NASA's $24.6M R&D contract with Caltech for LISA Project shows long-term investment in space science

Contract Overview

Contract Amount: $24,603,800 ($24.6M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-30

End Date: 2012-03-31

Contract Duration: 3,105 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: LISA PROJ, PRE-PHASE A

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $24.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: LISA PROJ, PRE-PHASE A Key points: 1. Contract awarded for a significant duration, indicating a sustained research effort. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Contract type is Cost Plus Award Fee, suggesting performance incentives. 4. High number of modifications (51) may indicate evolving project scope or needs. 5. Contract awarded to a single entity, raising questions about competition. 6. Geographic location of contractor is California.

Value Assessment

Rating: fair

The contract's value of $24.6 million over its duration is substantial for a research project. However, without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. The Cost Plus Award Fee structure implies that the contractor can earn additional profit based on performance, which can incentivize good work but also requires careful oversight to ensure costs remain reasonable. Benchmarking this against similar long-term, complex R&D projects in space science would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used when a specific entity possesses unique expertise or capabilities essential for a project, such as Caltech's established role in advanced scientific research. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative proposals, it's difficult to ascertain if the negotiated price represents the best value achievable.

Public Impact

Benefits the scientific community through advancements in physical, engineering, and life sciences. Supports the development of technologies and understanding related to the LISA Project. Potential for long-term scientific discoveries and technological innovations. Impacts the research workforce, particularly at institutions like Caltech.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition for a significant R&D contract.
  • High number of contract modifications (51) could indicate scope creep or poor initial planning.
  • Cost Plus Award Fee structure requires robust oversight to ensure cost control and fair award fees.

Positive Signals

  • Awarded to a reputable research institution (Caltech) with a strong track record.
  • Long contract duration suggests a commitment to a critical, long-term research objective.
  • Focus on R&D aligns with national priorities for scientific advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This area is characterized by innovation, long development cycles, and often requires specialized expertise. NASA's spending in this sector is crucial for maintaining technological leadership and achieving its scientific exploration goals. Comparable spending benchmarks would involve looking at other large-scale, multi-year R&D grants and contracts awarded by federal agencies for fundamental scientific research.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of the work, likely requiring highly specialized research capabilities, may limit the direct involvement of small businesses as prime contractors or major subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's purview, given the agency's role as the awarding and funding body. The Cost Plus Award Fee structure necessitates diligent monitoring of costs and performance to ensure that award fees are justified. Transparency would be enhanced through regular reporting from the contractor and potentially through NASA's internal review processes. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Programs
  • Space Science Missions
  • Advanced Technology Development

Risk Flags

  • Sole-source award lacks competitive pricing pressure.
  • High number of modifications may indicate scope instability or planning issues.
  • Cost Plus Award Fee requires diligent performance monitoring.

Tags

research-and-development, nasa, california, sole-source, cost-plus-award-fee, space-science, long-term-project, delivery-order, large-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $24.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. LISA PROJ, PRE-PHASE A

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 $24.6 million.

What is the period of performance?

Start: 2003-09-30. End: 2012-03-31.

What is the specific nature of the 'LISA Project' and Caltech's role in it?

The LISA Project (Laser Interferometer Space Antenna) is a proposed space-based gravitational wave observatory, a joint mission led by NASA and the European Space Agency (ESA). Caltech, as a leading research institution in astrophysics and related fields, likely plays a crucial role in the scientific planning, instrument development, data analysis, or theoretical research associated with LISA. This contract, awarded under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences), would support these activities, potentially encompassing feasibility studies, technology maturation, or early-stage design work prior to full mission development.

How does the Cost Plus Award Fee (CPAF) structure typically function in R&D contracts?

A Cost Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fee. The fee consists of a base amount (often a small percentage of estimated costs) and an award amount. The award amount is determined based on the contractor's performance against pre-defined criteria, evaluated by the government. For R&D contracts like this one, the criteria might include achieving technical milestones, adhering to schedules, managing costs effectively, and producing innovative solutions. This structure incentivizes the contractor to exceed minimum performance requirements to earn a higher fee, while the government retains control over the award amount based on objective performance assessments.

What are the implications of 51 contract modifications over the contract's lifespan?

The high number of modifications (51) for this contract, which ran from September 30, 2003, to March 31, 2012 (approximately 8.5 years), suggests a dynamic and evolving project. Modifications can arise for various reasons, including changes in technical requirements, scope adjustments, funding reallocation, or extensions of contract duration. In an R&D context, frequent modifications are not always negative and can reflect the iterative nature of scientific discovery and technological development. However, a very large number could also indicate initial under-scoping, unforeseen challenges, or a lack of stable requirements, potentially impacting cost and schedule predictability. A detailed review of each modification would be needed to fully understand their impact.

What is the typical duration and funding profile for similar NASA R&D contracts?

NASA R&D contracts can vary significantly in duration and funding, depending on the project's complexity, phase, and strategic importance. Early-stage research or feasibility studies might last a few years with funding in the millions, while major technology development programs or foundational science initiatives can span a decade or more with funding potentially reaching hundreds of millions or even billions. This $24.6 million contract, awarded over roughly 8.5 years, appears to be a substantial, long-term investment in a specific research area, likely supporting critical foundational work for a larger scientific endeavor like the LISA Project. Its duration and funding level are consistent with significant, multi-year R&D efforts within NASA.

Are there any known risks associated with sole-source R&D procurements?

Sole-source R&D procurements carry inherent risks, primarily related to cost and innovation. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher costs for the government. Furthermore, the absence of multiple bidders might limit the exploration of diverse technical approaches or innovative solutions that could have emerged from a competitive bidding process. To mitigate these risks, agencies must conduct thorough market research to justify the sole-source award, negotiate prices rigorously, and implement robust oversight mechanisms to ensure performance and value. For specialized R&D, the justification often rests on unique capabilities or intellectual property held by a single entity.

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: $28,883,400

Exercised Options: $28,883,400

Current Obligation: $24,603,800

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: 2012-03-31

Potential End Date: 2012-03-31 00:00:00

Last Modified: 2020-10-28

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