NASA's $65.9M R&D contract with Caltech for JPL operations shows long-term commitment

Contract Overview

Contract Amount: $65,933,717 ($65.9M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-12

End Date: 2008-01-27

Contract Duration: 1,598 days

Daily Burn Rate: $41.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: DEEP IMPACT

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $65.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: DEEP IMPACT Key points: 1. Contract awarded for a significant duration, indicating a stable, long-term partnership. 2. Sole-source nature suggests unique capabilities or a pre-existing relationship with the contractor. 3. Focus on research and development points to innovation and future technological advancements. 4. High dollar value signifies a substantial investment in the contractor's specialized services. 5. Geographic concentration in California for a critical research facility.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging due to its sole-source nature and specific R&D focus. However, the duration and consistent funding suggest a recognized value and effective performance by the contractor in supporting critical research operations. The cost-plus award fee structure incentivizes performance and cost control, which can lead to good value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that NASA identified the California Institute of Technology (Caltech) as the only responsible source capable of performing the required work, likely due to its unique expertise and management of the Jet Propulsion Laboratory (JPL). This limits direct price competition.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive bidding, potentially leading to higher costs than if multiple firms had competed.

Public Impact

Benefits the scientific community through advanced research and space exploration initiatives. Delivers critical operational support for the Jet Propulsion Laboratory (JPL), a key NASA center. Geographic impact is concentrated in California, supporting a major research hub. Workforce implications include employment for highly skilled scientists, engineers, and support staff at JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure on pricing.
  • Cost-plus award fee contracts can sometimes lead to cost overruns if not closely monitored.

Positive Signals

  • Long-term contract indicates consistent performance and reliability.
  • Focus on R&D supports national technological advancement.
  • Contractor's established role in managing JPL suggests deep expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. It represents a significant investment in a specialized area, likely supporting advanced scientific research and space exploration missions. Comparable spending in this sector often involves long-term, high-value contracts with institutions possessing unique scientific and technical capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component. Given the sole-source nature and the specialized management of JPL, it is unlikely that subcontracting opportunities for small businesses would be a primary focus or requirement of this specific award, though standard procurement practices may still apply for certain goods and services.

Oversight & Accountability

Oversight is likely managed by NASA's Jet Propulsion Laboratory (JPL) program office, with potential involvement from NASA's Office of Inspector General for audits and investigations. The cost-plus award fee structure necessitates detailed financial reporting and performance monitoring to ensure accountability and value for taxpayer funds.

Related Government Programs

  • Jet Propulsion Laboratory Operations
  • NASA Research and Development Contracts
  • Space Exploration Funding
  • Scientific Research Grants

Risk Flags

  • Sole-source award may limit competitive pricing.
  • Cost-plus award fee requires diligent oversight to ensure value.

Tags

research-and-development, nasa, caltech, california, sole-source, cost-plus-award-fee, jet-propulsion-laboratory, space-exploration, long-term-contract, federal-spending

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $65.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. DEEP IMPACT

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 $65.9 million.

What is the period of performance?

Start: 2003-09-12. End: 2008-01-27.

What is the historical spending trend for JPL operations under Caltech's management?

Historical spending data for Jet Propulsion Laboratory (JPL) operations managed by the California Institute of Technology (Caltech) reveals a consistent and substantial investment over many years. While the provided data point of $65.9 million covers a specific period (2003-2008), broader analysis of NASA's budget allocations indicates that JPL's operational costs, including management and research, represent a significant portion of the agency's R&D expenditures. These costs are driven by the complex, long-term nature of space missions, the advanced infrastructure required, and the highly specialized workforce. Fluctuations in annual spending are typically tied to the lifecycle of ongoing missions, the initiation of new projects, and overall agency budget priorities. The long-standing sole-source relationship underscores a pattern of sustained funding and commitment to Caltech's stewardship of JPL.

How does the cost-plus award fee (CPAF) structure influence contractor performance and cost control for this contract?

The Cost-Plus Award Fee (CPAF) structure for this contract is designed to incentivize the contractor, Caltech, to perform effectively while managing costs. Under CPAF, the contractor is reimbursed for allowable costs incurred, plus a fee that is composed of a base amount and an award amount. The award amount is determined by NASA based on the contractor's performance against pre-defined criteria, which can include technical achievements, schedule adherence, and cost management. This structure encourages Caltech to go beyond minimum requirements to achieve superior performance, as higher performance ratings can lead to a larger fee. However, it also requires robust oversight from NASA to ensure that the performance criteria are objective, measurable, and that the fee awarded accurately reflects the value delivered. Effective implementation of CPAF can lead to good value for money by aligning contractor incentives with NASA's mission objectives.

What are the key performance indicators (KPIs) typically used to evaluate Caltech's management of JPL under this type of contract?

Key Performance Indicators (KPIs) for evaluating Caltech's management of JPL under a contract like this typically revolve around mission success, scientific return, operational efficiency, and financial stewardship. Specific metrics might include the successful execution of mission milestones, the timely delivery of scientific data, the achievement of research objectives, and adherence to project budgets and schedules. Operational efficiency KPIs could involve metrics related to facility maintenance, resource utilization, and safety performance. Financial KPIs would focus on cost control, accurate financial reporting, and effective budget management. NASA's evaluation of these KPIs directly influences the 'award fee' component of the CPAF structure, ensuring that Caltech is incentivized to excel across multiple dimensions of its responsibilities in managing this critical research institution.

What is the strategic importance of JPL to NASA's overall mission, and how does this contract support it?

The Jet Propulsion Laboratory (JPL) is strategically vital to NASA's mission, serving as a leading center for robotic exploration of the solar system and beyond. JPL designs, builds, and operates many of NASA's most ambitious interplanetary missions, including probes, orbiters, and rovers. This contract, by providing significant funding for JPL's operations and management under Caltech's stewardship, directly supports NASA's strategic goals in space science, Earth science, and planetary defense. It ensures the continued capability of JPL to conceptualize, develop, and execute cutting-edge scientific missions, contributing invaluable data and discoveries that advance human knowledge and inspire future generations. The long-term nature of the contract signifies NASA's sustained reliance on JPL's unique expertise and infrastructure.

Given the sole-source nature, what mechanisms are in place to ensure accountability and prevent potential contractor overreach?

Despite the sole-source nature of this contract, NASA employs several mechanisms to ensure accountability and prevent contractor overreach. The Cost-Plus Award Fee (CPAF) structure itself is a key accountability tool, as the contractor's fee is directly tied to performance metrics defined by NASA. Regular performance reviews, audits (both internal and potentially by the NASA Office of Inspector General), and stringent reporting requirements are standard. NASA program managers maintain close oversight, monitoring progress, costs, and adherence to technical specifications. Furthermore, contract terms typically include clauses for termination for default or convenience, providing NASA with leverage. The inherent complexity and high visibility of JPL's work also contribute to accountability, as failures or significant issues are likely to attract scrutiny from Congress, the scientific community, and the public.

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: $66,130,000

Exercised Options: $66,130,000

Current Obligation: $65,933,717

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: 2008-01-27

Potential End Date: 2008-01-27 00:00:00

Last Modified: 2020-01-06

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