NASA's $36M JPL R&D Fund to Caltech: A Decade of Cost-Plus Award Fee Contracts
Contract Overview
Contract Amount: $35,953,690 ($36.0M)
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: $10.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: JPL DIRECTOR'S R&D FUND
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $36.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: JPL DIRECTOR'S R&D FUND Key points: 1. Significant R&D investment focused on physical, engineering, and life sciences. 2. Sole-source contract awarded to California Institute of Technology (Caltech) for an extended period. 3. Cost-plus award fee structure may incentivize performance but requires careful oversight. 4. Long contract duration (over 9 years) suggests a stable, ongoing relationship.
Value Assessment
Rating: questionable
The Cost Plus Award Fee (CPAF) structure, while allowing for flexibility and incentivizing performance, can lead to higher costs if not managed rigorously. Without competitive bidding, it's difficult to benchmark pricing against alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Caltech. This limits price discovery and potentially increases costs compared to a competitive environment.
Taxpayer Impact: The lack of competition for a significant R&D fund raises concerns about whether taxpayers received the best possible value for their investment.
Public Impact
Supports advanced scientific research and development at a leading institution. Potential for groundbreaking discoveries in physical, engineering, and life sciences. Long-term funding stability for research projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus award fee structure
- Long contract duration without re-competition
Positive Signals
- Supports critical R&D
- Partnership with 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 crucial for innovation but can be complex to manage due to the inherent uncertainties of research.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, suggesting a missed opportunity for small business participation in NASA's R&D efforts.
Oversight & Accountability
The sole-source nature and CPAF structure necessitate robust oversight from NASA to ensure funds are used effectively and efficiently, and that award fees are justified.
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
- Lack of competitive bidding
- Potential for cost overruns with CPAF
- Limited transparency on performance metrics and award fee justification
- No small business participation noted
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $36.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. JPL DIRECTOR'S R&D FUND
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 $36.0 million.
What is the period of performance?
Start: 2003-09-30. End: 2012-09-30.
How effectively did the CPAF structure incentivize Caltech to achieve R&D objectives within budget constraints over the contract's lifespan?
The effectiveness of the CPAF structure hinges on clearly defined award criteria aligned with NASA's strategic goals and rigorous performance monitoring. Without detailed performance reports and justification for award fees, it's challenging to assess if the incentive mechanism truly optimized value for money or simply added to the overall cost.
What were the justifications for awarding this significant R&D fund on a sole-source basis, and were alternatives explored?
Sole-source awards are typically justified by unique capabilities, critical urgency, or lack of viable alternatives. For a large R&D fund, NASA would need to demonstrate that Caltech possessed unique expertise or facilities essential for the specific research objectives that could not be met by other institutions through a competitive process.
What was the overall impact of this long-term, sole-source R&D funding on scientific advancement and taxpayer value?
The long-term funding likely provided stability for Caltech's research, potentially leading to significant scientific advancements. However, the lack of competition raises questions about whether the $36 million investment yielded optimal taxpayer value compared to what might have been achieved through a more competitive procurement process.
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: 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: $35,956,699
Exercised Options: $35,956,699
Current Obligation: $35,953,690
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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