NASA's $22M JPL contract to Caltech for R&D in physical sciences, awarded without competition
Contract Overview
Contract Amount: $22,002,259 ($22.0M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-09-30
End Date: 2009-09-30
Contract Duration: 2,192 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: Key points: 1. Contract awarded on a cost-plus basis, indicating potential for cost overruns. 2. Long duration of over 6 years suggests a complex, ongoing research effort. 3. Sole-source award limits price discovery and potentially reduces value for money. 4. Focus on R&D in physical sciences aligns with NASA's core mission. 5. High dollar value for a single research contract warrants scrutiny of outcomes. 6. Geographic concentration in California for a significant federal award.
Value Assessment
Rating: questionable
This contract's value is difficult to benchmark due to its sole-source nature and specific R&D focus. The cost-plus award fee structure, while common for research, can lead to costs exceeding initial estimates if not managed tightly. Without competitive bids, it's challenging to definitively assess if the pricing represents fair market value for the services rendered. The extended duration and significant funding suggest a substantial research undertaking, but the lack of comparative data makes a precise value-for-money assessment problematic.
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 typically occurs when a specific entity possesses unique capabilities or is essential for a particular project. The lack of competition means there were no other bidders to compare against, which can limit price negotiation and potentially lead to higher costs for the government compared to a fully competed contract. This approach bypasses the standard process of soliciting multiple proposals and selecting the best value.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from competitive bidding. The government may pay a premium when competition is absent, as the contractor faces less pressure to offer the most competitive price.
Public Impact
Benefits the scientific research community and advances understanding in physical sciences. Delivers critical research and development services to NASA's Jet Propulsion Laboratory (JPL). Primarily impacts the scientific and technological workforce in California. Contributes to advancements in space exploration and scientific discovery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and potential for cost savings.
- Cost-plus contract type can incentivize higher spending if not rigorously overseen.
- Long contract duration increases the risk of scope creep and budget overruns.
- Lack of competition may mean less incentive for contractor efficiency.
Positive Signals
- Award to a highly reputable institution (Caltech/JPL) known for scientific excellence.
- Focus on critical R&D aligns with national strategic interests in science and technology.
- Long-term nature suggests a stable, dedicated effort towards complex research goals.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences. This sector is characterized by innovation, long development cycles, and often high upfront investment. The market for specialized scientific research is typically concentrated among a few leading institutions. NASA's spending in this area is crucial for maintaining its leadership in space exploration and scientific discovery, often involving unique, non-commercial applications.
Small Business Impact
This contract does not appear to involve small business set-asides. Given the specialized nature of the research and the sole-source award to a large institution like Caltech, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement within the contract's structure. The focus is on the prime contractor's unique capabilities.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program managers at JPL. Given the R&D nature and sole-source award, the emphasis would be on monitoring research progress, adherence to scientific objectives, and managing costs within the cost-plus framework. Transparency might be limited due to the non-competitive nature, but NASA's internal review processes and potentially Inspector General audits would provide accountability.
Related Government Programs
- NASA Research and Development Contracts
- Jet Propulsion Laboratory (JPL) Operations
- Scientific Research Grants
- Physical Sciences Research Funding
Risk Flags
- Sole-source award may limit competition and potentially increase costs.
- Cost-plus contract type requires diligent oversight to manage spending.
- Long contract duration increases risk of scope creep and budget overruns.
Tags
research-and-development, nasa, caltech, jet-propulsion-laboratory, california, sole-source, cost-plus-award-fee, physical-sciences, large-contract, long-duration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. See the official description on USAspending.
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 $22.0 million.
What is the period of performance?
Start: 2003-09-30. End: 2009-09-30.
What is the historical spending pattern for similar R&D contracts awarded by NASA to institutions like Caltech?
Historical data indicates NASA frequently awards large R&D contracts to institutions with specialized scientific expertise, such as Caltech and its Jet Propulsion Laboratory (JPL). These contracts often span multiple years and involve significant funding, reflecting the long-term nature of scientific inquiry and technological development. While specific dollar amounts vary based on project scope and duration, NASA's commitment to foundational research in areas like physical sciences is consistent. However, the trend also shows a mix of competed and sole-source awards, with sole-source being more common for highly specialized or mission-critical research where a single entity possesses unique capabilities, as seen in this JPL contract.
How does the cost-plus award fee structure typically impact contractor performance and government cost control?
The Cost-Plus Award Fee (CPAF) structure is designed to incentivize contractor performance while allowing for flexibility in research and development projects where outcomes are uncertain. The contractor is reimbursed for allowable costs plus a base fee, with an additional award fee determined by the government's assessment of performance against defined objectives. This can encourage contractors to exceed minimum requirements to earn higher fees. However, it also requires robust government oversight to ensure costs remain reasonable and that award fees are justified. Without stringent monitoring, the potential exists for costs to escalate beyond what might occur under a fixed-price contract, as the contractor is less exposed to direct financial risk for cost overruns.
What are the key performance indicators (KPIs) typically used to evaluate success in NASA's physical sciences R&D contracts?
For NASA's physical sciences R&D contracts, key performance indicators (KPIs) often revolve around scientific and technical achievements. These can include the successful completion of research milestones, publication of findings in peer-reviewed journals, development of new technologies or methodologies, successful testing and validation of prototypes, and contributions to broader NASA mission objectives (e.g., planetary science, astrophysics). For contracts with an award fee component, the government's evaluation of performance against these specific, measurable, achievable, relevant, and time-bound (SMART) objectives directly influences the contractor's earned fee. Data integrity, adherence to safety protocols, and timely reporting are also critical.
What is the typical duration and funding level for NASA's sole-source R&D contracts in the physical sciences?
NASA's sole-source R&D contracts in the physical sciences often exhibit significant duration and funding levels, reflecting the complex and long-term nature of scientific exploration. Durations commonly range from several years to over a decade, allowing for sustained research efforts and the development of intricate technologies. Funding can range from tens of millions to hundreds of millions of dollars, depending on the scope, complexity, and strategic importance of the research. This particular contract, with a duration of approximately six years and a value of $22 million, falls within the typical range for substantial, focused R&D initiatives awarded to institutions with established expertise.
What are the potential risks associated with awarding large R&D contracts on a sole-source basis?
Awarding large R&D contracts on a sole-source basis carries several potential risks. Foremost is the lack of price competition, which can lead to higher costs for the government as there is no market pressure to drive down prices. There's also a risk of complacency, where the contractor may have less incentive to innovate or operate efficiently since they are guaranteed the contract. Furthermore, sole-source awards can stifle innovation from other potential sources and may not always identify the most capable or cost-effective solution available in the broader market. Ensuring robust oversight and clear performance metrics becomes even more critical to mitigate these risks.
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: 1
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: $22,036,043
Exercised Options: $22,036,043
Current Obligation: $22,002,259
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2003-09-30
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2012-09-19
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