specific contract or similar R&D efforts at JPL managed by Caltech?

Analyzing historical spending for this specific contract (ULYSSES) reveals a total award value of $18,431,605.49 over its duration from September 11, 2003, to September 27, 2009. This represents an average annual expenditure of approximately $3.1 million. While this specific contract provides a data point, understanding broader trends would require examining other contracts awarded to JPL/Caltech for similar R&D activities. Generally, NASA's R&D spending fluctuates based on budgetary allocations and strategic priorities, but consistent funding for core research institutions like Caltech for long-term projects is typical. Without access to a comprehensive database of all JPL/Caltech R&D contracts, a precise historical trend is difficult to establish, but this contract's value suggests a significant, multi-year investment in specialized research.

How does the cost-plus award fee structure compare to other contract types for similar R&D projects in terms of cost efficiency?

The Cost-Plus Award Fee (CPAF) structure used here is common for research and development contracts where the final scope and cost are difficult to define precisely at the outset. It allows for flexibility and incentivizes contractor performance through award fees tied to specific objectives. Compared to fixed-price contracts, CPAF can lead to higher final costs if performance targets are met or exceeded, as the government reimburses allowable costs plus an award fee. However, it offers greater flexibility than fixed-price contracts and can be more cost-efficient than Cost-Plus-Fixed-Fee (CPFF) if the award fee mechanism effectively drives desired outcomes. For highly uncertain R&D, CPAF can strike a balance between contractor flexibility and government oversight, potentially yielding better technical results than a rigid fixed-price approach, though it requires robust performance monitoring to manage costs effectively.

What are the specific performance metrics or objectives tied to the award fee in this contract?

The specific performance metrics and objectives tied to the award fee for the ULYSSES contract are not publicly detailed in the provided data. Typically, for a Cost-Plus Award Fee (CPAF) contract, these metrics are outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). They often relate to achieving specific research milestones, scientific discoveries, technological advancements, adherence to project timelines, quality of deliverables (e.g., reports, data analysis), and effective management of resources. The 'award fee' portion is determined by the government's evaluation of the contractor's performance against these pre-defined criteria, often assessed periodically. Without access to the full contract document, the precise nature of these metrics remains confidential.

Given the sole-source nature, what mechanisms were in place to ensure fair pricing and prevent contractor overreach?

While the contract was sole-source, NASA would have employed several mechanisms to ensure fair pricing and prevent contractor overreach. This typically involves rigorous cost analysis by the contracting officer, comparing proposed costs against historical data, industry benchmarks, and independent cost estimates. For a sole-source award to an entity like Caltech managing JPL, NASA likely relied on the institution's established reputation and internal controls, alongside direct negotiation. The Cost-Plus Award Fee (CPAF) structure itself includes oversight; the 'award fee' is discretionary and based on performance evaluations, meaning the contractor doesn't automatically receive the maximum fee. Regular audits and reviews of incurred costs by NASA would also be standard practice to verify the allowability, allocability, and reasonableness of expenses.

What is the track record of the California Institute of Technology (Caltech) as a NASA contractor, particularly in managing JPL?

The California Institute of Technology (Caltech) has an exceptionally strong and long-standing track record as a NASA contractor, most notably for its management of the Jet Propulsion Laboratory (JPL) since 1958. JPL is a federally funded research and development center (FFRDC) managed by Caltech for NASA, responsible for many of the nation's most ambitious robotic space exploration missions. Caltech's stewardship of JPL is widely regarded as highly successful, characterized by scientific innovation, engineering excellence, and mission success across numerous planetary science, astronomy, and Earth science missions. Their consistent ability to secure and manage complex, high-value contracts with NASA underscores their deep expertise, reliability, and critical role in advancing space science and exploration.

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: $18,523,500

Exercised Options: $18,523,500

Current Obligation: $18,431,605

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: 2009-09-27

Potential End Date: 2009-09-27 00:00:00

Last Modified: 2017-02-08

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