NASA awards $21.6M to California Institute of Technology for R&D, facing limited competition

Contract Overview

Contract Amount: $21,592,017 ($21.6M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-30

End Date: 2012-05-27

Contract Duration: 3,162 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $21.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: Key points: 1. Significant R&D investment of $21.6M. 2. Limited competition raises questions about price discovery. 3. Potential risk associated with sole-source or limited competition awards. 4. Focus on physical, engineering, and life sciences research.

Value Assessment

Rating: questionable

The contract was awarded via a Delivery Order under a larger contract. Without knowing the original contract's pricing structure and the specific services rendered for this order, a direct comparison is difficult. However, the 'NOT COMPETED' status suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a limited competition approach. This method may not yield the best prices for the government as it restricts the pool of potential offerors, potentially leading to higher costs than if full and open competition were pursued.

Taxpayer Impact: The lack of robust competition could result in taxpayers paying more than necessary for the research and development services provided.

Public Impact

Taxpayers may be overpaying due to limited competition. Research outcomes could be impacted by the chosen contractor. Transparency in federal contracting is crucial for accountability.

Waste & Efficiency Indicators

Waste Risk Score: 68 / 10

Warning Flags

  • Limited competition
  • Potential for overpricing
  • Lack of transparency in award justification

Positive Signals

  • Award to a reputable research institution
  • Supports critical R&D efforts

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this sector is vital for innovation but requires careful oversight to ensure value for money, especially when competition is limited.

Small Business Impact

The data does not indicate any specific benefits or set-asides for small businesses in this contract award. The focus appears to be on a large research institution.

Oversight & Accountability

The 'NOT COMPETED' status warrants further scrutiny to ensure the justification for limiting competition was sound and that the pricing was fair and reasonable. Oversight should confirm the necessity of this approach.

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

  • Potential for inflated costs due to limited competition.
  • Lack of transparency regarding the justification for 'NOT COMPETED'.
  • Risk of missing out on innovative solutions from a wider vendor pool.
  • Difficulty in verifying fair and reasonable pricing without competitive benchmarks.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $21.6 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 $21.6 million.

What is the period of performance?

Start: 2003-09-30. End: 2012-05-27.

What was the specific justification for not competing this contract, and was it adequately documented?

The justification for not competing this contract is crucial for understanding the value proposition. Agencies typically require detailed documentation outlining why full and open competition was not feasible, such as the existence of a unique capability or a critical need that only a specific entity could fulfill. Without this documentation, it's difficult to assess if the government received the best possible outcome.

How does the cost of this contract compare to similar R&D projects awarded competitively?

Benchmarking this contract's cost against similar, competitively awarded R&D projects is essential for assessing value. If this contract's pricing is significantly higher, it suggests that the lack of competition may have led to inflated costs. A thorough analysis would involve comparing scope, duration, and deliverables to ensure a fair assessment of the expenditure.

What are the long-term implications of relying on limited competition for critical research and development initiatives?

Over-reliance on limited competition for R&D can stifle innovation by reducing market pressure and potentially leading to complacency among contractors. It may also limit opportunities for emerging companies and create dependencies. While sometimes necessary for specialized research, a balanced approach is needed to ensure continued technological advancement and cost-effectiveness.

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: 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: $29,764,100

Exercised Options: $29,764,100

Current Obligation: $21,592,017

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: 2012-05-27

Potential End Date: 2012-05-27 00:00:00

Last Modified: 2021-02-17

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