NASA's $1.2B R&D Contract with Caltech: 10 Years of Research Spending
Contract Overview
Contract Amount: $11,969,658 ($12.0M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-04-23
End Date: 2012-09-30
Contract Duration: 3,082 days
Daily Burn Rate: $3.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SMD,R&A, AQUA/T FY04-08
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $12.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SMD,R&A, AQUA/T FY04-08 Key points: 1. Significant long-term investment in physical, engineering, and life sciences R&D. 2. Sole-source award to a single academic institution, limiting competitive pricing. 3. Potential for cost overruns due to cost-plus award fee structure. 4. Focus on research and development suggests high innovation potential.
Value Assessment
Rating: questionable
The contract's cost-plus award fee structure, combined with a lack of competition, makes a definitive pricing assessment difficult. Without benchmarks from similar sole-source R&D contracts, it's hard to determine if the $1.2 billion spent represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to the California Institute of Technology. This lack of competition limits price discovery and potentially leads to higher costs than a competitively bid contract.
Taxpayer Impact: The sole-source nature of this large R&D contract raises concerns about taxpayer value and whether competitive processes could have yielded better cost efficiencies.
Public Impact
Supports advanced scientific research with potential long-term benefits. Funding directed to a single, highly reputable research institution. Long contract duration (10 years) indicates sustained research focus. Lack of competition may limit broader industry participation or innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus award fee structure
- Long contract duration
Positive Signals
- High-value R&D investment
- Focus on scientific advancement
- Award to reputable institution
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is often characterized by long-term investments, high uncertainty, and unique expertise requirements, making direct cost comparisons challenging.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the sole-source nature to a large academic institution suggests limited direct opportunities for small business participation as prime contractors.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight to ensure research objectives are met efficiently and funds are used appropriately. NASA's internal review processes would be critical.
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
- Lack of competition
- Potential for cost overruns
- Limited transparency on specific research outcomes
- No small business participation noted
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 $12.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SMD,R&A, AQUA/T FY04-08
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 $12.0 million.
What is the period of performance?
Start: 2004-04-23. End: 2012-09-30.
What specific research outcomes were achieved for the $1.2 billion spent over 10 years?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. Without detailed project reports and outcome assessments, it's difficult to quantify the specific scientific breakthroughs or technological advancements funded by this $1.2 billion expenditure. NASA would need to provide documentation on milestones met and research deliverables.
Could a competitive bidding process have secured similar research capabilities at a lower cost?
Given the specialized nature of advanced R&D, it's possible that Caltech possesses unique expertise. However, a competitive process might have spurred innovation from other institutions or private firms, potentially leading to cost efficiencies or alternative approaches. The sole-source award prevents a direct comparison.
How effectively was the cost-plus award fee structure managed to control spending?
The cost-plus award fee structure allows for cost reimbursement plus a fee based on performance. Effective management requires clear performance metrics and rigorous oversight to prevent cost overruns. Without access to NASA's performance evaluations and fee determination records, it's hard to assess how well this structure controlled spending.
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: $14,267,974
Exercised Options: $14,267,974
Current Obligation: $11,969,658
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2004-04-23
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2018-08-07
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