NASA's $18.2M Earth Science Research Contract Awarded to Caltech Shows Long-Term Investment in Scientific Discovery

Contract Overview

Contract Amount: $18,190,193 ($18.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-12-22

End Date: 2012-09-30

Contract Duration: 3,205 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: SMD R&A EARTH OBSERV SCI

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $18.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SMD R&A EARTH OBSERV SCI Key points: 1. This contract represents a significant, long-term investment in fundamental scientific research, indicating a sustained commitment to understanding Earth's systems. 2. The sole-source nature of the award suggests unique capabilities or a pre-existing relationship with the contractor, warranting scrutiny of the procurement process. 3. A contract duration of over 9 years (3205 days) points to the complex and ongoing nature of the research objectives. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code highlights the contract's focus on advanced scientific inquiry. 5. The award was made under a Cost Plus Award Fee (CPAF) contract type, which incentivizes contractor performance while allowing for cost reimbursement. 6. The geographic location of the contractor in California may have implications for regional economic impact and workforce development.

Value Assessment

Rating: fair

Benchmarking the value of this specific research and development contract is challenging due to its specialized nature and long duration. The Cost Plus Award Fee (CPAF) structure allows for flexibility but requires careful monitoring of costs and performance to ensure value. Without comparable sole-source R&D contracts of similar scope and duration, a definitive value-for-money assessment is difficult. However, the sustained funding over nearly a decade suggests the agency perceives significant ongoing value in the research conducted by the California Institute of Technology.

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 contract's objectives. While this can ensure specialized expertise, it limits the potential for competitive pricing and innovation that might arise from a broader bidding process. The justification for sole-source procurement should be thoroughly documented to ensure it aligns with federal acquisition regulations.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as the government does not benefit from price reductions driven by market competition.

Public Impact

The primary beneficiaries are the scientific community and the public, who gain enhanced understanding of Earth's complex systems through the research findings. The contract supports critical scientific research in Earth observation, contributing to fields like climate science, environmental monitoring, and natural hazard prediction. The geographic impact is primarily centered in California, where the contractor is located, potentially fostering local scientific talent and infrastructure. The contract supports highly skilled scientific and technical personnel, contributing to the specialized workforce in aerospace and Earth science research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
  • Long contract duration requires sustained oversight to ensure continued alignment with agency goals.
  • CPAF contract type necessitates robust performance metrics and evaluation to justify award fees.

Positive Signals

  • Award to a renowned institution like Caltech suggests high-quality research execution.
  • Sustained funding over a long period indicates consistent delivery of valuable scientific outcomes.
  • Focus on Earth observation aligns with critical national and global scientific priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on Earth observation sciences. This is a highly specialized area within the broader scientific research market, often dominated by academic institutions and dedicated research organizations. NASA's spending in this sector is crucial for advancing our understanding of climate change, weather patterns, and other vital Earth processes. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts, but NASA consistently invests significant resources in Earth science research to maintain its leadership in space exploration and scientific discovery.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. As a sole-source award to a large research institution, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly structured to do so. The focus on specialized R&D may limit the applicability of standard small business contracting vehicles. Further review of subcontracting plans would be necessary to determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPAF) contract, NASA's contracting officers and technical monitors are responsible for evaluating the contractor's performance against established criteria to determine award fees. Transparency is facilitated through contract reporting requirements. While specific Inspector General (IG) jurisdiction for this particular award isn't detailed, NASA's Office of Inspector General generally oversees agency contracts to ensure efficiency and prevent fraud, waste, and abuse.

Related Government Programs

  • NASA Earth Science Division Programs
  • National Science Foundation Research Grants
  • NOAA Climate Research Initiatives
  • University Research Grants

Risk Flags

  • Sole-source procurement requires strong justification.
  • Long contract duration necessitates robust performance monitoring.
  • CPAF requires careful management of award fee criteria and payouts.

Tags

research-and-development, earth-observation, nasa, california-institute-of-technology, sole-source, cost-plus-award-fee, long-term-contract, scientific-research, california, federal-agency

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $18.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SMD R&A EARTH OBSERV SCI

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 $18.2 million.

What is the period of performance?

Start: 2003-12-22. End: 2012-09-30.

What specific research objectives does this contract aim to achieve for NASA's Earth observation science?

This contract, awarded to the California Institute of Technology (Caltech), supports NASA's broader mission in Earth science, focusing on research and development related to Earth observation. While the specific project details are not fully elaborated in the provided data, contracts of this nature typically involve analyzing data from Earth-orbiting satellites, developing new algorithms for data processing, conducting field research, and advancing theoretical models to better understand Earth's climate, atmosphere, oceans, land surface, and ecosystems. The long duration and sole-source nature suggest a deep, ongoing research effort in a specialized area critical to NASA's scientific objectives, likely contributing to improved climate modeling, disaster prediction, and resource management.

How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost control for this contract?

The Cost Plus Award Fee (CPAF) contract structure for this NASA award means that the contractor (Caltech) is reimbursed for allowable costs incurred, plus a fee that is composed of a base amount and an award amount. The award amount is determined based on the contractor's performance against pre-defined criteria and objectives set by NASA. This structure incentivizes the contractor to exceed performance expectations to maximize their fee. For cost control, NASA must establish clear, measurable performance metrics and diligently evaluate the contractor's progress. Effective oversight is crucial to ensure that award fees are justified by exceptional performance and that costs remain reasonable, preventing potential overruns that might occur if performance incentives are not rigorously managed.

What are the implications of awarding this R&D contract on a sole-source basis to Caltech?

Awarding this Research and Development (R&D) contract on a sole-source basis to the California Institute of Technology (Caltech) implies that NASA determined Caltech possesses unique capabilities, expertise, or resources essential for the specific research objectives that could not be met through a competitive process. This approach ensures access to specialized knowledge but bypasses the potential benefits of competition, such as lower prices and broader innovation. For taxpayers, it means the absence of competitive pressure to drive down costs. However, if Caltech's unique contributions are critical to advancing NASA's scientific goals in Earth observation, the value derived from their specialized expertise might outweigh the lack of competition, provided the contract terms and oversight are robust.

Can the value of this $18.2 million contract be benchmarked against similar Earth observation R&D contracts?

Benchmarking the value of this $18.2 million contract is challenging due to several factors. Firstly, it's a sole-source award, meaning direct price comparisons with competitively bid contracts are not applicable. Secondly, the contract duration is exceptionally long (over 9 years), making comparisons with shorter-term projects difficult. Thirdly, the specific focus on Earth observation science by a premier institution like Caltech suggests a high degree of specialization. While $18.2 million over 9 years averages to approximately $2 million per year, the true value lies in the scientific advancements and data generated. Without access to detailed scopes of work and performance metrics for comparable sole-source R&D contracts within NASA or other agencies, a precise value benchmark is elusive. The agency's continued funding suggests perceived value.

What is the historical spending pattern for NASA with the California Institute of Technology in similar research areas?

The provided data indicates a significant historical relationship between NASA and the California Institute of Technology (Caltech), highlighted by this specific contract spanning from December 2003 to September 2012, totaling approximately $18.2 million. This long duration and substantial value suggest a pattern of sustained collaboration in research and development, particularly in areas relevant to space exploration and Earth science. Caltech is a well-established research institution with a strong track record in scientific endeavors, often partnering with federal agencies like NASA on complex projects. While this data point represents a single, albeit lengthy, contract, it implies a history of successful partnerships that likely extends to other research grants and agreements, reflecting Caltech's recognized expertise and NASA's reliance on its capabilities for scientific advancement.

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, 28

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,880,319

Exercised Options: $18,880,319

Current Obligation: $18,190,193

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-12-22

Current End Date: 2012-09-30

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

Last Modified: 2012-11-13

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