JWST Contract Awarded to Caltech for $110.7M, Primarily R&D Focused
Contract Overview
Contract Amount: $11,069,082 ($11.1M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-01
End Date: 2008-09-28
Contract Duration: 1,824 days
Daily Burn Rate: $6.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: JWST
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $11.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: JWST Key points: 1. Significant R&D investment in physical sciences. 2. Sole-source award to a single academic institution. 3. Potential for high scientific return, but risks associated with complex R&D. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract value of $110.7M for R&D is substantial. Without comparable contracts for similar complex scientific instruments, a direct pricing assessment is difficult. The cost-plus award fee structure suggests performance incentives, but the lack of competition makes benchmarking challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to the California Institute of Technology. This limits price discovery and potentially increases costs compared to a competitive process. The justification for sole-source is not provided.
Taxpayer Impact: Taxpayer funds are directed to a single entity for a high-cost R&D project, with limited transparency on cost-effectiveness due to the lack of competition.
Public Impact
Supports cutting-edge scientific research with the James Webb Space Telescope. Potential for groundbreaking discoveries in astronomy and cosmology. Long-term project with significant implications for scientific understanding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High R&D cost
Positive Signals
- Significant scientific potential
- Award to a reputable institution
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is often characterized by high innovation, long development cycles, and significant upfront investment, with outcomes that can be unpredictable.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This is common for large, specialized R&D projects awarded to major research institutions, but it means opportunities for small businesses in this specific contract are absent.
Oversight & Accountability
Oversight for this contract would likely be managed by NASA's contracting officers and program managers. The cost-plus award fee structure implies performance monitoring, but the sole-source nature warrants scrutiny to ensure fair pricing and effective use of funds.
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 lacks competitive pricing.
- High cost for R&D with uncertain outcomes.
- No small business participation.
- Potential for cost overruns in complex R&D.
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 $11.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. JWST
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 $11.1 million.
What is the period of performance?
Start: 2003-10-01. End: 2008-09-28.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. For a project as complex as the JWST, this might relate to unique expertise or intellectual property held by Caltech, but without explicit documentation, it remains an assumption.
How does the cost-plus award fee structure ensure cost control in a sole-source R&D environment?
The cost-plus award fee (CPAF) structure aims to incentivize contractor performance by allowing reimbursement of allowable costs plus a fee that is composed of a base amount and an award amount. The award amount is determined by the government based on performance against pre-defined criteria. In a sole-source context, CPAF can help align contractor efforts with program goals, but robust government oversight is essential to prevent cost overruns and ensure the award fee is earned appropriately.
What are the long-term risks associated with a sole-source R&D contract of this magnitude?
Long-term risks include potential cost escalation without competitive pressure, reduced innovation due to lack of external challenge, and a single point of failure if the contractor encounters insurmountable technical or management issues. Furthermore, the absence of small business involvement limits broader economic impact and access to diverse solutions. Effective program management and contingency planning are crucial to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
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: $13,397,700
Exercised Options: $13,397,700
Current Obligation: $11,069,082
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2003-10-01
Current End Date: 2008-09-28
Potential End Date: 2008-09-28 00:00:00
Last Modified: 2014-02-20
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