NASA's $17.8M Mission Management Office Contract with Caltech Awarded Without Competition

Contract Overview

Contract Amount: $17,838,159 ($17.8M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-15

End Date: 2012-09-30

Contract Duration: 3,303 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MISSION MANAGEMNT OFFICE

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $17.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MISSION MANAGEMNT OFFICE Key points: 1. Significant long-term investment in R&D for physical, engineering, and life sciences. 2. Sole-source award to Caltech suggests unique capabilities or established relationship. 3. Potential risk of limited innovation and higher costs due to lack of competition. 4. Focus on advanced research aligns with national scientific and technological goals.

Value Assessment

Rating: questionable

The contract's duration of over 9 years and cost-plus award fee structure make a definitive value assessment difficult without more data. The lack of competition raises concerns about whether the pricing reflects market rates or if efficiencies were pursued.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that NASA identified Caltech as the only responsible source capable of meeting the requirement. This limits price discovery and competitive pressure, potentially leading to higher costs.

Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible value for the funds expended. The absence of competition could also mean missed opportunities for innovation from other potential contractors.

Public Impact

Supports cutting-edge scientific research with potential for significant technological advancements. Long-term funding stability for a key research institution. Lack of transparency in the procurement process due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus award fee contract
  • Long contract duration
  • Lack of small business participation

Positive Signals

  • Supports critical R&D mission
  • Established relationship with a reputable institution

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight to ensure value and competitive sourcing where possible.

Small Business Impact

The data indicates no reported small business participation in this contract. Given the sole-source nature and the focus on advanced research, opportunities for small businesses may have been limited or overlooked.

Oversight & Accountability

The sole-source award and cost-plus structure warrant close oversight to ensure that funds are used efficiently and effectively towards NASA's mission objectives. Regular performance reviews and cost audits are essential.

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 competition
  • Potential for cost overruns
  • Limited innovation
  • No small business participation
  • Long contract duration

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 $17.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MISSION MANAGEMNT 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 $17.8 million.

What is the period of performance?

Start: 2003-09-15. End: 2012-09-30.

What specific capabilities does Caltech possess that justified a sole-source award for this mission management office, and were alternatives thoroughly explored?

NASA's justification for a sole-source award typically hinges on unique capabilities, specialized knowledge, or critical infrastructure possessed by a single entity. For the Mission Management Office, this could involve proprietary technologies, extensive historical data, or highly specialized personnel developed over years of collaboration. While alternatives might be explored, the agency must document why they are not suitable or capable of meeting the specific, unique requirements of the contract to justify bypassing full and open competition.

How does the cost-plus award fee structure impact the incentive for cost control and efficiency over the contract's long duration?

A Cost-Plus Award Fee (CPAF) contract reimburses the contractor for allowable costs and provides a fixed fee that is earned based on performance against pre-defined criteria. While it allows for flexibility in research and development, the award fee component can incentivize meeting performance targets rather than strict cost control. Over a long duration like this contract (over 9 years), there's a risk that the focus shifts heavily towards achieving award fee criteria, potentially at the expense of cost efficiency, necessitating robust oversight to manage expenditures.

What are the long-term implications for NASA's research capabilities if critical functions are consistently awarded sole-source to specific institutions?

Consistently awarding critical R&D functions sole-source to specific institutions can lead to a stagnation of innovation and a lack of diverse perspectives. It may also create institutional dependencies, making it difficult for other organizations, including emerging ones, to gain a foothold and contribute. This can limit the agency's access to a broader range of technological solutions and potentially increase long-term costs due to the absence of competitive pressures that drive efficiency and novel approaches.

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: $22,539,850

Exercised Options: $22,539,850

Current Obligation: $17,838,159

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-15

Current End Date: 2012-09-30

Potential End Date: 2012-09-30 00:00:00

Last Modified: 2020-10-21

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