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
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 Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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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