NASA's $61.3M JPL contract to Caltech for R&D in physical sciences awarded without competition
Contract Overview
Contract Amount: $61,358,016 ($61.4M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-01-30
End Date: 2012-09-30
Contract Duration: 3,166 days
Daily Burn Rate: $19.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: AIRS,AMSU,HSB PRJT TEAM
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $61.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: AIRS,AMSU,HSB PRJT TEAM Key points: 1. Contract awarded to a single entity, raising questions about potential cost efficiencies and market alternatives. 2. The contract's duration of over 8 years suggests a long-term commitment to a specific research area. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex area to benchmark. 4. The 'Cost Plus Award Fee' structure incentivizes performance but can lead to higher overall costs if not carefully managed. 5. The absence of competition may limit opportunities for innovation from other research institutions. 6. The contract's value is significant within the R&D sector, requiring robust oversight.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or represents a premium for specialized expertise. The 'Cost Plus Award Fee' structure, while common in R&D, necessitates careful monitoring to ensure costs remain reasonable and that award fees are tied to demonstrable, exceptional performance. Comparing it to similar, competitively awarded R&D contracts in advanced physics or engineering could provide a more objective assessment of value, but such direct comparisons are often limited for highly specific research endeavors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to the California Institute of Technology, indicating that NASA determined Caltech was the only responsible source capable of performing the required research and development. This approach bypasses the standard competitive bidding process, which means there were no other proposals evaluated. While sole-source awards can be justified for unique capabilities or existing relationships, they limit price discovery and may not yield the most cost-effective outcome compared to a competitive scenario.
Taxpayer Impact: Taxpayers may not benefit from the potential cost savings and innovation that could arise from a competitive bidding process. The absence of competition means there's less pressure on the contractor to offer the lowest possible price.
Public Impact
The primary beneficiaries are NASA and the scientific community, gaining advancements in physical, engineering, and life sciences research. Services delivered include cutting-edge research and development, likely contributing to space exploration and scientific understanding. The geographic impact is centered around the Jet Propulsion Laboratory (JPL) in California, a hub for space research. Workforce implications include highly skilled scientists, engineers, and support staff employed at JPL.
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 may reduce flexibility to adapt to changing research needs or technologies.
Positive Signals
- Award to a reputable institution (Caltech) with a strong track record in space research.
- Focus on critical R&D areas vital for scientific advancement and space exploration.
- Potential for significant scientific breakthroughs due to specialized expertise.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and often requires specialized expertise. NASA's spending in R&D is crucial for its mission objectives, driving technological advancements for space exploration and scientific discovery. Comparable spending benchmarks in this area are difficult to establish due to the unique nature of R&D projects, but NASA's overall R&D budget provides a broader context for such investments.
Small Business Impact
This contract does not appear to involve small business set-asides, as it was awarded directly to a large research institution. There is no explicit information regarding subcontracting opportunities for small businesses within this award. The focus on specialized R&D at a major institution suggests that the primary performers will be highly skilled individuals and established research teams, rather than a broad engagement with the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program managers responsible for the Jet Propulsion Laboratory. Given the R&D nature and sole-source award, rigorous performance monitoring and financial oversight are critical. NASA's Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse, ensuring accountability. Transparency is facilitated through contract databases, though detailed R&D progress reports may be less publicly accessible due to proprietary or national security considerations.
Related Government Programs
- NASA Research and Development Contracts
- Jet Propulsion Laboratory Operations
- Federal Funding for Scientific Research
- Cost Plus Award Fee Contracts
- Sole Source Research Grants
Risk Flags
- Sole Source Award
- Cost Plus Award Fee Structure
- Long Contract Duration
Tags
research-and-development, nasa, caltech, jet-propulsion-laboratory, sole-source, cost-plus-award-fee, physical-sciences, engineering-sciences, life-sciences, california, delivery-order, large-business
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $61.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. AIRS,AMSU,HSB PRJT TEAM
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 $61.4 million.
What is the period of performance?
Start: 2004-01-30. End: 2012-09-30.
What is Caltech's historical performance and track record with NASA, particularly on similar R&D contracts?
Caltech, through its management of the Jet Propulsion Laboratory (JPL), has a long and distinguished history of collaboration with NASA, dating back to the early days of space exploration. JPL is renowned for its contributions to robotic space missions, Earth science, and astronomy. Historically, Caltech/JPL has demonstrated exceptional capability in managing complex, large-scale R&D projects, often pushing the boundaries of scientific and engineering innovation. While specific performance metrics for individual contracts are not always publicly detailed, the continued awarding of significant sole-source contracts to Caltech/JPL by NASA underscores a high level of trust and a perceived track record of success in delivering critical research and development outcomes aligned with NASA's strategic goals.
How does the 'Cost Plus Award Fee' (CPAF) structure compare to other contract types for similar R&D work, and what are the typical award fee percentages?
The Cost Plus Award Fee (CPAF) contract type is frequently used for R&D efforts where the scope of work is not fully defined at the outset, or where performance outcomes are difficult to quantify precisely. It allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee and an award amount determined by the government based on performance against specific criteria. Compared to 'Cost Plus Fixed Fee' (CPFF), CPAF offers greater incentive for contractor performance beyond just cost control. Compared to 'Cost Reimbursement No Fee' (Cost-No-Fee), it provides an incentive for superior performance. Typical award fee percentages can vary widely, often ranging from 5% to 15% of the estimated cost, but this is highly dependent on the specific contract's negotiated terms and the criticality of the performance objectives. Without the specific details of this NASA contract, it's impossible to state the exact award fee percentage.
What are the specific R&D areas covered by this $61.3 million contract, and how do they align with NASA's current strategic priorities?
The provided data indicates the contract covers 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS code 541710) managed by NASA's Jet Propulsion Laboratory (JPL). While the specific sub-disciplines within this broad category are not detailed, JPL's mission typically encompasses areas such as planetary science, astrophysics, Earth science, space technology development, and advanced propulsion systems. These areas directly align with NASA's strategic priorities, which include exploring the solar system, understanding the universe, advancing aeronautics research, and developing technologies for future space missions. The contract's focus on physical and engineering sciences is fundamental to achieving these ambitious goals, supporting everything from designing new spacecraft to analyzing data from distant celestial bodies.
Given the sole-source nature, what mechanisms are in place to ensure cost reasonableness and prevent potential overruns?
For sole-source contracts, especially those with a Cost Plus Award Fee (CPAF) structure, robust oversight is crucial to ensure cost reasonableness. NASA employs several mechanisms. Firstly, the contracting officer and technical team conduct thorough reviews of proposed costs, often using techniques like cost realism analysis, even without competing offers. They scrutinize labor rates, material costs, and indirect expenses. Secondly, the CPAF structure itself includes an award fee component tied to specific performance metrics. This incentivizes the contractor to manage costs effectively to achieve higher award fees, rather than simply maximizing costs. Regular audits by NASA's Defense Contract Audit Agency (DCAA) or internal audit teams can also be employed to verify the allowability, allocability, and reasonableness of incurred costs. Finally, clear communication channels and performance reviews between NASA and Caltech/JPL are essential for early identification and mitigation of potential cost issues.
What is the historical spending trend for similar R&D activities at JPL or within NASA's physical sciences directorate?
Historical spending trends for R&D activities at JPL and within NASA's physical sciences directorate generally show significant and sustained investment, reflecting the agency's core mission. JPL, being a federally funded research and development center (FFRDC) managed by Caltech, consistently receives substantial funding from NASA for its diverse research and mission operations. While the exact figures fluctuate annually based on program priorities, budget allocations, and the initiation of new projects, NASA's overall R&D budget, particularly for science missions and technology development, represents a significant portion of its total expenditure. Spending in physical and engineering sciences is a cornerstone of this investment. Analyzing past NASA budget documents and contract databases would reveal multi-billion dollar annual investments in R&D, with JPL being a major recipient for projects spanning planetary exploration, Earth observation, and fundamental physics research.
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: $64,414,442
Exercised Options: $64,414,442
Current Obligation: $61,358,016
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2004-01-30
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2021-02-17
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