NASA's $27M contract with California Institute of Technology for R&D in physical sciences shows long-term commitment

Contract Overview

Contract Amount: $26,949,530 ($26.9M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-17

End Date: 2009-03-31

Contract Duration: 2,022 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: OSTST

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $26.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: OSTST Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Long duration of the contract (over 5 years) suggests a sustained need for the services. 3. Awarded as a sole-source contract, raising questions about competition and potential cost efficiencies. 4. The contract's value is significant, indicating a substantial investment in scientific advancement. 5. Performance context is within the broad category of R&D, making direct value-for-money comparisons challenging without specific deliverables. 6. Sector positioning is within scientific research, a critical area for national advancement but often with less tangible immediate returns.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult due to its nature as a sole-source R&D award. The total award amount of approximately $27 million over more than five years suggests a significant investment. Without detailed breakdowns of research objectives and deliverables, it's hard to compare its cost-effectiveness against similar, potentially competed, research grants or contracts. The pricing structure (Cost Plus Award Fee) allows for flexibility but can also lead to higher costs if not managed tightly.

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. This indicates that NASA identified Caltech as the only responsible source capable of meeting the specific research and development requirements. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation among multiple offerors. This approach is typically justified when a unique capability or specialized expertise is required.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure to secure the best possible price. While justified by unique capabilities, it necessitates robust oversight to ensure costs remain reasonable and aligned with the research objectives.

Public Impact

The primary beneficiaries are likely NASA and the scientific community, gaining advancements in physical, engineering, and life sciences. Services delivered include fundamental and applied research, contributing to scientific knowledge and potential technological breakthroughs. The geographic impact is primarily within California, where Caltech is located, but the research findings can have national and global implications. Workforce implications include support for researchers, scientists, and technical staff at Caltech, fostering a highly skilled scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing and potential cost savings for taxpayers.
  • Cost Plus Award Fee structure can lead to cost overruns if not meticulously monitored.
  • Long contract duration without clear interim milestones could obscure performance issues.
  • Lack of public detail on specific research outcomes makes assessing true value difficult.

Positive Signals

  • Award to a highly reputable institution (Caltech) suggests a high likelihood of quality research.
  • Long-term funding commitment enables sustained focus on complex scientific challenges.
  • Focus on R&D aligns with strategic goals for scientific and technological advancement.
  • The contract supports critical scientific infrastructure and expertise within the US.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long lead times, and often unpredictable outcomes. Government spending in R&D is crucial for national competitiveness, scientific discovery, and technological advancement. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D projects, but NASA's overall R&D budget represents a significant portion of federal science and technology investment.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the recipient being a large research institution, subcontracting opportunities for small businesses are not explicitly detailed. The primary focus is on Caltech's internal research capabilities. Without specific subcontracting plans or goals mandated, the direct impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates close monitoring of costs and performance against defined award criteria. Transparency is limited by the nature of sole-source R&D contracts, with specific research details often proprietary or classified. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract funds.

Related Government Programs

  • NASA Research and Development Contracts
  • Federal Grants for Scientific Research
  • Cost Plus Award Fee Contracts
  • Sole Source Research Awards
  • Physical Sciences Research Funding

Risk Flags

  • Sole-source award may limit price competition.
  • Cost Plus Award Fee structure requires diligent oversight to control costs.
  • R&D contracts have inherent uncertainty in outcomes and timelines.

Tags

nasa, california-institute-of-technology, research-and-development, physical-engineering-life-sciences, sole-source, cost-plus-award-fee, california, nasa-headquarters, large-contract, science-and-technology, federal-spending

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $26.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. OSTST

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 $26.9 million.

What is the period of performance?

Start: 2003-09-17. End: 2009-03-31.

What specific research areas within physical, engineering, and life sciences are covered by this contract?

The provided data indicates the contract covers 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. However, it does not specify the granular research areas. Typically, such broad classifications encompass a wide range of scientific inquiry, from fundamental physics and chemistry to advanced engineering principles and biological processes. For precise details, one would need to consult the contract's statement of work (SOW) or associated documentation, which would outline specific projects, objectives, and expected outcomes within these broad scientific domains.

How does the $27 million award compare to typical NASA R&D contract values for similar institutions?

Comparing this $27 million award to typical NASA R&D contracts for similar institutions requires context on the duration and scope. This contract spans over five years (from 2003 to 2009), averaging around $5.4 million per year. NASA funds numerous R&D projects, with values varying significantly based on complexity, duration, and the institution's role. Major research centers or large-scale, multi-disciplinary projects can easily exceed this amount, while smaller, more focused grants might be less. Caltech is a leading research institution, and NASA frequently partners with such entities for significant scientific endeavors. Therefore, while substantial, $27 million over five years for a sole-source award to a top-tier institution is within a plausible range for NASA's R&D portfolio, assuming the scope justifies it.

What are the primary risks associated with a sole-source Cost Plus Award Fee (CPAF) contract for R&D?

Sole-source CPAF contracts for R&D present several key risks. Firstly, the lack of competition means the government may not achieve the most favorable pricing, as there's no market pressure to drive down costs. Secondly, the CPAF structure, while incentivizing performance, can lead to cost escalation if the award fee criteria are not tightly defined or if contractor costs are not rigorously scrutinized. There's a risk that the contractor may focus on maximizing the award fee rather than the most critical research outcomes. Finally, for R&D, the inherent uncertainty of scientific discovery means that cost and schedule overruns are common, and the sole-source nature can exacerbate these issues if the contractor lacks competitive drive to mitigate them.

What is the historical spending pattern for NASA with the California Institute of Technology?

The provided data only reflects a single contract awarded in 2003. To assess historical spending patterns between NASA and Caltech, a broader dataset encompassing all contracts, grants, and other financial agreements over an extended period would be necessary. Caltech is a renowned research university, and NASA has a long history of collaborating with such institutions on various space exploration, science, and aeronautics projects. Without access to comprehensive contract databases or NASA's historical procurement records specifically detailing their relationship with Caltech, it's impossible to describe a 'pattern' beyond this single data point. However, it is reasonable to assume that NASA has awarded multiple contracts and grants to Caltech over the decades, reflecting Caltech's significant contributions to scientific research.

How does the performance context of 'Research and Development in the Physical, Engineering, and Life Sciences' influence value assessment?

The 'Research and Development in the Physical, Engineering, and Life Sciences' context significantly influences value assessment because R&D is inherently uncertain and often focused on long-term, potentially groundbreaking outcomes rather than immediate, quantifiable deliverables. Unlike contracts for goods or standard services, the 'value' of R&D is not always easily measured in terms of cost per unit or direct efficiency gains. Instead, value is often assessed based on scientific advancement, potential for future innovation, contribution to knowledge, and alignment with strategic national goals. This makes direct benchmarking difficult and necessitates a qualitative assessment of the contractor's expertise, the project's scientific merit, and the potential impact of its findings, often over extended periods.

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: $27,161,500

Exercised Options: $27,161,500

Current Obligation: $26,949,530

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: 2009-03-31

Potential End Date: 2009-03-31 00:00:00

Last Modified: 2020-10-26

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