NASA's $64.5M R&D contract with Caltech for space science research spans nearly a decade

Contract Overview

Contract Amount: $64,536,358 ($64.5M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-30

End Date: 2012-09-30

Contract Duration: 3,288 days

Daily Burn Rate: $19.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: TES

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $64.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: TES Key points: 1. Contract awarded for extensive research and development in physical, engineering, and life sciences. 2. Long contract duration suggests a sustained need for specialized scientific expertise. 3. Sole-source award indicates a unique capability or relationship with the contractor. 4. Significant investment in R&D points to a focus on innovation and future capabilities. 5. Contract performance period spans multiple fiscal years, allowing for long-term project planning. 6. The contract's value is substantial, reflecting the complexity and importance of space science research.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging due to its specialized nature and sole-source award. However, the duration and scope suggest a fair price for the extensive research and development undertaken. The cost-plus award fee structure incentivizes performance and cost control, which can lead to better value over time compared to fixed-price contracts for R&D.

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. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or a critical existing relationship that makes competition impractical or detrimental to the government's interests. The lack of competition means there was no direct price comparison through bidding.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from competitive pricing that could potentially lower costs. However, if Caltech's unique expertise was essential for the program's success, the higher cost might be justified by the value of the specialized research.

Public Impact

Benefits the National Aeronautics and Space Administration (NASA) by advancing scientific understanding and technological capabilities in space exploration. Delivers critical research and development services essential for future space missions and scientific discoveries. Geographic impact is national, with research potentially influencing space programs and scientific institutions across the U.S. Workforce implications include support for highly skilled scientists, engineers, and researchers at Caltech.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits opportunities for other qualified entities and potentially higher competition.
  • Long duration could lead to scope creep or cost overruns if not managed effectively.
  • Cost-plus award fee structure requires robust oversight to ensure costs are reasonable and performance is optimized.

Positive Signals

  • Award to a renowned institution like Caltech suggests a high likelihood of scientific and technical excellence.
  • Long-term nature of the contract allows for sustained focus and development of complex research areas.
  • The contract's focus on R&D aligns with NASA's mission to push the boundaries of space science and exploration.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences related to space. The market for such specialized R&D is often dominated by a few highly capable research institutions and universities. NASA's spending in this area is crucial for maintaining its technological edge and achieving its ambitious exploration goals. Comparable spending benchmarks are difficult to establish due to the unique nature of space science R&D, but significant investments are typical for projects of this scale and importance.

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. Given the sole-source nature and the specialized research focus, it is likely that the primary work is performed by the prime contractor, Caltech. Further analysis would be needed to determine if any small business participation was mandated or occurred organically.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The cost-plus award fee structure necessitates detailed monitoring of costs and performance against defined award criteria. Transparency is generally maintained through NASA's public reporting mechanisms, though specific project details might be sensitive. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Contracts
  • Space Science Research Grants
  • University Research Partnerships
  • Aerospace Engineering Services
  • Scientific Research and Development

Risk Flags

  • Sole-source award may limit price competition.
  • Long contract duration increases risk of cost escalation and scope creep.
  • Cost-plus award fee requires diligent oversight to ensure value for money.

Tags

research-and-development, space-science, nasa, california-institute-of-technology, sole-source, cost-plus-award-fee, long-term-contract, federal-spending, science-and-technology, aerospace

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $64.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. TES

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 $64.5 million.

What is the period of performance?

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

What is the specific scientific or technological objective of this contract, and how has it contributed to NASA's mission?

This contract, awarded to the California Institute of Technology (Caltech), focuses on 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS code 541710) for NASA. While the exact scientific objectives are not detailed in the provided data, such contracts typically support fundamental and applied research critical to advancing space exploration, understanding the universe, and developing new technologies for space missions. Contributions could range from theoretical physics and astrophysics research to materials science for spacecraft, life support systems for human spaceflight, or advanced propulsion systems. The long duration and significant funding suggest a sustained effort towards complex, high-impact scientific goals that align directly with NASA's strategic objectives for discovery and innovation.

How does the cost-plus award fee (CPFF) structure incentivize performance and cost control for this contract?

The Cost-Plus Award Fee (CPFF) structure is designed to provide flexibility in R&D contracts where precise cost and performance outcomes are difficult to predict. Under CPFF, the contractor is reimbursed for allowable costs incurred, plus a fee that is composed of a fixed amount and an award amount. The award amount is determined based on the contractor's performance against pre-defined criteria, evaluated by the government. This incentivizes the contractor not only to control costs but also to exceed performance expectations, as a higher fee is contingent upon achieving superior results. For this NASA contract, Caltech would be motivated to deliver high-quality research and meet or surpass project milestones to maximize its fee, while NASA benefits from a mechanism to reward exceptional performance.

Given the sole-source nature, what due diligence did NASA undertake to ensure the necessity and fair pricing of this contract?

When awarding a sole-source contract, government agencies like NASA are expected to conduct thorough due diligence to justify the lack of competition and ensure fair and reasonable pricing. This typically involves documenting the unique capabilities or circumstances that preclude full and open competition, such as proprietary technology, specialized expertise, or critical urgency. NASA would likely have performed a market survey to confirm no other sources could meet the requirement and conducted a detailed price analysis, potentially including cost realism analyses and comparison to historical data or independent cost estimates. The justification for the sole-source award would need to be formally documented and approved, demonstrating that this approach was in the government's best interest despite the absence of competitive bids.

What are the potential risks associated with a contract of this length (over 9 years) and sole-source award?

A contract spanning over nine years, especially one awarded sole-source, carries several potential risks. For the government, risks include potential cost overruns if not managed diligently, as the contractor may have less incentive to be cost-efficient without competitive pressure. Scope creep is another risk, where the project's objectives may expand beyond the original intent, leading to increased costs and delays. For a sole-source award, the primary risk is the lack of competitive pricing, potentially resulting in the government paying more than it would in a competitive environment. Additionally, reliance on a single contractor can create dependency and limit access to potentially innovative solutions from other sources. NASA would need robust contract management and oversight to mitigate these risks.

How does this contract align with NASA's broader strategic goals in space science and exploration?

This contract directly supports NASA's core mission of space exploration and scientific discovery. By funding research and development in physical, engineering, and life sciences through a leading institution like Caltech, NASA aims to push the boundaries of knowledge and technological capability. The long-term nature of the contract suggests investment in foundational research that underpins future ambitious projects, such as deep space missions, planetary science, or advancements in human spaceflight. The focus on R&D ensures NASA remains at the forefront of scientific inquiry and technological innovation, enabling it to tackle complex challenges and achieve groundbreaking discoveries in space.

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: $66,907,049

Exercised Options: $66,907,049

Current Obligation: $64,536,358

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-30

Current End Date: 2012-09-30

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

Last Modified: 2020-10-27

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