NASA's $29.7M Caltech Contract for R&D in Physical, Engineering, and Life Sciences: Not Competed
Contract Overview
Contract Amount: $29,731,732 ($29.7M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-12-21
End Date: 2012-09-30
Contract Duration: 2,475 days
Daily Burn Rate: $12.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: INDEPENDENT TECHNICAL
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $29.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: INDEPENDENT TECHNICAL Key points: 1. Significant contract value of $29.7 million awarded to a single entity. 2. Lack of competition raises questions about potential overpricing and limited innovation. 3. The contract spans a long duration (2005-2012), suggesting a sustained need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for national advancement.
Value Assessment
Rating: questionable
The contract's 'Cost Plus Award Fee' structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competing bids, it's hard to determine if the $29.7 million represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition for a $29.7 million contract could lead to suboptimal use of taxpayer funds if prices are not rigorously justified.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. Limited transparency into the justification for a sole-source award for extensive R&D services. Potential for missed opportunities to leverage broader scientific expertise through open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee contract type
- Long contract duration without re-competition
Positive Signals
- Awarded to a reputable institution (Caltech)
- Focus on critical R&D areas
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is crucial for innovation but requires careful oversight to ensure value for money, especially in sole-source awards.
Small Business Impact
The contract was awarded to the California Institute of Technology, a large research institution, and there is no indication of small business participation. This suggests the focus was on specialized, large-scale research capabilities.
Oversight & Accountability
The 'NOT COMPETED' status and 'COST PLUS AWARD FEE' structure warrant closer examination by oversight bodies to ensure the agency received fair value and that the sole-source justification was robust.
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 Award Fee contract type
- Long contract duration without re-competition
- Potential for inflated costs due to limited price discovery
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 $29.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. INDEPENDENT TECHNICAL
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 $29.7 million.
What is the period of performance?
Start: 2005-12-21. End: 2012-09-30.
What specific justification was provided for the sole-source award of this significant R&D contract to Caltech, and how was the 'award fee' determined to ensure alignment with taxpayer value?
The justification for a sole-source award typically involves demonstrating that only one source can meet the unique requirements, often due to specialized expertise or prior work. For a Cost Plus Award Fee (CPAF) contract, the 'award fee' is earned based on performance against pre-defined criteria, incentivizing the contractor to exceed minimum requirements. Oversight would focus on the reasonableness of the criteria and the objectivity of the performance evaluations.
Given the $29.7 million value and lack of competition, what mechanisms were in place to mitigate the risk of cost overruns and ensure the research outcomes justified the investment?
With a CPAF contract and no competition, risk mitigation relies heavily on robust contract management by NASA. This includes detailed performance metrics, regular progress reviews, and potentially independent technical assessments. The 'award fee' component itself is designed to incentivize efficient performance, but the baseline cost controls and the ultimate value derived from the R&D are critical areas for oversight.
How effectively did this sole-source R&D contract contribute to NASA's mission objectives, and could a competitive process have yielded similar or better results at a lower cost?
Assessing effectiveness requires examining the specific research outcomes achieved against the contract's objectives and NASA's broader mission goals. Without a competitive benchmark, it's impossible to definitively state if a better or cheaper outcome was possible. However, the lack of competition inherently limits the potential for discovering more innovative or cost-effective solutions that other entities might have offered.
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: $35,571,900
Exercised Options: $35,571,900
Current Obligation: $29,731,732
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2005-12-21
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2021-02-17
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