NASA's $18.1M Instrument Incubator Program contract awarded to California Institute of Technology for R&D

Contract Overview

Contract Amount: $18,126,419 ($18.1M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2005-09-23

End Date: 2010-09-30

Contract Duration: 1,833 days

Daily Burn Rate: $9.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: INSTRUMENT INCUBATOR PRO

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $18.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: INSTRUMENT INCUBATOR PRO Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of 1833 days indicates a long-term research commitment. 3. The contract type (Cost Plus Award Fee) suggests performance incentives tied to specific outcomes. 4. Sole-source award raises questions about potential cost efficiencies and market alternatives. 5. The program aims to foster innovation in scientific instrumentation. 6. Geographic concentration in California for this federal award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific R&D focus and sole-source nature. Without comparable contracts for similar 'incubator' programs or detailed cost breakdowns, assessing value for money is difficult. The Cost Plus Award Fee structure implies that the final cost could vary based on performance, making a definitive value assessment contingent on achieved milestones. However, the total award amount of $18.1 million over approximately five years suggests a substantial investment in developing new technologies.

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. This indicates that NASA identified Caltech as the only entity capable of performing the required research and development for the Instrument Incubator Program. The lack of competition means that pricing was not determined through a competitive bidding process, potentially leading to higher costs than if multiple vendors had vied for the contract. This approach is typically used when a specific entity possesses unique expertise or technology.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from the price reductions typically achieved through competitive bidding. This could represent a higher cost for the government compared to a competed contract.

Public Impact

The primary beneficiaries are researchers and scientists at the California Institute of Technology, who will receive funding and resources to develop new instruments. The services delivered include the research, design, development, and testing of advanced scientific instruments. The geographic impact is concentrated in California, where Caltech is located, potentially creating local economic benefits. Workforce implications include the employment of scientists, engineers, technicians, and support staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pressure on pricing and innovation.
  • Cost Plus Award Fee structure can lead to cost overruns if not managed tightly.
  • Long contract duration may not adapt quickly to rapidly evolving technological needs.

Positive Signals

  • Award to a reputable institution (Caltech) suggests high potential for successful R&D outcomes.
  • Focus on instrument innovation can lead to significant scientific advancements.
  • Long-term commitment allows for in-depth research and development.

Sector Analysis

The Instrument Incubator Program falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by high innovation and long development cycles. Comparable spending benchmarks are difficult to establish for such specialized R&D programs, as they are often unique and tailored to specific scientific goals. NASA's investment in instrument development is crucial for advancing space exploration and scientific discovery, often leading to spin-off technologies with broader applications.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting opportunities for small businesses. The award to a large research institution like Caltech suggests that the primary focus is on leveraging extensive internal capabilities rather than distributing work to smaller entities. Further investigation would be needed to determine if any small business participation is mandated or occurs organically.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The Cost Plus Award Fee structure necessitates performance monitoring against defined milestones and award criteria. Transparency regarding the specific award criteria and achieved performance metrics would be key to assessing accountability. While no specific Inspector General jurisdiction is mentioned, NASA's Office of Inspector General typically oversees all NASA contracts for fraud, waste, and abuse.

Related Government Programs

  • NASA Research and Development Contracts
  • Scientific Instrumentation Development
  • University Research Partnerships
  • Cost Plus Award Fee Contracts

Risk Flags

  • Sole-source award
  • Cost Plus Award Fee structure requires careful oversight

Tags

research-and-development, nasa, california-institute-of-technology, california, cost-plus-award-fee, sole-source, delivery-order, instrument-development, science-and-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $18.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. INSTRUMENT INCUBATOR PRO

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 $18.1 million.

What is the period of performance?

Start: 2005-09-23. End: 2010-09-30.

What specific scientific instruments or technologies is this contract intended to develop?

The provided data does not specify the exact scientific instruments or technologies targeted by the 'INSTRUMENT INCUBATOR PRO' contract. However, given the broad categorization of 'Research and Development in the Physical, Engineering, and Life Sciences' and the award to the California Institute of Technology, it is reasonable to infer that the program aims to foster innovation in areas critical to NASA's mission. This could include advanced sensors, imaging systems, data processing hardware, or other novel tools for space exploration, Earth observation, or fundamental scientific research. The 'incubator' nature suggests a focus on early-stage development and proof-of-concept for potentially groundbreaking instrumentation.

How does the Cost Plus Award Fee (CPAF) structure work for this contract, and what are the potential implications for cost and performance?

The Cost Plus Award Fee (CPAF) contract structure means that the contractor (California Institute of Technology) is reimbursed for all allowable costs incurred during the performance of the contract, plus a fee. This fee consists of a fixed base amount and an award amount that is determined based on the contractor's performance against pre-defined criteria. For this 'INSTRUMENT INCUBATOR PRO' contract, NASA would have established specific metrics related to the development of new instruments. If Caltech meets or exceeds these performance targets, they receive a higher award fee. Conversely, underperformance would result in a lower fee. The implication is that CPAF incentivizes contractors to achieve high levels of performance, as a significant portion of their potential profit is tied to it. However, it also requires robust oversight from NASA to ensure that the award criteria are objective and that the fee accurately reflects the value delivered, while still managing the overall cost.

What is the historical spending pattern for NASA's Instrument Incubator Program, and how does this $18.1M award compare?

The provided data pertains to a single contract award for the 'INSTRUMENT INCUBATOR PRO' with a total value of $18,126,418.53, awarded to the California Institute of Technology from September 2005 to September 2010. Without access to broader NASA procurement databases or specific program budget documents, it is difficult to establish a comprehensive historical spending pattern for the 'Instrument Incubator Program' as a whole. This $18.1 million award represents a significant investment over a five-year period for a specific R&D initiative. To understand the broader pattern, one would need to analyze multiple awards under this program, their durations, values, and the entities receiving them, as well as compare this spending to other NASA R&D initiatives.

What is the track record of the California Institute of Technology as a federal contractor, particularly with NASA?

The California Institute of Technology (Caltech) has a long-standing and highly regarded track record as a recipient of federal research grants and contracts, particularly from NASA. Caltech is renowned for its scientific and engineering research capabilities and has been instrumental in numerous space missions and scientific endeavors. Historically, Caltech has managed several NASA centers, including the Jet Propulsion Laboratory (JPL), which is a federally funded research and development center (FFRDC) operated for NASA by Caltech. This deep and successful partnership indicates a strong capability to manage complex, high-value research and development projects, aligning well with the objectives of an 'Instrument Incubator Program'.

Given the sole-source nature, what are the potential risks associated with this contract, and what mitigation strategies might be in place?

The primary risk associated with a sole-source contract is the lack of competitive pressure, which can lead to inflated costs, reduced innovation, and potential complacency from the contractor. For this 'INSTRUMENT INCUBATOR PRO' contract awarded to Caltech, NASA would need to implement robust oversight to mitigate these risks. Mitigation strategies could include rigorous negotiation of the contract terms, detailed performance metrics within the Cost Plus Award Fee structure to ensure accountability, and independent cost analysis to validate the reasonableness of expenses. Furthermore, NASA might establish clear exit strategies or contingency plans should Caltech fail to meet critical milestones, although the long-term R&D nature makes this complex. Regular reviews and open communication channels are crucial for managing the relationship and addressing potential issues proactively.

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: 1

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: $18,765,420

Exercised Options: $18,765,420

Current Obligation: $18,126,419

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2005-09-23

Current End Date: 2010-09-30

Potential End Date: 2010-09-30 00:00:00

Last Modified: 2021-02-17

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