NASA's $47.6M Keck Interferometer Contract with Caltech: R&D Spending Analysis

Contract Overview

Contract Amount: $47,647,062 ($47.6M)

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: $14.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: KECK INTERFEROMETER-2&3

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $47.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: KECK INTERFEROMETER-2&3 Key points: 1. Significant investment in advanced astronomical research infrastructure. 2. Sole-source award to a leading research institution raises competition questions. 3. Long contract duration (2003-2012) with cost-plus award fee structure warrants scrutiny. 4. Focus on physical sciences R&D aligns with NASA's mission.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee structure can incentivize performance but may lead to higher costs if not tightly managed. Benchmarking against similar large-scale scientific instrument development contracts is difficult due to the specialized nature of the Keck Interferometer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source to the California Institute of Technology, likely due to their unique expertise and role in developing and operating the Keck Interferometer. This limited competition may have impacted price discovery and potentially led to higher costs than a competitive process.

Taxpayer Impact: Taxpayer funds supported advanced scientific research, but the lack of competition means the full value for money is harder to ascertain.

Public Impact

Enables cutting-edge astronomical observations and scientific discovery. Supports the development and maintenance of a world-class scientific instrument. Contributes to advancements in physics and engineering related to optics and interferometry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing.
  • Cost-plus award fee can inflate costs.
  • Long duration may indicate scope creep or insufficient initial planning.

Positive Signals

  • Supports critical scientific research infrastructure.
  • Awarded to a highly reputable research institution.
  • Aligns with agency's core mission objectives.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for scientific advancement but often involves high risk and long development cycles, making direct cost comparisons challenging.

Small Business Impact

The contract was awarded to the California Institute of Technology, a large research institution. There is no indication of subcontracting to small businesses within the provided data.

Oversight & Accountability

The long duration and cost-plus award fee structure suggest a need for robust oversight from NASA to ensure cost control and performance against objectives. The 'DO' award action type indicates a direct obligation, implying direct management.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Sole-source award
  • Cost-plus award fee contract type
  • Long contract duration
  • Lack of small business participation noted

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $47.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. KECK INTERFEROMETER-2&3

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 $47.6 million.

What is the period of performance?

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

What was the primary justification for awarding this contract sole-source to Caltech, and how was the pricing determined to ensure fair value?

The sole-source award was likely based on Caltech's unique expertise and established role in the Keck Interferometer project. Pricing determination under a Cost Plus Award Fee contract involves establishing a base cost estimate and then providing award fees based on performance against pre-defined criteria. Without detailed performance reports and cost breakdowns, assessing fair value is challenging.

Given the contract's duration and cost-plus structure, what were the key risks associated with cost overruns and performance deviations?

The primary risks included potential cost overruns due to the inherent uncertainties in R&D projects and the flexibility of the cost-plus award fee structure. Performance deviations were also a risk if the award fee criteria were not sufficiently stringent or if NASA's oversight was inadequate in ensuring the interferometer met its scientific objectives within budget.

How effectively did this investment contribute to NASA's broader scientific and technological goals, considering the significant expenditure?

The Keck Interferometer is a significant asset for astronomical research, contributing to numerous scientific discoveries. Its effectiveness in contributing to NASA's goals depends on the scientific output generated and its alignment with the agency's strategic objectives in astrophysics and planetary science. The long-term scientific return on investment is a key measure of its effectiveness.

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: $49,623,000

Exercised Options: $49,623,000

Current Obligation: $47,647,062

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: 2012-11-09

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