NASA's $196M Mars Program Management contract awarded to California Institute of Technology, focused on R&D

Contract Overview

Contract Amount: $196,234,787 ($196.2M)

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: $59.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MARS PRGM MGE-FUT PLAN

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $196.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MARS PRGM MGE-FUT PLAN Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing and potential for cost overruns. 2. Long duration of the contract (over 9 years) suggests a complex, long-term program requiring sustained management. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a focus on scientific advancement. 4. Awarded as a delivery order under a larger contract, suggesting a pre-existing relationship or framework. 5. The contract type 'COST PLUS AWARD FEE' can incentivize performance but may lead to higher costs if not managed tightly. 6. High number of orders (51) indicates significant activity and tasking under this contract.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source R&D contracts for Mars program management. The Cost Plus Award Fee structure, while allowing for flexibility and performance incentives, can lead to costs exceeding initial estimates if not rigorously overseen. The total award amount of $196.2 million over its duration suggests a substantial investment in managing complex Mars initiatives.

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 approach is typically used when a specific contractor possesses unique capabilities or when it's deemed not to be in the government's best interest to compete. The lack of competition means there was no direct price comparison or opportunity for other qualified entities to bid, potentially impacting the final cost.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing, potentially leading to higher overall expenditures if the selected contractor's costs are not tightly controlled.

Public Impact

The primary beneficiary is NASA's Mars exploration program, enabling continued research and development. Services delivered include program management and R&D support for future Mars missions. The geographic impact is primarily within California, where the contractor is located, but the ultimate impact is global through space exploration. Workforce implications include specialized scientific and management roles at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition, potentially increasing costs for taxpayers.
  • Cost Plus Award Fee contracts can incentivize spending if performance metrics are not strictly defined and monitored.
  • Long contract duration may indicate a lack of readily available alternative providers or a highly specialized need.
  • The absence of a specific Product or Service Code (PSC) makes it difficult to benchmark against similar R&D efforts.

Positive Signals

  • Award to a reputable institution like the California Institute of Technology suggests strong technical and scientific expertise.
  • The high number of delivery orders (51) indicates active engagement and tasking, suggesting the contract is fulfilling its intended purpose.
  • Focus on R&D for Mars programs aligns with national scientific objectives and exploration goals.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The aerospace and defense sub-sector is highly specialized, often characterized by long-term, high-value contracts awarded to entities with unique scientific and technical capabilities. Comparable spending benchmarks are difficult to establish due to the niche nature of Mars program management, but R&D spending in the broader aerospace industry is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Given the sole-source nature and the specialized R&D focus, it is unlikely that subcontracting opportunities for small businesses would be a primary consideration or requirement within this specific award. The focus is on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a sole-source award, the agency's contracting officers and program managers would be responsible for monitoring performance, approving costs, and ensuring adherence to the contract terms. Transparency may be limited due to the non-competitive nature, but NASA's internal audit and Inspector General offices would provide accountability measures.

Related Government Programs

  • NASA Mars Exploration Program
  • NASA Research and Development Contracts
  • Aerospace R&D Funding
  • Space Science Program Management

Risk Flags

  • Sole-source award
  • Cost Plus Award Fee contract type
  • Lack of specific Product/Service Code
  • Long contract duration

Tags

nasa, mars-program-management, research-and-development, california, sole-source, cost-plus-award-fee, aerospace, science, delivery-order, california-institute-of-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $196.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MARS PRGM MGE-FUT PLAN

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 $196.2 million.

What is the period of performance?

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

What is the track record of the California Institute of Technology in managing large-scale government R&D programs, particularly in aerospace?

The California Institute of Technology (Caltech) has a distinguished history of scientific research and development, particularly in aerospace and space science. As a leading research university, Caltech has been instrumental in numerous NASA missions, including the development and management of scientific instruments and research programs. Their involvement in projects like the Hubble Space Telescope and various Mars missions underscores their capability in handling complex, long-term scientific endeavors. While specific contract management details are often proprietary, Caltech's consistent engagement with NASA on high-profile projects suggests a strong track record in scientific leadership and program execution within the aerospace domain.

How does the Cost Plus Award Fee (CPAF) contract type typically influence contractor behavior and final costs in R&D settings?

The Cost Plus Award Fee (CPAF) contract type is designed to provide flexibility for research and development efforts where the scope of work may evolve. Under CPAF, the contractor is reimbursed for all allowable costs incurred, plus a base fee that is a fixed percentage of the estimated cost. Additionally, an award fee is provided based on the government's subjective determination of the contractor's performance against pre-defined criteria. This structure incentivizes contractors to perform well to earn the award fee. However, it can also lead to higher costs compared to fixed-price contracts if the government's evaluation criteria are not precise or if the contractor prioritizes achieving award fee targets over cost efficiency. Rigorous oversight and clear performance metrics are crucial to managing costs effectively under a CPAF arrangement.

What are the potential risks associated with a sole-source award for a critical program like Mars Program Management?

Sole-source awards for critical programs like Mars Program Management carry several potential risks. Firstly, the absence of competition can lead to a lack of price discipline, potentially resulting in higher costs for the government and taxpayers than if the contract had been competed. Secondly, it limits the government's access to a broader range of innovative solutions or technologies that other potential contractors might offer. Thirdly, there's a risk of contractor complacency or reduced incentive to innovate if they perceive no threat of losing future business to competitors. Finally, if the sole-source contractor underperforms or faces unforeseen challenges, the government may have limited immediate recourse or alternative options, potentially delaying critical program milestones.

Can we compare the per-unit cost or value-for-money of this contract to other NASA R&D contracts?

Directly comparing the per-unit cost or value-for-money for this specific contract is challenging due to its unique nature and sole-source award. The contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' related to Mars Program Management, awarded to the California Institute of Technology. Unlike contracts for standardized goods or services, R&D and program management for complex space missions involve highly specialized expertise, unique methodologies, and often unpredictable research outcomes. Furthermore, the 'Cost Plus Award Fee' structure means the final cost is not fixed. Benchmarking would require identifying highly comparable sole-source R&D management contracts within NASA or other space agencies, which are scarce and often have vastly different scopes and objectives, making a direct quantitative comparison difficult.

What historical spending patterns exist for Mars program management or similar R&D initiatives by NASA?

Historical spending patterns for NASA's Mars program management and similar R&D initiatives reveal a consistent, significant investment in space exploration. NASA's budget allocates substantial funds annually towards planetary science, with Mars exploration being a major focus. Contracts for managing these complex programs are typically long-term and high-value, often awarded to research institutions or specialized aerospace companies. Over the past two decades, spending on Mars missions has fluctuated based on mission cycles, including robotic landers, orbiters, and rovers, each requiring extensive program management and scientific research support. While specific figures for 'program management' as a distinct line item are often bundled within broader mission costs, the overall trend indicates a sustained, multi-billion dollar commitment to understanding and exploring the Red Planet, with individual management contracts representing a fraction of these larger mission expenditures.

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: $207,736,000

Exercised Options: $207,736,000

Current Obligation: $196,234,787

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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