NASA's $327M Navigator Program Office contract to Caltech awarded without competition, spanning 9 years

Contract Overview

Contract Amount: $32,718,633 ($32.7M)

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: $9.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: NAVIGATOR PROGRAM OFFICE

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $32.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: NAVIGATOR PROGRAM OFFICE Key points: 1. The contract's significant duration and sole-source nature raise questions about potential missed opportunities for competitive pricing. 2. Research and Development in Physical, Engineering, and Life Sciences is a broad category, making direct value-for-money assessment challenging without specific deliverables. 3. The 'COST PLUS AWARD FEE' (CPAF) contract type can incentivize performance but may also lead to higher costs if not tightly managed. 4. A long-term, sole-source award suggests a unique capability or relationship, but requires scrutiny to ensure continued necessity and fair pricing. 5. The absence of competition indicates a potential risk of complacency or reduced pressure to innovate on cost-efficiency. 6. Performance context is limited by the broad R&D classification, making it difficult to benchmark against specific scientific or engineering outcomes.

Value Assessment

Rating: questionable

Assessing the value-for-money for this contract is difficult due to its broad R&D scope and lack of competitive benchmarking. The Cost Plus Award Fee structure, while intended to incentivize performance, can lead to cost overruns if not rigorously overseen. Without comparable sole-source R&D contracts of similar scale and duration, it's challenging to determine if the pricing is fair. The extended period of performance (9 years) also suggests a need for strong justification for the lack of re-competition.

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, proprietary technology, or is the only responsible source. The lack of competition means there was no opportunity for multiple bidders to propose solutions, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the contractor faced no direct rivals for this significant award.

Public Impact

The primary beneficiaries are likely researchers and scientists at the California Institute of Technology, contributing to advancements in physical, engineering, and life sciences. The contract supports fundamental and applied research, potentially leading to breakthroughs with broad scientific and technological implications. Geographic impact is concentrated in California, where Caltech is located, but the research outcomes could have national or global benefits. Workforce implications include the employment of highly skilled scientists, engineers, and support staff at Caltech.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition for a large, long-term contract raises concerns about potential overpricing and reduced incentive for cost efficiency.
  • The broad 'Research and Development' classification makes it difficult to assess specific performance metrics and value for money.
  • The Cost Plus Award Fee structure, while performance-based, can lead to cost escalation if not meticulously managed and overseen.
  • The extended duration without re-competition may indicate a lack of market research or a missed opportunity to foster broader industry engagement.

Positive Signals

  • Awarded to a reputable research institution (Caltech) with a strong track record in scientific endeavors.
  • The contract supports critical research and development activities aligned with NASA's mission objectives.
  • The Cost Plus Award Fee structure, if managed effectively, can drive high levels of performance and innovation.
  • The long duration suggests a stable, long-term commitment to a specific research area, potentially fostering deep expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for agencies like NASA, driving innovation and technological advancement. The market for such specialized R&D is often characterized by a limited number of highly qualified institutions and firms. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts and the specific scientific objectives they pursue.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the recipient being a large research institution, subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The focus is likely on Caltech's internal research capabilities rather than broader small business engagement.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's program offices responsible for the Navigator Program. The 'COST PLUS AWARD FEE' structure implies performance metrics and award criteria that require monitoring. Transparency is limited by the sole-source nature and the proprietary aspects often associated with R&D. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Contracts
  • Federal Science and Technology Funding
  • Aerospace Research Programs
  • University Research Partnerships

Risk Flags

  • Sole-source award
  • Long contract duration without re-competition
  • Cost Plus Award Fee structure
  • Broad R&D classification lacking specific deliverables

Tags

research-and-development, nasa, california-institute-of-technology, california, sole-source, cost-plus-award-fee, large-contract, science-and-technology, aerospace, navigators-program-office

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $32.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. NAVIGATOR PROGRAM OFFICE

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 $32.7 million.

What is the period of performance?

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

What specific research objectives were funded under this contract, and how were they aligned with NASA's strategic goals?

The provided data classifies this contract under 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). While the specific objectives are not detailed, NASA's strategic goals typically encompass space exploration, aeronautics research, and Earth science. Contracts in this category often support fundamental scientific inquiry, technology development for future missions, and advanced engineering solutions. The 'Navigator Program Office' suggests a focus on space-based observation, propulsion, or related technologies critical for navigating space. Without further documentation, the precise alignment remains inferred based on the agency's broader mission.

How does the $327 million total award value compare to similar sole-source R&D contracts awarded by NASA or other agencies?

Comparing this $327 million sole-source R&D contract requires context on the specific field and duration. NASA frequently awards large R&D contracts to institutions like Caltech, especially for long-term, complex projects. Sole-source awards of this magnitude are typically justified by unique capabilities or critical national interests. While direct comparisons are difficult without knowing the exact research scope, NASA's budget includes numerous multi-hundred-million-dollar R&D efforts. The 9-year duration (2003-2012) is substantial, suggesting a deep, ongoing research effort rather than a short-term project. The value appears significant but potentially justifiable for a long-term, specialized research endeavor within the aerospace sector.

What are the potential risks associated with a sole-source, Cost Plus Award Fee contract for a 9-year duration?

A sole-source, Cost Plus Award Fee (CPAF) contract over 9 years presents several risks. Sole-sourcing eliminates competitive pressure, potentially leading to higher costs and reduced innovation incentives. CPAF contracts, while designed to reward performance, can incentivize cost growth if the award criteria are not tightly defined and rigorously monitored, as the contractor is reimbursed for costs plus a fee that can be adjusted based on performance. A 9-year duration without re-competition increases the risk of contractor complacency, potential misalignment with evolving agency needs, and the possibility that the initial justification for sole-sourcing may become outdated. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the track record of the California Institute of Technology as a federal contractor, particularly with NASA?

The California Institute of Technology (Caltech) has a long and distinguished history of collaborating with NASA and other federal agencies on cutting-edge research and development. As a premier research university, Caltech consistently secures significant federal funding through competitive grants and contracts. Its involvement often spans fundamental scientific research, engineering design, and mission operations, particularly in fields relevant to space exploration and astrophysics. Caltech's track record is generally characterized by high-quality scientific output and successful project execution, making it a preferred partner for complex, long-term R&D initiatives. This specific contract, while sole-source, aligns with Caltech's established expertise and its deep-rooted relationship with NASA.

How does the $327 million spending on this Navigator Program contract compare to NASA's overall R&D budget during the contract period?

The $327 million awarded to Caltech for the Navigator Program Office between 2003 and 2012 represents a notable investment. During this period, NASA's R&D budget fluctuated but generally ranged from approximately $4 billion to over $6 billion annually. For instance, in FY2005, NASA's R&D budget was around $4.5 billion. Spread over 9 years, the $327 million averages roughly $36 million per year. This annual amount constitutes less than 1% of NASA's total R&D expenditure in most of those years. While significant in absolute terms and for the specific program, it represents a relatively modest portion of NASA's overall research and development funding landscape.

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: $36,495,600

Exercised Options: $36,495,600

Current Obligation: $32,718,633

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: 2020-10-20

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