NASA's $39.8M JPL contract for space research awarded to California Institute of Technology, a sole-source procurement
Contract Overview
Contract Amount: $39,884,548 ($39.9M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-09-12
End Date: 2009-05-31
Contract Duration: 2,088 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: US PRTCPT PLNCK PHS C/D
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $39.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: US PRTCPT PLNCK PHS C/D Key points: 1. Contract awarded to a single entity, limiting competitive pricing benefits. 2. Long contract duration of 2088 days suggests a sustained need for specialized services. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical but complex sector. 4. The contract type (Cost Plus Award Fee) incentivizes performance but can lead to cost overruns. 5. Sole-source nature raises questions about potential overpayment and lack of market price discovery. 6. The agency and the contractor are highly integrated, suggesting a unique capability or historical relationship.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and specialized R&D focus. The Cost Plus Award Fee structure allows for flexibility but requires careful oversight to ensure costs remain reasonable. Without competitive bids, it's difficult to definitively assess if the pricing reflects market rates or represents a value-for-money outcome. The long duration and significant dollar amount indicate a substantial investment in a specific research area.
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, indicating that NASA determined only this entity possessed the necessary unique capabilities or qualifications. This approach bypasses the standard competitive bidding process, meaning there were no other offers considered. While sole-source awards can be justified for highly specialized or proprietary work, they limit the government's ability to leverage competition to drive down prices and ensure the best possible value.
Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of competition means the government accepted the contractor's proposed pricing without the pressure of alternative offers.
Public Impact
The primary beneficiary is NASA, which receives critical research and development services for its space exploration and scientific missions. The contract supports advanced research in physical, engineering, and life sciences, potentially leading to breakthroughs in space technology and scientific understanding. Geographic impact is concentrated in California, where the California Institute of Technology is located and conducts its research. The contract likely supports a highly skilled workforce of scientists, engineers, and researchers at Caltech.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
- Cost Plus Award Fee contracts can incentivize cost growth if not managed stringently.
- Long contract duration may indicate a lack of readily available alternative providers or a deeply integrated relationship.
Positive Signals
- Award to a reputable institution (Caltech) known for its scientific and engineering expertise.
- Contract supports critical research and development for national space programs.
- The integrated nature of the relationship may foster deep collaboration and innovation.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, specialized expertise, and often long development cycles. Government spending in this area is crucial for advancing scientific knowledge and developing new technologies. Comparable spending benchmarks are difficult to establish for unique R&D projects, but NASA's overall R&D budget is substantial, with significant portions allocated to institutions like Caltech for projects like the Jet Propulsion Laboratory (JPL).
Small Business Impact
This contract does not appear to involve small business set-asides, as it was awarded sole-source to a large research institution. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized R&D at a major institution suggests that the primary work will be performed by the contractor's internal resources or through collaborations with other large entities, rather than through a broad subcontracting network that would typically benefit small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a sole-source award to a highly integrated entity (JPL is managed by Caltech for NASA), oversight likely focuses on programmatic milestones, scientific progress, and adherence to the Cost Plus Award Fee structure. Transparency may be limited due to the sole-source nature, but NASA's Inspector General would have jurisdiction for audits and investigations if any improprieties were suspected.
Related Government Programs
- NASA Jet Propulsion Laboratory (JPL) Operations
- Space Exploration Research
- Scientific Research and Development Services
- Aerospace Technology Development
Risk Flags
- Sole-source procurement limits competition.
- Cost Plus Award Fee structure requires diligent oversight to manage costs.
- Long contract duration may indicate a lack of market alternatives or deep integration.
Tags
research-and-development, nasa, california-institute-of-technology, california, sole-source, cost-plus-award-fee, space-exploration, scientific-research, large-business, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $39.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. US PRTCPT PLNCK PHS C/D
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 $39.9 million.
What is the period of performance?
Start: 2003-09-12. End: 2009-05-31.
What is the historical spending pattern for NASA with the California Institute of Technology for similar research and development activities?
Historical data indicates a long-standing and significant relationship between NASA and the California Institute of Technology (Caltech), particularly concerning the management and operation of the Jet Propulsion Laboratory (JPL). Caltech has managed JPL for NASA since its inception in 1936. NASA's spending with Caltech for R&D, including JPL operations, spans decades and amounts to billions of dollars. This specific contract, valued at approximately $39.8 million over its duration, represents a portion of this broader, sustained investment. The consistent funding reflects the critical role Caltech plays in advancing NASA's scientific and exploratory missions through JPL's unique capabilities.
How does the Cost Plus Award Fee (CPAF) structure of this contract typically influence contractor performance and cost management compared to other contract types?
The Cost Plus Award Fee (CPAF) contract type is designed to incentivize contractor performance by allowing for a base fee plus an additional award fee based on meeting or exceeding specific performance objectives. This structure aims to balance cost control with achieving high-quality outcomes, particularly in complex R&D or service contracts where outcomes can be difficult to define precisely upfront. Compared to fixed-price contracts, CPAF offers more flexibility for the government if requirements change, but it also requires robust oversight to ensure costs remain reasonable and that award fees are justified. It differs from Cost Plus Incentive Fee (CPIF) by having a more subjective performance evaluation for the award fee component, often determined by the agency's subjective judgment of performance.
Given the sole-source nature, what mechanisms are in place to ensure fair pricing and prevent potential cost overruns for this NASA contract?
For sole-source contracts, especially those using a Cost Plus Award Fee (CPAF) structure, ensuring fair pricing and preventing cost overruns relies heavily on stringent government oversight and negotiation. NASA would have conducted a thorough cost analysis of Caltech's proposed budget, scrutinizing direct costs, indirect costs, and profit margins. The CPAF mechanism itself includes performance metrics tied to the award fee; failure to meet these metrics can result in reduced or no award fee, acting as a cost control incentive. Furthermore, NASA's contracting officers and technical teams continuously monitor the contractor's progress, expenditures, and adherence to the contract's scope. Audits by NASA's Inspector General can also be employed to verify cost allowability and accuracy.
What are the key performance indicators (KPIs) or objectives that likely drive the 'Award Fee' component of this contract?
While specific KPIs are not detailed in the provided data, for a NASA R&D contract with Caltech/JPL focused on space science and exploration, likely KPIs would revolve around scientific discovery, technological innovation, mission success rates, project milestone achievement, and adherence to budget and schedule where applicable. For instance, successful completion of research phases, development of novel technologies, publication of significant scientific findings, or the successful execution of specific mission objectives managed by JPL would contribute to earning the award fee. The 'Award Fee' component is typically determined by the agency's assessment of the contractor's performance against pre-defined criteria, often involving subjective evaluations of technical excellence and overall contribution to NASA's goals.
What is the strategic importance of this contract to NASA's overall mission objectives in space exploration and scientific research?
This contract is strategically vital for NASA as it supports critical research and development activities managed by the California Institute of Technology, likely through the Jet Propulsion Laboratory (JPL). JPL is renowned for its expertise in robotic space exploration, Earth science, astronomy, and planetary science. Contracts like this enable NASA to pursue ambitious scientific goals, develop cutting-edge technologies for space missions, and maintain its leadership in space exploration. The sustained nature of the funding and the sole-source award suggest that Caltech/JPL possesses unique capabilities essential for NASA's long-term strategic objectives, contributing directly to scientific discovery and the advancement of space technology.
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: 1
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: $42,436,602
Exercised Options: $42,436,602
Current Obligation: $39,884,548
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: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2020-06-18
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