NASA's $22.17M contract with Caltech for plant systems R&D shows a lack of competition and high cost
Contract Overview
Contract Amount: $22,173,853 ($22.2M)
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: $6.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SMD R&A PLNT SYS FY04-08
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SMD R&A PLNT SYS FY04-08 Key points: 1. The contract's cost-plus award fee structure may incentivize higher spending. 2. A single source award suggests limited market research or unique capabilities. 3. The contract duration of over 9 years raises questions about long-term planning and adaptability. 4. Performance context is limited due to the nature of R&D, making direct comparisons difficult. 5. This contract falls within the R&D sector, specifically focusing on physical sciences. 6. The lack of competition could lead to suboptimal pricing for taxpayers. 7. The contract's value is substantial for a single-source R&D award.
Value Assessment
Rating: questionable
Benchmarking the value of this R&D contract is challenging due to its specialized nature and lack of competition. The cost-plus award fee (CPAF) pricing structure, while common for R&D, can lead to costs exceeding initial estimates if not carefully managed. Without comparable sole-source contracts for similar plant systems R&D, it's difficult to definitively assess if the $22.17 million represents a fair price. However, the extended duration and lack of competitive pressure inherently increase the risk of overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that NASA likely identified the California Institute of Technology as the only entity capable of performing the required research and development for these specific plant systems. The absence of multiple bidders means there was no price competition to drive down costs or encourage innovative solutions from a wider market.
Taxpayer Impact: The lack of competition means taxpayers did not benefit from a potentially lower price that could have been achieved through a competitive bidding process. This also limits the government's ability to explore alternative approaches or technologies that might have been offered by other vendors.
Public Impact
The primary beneficiary is NASA, which receives specialized research and development services for plant systems. The services delivered are focused on advancing scientific understanding and technological capabilities in a niche area. The geographic impact is primarily within California, where the California Institute of Technology is located. Workforce implications include specialized scientific and research roles at the contractor's institution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings.
- Cost-plus award fee structure can lead to cost overruns if not managed tightly.
- Extended contract duration of over 9 years may indicate a lack of agile planning or evolving requirements.
- Lack of transparency in performance metrics due to the R&D nature of the work.
Positive Signals
- Award to a reputable research institution (Caltech) suggests access to high-quality expertise.
- Focus on R&D indicates investment in future technological advancements.
- NASA's continued investment in this area may signal strategic importance.
Sector Analysis
This contract falls under the Research and Development (R&D) sector, specifically within scientific research services. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses this type of work. The market for specialized R&D can be highly concentrated, with a few key institutions possessing unique expertise. Comparable spending benchmarks are difficult to establish for such niche, sole-source R&D efforts, but the overall federal spending on R&D is substantial, with agencies like NASA prioritizing scientific advancement.
Small Business Impact
This contract does not appear to have any small business set-aside provisions, nor is there information suggesting significant subcontracting opportunities for small businesses. As a sole-source award to a large research institution, the direct impact on the small business ecosystem is likely minimal. The focus is on specialized research capabilities rather than broad service delivery where small businesses typically play a larger role.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's program management and contracting officers. Given the sole-source nature and R&D focus, oversight would likely concentrate on technical progress, adherence to research milestones, and financial management of the cost-plus award fee structure. Transparency may be limited due to the proprietary nature of research findings, but NASA's internal audit and Inspector General offices would have jurisdiction for financial and performance reviews.
Related Government Programs
- NASA Research and Development Contracts
- Space Science Research
- Life Support Systems R&D
- Advanced Technology Development
Risk Flags
- Sole-source award may indicate lack of market research or unique contractor capability.
- Cost-plus award fee structure carries inherent risk of cost overruns.
- Long contract duration (over 9 years) may lead to outdated technology or scope creep.
- Lack of competition limits price discovery and potential taxpayer savings.
Tags
research-and-development, nasa, california, sole-source, cost-plus-award-fee, long-term-contract, scientific-research, plant-systems, federal-spending, aerospace
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SMD R&A PLNT SYS FY04-08
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 $22.2 million.
What is the period of performance?
Start: 2003-09-30. End: 2012-09-30.
What specific plant systems is this contract focused on, and why were they deemed critical for NASA's mission?
The provided data does not specify the exact nature of the 'plant systems' being researched. However, given NASA's context, these could relate to life support systems for long-duration space missions (e.g., growing food, recycling air and water), environmental control systems for spacecraft or habitats, or potentially biological research related to plant growth in space environments. The criticality would stem from enabling human presence beyond Earth's atmosphere, reducing reliance on resupply missions, and supporting astronaut health and well-being. Further details would require accessing the contract's statement of work.
What is the justification for awarding this contract as sole-source to the California Institute of Technology?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For a highly specialized R&D contract like this, NASA likely determined that Caltech possesses unique expertise, facilities, intellectual property, or personnel essential for the specific plant systems research. This could be due to prior work, established research programs, or unique scientific breakthroughs. The justification would need to be formally documented by NASA, outlining why other potential sources were not considered viable or capable of fulfilling the requirement.
How does the Cost Plus Award Fee (CPAF) structure influence contractor behavior and potential costs for this R&D contract?
The Cost Plus Award Fee (CPAF) structure allows the contractor (Caltech) to recover all allowable costs incurred, plus a base fee and an additional award fee. The award fee is determined by NASA based on the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to perform well to earn the award fee, but it also means that costs can exceed initial estimates. For R&D, where outcomes are uncertain, CPAF provides flexibility. However, it requires robust oversight from NASA to ensure costs remain reasonable and that the award fee criteria are objective and aligned with mission goals, preventing potential cost overruns driven by less stringent cost controls.
What are the potential risks associated with a contract duration of over 9 years for R&D?
A contract duration of over 9 years (3288 days) for R&D presents several risks. Firstly, technology and scientific understanding can evolve rapidly, meaning the initial research objectives might become outdated or less relevant over such a long period. Secondly, maintaining consistent focus and motivation for a lengthy R&D project can be challenging. Thirdly, it increases the risk of cost escalation due to inflation and unforeseen technical hurdles. Finally, it limits NASA's flexibility to pivot to new approaches or technologies that may emerge during the contract's term. Effective program management and regular reviews are crucial to mitigate these risks.
How does this contract's spending compare to other NASA R&D investments in similar scientific areas?
Direct comparison of this $22.17 million contract is difficult without knowing the specific 'plant systems' focus and comparing it to other NASA R&D efforts in that precise niche. NASA's overall R&D budget is substantial, funding a wide array of projects from fundamental science to applied engineering. However, for specialized, long-term R&D awarded on a sole-source basis to a single institution, this amount represents a significant investment. Benchmarking would require identifying other contracts with similar technical scopes, durations, and competition levels within NASA's portfolio or across other federal agencies funding comparable scientific research.
What oversight mechanisms are in place to ensure accountability and value for money on this sole-source, CPAF contract?
Oversight for this sole-source CPAF contract would primarily involve NASA's contracting officer and technical monitors. They are responsible for monitoring contractor performance against the statement of work and the award fee criteria. Regular progress reviews, technical evaluations, and financial audits are standard oversight mechanisms. For CPAF, NASA must establish clear, objective performance metrics and conduct thorough evaluations to determine the award fee, ensuring it reflects actual value delivered. The agency's Inspector General also provides an independent layer of oversight to detect fraud, waste, and abuse.
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: $22,173,853
Exercised Options: $22,173,853
Current Obligation: $22,173,853
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: 2021-02-17
More Contracts from California Institute of Technology
- Europa Clipper Project the Contract IS the Sponsoring Agreement Between the National Aeronautics and Space Administration Nasa and the California Institute of Technology-Contractor, a Private Nonprofit Educational Institution, Which Establishes the Relationship for the Operation of the Federally Funded Research and Development Center-Ffrdc Known AS the JET Propulsion Laboratory. the Contractor, JPL, IS Required to Perform Work That IS Designated in Task Orders Issued by the Nasa Management Office-Nmo Contracting Officers. Nasa-Sponsored Work: Jpls Primary Mission IS to Support the Nasa Science Mission Directorate-Smd in Carrying OUT the Specific Objectives Identified in the SMD Science Plan. the Four Broad Scientific Areas ARE: Earth Science, Planetary Science, Heliophysics, and Astrophysics. in Performance of This Contract, JPL Shall: 1. Supply a Broad Base of Scientific and Technical Capabilities Relevant to Nasa Program and Project Responsibilities and Assignments. 2. Foster ITS Unique Relationship With a Top-Tier University to Facilitate the Involvement of Scientists, Engineers, and Students From the University and Research Communities in Nasa Mission and in Supporting Other Government Agencies. 3. Support Nasa in Enabling Program and Institutional Capabilities. 4. Develop Spacecraft and Instruments That ARE Sent to Various Destinations With OUR Solar System, Including Earth Orbit, Planets, Planetary Satellites, Asteroids, and Comets. These Missions MAY BE Orbiters, Landers, or Rovers, and Typically Include Cutting-Edge Technologies Required to Meet Scientific Requirements. 5. Perform Project Tasks Involving: I-Autonomous Deep-Space, Inner-Space and Earth-Orbiting Spacecraft or Major Subsystems, Ii-Experiments, Instruments, or Other Devices Which MAY BE Carried AS Payload on Spacecrafts in Missions Managed by Others, And-Or Iii-Ground-Based Systems. 6. Beyond ITS Primary Mission, JPL MAY Perform Work for Other Nasa Mission Directorates or Offices. 7. JPL IS Also Responsible for the Operation, Research, Technology Insertion, and Management of Nasas Deep Space Network to Provide Telecommunication and Operation Services, Including Data Acquisition and Data Delivery Required to Meet Established Agency Objectives. 8. JPL IS Also Required to Maintain and Conduct an Education Program in Close Coordination With the Nasa Headquarters Education Office, the Academic Community AT Large, and in Support to Nasa Strategic Objectives to Improve Student Retention in the Science, Technology, Engineering, and Mathematics-Stem Disciplines. Work for Non-Nasa Sponsors: JPL MAY Perform Work for Non-Nasa Sponsors. This Work Will BE Designated in Task Orders Issued by NMO Contracting Officers Based on Task Plans Initiated by the Contractor — $2.9B (National Aeronautics and Space Administration)
- Mars Science Laboratory — $1.7B (National Aeronautics and Space Administration)
- Mars Sample Return (MSR) Program - Phase a 40-108270 — $1.6B (National Aeronautics and Space Administration)
- Deep Space Network (DSN) the Contract IS the Sponsoring Agreement Between the National Aeronautics and Space Administration (nasa) and the California Institute of Technology (contractor), a Private Nonprofit Educational Institution, Which Establishes the Relationship for the Operation of the Federally Funded Research and Development Center (ffrdc) Known AS the JET Propulsion Laboratory. the Contractor, JPL, IS Required to Perform Work That IS Designated in Task Orders Issued by the Nasa Management Office (NMO) Contracting Officers. Nasa - Sponsored Work: Jpl's Primary Mission IS to Support the Nasa Science Mission Directorate (SMD) in Carrying OUT the Specific Objectives Identified in the SMD Science Plan. the Four Broad Scientific Areas ARE: Earth Science, Planetary Science, Heliophysics, and Astrophysics. in Performance of This Contract, JPL Shall: 1) Supply a Broad Base of Scientific and Technical Capabilities Relevant to Nasa Program and Project Responsibilities and Assignments. 2) Foster ITS Unique Relationship With a Top-Tier University to Facilitate the Involvement of Scientists, Engineers, and Students From the University and Research Communities in Nasa Mission and in Supporting Other Government Agencies. 3) Support Nasa in Enabling Program and Institutional Capabilities. 4) Develop Spacecraft and Instruments That ARE Sent to Various Destinations With OUR Solar System, Including Earth Orbit, Planets, Planetary Satellites, Asteroids, and Comets. These Missions MAY BE Orbiters, Landers, or Rovers, and Typically Include Cutting-Edge Technologies Required to Meet Scientific Requirements. 5) Perform Project Tasks Involving: (I) Autonomous Deep-Space, Inner-Space and Earth-Orbiting Spacecraft or Major Subsystems, (II) Experiments, Instruments, or Other Devices Which MAY BE Carried AS Payload on Spacecrafts in Missions Managed by Others, And/Or (III) Ground-Based Systems. 6) Beyond ITS Primary Mission, JPL MAY Perform Work for Other Nasa Mission Directorates or Offices. 7) JPL IS Also Responsible for the Operation, Research, Technology Insertion, and Management of Nasa S Deep Space Network to Provide Telecommunication and Operation Services, Including Data Acquisition and Data Delivery Required to Meet Established Agency Objectives. 8) JPL IS Also Required to Maintain and Conduct an Education Program in Close Coordination With the Nasa Headquarters Education Office, the Academic Community AT Large, and in Support to Nasa Strategic Objectives to Improve Student Retention in the Science, Technology, Engineering, and Mathematics (stem) Disciplines. Work for Non-Nasa Sponsors: JPL MAY Perform Work for Non-Nasa Sponsors. This Work Will BE Designated in Task Orders Issued by NMO Contracting Officers Based on Task Plans Initiated by the Contractor — $1.4B (National Aeronautics and Space Administration)
- 2020 Mars Science Rover Project - Phase a the Contract IS the Sponsoring Agreement Between the National Aeronautics and Space Administration (nasa) and the California Institute of Technology (contractor), a Private Nonprofit Educational Institution, Which Establishes the Relationship for the Operation of the Federally Funded Research and Development Center (ffrdc) Known AS the JET Propulsion Laboratory. the Contractor, JPL, IS Required to Perform Work That IS Designated in Task Orders Issued by the Nasa Management Office (NMO) Contracting Officers. Nasa - Sponsored Work: Jpl's Primary Mission IS to Support the Nasa Science Mission Directorate (SMD) in Carrying OUT the Specific Objectives Identified in the SMD Science Plan. the Four Broad Scientific Areas ARE: Earth Science, Planetary Science, Heliophysics, and Astrophysics. in Performance of This Contract, JPL Shall: 1) Supply a Broad Base of Scientific and Technical Capabilities Relevant to Nasa Program and Project Responsibilities and Assignments. 2) Foster ITS Unique Relationship With a Top-Tier University to Facilitate the Involvement of Scientists, Engineers, and Students From the University and Research Communities in Nasa Mission and in Supporting Other Government Agencies. 3) Support Nasa in Enabling Program and Institutional Capabilities. 4) Develop Spacecraft and Instruments That ARE Sent to Various Destinations With OUR Solar System, Including Earth Orbit, Planets, Planetary Satellites, Asteroids, and Comets. These Missions MAY BE Orbiters, Landers, or Rovers, and Typically Include Cutting-Edge Technologies Required to Meet Scientific Requirements. 5) Perform Project Tasks Involving: (I) Autonomous Deep-Space, Inner-Space and Earth-Orbiting Spacecraft or Major Subsystems, (II) Experiments, Instruments, or Other Devices Which MAY BE Carried AS Payload on Spacecrafts in Missions Managed by Others, And/Or (III) Ground-Based Systems. 6) Beyond ITS Primary Mission, JPL MAY Perform Work for Other Nasa Mission Directorates or Offices. 7) JPL IS Also Responsible for the Operation, Research, Technology Insertion, and Management of Nasa S Deep Space Network to Provide Telecommunication and Operation Services, Including Data Acquisition and Data Delivery Required to Meet Established Agency Objectives. 8) JPL IS Also Required to Maintain and Conduct an Education Program in Close Coordination With the Nasa Headquarters Education Office, the Academic Community AT Large, and in Support to Nasa Strategic Objectives to Improve Student Retention in the Science, Technology, Engineering, and Mathematics (stem) Disciplines. Work for Non-Nasa Sponsors: JPL MAY Perform Work for Non-Nasa Sponsors. This Work Will BE Designated in Task Orders Issued by NMO Contracting Officers Based on Task Plans Initiated by the Contractor — $1.4B (National Aeronautics and Space Administration)
View all California Institute of Technology federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →