NASA's $238.7M contract with California Institute of Technology for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $238,698,249 ($238.7M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-19

End Date: 2007-11-18

Contract Duration: 1,521 days

Daily Burn Rate: $156.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: DAWN

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $238.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: DAWN Key points: 1. Contract awarded for research and development, indicating investment in scientific advancement. 2. Sole-source award suggests unique capabilities or specific research needs met by the contractor. 3. Long duration of 1521 days points to complex, multi-phase research projects. 4. Cost Plus Award Fee contract type incentivizes performance while allowing for cost reimbursement. 5. Contract focused on physical, engineering, and life sciences, aligning with NASA's core mission areas. 6. Geographic location in California may indicate a hub for aerospace and research activities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific research and development nature and sole-source award. The Cost Plus Award Fee structure allows for flexibility but can lead to higher costs if performance incentives are not tightly managed. Without comparable sole-source R&D contracts of similar scope and duration, a definitive value-for-money assessment is difficult. However, the long-term nature suggests a significant investment in potentially groundbreaking research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the only source capable of meeting the government's requirements. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not leverage competitive bidding to secure the best possible price. This necessitates a strong reliance on robust oversight and negotiation to ensure fair pricing.

Public Impact

Benefits scientific advancement in physical, engineering, and life sciences, potentially leading to new technologies and discoveries. Supports research activities that align with NASA's exploration and scientific objectives. The geographic impact is primarily within California, where the contractor is located, potentially fostering local research ecosystems. Workforce implications include employment for researchers, scientists, engineers, and support staff at the California Institute of Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition, potentially increasing costs for taxpayers.
  • Cost Plus Award Fee contracts require diligent oversight to ensure performance incentives align with cost control.
  • Long contract duration increases the risk of scope creep or evolving research needs not being adequately addressed.

Positive Signals

  • Contract awarded to a reputable research institution (Caltech) known for scientific excellence.
  • Focus on R&D aligns with strategic goals for innovation and technological advancement.
  • Award fee structure incentivizes high performance in complex research endeavors.

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, long-term investment, and often involves specialized institutions like universities and dedicated research organizations. NASA's spending in this area is crucial for maintaining its technological edge in space exploration and scientific discovery. Comparable spending benchmarks are difficult to establish due to the highly specialized nature of R&D, but significant government investment is typical for advancing scientific frontiers.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting to small businesses. As a sole-source award to a large research institution, the primary focus is likely on the institution's internal research capabilities rather than leveraging the small business ecosystem. Further investigation would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's program management and contracting officers. The Cost Plus Award Fee structure necessitates careful monitoring of performance metrics and milestones to justify award fees. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

  • NASA Research and Development Contracts
  • Federal Science and Technology Funding
  • University Research Grants
  • Aerospace Research and Development

Risk Flags

  • Sole-source award may limit cost savings.
  • CPAF requires strong performance monitoring.
  • Long duration increases risk of evolving needs.

Tags

nasa, california-institute-of-technology, research-and-development, physical-engineering-life-sciences, sole-source, cost-plus-award-fee, delivery-order, california, large-contractor, science-and-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $238.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. DAWN

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 $238.7 million.

What is the period of performance?

Start: 2003-09-19. End: 2007-11-18.

What is the historical spending pattern for NASA with the California Institute of Technology for similar research and development activities?

Analyzing historical spending between NASA and the California Institute of Technology (Caltech) for similar R&D activities would require a comprehensive review of past contract awards. Caltech is a well-established research institution with a long history of collaborating with government agencies, including NASA, on various scientific and engineering projects. Without access to a detailed historical contract database filtered for this specific agency-contractor pair and research domain, it's difficult to provide precise figures. However, it is reasonable to assume that Caltech has received significant funding from NASA over the years for projects aligned with space exploration, astrophysics, planetary science, and aeronautics, given their respective missions and expertise. This particular $238.7 million contract, awarded in 2003 and ending in 2007, represents a substantial, multi-year investment in a specific area of R&D.

How does the Cost Plus Award Fee (CPAF) structure typically influence contractor performance and cost control in R&D contracts?

The Cost Plus Award Fee (CPAF) contract structure is designed to provide flexibility in R&D environments where the scope of work may evolve and precise cost estimation is challenging. Under CPAF, the contractor is reimbursed for all allowable costs incurred, plus a base fee that is a fixed percentage of the estimated cost. Additionally, an award fee is available, determined by the government based on the contractor's performance against pre-defined criteria and metrics. This incentivizes the contractor to exceed minimum performance requirements to earn higher fees. However, effective cost control relies heavily on the government's ability to establish clear, measurable performance standards and to objectively evaluate performance to ensure award fees are earned appropriately. Without rigorous oversight and well-defined metrics, CPAF contracts can potentially lead to cost overruns if the focus shifts too heavily towards maximizing fees rather than efficient resource utilization.

What are the potential risks associated with a sole-source award for a long-duration R&D contract?

Sole-source awards for long-duration R&D contracts carry several potential risks. Firstly, the absence of competition means the government does not benefit from market-driven price discovery, potentially leading to higher costs than if multiple bids were solicited. Secondly, without the pressure of competing for the contract, the contractor might have less incentive to innovate or optimize processes, although the CPAF structure aims to mitigate this through performance incentives. Thirdly, a long duration (1521 days in this case) increases the risk that the contractor's capabilities might become outdated, or that the government's needs might evolve significantly, requiring costly modifications or potentially leading to a less-than-optimal solution if the contract cannot be easily adapted. Finally, there's a risk of contractor lock-in, making it difficult and expensive to transition to a different provider if circumstances change.

What specific areas within 'Research and Development in the Physical, Engineering, and Life Sciences' does this contract likely cover, given NASA's mission?

Given that this contract was awarded by NASA to the California Institute of Technology (Caltech) for 'Research and Development in the Physical, Engineering, and Life Sciences,' it likely encompasses a broad range of scientific and technological endeavors critical to space exploration and aeronautics. In the physical sciences, this could include research in materials science, fundamental physics relevant to space environments, propulsion systems, or advanced sensor technologies. Engineering R&D might involve developing new spacecraft components, improving launch vehicle systems, robotics for space missions, or advanced communication systems. Life sciences research could focus on understanding the effects of space travel on human physiology, developing life support systems, astrobiology (the search for life beyond Earth), or studying biological processes in microgravity. The specific focus would depend on NASA's strategic priorities at the time of the award (2003).

How does the geographic location (California) potentially influence the execution and outcomes of this NASA R&D contract?

California is a major hub for aerospace and technology industries, and hosting a significant NASA R&D contract there offers several advantages. The proximity to other aerospace companies, research institutions, and a skilled workforce in fields like engineering, physics, and computer science can facilitate collaboration, knowledge sharing, and access to specialized talent. Caltech itself is a world-renowned research university with deep ties to the aerospace sector, including its management of NASA's Jet Propulsion Laboratory (JPL). This geographic concentration of expertise and resources can streamline project execution, foster innovation through a dynamic ecosystem, and potentially lead to more efficient problem-solving. Furthermore, it aligns with NASA's historical and ongoing investments in California's robust scientific and technological infrastructure.

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: 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: $247,973,300

Exercised Options: $247,973,300

Current Obligation: $238,698,249

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-19

Current End Date: 2007-11-18

Potential End Date: 2007-11-18 00:00:00

Last Modified: 2020-06-18

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