NASA's MISR Instrument Support contract awarded to Caltech for over $47.8 million, primarily for R&D

Contract Overview

Contract Amount: $47,816,476 ($47.8M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2004-01-23

End Date: 2012-09-30

Contract Duration: 3,173 days

Daily Burn Rate: $15.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MISR INSTRUMENT SUPPORT

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $47.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MISR INSTRUMENT SUPPORT Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics were absent, as the contract was not competed. 3. Risk indicators are moderate, given the long duration and cost-plus award fee structure. 4. Performance context shows a long-term relationship between NASA and Caltech for this specific instrument. 5. Sector positioning places this contract within the Research and Development in Physical, Engineering, and Life Sciences category.

Value Assessment

Rating: fair

Benchmarking the value for money is challenging as this was a sole-source award to a single research institution. The Cost Plus Award Fee (CPAF) structure incentivizes performance but can lead to higher costs compared to fixed-price contracts. Without competitive bids, it's difficult to determine if the pricing reflects market rates or if a better value could have been achieved through competition.

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 intellectual property essential for the requirement. The lack of competition means there was no opportunity for price discovery through multiple bids, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs.

Public Impact

The primary beneficiary is NASA, which receives continued support for the MISR instrument. Services delivered include research, development, and technical support for the Multi-angle Imaging SpectroRadiometer (MISR) instrument. Geographic impact is primarily within California, where Caltech is located, but the data and research benefit global scientific understanding. Workforce implications include specialized scientific and engineering roles at Caltech dedicated to this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition and potential cost savings.
  • Cost-plus award fee structure can lead to cost overruns if not managed tightly.
  • Long contract duration (over 8 years) increases the risk of scope creep or evolving requirements not being optimally addressed.

Positive Signals

  • Long-standing relationship with a specialized institution (Caltech) suggests deep expertise in MISR.
  • Award Fee structure provides incentive for contractor performance.
  • Focus on R&D for a specific scientific instrument indicates specialized and potentially unique capabilities.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on Earth observation and remote sensing technology. The market for such specialized scientific instrument support is often limited to a few highly qualified research institutions. Comparable spending benchmarks are difficult to establish due to the unique nature of instrument-specific support contracts.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of supporting a complex scientific instrument like MISR, it is likely that the prime contractor, Caltech, possesses unique expertise. Subcontracting opportunities for small businesses are not explicitly detailed but would likely be limited to niche support services if any.

Oversight & Accountability

Oversight is provided by NASA, likely through program managers and contracting officers responsible for monitoring performance and expenditures. The Cost Plus Award Fee structure implies performance metrics that are evaluated to determine award fees. Transparency is moderate, as contract details are publicly available, but the specifics of performance evaluations and fee determination are internal to NASA.

Related Government Programs

  • NASA Earth Science Programs
  • Satellite Instrument Development and Support
  • Remote Sensing Research
  • Aerospace Research and Development

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • Long contract duration

Tags

nasa, caltech, misr-instrument-support, research-and-development, physical-engineering-life-sciences, sole-source, cost-plus-award-fee, california, delivery-order, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $47.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MISR INSTRUMENT SUPPORT

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 $47.8 million.

What is the period of performance?

Start: 2004-01-23. End: 2012-09-30.

What is the historical spending pattern for MISR instrument support contracts with Caltech?

The provided data covers a single contract from January 23, 2004, to September 30, 2012, with a total value of $47,816,476.14. This represents a significant investment over an approximately 8.5-year period. Without access to prior or subsequent contracts for the same instrument or similar support services, it is difficult to establish a comprehensive historical spending pattern. However, this single award indicates a sustained, long-term commitment by NASA to Caltech for MISR support, suggesting a consistent need for this specialized expertise over an extended duration.

How does the Cost Plus Award Fee (CPAF) structure impact the overall cost and performance?

The Cost Plus Award Fee (CPAF) structure allows the contractor to recover all allowable costs plus an additional fee that is composed of a fixed base fee and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria. This structure is intended to incentivize high performance by rewarding contractors who exceed expectations. However, it also carries a risk of higher costs compared to fixed-price contracts, as the government bears the risk of cost overruns. Effective oversight and clearly defined performance metrics are crucial to ensure that the award fee truly reflects superior performance and does not simply inflate costs.

What are the specific risks associated with a sole-source award for specialized scientific research?

Sole-source awards for specialized scientific research, like the MISR instrument support, present several risks. Primarily, the absence of competition means the government cannot leverage market forces to ensure the lowest possible price, potentially leading to higher expenditures. There's also a risk of complacency from the contractor, as there is no competitive pressure to innovate or improve efficiency. Furthermore, reliance on a single source can create vulnerabilities if that source experiences financial difficulties, personnel changes, or shifts in strategic focus. Ensuring robust contract management and clear performance expectations becomes paramount to mitigate these risks.

What is Caltech's track record in supporting NASA's Earth science missions?

California Institute of Technology (Caltech) has a long-standing and distinguished track record in supporting NASA's scientific endeavors, particularly in Earth science and planetary exploration. Their involvement with the MISR instrument, as evidenced by this contract, highlights their deep expertise in developing, calibrating, and supporting complex scientific instruments for space-based missions. Caltech is renowned for its research capabilities and its contributions to numerous NASA missions, often involving highly specialized scientific and engineering challenges. This sustained support for MISR suggests a proven ability to meet NASA's demanding requirements for scientific instrument operations and data analysis.

How does the funding for MISR instrument support compare to other NASA Earth science instrument contracts?

Comparing the $47.8 million awarded to Caltech for MISR instrument support over approximately 8.5 years requires context. This equates to roughly $5.6 million per year. NASA's Earth Science Division funds a wide array of missions and instruments, with costs varying significantly based on complexity, development phase, and operational duration. Instruments requiring extensive, long-term specialized support, particularly for unique research purposes like MISR, can command substantial funding. Without a direct comparison of annual budgets for similar long-term instrument support contracts across NASA's portfolio, it's challenging to definitively state if this funding level is high or low, but it indicates a significant, sustained investment in this particular instrument's operational life.

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: $49,187,731

Exercised Options: $49,187,731

Current Obligation: $47,816,476

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2004-01-23

Current End Date: 2012-09-30

Potential End Date: 2012-09-30 00:00:00

Last Modified: 2021-02-17

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