NASA's $587M JPL contract to Caltech spans a decade, focusing on R&D for space missions

Contract Overview

Contract Amount: $58,686,947 ($58.7M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-23

End Date: 2012-09-30

Contract Duration: 3,295 days

Daily Burn Rate: $17.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: SMD, R&A,ATMOS FY03-FY08

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $58.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SMD, R&A,ATMOS FY03-FY08 Key points: 1. Contract awarded for a significant duration, indicating long-term research and development needs. 2. Sole-source award suggests unique capabilities or a specific research focus tied to the contractor. 3. High total value points to substantial investment in advanced scientific and engineering endeavors. 4. Focus on R&D in physical, engineering, and life sciences aligns with core space exploration objectives. 5. Contract performance period extends over 10 years, allowing for sustained project development. 6. Geographic location in California may imply a concentration of aerospace and research talent.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its unique R&D focus and sole-source nature. The total award amount of $586.9 million over nearly 10 years suggests a significant investment in specialized research. Without comparable sole-source R&D contracts of similar scope and duration, a precise value-for-money assessment is difficult. However, the extended period implies a consistent need for Caltech's expertise in supporting NASA's scientific objectives.

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 entity possesses unique qualifications, capabilities, or intellectual property essential for the required work. In this case, the Jet Propulsion Laboratory (JPL), managed by Caltech for NASA, likely holds specialized knowledge and infrastructure critical for the specified research and development activities. The lack of competition means price discovery through market forces was not a factor in this award.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to leverage competitive bidding to potentially secure a lower price. The justification for the sole-source award must be robust to ensure public funds are used efficiently for the unique services required.

Public Impact

The primary beneficiary is NASA, which gains access to specialized R&D capabilities 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 Caltech and JPL are located, potentially benefiting the local high-tech and research workforce. Workforce implications include the employment of scientists, engineers, and support staff at Caltech/JPL, fostering expertise in critical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure, potentially impacting cost efficiency.
  • Long contract duration could lead to scope creep or evolving requirements that may not be optimally priced initially.
  • Reliance on a single contractor for critical R&D may pose a risk if performance falters or strategic priorities shift.

Positive Signals

  • Long-term engagement allows for deep specialization and sustained focus on complex research objectives.
  • Caltech's established reputation and track record in managing JPL suggest a high likelihood of successful research outcomes.
  • The contract's alignment with NASA's core mission indicates strategic importance and potential for significant scientific return.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences pertinent to space exploration. The aerospace R&D market is characterized by high barriers to entry, significant government investment, and a focus on innovation. Comparable spending benchmarks are difficult to establish for sole-source, highly specialized R&D efforts like this, but NASA's overall R&D budget provides context for the scale of investment in scientific advancement.

Small Business Impact

This contract does not appear to involve small business set-asides. As a sole-source award to a large research institution (Caltech managing JPL), the primary focus is on specialized R&D capabilities rather than broad competition. Subcontracting opportunities for small businesses may exist but are not explicitly detailed as a primary objective of the contract structure itself. The impact on the small business ecosystem is likely indirect, through potential innovation spillover or specialized component needs.

Oversight & Accountability

Oversight for this contract is primarily managed by NASA, given its nature as a sole-source award to support agency missions. Accountability measures would be embedded within the contract's performance requirements, milestones, and reporting structures. Transparency is facilitated through NASA's public contract databases, though the specifics of R&D progress may be subject to proprietary or national security considerations. Inspector General jurisdiction would apply to ensure the proper use of federal funds.

Related Government Programs

  • Jet Propulsion Laboratory (JPL) Management and Operations
  • NASA Research and Development Programs
  • Space Science and Exploration Initiatives
  • Advanced Technology Development Contracts

Risk Flags

  • Sole-source award
  • Long contract duration
  • Cost-plus contract type

Tags

nasa, caltech, jpl, research-and-development, space-exploration, california, sole-source, cost-plus-award-fee, long-term-contract, science, engineering

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $58.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SMD, R&A,ATMOS FY03-FY08

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 $58.7 million.

What is the period of performance?

Start: 2003-09-23. End: 2012-09-30.

What is the historical spending pattern for this specific contract or similar sole-source R&D awards by NASA to Caltech/JPL?

The provided data indicates a total award of $586,869,467.70 for this contract, spanning from September 23, 2003, to September 30, 2012. This represents a significant, long-term investment. Without access to NASA's historical procurement data beyond this specific award, it's difficult to establish a precise pattern for *this exact* contract. However, NASA frequently engages in long-term, sole-source or limited-competition contracts with institutions like Caltech/JPL for specialized research and development due to their unique capabilities and established infrastructure. These awards are often substantial, reflecting the complexity and duration of space science and engineering projects. Analyzing broader NASA R&D spending trends would show a consistent allocation of funds towards fundamental research, technology development, and mission support, often channeled through established research centers and university-affiliated laboratories.

How does the cost structure (Cost Plus Award Fee) compare to other NASA R&D contracts?

Cost Plus Award Fee (CPAF) contracts, like this one, are common for R&D efforts where the scope is not fully defined at the outset or where performance incentives are crucial. Under CPAF, the contractor is reimbursed for allowable costs plus a fee that is composed of a base amount and an award amount, contingent upon meeting specific performance objectives. This structure aims to incentivize high performance while accommodating the uncertainties inherent in research. Compared to fixed-price contracts, CPAF offers more flexibility for evolving R&D projects but can potentially lead to higher costs if performance targets are not rigorously managed. For NASA R&D, CPAF is often preferred over Cost Plus Fixed Fee (CPFF) when performance outcomes are highly variable and measurable, and over Cost Plus Incentive Fee (CPIF) when the award fee is more subjective or tied to broader mission success criteria rather than specific cost/schedule targets.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how was performance measured?

While the specific Key Performance Indicators (KPIs) and detailed milestones for this particular contract are not publicly itemized in the provided data, Cost Plus Award Fee (CPAF) contracts inherently link performance to the 'award' portion of the fee. NASA would have established a set of criteria related to scientific discovery, technological advancement, mission support, project management, and adherence to safety and operational standards. Performance would typically be assessed through regular reviews, technical progress reports, peer evaluations, and the achievement of defined research objectives or project phases. The 'award fee' would be determined based on how well Caltech/JPL met or exceeded these pre-defined performance standards, as judged by NASA's contracting officer and technical representatives. The duration of the contract (over 9 years) suggests that performance was likely evaluated incrementally over multiple years.

What is the track record of Caltech/JPL in managing and executing large-scale NASA R&D contracts?

Caltech, through its management of the Jet Propulsion Laboratory (JPL) for NASA, has an exceptionally strong and long-standing track record in executing large-scale, complex R&D contracts for space exploration and scientific missions. JPL is renowned for its pioneering work on numerous planetary missions (e.g., Voyager, Mars rovers), Earth observation systems, and astronomical observatories. Caltech itself is a world-leading research university with deep expertise across physical sciences, engineering, and life sciences. Their consistent selection and successful performance on high-profile, multi-billion dollar NASA programs over decades underscore their capability in managing intricate projects, fostering scientific innovation, and delivering groundbreaking results within budget and schedule constraints, making them a preferred partner for NASA's most ambitious endeavors.

Are there any identified risks or challenges associated with this specific contract or the nature of sole-source R&D awards?

The primary risk associated with this sole-source R&D contract is the inherent lack of competitive pressure, which can sometimes lead to less stringent cost control compared to competed contracts. While Caltech/JPL's expertise is recognized, the absence of multiple bidders means NASA did not benefit from alternative proposals or price points. Furthermore, R&D inherently carries risks of technical challenges, unforeseen scientific hurdles, or shifts in research priorities that could impact project timelines and outcomes. For sole-source awards, ensuring robust oversight and clear performance metrics becomes even more critical to mitigate potential inefficiencies and guarantee that taxpayer funds are used effectively for the intended scientific and technological advancements.

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: $58,688,874

Exercised Options: $58,688,874

Current Obligation: $58,686,947

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-23

Current End Date: 2012-09-30

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

Last Modified: 2020-10-21

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