NASA's $47M MLS Mission Operations Contract Awarded to Caltech, Lacking Competition

Contract Overview

Contract Amount: $47,187,940 ($47.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2004-12-02

End Date: 2012-09-30

Contract Duration: 2,859 days

Daily Burn Rate: $16.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MLS MISSION OPERATIONS

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $47.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MLS MISSION OPERATIONS Key points: 1. Significant spending on a critical mission operations contract. 2. Sole-source award to a single entity raises competition concerns. 3. Long contract duration suggests potential for cost overruns. 4. Research and Development sector spending, with a focus on physical sciences.

Value Assessment

Rating: questionable

The contract's Cost Plus Award Fee structure can incentivize performance but may lead to higher costs without strong oversight. Benchmarking against similar R&D mission operations contracts is difficult due to the unique nature of the MLS mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these mission operations, impacting taxpayer value.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (2004-2012) could mask inefficiencies. Lack of transparency in pricing due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus contract type
  • Long contract duration
  • Lack of competition

Positive Signals

  • Awarded to a reputable research institution (Caltech)
  • Supports a critical scientific mission (MLS)

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for scientific advancement but requires careful oversight to ensure value for money.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature suggests no opportunity for small business participation through subcontracting was mandated or pursued.

Oversight & Accountability

The cost-plus award fee structure necessitates robust oversight from NASA to ensure Caltech is performing efficiently and that costs are reasonable. The long duration and sole-source nature amplify the need for diligent monitoring.

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
  • Sole-source award
  • Cost-plus contract type
  • Long contract duration
  • Potential for cost overruns
  • Limited transparency

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 $47.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MLS MISSION OPERATIONS

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 $47.2 million.

What is the period of performance?

Start: 2004-12-02. End: 2012-09-30.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. NASA would need to document why Caltech was the only viable option and if any efforts were made to explore competitive avenues before resorting to a sole-source procurement.

How does the performance of Caltech under this contract compare to industry benchmarks for similar mission operations, given the cost-plus award fee structure?

Assessing performance against benchmarks is challenging without specific performance metrics and comparable contracts. The cost-plus award fee structure aims to incentivize performance, but its effectiveness depends on NASA's ability to set appropriate award criteria and monitor expenditures closely. Without detailed performance data, it's difficult to definitively state if value for money was achieved.

What was the total taxpayer impact of this contract, considering the lack of competition and the cost-plus award fee structure over its entire duration?

The total taxpayer impact is difficult to quantify precisely without a competitive baseline. However, the absence of competition and the cost-plus award fee structure inherently carry a higher risk of inflated costs compared to fixed-price, competitively awarded contracts. The $47 million spent over nearly eight years, without competitive pressure, suggests a potential for suboptimal value for taxpayer funds.

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: $48,822,940

Exercised Options: $48,822,940

Current Obligation: $47,187,940

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2004-12-02

Current End Date: 2012-09-30

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

Last Modified: 2021-02-17

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