NASA's $151M LBTI Contract Awarded to Caltech for R&D, Facing Limited Competition

Contract Overview

Contract Amount: $15,099,676 ($15.1M)

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: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: LBTI

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $15.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: LBTI Key points: 1. Significant investment in advanced research and development. 2. Limited competition raises questions about price discovery. 3. Long contract duration may indicate complex, ongoing needs. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: questionable

The contract's total award value is substantial. Without a competitive bidding process, it's difficult to assess if the pricing is optimal or if taxpayers received the best value. Benchmarking against similar R&D contracts is challenging due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a sole-source or limited competition award. This limits the opportunity for price discovery and potentially leads to higher costs than if multiple vendors had competed.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than a fully competed contract, as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

Advancement in scientific research with potential long-term benefits. Focus on specialized R&D may not directly impact broad public services. Investment in a single entity could concentrate expertise but limit broader industry engagement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long duration

Positive Signals

  • Supports critical R&D
  • Awarded to a reputable institution

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be highly specialized, making direct cost comparisons difficult. NASA's R&D spending is typically high due to the nature of its missions.

Small Business Impact

The contract was awarded to the California Institute of Technology, a large research institution, and not competed. There is no indication of small business participation in this specific award, suggesting limited direct impact on the small business sector for this contract.

Oversight & Accountability

Given the non-competitive nature and cost-plus award fee structure, robust oversight is critical to ensure performance and cost control. NASA's internal oversight mechanisms would be key to managing this contract effectively.

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
  • Cost-plus award fee contract type
  • Long contract duration (9 years)
  • No clear small business participation

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 $15.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. LBTI

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 $15.1 million.

What is the period of performance?

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

What specific research outcomes justify the significant, non-competed investment?

The contract supports the Lunar Blaze Telescope Interferometer (LBTI) project, a significant scientific instrument. While the specific research outcomes are proprietary to Caltech's research goals, the project aims to advance astronomical observation capabilities, potentially leading to new discoveries about celestial bodies and phenomena. Justification would lie in the unique scientific capabilities and potential breakthroughs the LBTI offers that cannot be replicated or achieved through other means.

What are the risks associated with a cost-plus award fee contract for long-term R&D?

Cost-plus contracts can incentivize higher spending as the contractor is reimbursed for costs plus a fee. For long-term R&D, this increases the risk of cost overruns if not tightly managed. The award fee component aims to mitigate this by linking a portion of the fee to performance, but defining objective performance metrics for complex R&D can be challenging, potentially leading to disputes or less-than-optimal cost control.

How does the lack of competition impact the effectiveness of NASA's R&D spending?

A lack of competition can reduce the effectiveness of R&D spending by potentially leading to higher costs and less innovation. Without competitive pressure, there's less incentive for the contractor to find the most cost-effective solutions or to push the boundaries of innovation aggressively. While Caltech is a leading institution, a competitive process could have potentially identified other strong contenders or spurred greater efficiency from the selected awardee.

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: $25,364,308

Exercised Options: $25,364,308

Current Obligation: $15,099,676

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: 2020-10-20

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