NASA's $55.4M Caltech contract for space observation research shows long-term investment in scientific advancement

Contract Overview

Contract Amount: $55,450,356 ($55.5M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-18

End Date: 2009-06-14

Contract Duration: 2,096 days

Daily Burn Rate: $26.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: HERSCHEL SPC OBS PH C/D

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $55.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: HERSCHEL SPC OBS PH C/D Key points: 1. Contract awarded to a single entity suggests potential for specialized expertise or limited market availability. 2. The extended duration of the contract (nearly 6 years) indicates a sustained need for the research services. 3. A Cost Plus Award Fee (CPA) structure incentivizes performance while managing costs, but requires robust oversight. 4. The contract's focus on physical, engineering, and life sciences R&D aligns with NASA's core mission objectives. 5. Geographic concentration in California may point to a hub of relevant research institutions. 6. The absence of small business set-asides warrants review to ensure fair opportunity for smaller entities.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and long duration. The Cost Plus Award Fee (CPA) structure, while common for complex research, can lead to costs exceeding initial estimates if not carefully managed. Without comparable contracts for similar deep-space observation research, it's difficult to definitively assess if the $55.4 million represents excellent value. However, the sustained funding over nearly six years suggests the agency found the research outcomes to be valuable enough to continue investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This could be due to the unique capabilities of the California Institute of Technology in the specific area of HERSCHEL SPC OBS PH C/D research, or potentially a lack of other qualified bidders. Sole-source awards bypass the competitive process, which can sometimes lead to higher prices than if multiple vendors had vied for the contract. The rationale for not competing this award would need further investigation to understand if it was justified by exceptional circumstances.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially leading to a higher overall cost for the research services rendered.

Public Impact

The primary beneficiaries are NASA and the scientific community, gaining insights from advanced space observation data. The contract supports fundamental research in physical, engineering, and life sciences, contributing to broader scientific knowledge. The geographic impact is concentrated in California, likely benefiting the local research and academic ecosystem. The contract supports highly skilled researchers and technical personnel, contributing to the specialized workforce in aerospace and science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition raises concerns about potential overpayment and missed opportunities for innovative solutions from other providers.
  • The Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns and ensure performance targets are met.
  • The absence of small business participation may limit the broader economic impact and diversity of contractors.

Positive Signals

  • Award to a reputable institution like Caltech suggests a high likelihood of achieving research objectives.
  • The long-term nature of the contract indicates a sustained commitment to a critical research area for NASA.
  • The focus on advanced scientific research aligns with NASA's mission to explore the universe.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and astronomy. The market for highly specialized space observation research is often concentrated among a few leading academic institutions and research organizations. NASA's spending in this area is critical for advancing scientific understanding and technological capabilities. Comparable spending benchmarks are difficult to establish due to the unique nature of space science R&D, but NASA consistently invests billions annually in research grants and contracts to support its ambitious exploration and scientific discovery goals.

Small Business Impact

This contract did not include a small business set-aside, nor is there information indicating subcontracting opportunities for small businesses. Given the specialized nature of the research, it's possible that the primary contractor, Caltech, is the most suitable entity. However, a review of subcontracting plans could reveal potential avenues for small business involvement in specific aspects of the project, such as data analysis support, specialized equipment fabrication, or logistical services.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would primarily reside with the National Aeronautics and Space Administration (NASA). NASA's contracting officers and technical monitors are responsible for ensuring that the contractor meets performance objectives and manages costs effectively. The CPA structure necessitates regular reviews of expenditures and progress reports to determine award fees. Transparency is generally maintained through contract reporting requirements, though specific details of research findings may be subject to publication schedules or proprietary considerations.

Related Government Programs

  • NASA Research and Development Contracts
  • Space Science Research Grants
  • Astrophysics Research Programs
  • Federal Funding for Higher Education Research

Risk Flags

  • Sole-source award lacks competitive pricing.
  • Cost Plus Award Fee structure requires diligent oversight.
  • Potential for limited small business participation.

Tags

nasa, caltech, california, research-and-development, space-observation, astrophysics, cost-plus-award-fee, sole-source, long-term-contract, science-and-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $55.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. HERSCHEL SPC OBS PH 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 $55.5 million.

What is the period of performance?

Start: 2003-09-18. End: 2009-06-14.

What specific scientific advancements or data were produced under this contract?

The contract awarded to the California Institute of Technology (Caltech) for HERSCHEL SPC OBS PH C/D research aimed to advance our understanding of the universe through space observation. While specific scientific publications and data sets are not detailed in the provided summary, contracts of this nature typically result in peer-reviewed journal articles, conference presentations, and the generation of valuable astronomical data. The Herschel Space Observatory, which this contract likely supported, was a major European Space Agency (ESA) mission focused on studying the cold universe. Caltech's involvement would have contributed to analyzing Herschel's data, developing new observational techniques, or interpreting findings related to star formation, galaxy evolution, and the early universe. The $55.4 million investment over nearly six years suggests a significant contribution to NASA's scientific objectives in astrophysics and cosmology.

How does the $55.4 million cost compare to similar space observation research contracts?

Directly comparing the $55.4 million cost of this specific contract to 'similar' space observation research contracts is challenging due to the highly specialized nature of such work and the variability in contract scope, duration, and objectives. Contracts can range from small grants for specific analyses to multi-billion dollar programs for building and launching new observatories. This contract, awarded to Caltech over nearly six years (2003-2009), represents a substantial investment in research and development. Given its duration and the reputation of Caltech in astrophysics, the cost appears to be within a reasonable range for significant, long-term scientific inquiry. However, without access to a database of comparable sole-source R&D contracts for specific observational instruments or research areas, a precise value-for-money assessment is difficult.

What were the primary risks associated with this sole-source contract, and how were they managed?

The primary risks associated with this sole-source contract stem from its non-competitive nature and the Cost Plus Award Fee (CPA) structure. A key risk of sole-sourcing is the potential for inflated pricing due to the lack of competitive pressure, meaning taxpayers might pay more than necessary. The CPA structure, while incentivizing performance, carries the risk of cost overruns if performance targets are not clearly defined or if the contractor incurs unexpected expenses that are passed on. To manage these risks, NASA would have implemented robust oversight mechanisms. This includes detailed monitoring of expenditures, regular performance reviews against defined award fee criteria, and potentially independent cost analyses. The long duration also presents a risk of scope creep or research becoming outdated, which would be managed through active contract administration and potential modifications.

What is Caltech's track record with NASA contracts, particularly in space science R&D?

The California Institute of Technology (Caltech) has a long and distinguished track record of collaboration with NASA, particularly in space science research and development. Caltech manages NASA's Jet Propulsion Laboratory (JPL) under contract, which is responsible for many robotic exploration missions. Beyond JPL, Caltech faculty and researchers consistently secure significant funding from NASA for theoretical research, instrument development, and data analysis across various scientific disciplines, including astrophysics, planetary science, and Earth science. Their involvement in major space missions and groundbreaking scientific discoveries is well-documented. This specific contract, while sole-sourced, likely reflects Caltech's established expertise and proven ability to deliver high-quality scientific research aligned with NASA's mission objectives.

How does this contract fit into NASA's broader strategy for space observation and scientific discovery?

This contract aligns directly with NASA's enduring mission to explore the universe and expand scientific knowledge. The HERSCHEL SPC OBS PH C/D research, likely involving the analysis of data from the Herschel Space Observatory, contributes to NASA's strategic goals in astrophysics and cosmology. NASA's strategy emphasizes both the development of new observational capabilities (like space telescopes) and the in-depth scientific analysis of the data they provide. By funding Caltech, a leading research institution, NASA ensures that cutting-edge scientific inquiry is conducted, leading to discoveries about the formation of stars and galaxies, the nature of dark matter and dark energy, and the early universe. This investment supports NASA's role as a global leader in space science.

What was the total spending on this contract over its duration, and how does it compare to annual R&D budgets?

The total obligated amount for this contract was $55,450,356.27, spanning from September 18, 2003, to June 14, 2009, a period of approximately 5 years and 9 months. This figure represents a significant investment in a specific research area. Comparing this to NASA's overall R&D budget provides context. For example, NASA's total budget in fiscal year 2004 was around $15.9 billion, with a substantial portion allocated to science missions and research. While the exact breakdown for R&D varies annually, this single contract represents a fraction of NASA's overall scientific endeavors. It highlights how specific, long-term research projects are funded to achieve targeted scientific goals within the larger framework of NASA's budgetary allocations.

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: $62,123,880

Exercised Options: $62,123,880

Current Obligation: $55,450,356

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-18

Current End Date: 2009-06-14

Potential End Date: 2009-06-14 00:00:00

Last Modified: 2020-01-06

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