NASA's $167M MIRI contract to Caltech for R&D shows long-term investment in physical sciences

Contract Overview

Contract Amount: $166,784,245 ($166.8M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-17

End Date: 2012-09-30

Contract Duration: 3,301 days

Daily Burn Rate: $50.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MIRI PHASE 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 $166.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MIRI PHASE C/D Key points: 1. This contract represents a significant, long-term investment in advanced research and development. 2. The sole-source nature of the award warrants scrutiny regarding potential cost efficiencies. 3. The extended duration of the contract suggests a complex, multi-phase research project. 4. Performance context is crucial given the R&D focus, where outcomes can be uncertain. 5. The contract falls within the 'Research and Development' sector, specifically physical sciences. 6. The absence of small business set-asides indicates a focus on specialized research capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and long duration. The cost-plus award fee structure allows for flexibility but can also lead to higher costs if not managed tightly. Without comparable sole-source R&D awards of similar scope and duration, a definitive value-for-money assessment is difficult. The total obligated amount of over $166 million over nearly a decade suggests substantial resource allocation.

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 Caltech possessed unique capabilities essential for the MIRI Phase C/D project. The lack of competition means there was no direct price comparison through bidding, and potential cost savings from a competitive process were not realized. This approach is often used for highly specialized research where only one entity has the required expertise or infrastructure.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from the price reductions typically seen in competitive bidding processes. NASA likely justified this approach based on Caltech's unique qualifications for this specific research.

Public Impact

The primary beneficiaries are NASA and the scientific community, gaining advancements in physical sciences research. The contract supports critical research and development activities for advanced scientific instruments. The geographic impact is centered in California, where the California Institute of Technology is located. The contract supports highly skilled researchers and technical personnel within the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition and potential taxpayer savings.
  • Long contract duration increases the risk of cost overruns and scope creep.
  • Cost-plus award fee structure can incentivize higher spending if not rigorously overseen.

Positive Signals

  • Award to a reputable institution (Caltech) suggests a high likelihood of technical success.
  • Focus on R&D aligns with NASA's mission to advance scientific knowledge.
  • The specific nature of the research (MIRI Phase C/D) indicates a targeted and important scientific objective.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. The market for such highly specialized R&D is often limited, with a few key institutions possessing the necessary expertise and facilities. NASA's spending in this area is crucial for maintaining technological leadership and achieving scientific breakthroughs. Comparable spending benchmarks are difficult to establish due to the unique nature of the MIRI project.

Small Business Impact

This contract does not appear to have small business set-aside provisions, which is typical for large-scale, highly specialized research and development projects awarded to major research institutions. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. The focus is on leveraging the unique capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily be managed by NASA's contracting officers and program managers. Given the cost-plus award fee structure, rigorous monitoring of costs, performance, and adherence to research objectives is expected. Transparency is facilitated through NASA's reporting mechanisms, though specific details on public access to research outcomes are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Contracts
  • Advanced Technology Development
  • Space Science Instrumentation
  • Physical Sciences Research Grants

Risk Flags

  • Sole-source award
  • Long contract duration
  • Cost-plus award fee structure

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $166.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MIRI PHASE 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 $166.8 million.

What is the period of performance?

Start: 2003-09-17. End: 2012-09-30.

What is the specific scientific objective of the MIRI Phase C/D project?

The Mid-Infrared Instrument (MIRI) is a crucial component of the James Webb Space Telescope (JWST). Phase C/D of the MIRI project, awarded to the California Institute of Technology (Caltech), likely encompasses the final stages of instrument development, testing, integration, and potentially early operational support. This phase is critical for ensuring the instrument meets its scientific requirements for observing the universe in mid-infrared wavelengths, enabling groundbreaking research into the formation of stars and galaxies, exoplanet atmospheres, and other fundamental astrophysical phenomena. The contract's substantial value and duration reflect the complexity and importance of delivering such a sophisticated scientific instrument.

How does the Cost Plus Award Fee (CPAF) structure impact contractor incentives and government oversight?

The Cost Plus Award Fee (CPAF) contract structure reimburses the contractor for allowable costs incurred and provides a base fee, plus an award fee determined by the government based on performance against predetermined criteria. This structure incentivizes the contractor to perform well and achieve specific objectives, as the award fee can significantly increase total compensation. For the government, it offers flexibility in R&D settings where outcomes can be uncertain, allowing for adjustments in direction. However, it requires robust government oversight to establish fair and objective award criteria, evaluate performance accurately, and ensure that costs remain reasonable and well-managed to prevent potential overspending.

What is Caltech's track record in managing large-scale NASA R&D contracts?

The California Institute of Technology (Caltech) has a long and distinguished history of managing complex scientific research and development projects for NASA and other government agencies. As a leading research university, Caltech has consistently demonstrated expertise in areas relevant to space science and engineering. They have been instrumental in numerous NASA missions, including the development of scientific instruments and the execution of fundamental research. Their involvement in projects like the development of the Mid-Infrared Instrument (MIRI) for the James Webb Space Telescope underscores their capability to handle large-scale, technologically advanced R&D endeavors, often involving significant funding and long-term commitments.

Are there any comparable sole-source R&D contracts of similar scale and duration?

Identifying directly comparable sole-source R&D contracts of similar scale and duration can be challenging due to the unique nature of scientific research and the specific requirements of each project. However, NASA and other federal agencies do award sole-source contracts for highly specialized R&D efforts to institutions with unique capabilities. These often involve cutting-edge technology development, fundamental scientific inquiry, or projects where a specific entity has unparalleled expertise or proprietary knowledge. While the $167 million figure over approximately nine years for MIRI Phase C/D is substantial, similar long-term, high-value sole-source R&D awards can be found in areas like advanced materials science, quantum computing research, or specialized aerospace engineering projects, though exact parallels are rare.

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

Sole-source awards for long-duration R&D projects carry inherent risks. Firstly, the lack of competition can lead to higher costs than might be achieved through a competitive bidding process, as there is less pressure on the contractor to optimize pricing. Secondly, the extended timeline increases the risk of cost overruns due to unforeseen technical challenges, inflation, or changes in research scope. The government's ability to renegotiate terms or switch contractors is limited. Furthermore, without competitive benchmarking, assessing the 'fairness' of the price and the overall value for money can be more difficult. Robust contract management and oversight are therefore critical to mitigate these risks.

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: $216,443,254

Exercised Options: $216,443,254

Current Obligation: $166,784,245

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-17

Current End Date: 2012-09-30

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

Last Modified: 2020-10-22

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