NASA's $14.3M R&D Contract with Caltech: Long Duration, No Competition
Contract Overview
Contract Amount: $14,325,661 ($14.3M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-09-30
End Date: 2013-03-31
Contract Duration: 3,470 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: OFC OF CHIEF ENGINEER
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $14.3 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: OFC OF CHIEF ENGINEER Key points: 1. Significant long-term investment in R&D at $14.3M. 2. Sole-source award to a single academic institution raises competition concerns. 3. Potential for cost overruns given the Cost Plus Award Fee structure. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure can incentivize performance but may lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded solely to the California Institute of Technology. This lack of competition limits price discovery and may result in a higher overall cost to the government.
Taxpayer Impact: The absence of competition could mean taxpayers are not receiving the best possible value for the $14.3 million spent on research and development.
Public Impact
Research advancements in physical, engineering, and life sciences could have long-term societal benefits. Sole-source awards can sometimes be justified for highly specialized research, but transparency is key. The extended duration (2003-2013) suggests a sustained research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure
- Long contract duration
Positive Signals
- Award to a reputable research institution
- Focus on critical R&D areas
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 in research outcomes.
Small Business Impact
This contract was awarded to a large academic institution and does not appear to involve small business participation. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight to ensure funds are used effectively and research objectives are met. Regular performance reviews are essential.
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 creep due to CPAF
- Extended contract duration without clear interim milestones
- No apparent small business participation
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 $14.3 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. OFC OF CHIEF ENGINEER
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 $14.3 million.
What is the period of performance?
Start: 2003-09-30. End: 2013-03-31.
What specific research outcomes were achieved during the contract's 10-year period, and how do they align with NASA's strategic goals?
The contract focused on research and development in physical, engineering, and life sciences. While specific outcomes are not detailed, such long-term R&D efforts typically aim to advance scientific understanding, develop new technologies, and support NASA's broader mission objectives, potentially leading to breakthroughs in areas like materials science, propulsion, or biomedical research for space exploration.
Given the sole-source award and Cost Plus structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure fair pricing?
The Cost Plus Award Fee (CPAF) structure includes award fees tied to performance, intended to incentivize efficiency. However, without competition, robust oversight, including detailed cost audits and regular performance evaluations against pre-defined metrics, would be critical to ensure fair pricing and prevent unnecessary cost escalation.
How was the selection of the California Institute of Technology justified as the sole source for this critical R&D work?
Sole-source awards are typically justified when a specific entity possesses unique capabilities, expertise, or resources essential for the contract's requirements that cannot be replicated by other sources. For specialized scientific research, Caltech's established reputation and specific research infrastructure in physical, engineering, and life sciences likely formed the basis for this justification.
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, 28
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,298,000
Exercised Options: $15,298,000
Current Obligation: $14,325,661
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2003-09-30
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2012-11-08
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