NASA's $54.5M contract for physical sciences R&D awarded to California Institute of Technology shows long-term engagement

Contract Overview

Contract Amount: $54,529,516 ($54.5M)

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: $16.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: PO.DAAC

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $54.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: PO.DAAC Key points: 1. Contract awarded via a sole-source mechanism, limiting competitive pricing insights. 2. The contract duration of 3288 days suggests a long-term, potentially stable relationship. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for NASA's mission. 4. The contractor, California Institute of Technology, is a well-established research institution. 5. The contract type (Cost Plus Award Fee) can incentivize performance but may lead to higher costs. 6. Geographic location in California may indicate a concentration of specialized research talent.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its sole-source nature and long duration. The Cost Plus Award Fee (CPA) structure, while incentivizing, can lead to costs exceeding fixed-price contracts. Without comparable sole-source R&D contracts of similar scope and duration, a precise value-for-money assessment is difficult. However, the extended period suggests a sustained need and potentially a fair price for ongoing research, assuming performance targets were met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. 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 through bidding, potentially leading to a higher price than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government relied on negotiation and oversight to ensure a reasonable price.

Public Impact

Benefits the scientific community through advancements in physical sciences. Delivers research outcomes crucial for NASA's broader scientific and exploratory missions. Geographic impact is concentrated in California, leveraging local research expertise. Workforce implications include support for researchers, scientists, and technical staff at the institution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price discovery and potential savings.
  • Cost Plus Award Fee structure can lead to cost overruns if not managed tightly.
  • Long contract duration may reduce flexibility to adapt to changing research needs or technologies.

Positive Signals

  • Contract awarded to a reputable research institution (Caltech).
  • Long duration suggests a stable and productive research partnership.
  • Focus on R&D in physical sciences aligns with core NASA objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. This is a critical area for space exploration and technological advancement. The market for specialized scientific research is often characterized by a limited number of highly qualified institutions. Comparable spending benchmarks are difficult to establish without knowing the specific research area, but R&D contracts can range widely in value depending on complexity and duration.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the sole-source nature and the likely specialized research requirements, it is probable that the primary contractor, California Institute of Technology, is a large institution. Subcontracting opportunities for small businesses would depend on the specific research projects undertaken and Caltech's procurement practices, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would have been managed by the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee contract, performance metrics and award fee criteria would be key elements of oversight. Transparency would be facilitated through contract reporting requirements. Inspector General jurisdiction would apply to ensure the integrity of the procurement and contract performance.

Related Government Programs

  • NASA Research and Technology Contracts
  • Physical Sciences Research Grants
  • University Research Partnerships
  • Federal R&D Spending

Risk Flags

  • Sole-source award may limit cost savings.
  • CPAF structure requires robust performance monitoring.
  • Long contract duration could reduce agility.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $54.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. PO.DAAC

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 $54.5 million.

What is the period of performance?

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

What specific research areas within physical sciences were covered by this contract?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) awarded to the California Institute of Technology (Caltech) by NASA. However, the specific sub-disciplines or research projects within this broad category are not detailed. Typically, such contracts could encompass areas like astrophysics, planetary science, materials science, fluid dynamics, atmospheric science, or fundamental physics relevant to space exploration and technology development. A deeper dive into NASA's contract awards database or Caltech's research portfolio during the contract period would be necessary to identify the precise research focus.

How does the Cost Plus Award Fee (CPAF) structure typically impact contractor performance and cost?

The Cost Plus Award Fee (CPAF) contract structure allows the contractor to recover all allowable costs plus a fixed fee, with the potential for an additional award fee based on meeting or exceeding performance objectives. This structure is often used for research and development or services where performance is difficult to define precisely upfront. It incentivizes contractors to perform well by offering financial rewards for achieving specific goals, potentially leading to higher quality outcomes. However, it can also lead to higher overall costs compared to fixed-price contracts, as the government bears more risk. Effective oversight and clearly defined performance metrics are crucial to managing costs and ensuring value under a CPAF arrangement.

What is the significance of the long contract duration (3288 days)?

A contract duration of 3288 days, approximately 9 years, signifies a long-term commitment by NASA to the research objectives and the contractor, California Institute of Technology. This extended period suggests that the research undertaken was complex, requiring sustained effort and potentially incremental advancements over time. It also implies a stable funding stream and a strong working relationship between NASA and Caltech. Such long durations are common in R&D where breakthroughs can take years, and they allow for deeper exploration and development of scientific understanding or technological capabilities.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risk associated with a sole-source R&D contract is the lack of competitive pressure, which can lead to higher costs than might be achieved through open competition. Without multiple bidders, there's less incentive for the contractor to minimize expenses or offer the most aggressive pricing. Additionally, sole-source awards can limit the government's access to innovative solutions or alternative approaches that other potential contractors might offer. For R&D, there's also the inherent risk that the research may not yield the desired outcomes, regardless of the contractor's effort or cost, a risk amplified when competition doesn't help vet the feasibility or approach.

How does Caltech's track record as a research institution influence the assessment of this contract?

California Institute of Technology (Caltech) is globally recognized as a leading institution for science and engineering research. Its strong track record in securing federal grants, producing groundbreaking discoveries, and educating top scientists suggests a high level of competence and capability. Awarding a significant R&D contract to Caltech likely reflects NASA's confidence in their ability to successfully execute complex research projects. This established reputation can be seen as a positive signal regarding the potential for successful research outcomes, although it does not negate the cost implications of a sole-source award.

What is the historical spending pattern for NASA in the physical sciences R&D sector?

NASA consistently invests heavily in Research and Development across various scientific disciplines, including physical sciences, engineering, and space exploration technologies. Historical spending patterns show a significant and sustained commitment to R&D, often through grants and contracts awarded to universities and research institutions like Caltech. While the specific amount for physical sciences R&D can fluctuate based on strategic priorities and budget allocations, it remains a core component of NASA's mission. This contract, valued at approximately $54.5 million over its duration, aligns with the scale of significant R&D investments NASA makes to advance scientific knowledge and technological capabilities.

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: $57,061,860

Exercised Options: $57,061,860

Current Obligation: $54,529,516

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: 2020-10-28

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