NASA's Mars Reconnaissance Orbiter contract awarded to Caltech for $242M, focused on R&D

Contract Overview

Contract Amount: $242,172,079 ($242.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2005-08-03

End Date: 2012-09-30

Contract Duration: 2,615 days

Daily Burn Rate: $92.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MARS RECONNAISSANCE ORB

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $242.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MARS RECONNAISSANCE ORB Key points: 1. High R&D spending on a complex space mission. 2. Sole-source award to a single research institution. 3. Long-duration project with significant taxpayer investment. 4. Potential for scientific breakthroughs and technological advancements.

Value Assessment

Rating: questionable

The Cost Plus Award Fee (CPAF) contract structure can lead to cost overruns if not tightly managed. The total award amount is substantial, but the value is tied to scientific and technological outcomes which are inherently uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, likely due to the specialized nature of the research and the unique capabilities of the California Institute of Technology for this specific mission. This lack of competition limits price discovery and potentially increases costs.

Taxpayer Impact: Taxpayers are funding a high-risk, high-reward scientific endeavor with a significant upfront investment, the ultimate return of which is dependent on mission success and scientific findings.

Public Impact

Advancement of space exploration and planetary science. Potential for new discoveries about Mars. Development of cutting-edge aerospace technology. Inspiration for future generations in STEM fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long project duration

Positive Signals

  • Significant scientific objective
  • Potential for groundbreaking discoveries

Sector Analysis

This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is often characterized by high upfront costs, long development cycles, and uncertain outcomes, but can lead to significant technological and scientific advancements.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a large research institution. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight is crucial for cost-plus contracts, especially those awarded sole-source. NASA's internal oversight mechanisms and the award fee structure are intended to ensure performance and manage costs, but transparency on oversight effectiveness is limited.

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

  • Sole-source award limits competition.
  • Cost-plus contract type can lead to cost overruns.
  • Long project duration increases risk exposure.
  • High upfront investment with uncertain scientific returns.
  • Lack of transparency on specific oversight activities.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $242.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. MARS RECONNAISSANCE ORB

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 $242.2 million.

What is the period of performance?

Start: 2005-08-03. End: 2012-09-30.

What specific scientific or technological advancements justify the significant sole-source investment in the Mars Reconnaissance Orbiter?

The Mars Reconnaissance Orbiter (MRO) was designed to provide high-resolution imagery and data to support future Mars missions and understand Martian climate. Its scientific goals include searching for evidence of past or present water, studying Martian geology and atmosphere, and scouting landing sites. The investment is justified by the potential for groundbreaking discoveries about Mars' habitability and history, advancing planetary science.

Given the sole-source nature and cost-plus structure, what are the primary risks to taxpayer value for this contract?

The primary risks to taxpayer value stem from the lack of competitive bidding, which can lead to inflated pricing, and the cost-plus award fee structure, which incentivizes spending rather than cost efficiency. Without strong oversight, there's a risk of cost overruns and a failure to achieve mission objectives within the allocated budget, diminishing the return on investment.

How effectively has the Mars Reconnaissance Orbiter mission achieved its scientific objectives, and does this justify the total expenditure?

The MRO has been highly successful, exceeding many of its initial scientific objectives. It has provided unprecedented data and imagery, significantly advancing our understanding of Mars' geology, climate, and potential for past life. While the total expenditure is substantial, the mission's scientific return and its role in paving the way for future exploration are widely considered to justify the investment.

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: $260,784,000

Exercised Options: $260,784,000

Current Obligation: $242,172,079

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2005-08-03

Current End Date: 2012-09-30

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

Last Modified: 2021-02-17

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