NASA awards $18.9M to California Institute of Technology for R&D, facing limited competition

Contract Overview

Contract Amount: $18,883,279 ($18.9M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2006-02-24

End Date: 2009-09-30

Contract Duration: 1,314 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: ECANS

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $18.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: ECANS Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Sole-source award to a prominent research institution. 3. Potential for high-value scientific advancements. 4. Long-term contract duration of over 3 years.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee structure allows for flexibility but requires careful monitoring of performance against award criteria to ensure value. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. While this may be justified for highly specialized research, it limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.

Public Impact

Advancements in physical, engineering, and life sciences could lead to significant technological breakthroughs. Investment supports cutting-edge research at a leading academic institution. Potential for long-term economic benefits through innovation and new technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Potential for cost overruns

Positive Signals

  • Award to a reputable institution
  • Focus on critical R&D areas
  • Long-term project duration

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541710. Spending in this sector is crucial for innovation and national competitiveness, but often involves higher risk and less predictable outcomes compared to other sectors.

Small Business Impact

This award was made directly to the California Institute of Technology, a large research institution, and does not appear to involve small business participation. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The contract's Cost Plus Award Fee structure necessitates robust oversight from NASA to ensure the contractor meets performance objectives and manages costs effectively. Regular reviews and audits are critical for accountability.

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 incentivize higher costs.
  • Potential for cost overruns in R&D projects.
  • Lack of transparency in pricing due to sole-source nature.

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 $18.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. ECANS

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 $18.9 million.

What is the period of performance?

Start: 2006-02-24. End: 2009-09-30.

How effectively will NASA's oversight ensure cost control and value realization under this sole-source, cost-plus award fee contract for specialized R&D?

NASA's oversight effectiveness hinges on clearly defined performance metrics, rigorous progress monitoring, and timely adjustments to award fees based on objective evaluations. Proactive engagement with the California Institute of Technology to identify and mitigate potential cost drivers, coupled with independent technical reviews, will be crucial. Without strong oversight, the flexibility of the contract type and lack of competition could lead to suboptimal value for taxpayer funds.

What are the primary risks associated with awarding this significant R&D contract on a sole-source basis, and how are they being mitigated?

The primary risk of a sole-source award is the potential for inflated costs due to the absence of competitive pressure. Mitigation strategies typically involve extensive price analysis, benchmarking against similar (though perhaps not identical) R&D efforts, and negotiating favorable fee structures. NASA must ensure the negotiated price is fair and reasonable based on available data and the unique capabilities of the California Institute of Technology.

To what extent does this contract contribute to NASA's strategic R&D goals, and what are the expected long-term impacts?

This contract likely supports NASA's strategic goals in advancing fundamental scientific knowledge and developing critical technologies within physical, engineering, and life sciences. The long-term impacts could include breakthroughs in areas relevant to space exploration, Earth observation, or fundamental physics. The specific contributions and impacts depend heavily on the research outcomes achieved by the California Institute of Technology over the contract's duration.

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: $37,464,000

Exercised Options: $37,464,000

Current Obligation: $18,883,279

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2006-02-24

Current End Date: 2009-09-30

Potential End Date: 2009-09-30 00:00:00

Last Modified: 2021-02-18

More Contracts from California Institute of Technology

View all California Institute of Technology federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending