NASA's $34.7M contract with Caltech for physics research shows a long-term commitment to scientific advancement

Contract Overview

Contract Amount: $34,747,017 ($34.7M)

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: $10.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: SMD R&A ASTR & PYSICS

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $34.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SMD R&A ASTR & PYSICS Key points: 1. This contract represents a significant investment in fundamental research, indicating a focus on long-term scientific exploration. 2. The sole-source nature of this award warrants scrutiny regarding potential missed opportunities for competitive pricing. 3. A long contract duration suggests a stable, ongoing need for the specialized research services provided. 4. The cost-plus award fee structure allows for flexibility but requires robust oversight to ensure value. 5. The absence of small business participation raises questions about broader economic impact and inclusion. 6. Performance context is crucial given the extended period and the nature of scientific R&D.

Value Assessment

Rating: fair

Benchmarking the value of this specific research contract is challenging due to its specialized nature and sole-source award. However, the extended duration and significant funding suggest a perceived value by NASA. The cost-plus award fee structure, while common in R&D, necessitates careful monitoring of costs against performance to ensure taxpayer funds are used efficiently. Without comparable sole-source contracts for similar physics research, a direct price comparison is difficult, but the overall investment indicates a commitment to the specific scientific objectives.

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 among multiple vendors. This approach is typically justified when a specific contractor possesses unique capabilities, intellectual property, or is the only responsible source. While this can ensure access to specialized expertise, it limits the potential for price competition, which could lead to higher costs for the government compared to a fully competed award. The lack of competition means that market forces were not leveraged to drive down prices.

Taxpayer Impact: The absence of competition means taxpayers may not have received the benefit of lower prices that could have resulted from a bidding process. This could represent a less efficient use of public funds if alternative, cost-effective solutions were available.

Public Impact

The primary beneficiaries are the scientific community and the advancement of knowledge in astrophysics and physics. The contract supports critical research and development activities for NASA's scientific mission. The geographic impact is primarily at the California Institute of Technology, fostering a hub of scientific innovation. The contract likely supports a workforce of highly skilled scientists, researchers, and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

• Sole-source award limits price competition, potentially increasing costs for taxpayers.
• Cost-plus award fee structure requires diligent oversight to prevent cost overruns.
• Lack of small business involvement limits opportunities for smaller firms in specialized research.
• Long contract duration without clear performance milestones could obscure accountability if not managed well.

Positive Signals

• Long-term funding provides stability for critical, long-lead research projects.
• Award to a reputable institution like Caltech suggests a high likelihood of scientific quality.
• Focus on fundamental research aligns with NASA's core mission of exploration and discovery.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and astrophysics. This is a highly specialized area where a few key institutions often dominate. The market is characterized by significant barriers to entry, requiring extensive expertise, facilities, and a proven track record. NASA's spending in this area is crucial for maintaining its leadership in space exploration and scientific discovery. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts, but the sustained funding indicates a high perceived value for the specific research outcomes.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there an indication of significant subcontracting to small businesses. This is common in highly specialized R&D fields where a few large, established research institutions possess the unique capabilities required. The lack of small business involvement means that opportunities to foster innovation and economic growth within the small business ecosystem for this specific contract are limited. Future contracts in this area could explore opportunities for small business participation through teaming arrangements or specific research task orders.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's internal program management and contracting officers. The cost-plus award fee structure necessitates rigorous performance monitoring and financial auditing to ensure that funds are expended appropriately and that award fees are earned based on merit. Transparency is generally maintained through NASA's public contract databases, though the specifics of scientific progress may be subject to proprietary or national security considerations. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

• NASA Research and Development Contracts
• Astrophysics Research Grants
• Physical Sciences Research Funding
• University Research Partnerships
• Federal Science and Technology Investment

Risk Flags

• Sole-source award limits competition.
• Cost-plus award fee structure requires robust oversight.
• Long contract duration may obscure performance metrics if not managed.
• Lack of small business participation.

Tags

nasa, research-and-development, astrophysics, physics, california, sole-source, cost-plus-award-fee, university-research, long-term-contract, science, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $34.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SMD R&A ASTR & PYSICS

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 $34.7 million.

What is the period of performance?

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

What is the specific scientific objective of this contract and how has progress been measured over its duration?

This contract, "SMD R&A ASTR & PYSICS," awarded to the California Institute of Technology (Caltech), focuses on research and analysis within astrophysics and physics, supporting NASA's Science Mission Directorate (SMD). The specific scientific objectives are likely tied to advancing fundamental knowledge in areas such as cosmology, planetary science, heliophysics, or fundamental physics, aligning with NASA's broader exploration and discovery goals. Progress measurement in such long-term, sole-source R&D contracts is typically managed through a combination of technical reviews, milestone achievements, publications in peer-reviewed journals, and adherence to budget. The cost-plus award fee (CPAF) structure implies that Caltech receives a base fee plus an award fee based on NASA's assessment of their performance against pre-defined criteria. These criteria would detail expected scientific outcomes, research methodologies, and timely reporting. Given the contract's start date of 2003 and end date of 2012, a significant body of research would have been produced, contributing to NASA's scientific portfolio.

How does the $34.7 million total award compare to similar astrophysics and physics research contracts awarded by NASA?

Comparing this $34.7 million contract to similar astrophysics and physics research contracts requires context regarding the specific research scope, duration, and the institutions involved. NASA funds a wide array of research through various mechanisms, including grants, cooperative agreements, and contracts, often awarded to universities and research institutions. Contracts like this one, especially those with a sole-source designation and a long duration (2003-2012), tend to be for large, complex, or foundational research programs where a specific institution like Caltech has unique expertise or infrastructure. While $34.7 million over nine years represents a substantial investment, NASA's overall R&D budget is in the billions annually. Other major astrophysics missions or large-scale theoretical physics research programs could easily exceed this amount individually or over similar timeframes. For instance, major space telescope projects or large particle physics collaborations often involve funding orders of magnitude higher. Therefore, while significant, this contract's value is relative and should be assessed against the specific scientific deliverables and the unique capabilities of the contractor.

What are the potential risks associated with a sole-source, cost-plus award fee contract for scientific research?

Sole-source contracts, by definition, eliminate price competition, which is a primary mechanism for ensuring value for money. This means the government cannot be certain it is receiving the lowest possible price for the services rendered. The risk here is that Caltech may have charged more than would have been necessary if other qualified institutions had competed. Coupled with the Cost-Plus Award Fee (CPAF) structure, there's an inherent risk of cost escalation. While CPAF aims to incentivize performance through award fees, it also means the contractor is reimbursed for allowable costs plus a fee that includes a potential award component. This structure requires robust government oversight to ensure that costs are reasonable and allocable, and that award fees are genuinely earned based on exceptional performance, not just on meeting minimum requirements. Without strong oversight, there's a risk of inflated costs and potentially less-than-optimal performance if the award fee criteria are not sufficiently stringent or are poorly managed.

What is the track record of the California Institute of Technology as a federal contractor, particularly with NASA?

The California Institute of Technology (Caltech) has a long and distinguished history of collaborating with NASA on cutting-edge scientific research and engineering projects. As a premier research institution, Caltech has consistently secured significant federal funding, particularly from NASA, for its expertise in fields like astrophysics, planetary science, and engineering. Their track record includes contributions to numerous NASA missions, development of scientific instruments, and fundamental theoretical research. Caltech's involvement often spans decades, reflecting a deep and trusted partnership. The fact that NASA awarded this substantial, long-term contract on a sole-source basis to Caltech strongly suggests a high level of confidence in their past performance, scientific capabilities, and ability to deliver on complex research objectives. Their consistent success in obtaining competitive grants and contracts further underscores their strong standing within the scientific community and as a reliable federal contractor.

How has NASA's spending on astrophysics and physics research evolved over the period of this contract (2003-2012)?

The period between 2003 and 2012 was a dynamic time for NASA's astrophysics and physics research. During this decade, NASA continued to operate and analyze data from flagship missions like the Hubble Space Telescope and launched new endeavors such as the Kepler Space Telescope (launched 2009), which revolutionized exoplanet discovery. Significant theoretical work and ground-based research also continued. NASA's overall budget fluctuated during these years, influenced by factors like the Space Shuttle program's retirement (2011) and shifting national priorities. Spending on astrophysics and physics research, while a smaller portion of the total NASA budget compared to human spaceflight or aeronautics, remained a critical component of its science mission. The $34.7 million awarded to Caltech represents a consistent, long-term investment in a specific research area, likely reflecting stable programmatic needs rather than a response to short-term budget surges. Analyzing NASA's historical budget documents from this period would reveal trends in funding allocation across different scientific disciplines, providing context for the level of investment in areas like those covered by this contract.

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: $38,872,224

Exercised Options: $38,872,224

Current Obligation: $34,747,017

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

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