NASA's OSMA Program: $26.5M Spent on R&D with Caltech, No Competition

Contract Overview

Contract Amount: $26,511,776 ($26.5M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-30

End Date: 2008-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $14.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: OSMA PROGRAM

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $26.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: OSMA PROGRAM Key points: 1. Significant investment in R&D, specifically in physical, engineering, and life sciences. 2. Sole-source award to California Institute of Technology suggests unique capabilities or limited market. 3. Long contract duration (1827 days) indicates a substantial, ongoing project. 4. Cost-plus award fee structure can incentivize performance but requires careful oversight.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Benchmarking is difficult without specific deliverables and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, awarded directly to the California Institute of Technology. This limits price discovery and may not reflect the best value achievable through competition.

Taxpayer Impact: Without competition, taxpayers may have paid a premium for the services rendered.

Public Impact

Funding advanced research and development in critical scientific fields. Supporting a leading research institution, Caltech, in its scientific endeavors. Potential for groundbreaking discoveries and technological advancements stemming from the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long contract duration

Positive Signals

  • Award to a reputable research institution
  • Focus on R&D

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be high-risk and difficult to benchmark due to unique project scopes.

Small Business Impact

This contract was not awarded to small businesses, as it was a sole-source award to a large research institution. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The cost-plus award fee structure necessitates robust oversight to ensure performance targets are met and costs are reasonable. The long duration requires sustained monitoring.

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
  • Limited transparency on specific research outcomes
  • Sole-source award to a single entity

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 $26.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. OSMA PROGRAM

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 $26.5 million.

What is the period of performance?

Start: 2003-09-30. End: 2008-09-30.

What specific research outcomes were achieved, and did they justify the $26.5M investment?

The value of the $26.5M investment hinges on the specific research outcomes achieved by the OSMA program. Without detailed reporting on breakthroughs, publications, patents, or technological advancements, it's challenging to definitively assess if the expenditure yielded sufficient value. NASA's internal assessments and peer reviews would be critical to determining the program's scientific and technological return on investment.

What were the risks associated with awarding this contract solely to Caltech, and how were they mitigated?

The primary risk of a sole-source award is the potential for inflated pricing and a lack of innovation due to absent competition. Mitigation strategies would typically involve rigorous negotiation, establishing clear performance metrics tied to award fees, and strong government oversight to ensure Caltech's proposed costs were reasonable and its research plan aligned with NASA's objectives. Independent technical reviews could also help validate the approach.

How effective was the Cost Plus Award Fee structure in driving performance and achieving program goals?

The effectiveness of the Cost Plus Award Fee (CPAF) structure depends heavily on the clarity and attainability of the award criteria. If well-defined and challenging, CPAF can incentivize contractors to exceed minimum requirements. However, if criteria are vague or easily met, it can lead to cost overruns without commensurate performance gains. NASA's oversight team would need to actively manage the award fee determination process.

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: 1

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: $27,141,600

Exercised Options: $27,141,600

Current Obligation: $26,511,776

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-30

Current End Date: 2008-09-30

Potential End Date: 2008-09-30 00:00:00

Last Modified: 2015-08-31

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