NASA's $197M JPL contract to Caltech for R&D in physical sciences shows long-term commitment
Contract Overview
Contract Amount: $196,835,422 ($196.8M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-09-22
End Date: 2010-01-31
Contract Duration: 1,957 days
Daily Burn Rate: $100.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: W-FIELD IR EXPLORER P-B
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $196.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: W-FIELD IR EXPLORER P-B Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost efficiencies. 2. Long duration of the contract suggests a stable, ongoing need for the research services. 3. The cost-plus award fee structure incentivizes performance but requires careful oversight to manage costs. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for NASA's mission. 5. The contract's value is substantial, indicating significant investment in scientific advancement. 6. Geographic concentration in California for this significant federal research investment.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and long duration. The cost-plus award fee (CPAF) structure allows for flexibility but can lead to higher costs if not managed tightly. Without comparable contracts for similar scope and duration, assessing true value-for-money is difficult. The significant investment suggests a high perceived value by NASA for the services provided by Caltech.
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 (Caltech), which manages NASA's Jet Propulsion Laboratory (JPL). This approach is common for entities with unique capabilities and established relationships, like JPL's role in space exploration and research. However, the lack of competition means potential cost savings from competitive bidding were not realized.
Taxpayer Impact: Sole-source awards can limit opportunities for other capable organizations and may not always yield the most cost-effective outcome for taxpayers compared to a competed contract.
Public Impact
The primary beneficiary is NASA, which gains access to specialized research and development capabilities through Caltech/JPL. The contract supports advanced research in physical, engineering, and life sciences, contributing to scientific knowledge and technological innovation. The geographic impact is concentrated in California, where JPL is located, supporting the local economy and research ecosystem. This contract likely supports a highly skilled workforce of scientists, engineers, and researchers at JPL.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs than a fully competed contract.
- Cost-plus award fee contracts require robust oversight to prevent cost overruns.
- Long contract duration could mask inefficiencies if performance is not continuously monitored.
- Sole-source nature limits opportunities for other research institutions.
Positive Signals
- Award to a highly reputable institution (Caltech) with a proven track record in managing JPL.
- Long-term commitment indicates a stable and critical need for the research services.
- Focus on R&D aligns with NASA's core mission objectives.
- Potential for significant scientific and technological breakthroughs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for space exploration and scientific discovery, aligning with NASA's strategic goals. The market for such specialized R&D is often dominated by a few key institutions with unique expertise and infrastructure, making sole-source or limited competition awards more common. Comparable spending benchmarks are difficult to establish due to the unique nature of JPL's operations and Caltech's management role.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions. As a sole-source award to a large research institution (Caltech managing JPL), the direct impact on small businesses is likely minimal, unless Caltech engages them as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within the execution of this contract.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's program management and contracting officers. The cost-plus award fee structure necessitates detailed monitoring of performance against established criteria and rigorous review of incurred costs. Transparency is generally high for NASA contracts, with reporting requirements likely in place. The Inspector General's office would have jurisdiction for audits and investigations if any irregularities were suspected.
Related Government Programs
- Jet Propulsion Laboratory (JPL) Operations
- NASA Research and Technology Programs
- Space Science Research Contracts
- Federal Research and Development Spending
Risk Flags
- Sole-source award limits competition.
- Cost-plus award fee requires strong oversight.
- Long duration may mask performance issues if not actively managed.
Tags
nasa, caltech, jpl, research-and-development, physical-sciences, engineering, life-sciences, sole-source, cost-plus-award-fee, california, federal-spending, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $196.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. W-FIELD IR EXPLORER P-B
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 $196.8 million.
What is the period of performance?
Start: 2004-09-22. End: 2010-01-31.
What is the historical spending trend for NASA's R&D contracts with Caltech/JPL?
Analyzing historical spending trends for NASA's R&D contracts with Caltech/JPL requires access to detailed contract databases over an extended period. However, it's generally understood that NASA has a long-standing relationship with Caltech for managing JPL, dating back decades. This implies consistent, substantial funding allocated to JPL for its research and development activities. The specific contract data provided ($196.8M from 2004-2010) represents a significant but potentially episodic portion of this overall relationship. A comprehensive trend analysis would involve aggregating data across multiple contracts and task orders over many years to identify patterns in funding levels, contract types, and areas of research focus, revealing NASA's sustained investment in JPL's capabilities.
How does the cost-plus award fee (CPAF) structure typically perform in R&D contracts compared to other contract types?
The Cost-Plus Award Fee (CPAF) structure is often employed for R&D contracts where the scope of work is not fully defined or where innovation and performance quality are paramount. In CPAF, the contractor is reimbursed for allowable costs plus a fee that is composed of a base amount and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria. Compared to fixed-price contracts, CPAF offers more flexibility for the government to adjust to evolving project needs and incentivizes higher performance. However, it carries higher cost risk for the government than fixed-price contracts and requires robust government oversight to ensure costs are reasonable and the award fee is justified. It generally offers better cost control than pure cost-plus-incentive-fee (CPIF) or cost-plus-fixed-fee (CPFF) contracts when performance outcomes are critical and measurable.
What are the key performance indicators (KPIs) typically used in NASA R&D contracts managed by JPL?
Key Performance Indicators (KPIs) for NASA R&D contracts managed by JPL, especially under a CPAF structure, are tailored to the specific scientific and engineering objectives. Common KPIs often include metrics related to scientific discovery (e.g., successful data collection, publication of findings, achievement of research milestones), technological advancement (e.g., development of new technologies, successful prototyping, system performance benchmarks), project management (e.g., adherence to schedule, budget performance, risk mitigation effectiveness), and operational efficiency. For JPL, specific mission-related KPIs might involve the successful deployment or operation of spacecraft, the accuracy of scientific instruments, or the timely delivery of critical research data. The award fee determination hinges on how well the contractor meets or exceeds these defined KPIs.
What is the significance of the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541710)?
The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' signifies a broad category of scientific research and experimental development services. This code encompasses establishments primarily engaged in conducting research and development in areas like biotechnology, pharmaceuticals, aerospace, environmental science, computer science, and advanced materials. Contracts under this code are crucial for innovation across various sectors, including defense, healthcare, energy, and technology. For NASA, it directly supports its mission to explore space, understand the universe, and develop cutting-edge technologies. Federal agencies utilize this code to categorize spending and track investments in scientific advancement and technological innovation, understanding its vital role in national competitiveness and progress.
What are the potential risks associated with a sole-source contract for a long-duration R&D project?
Sole-source contracts for long-duration R&D projects, like this one awarded to Caltech for JPL, carry specific risks. Foremost is the potential for reduced cost-effectiveness due to the absence of competitive pressure, which could lead to higher prices for taxpayers. There's also a risk of complacency or reduced innovation from the contractor over time, as they may face less pressure to improve efficiency or explore novel approaches compared to a competitive environment. Furthermore, a sole-source award limits opportunities for other qualified research institutions to participate and potentially bring fresh perspectives or alternative solutions. Finally, without a competitive baseline, it can be more challenging for the government to objectively assess whether the contractor is delivering optimal value and performance throughout the contract's extended period.
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: $201,667,000
Exercised Options: $201,667,000
Current Obligation: $196,835,422
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2004-09-22
Current End Date: 2010-01-31
Potential End Date: 2010-01-31 00:00:00
Last Modified: 2021-02-17
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