NASA's $44M R&D contract with Caltech for tech development shows long-term investment in scientific advancement

Contract Overview

Contract Amount: $44,165,666 ($44.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2006-03-23

End Date: 2010-09-30

Contract Duration: 1,652 days

Daily Burn Rate: $26.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 4X SUPPORT TO TECH DEV

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $44.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: 4X SUPPORT TO TECH DEV Key points: 1. This contract represents a significant investment in research and development, focusing on physical, engineering, and life sciences. 2. The sole-source nature of the award warrants scrutiny regarding potential cost efficiencies and alternative sourcing. 3. A long contract duration of over 4 years suggests a complex, multi-faceted research objective. 4. The 'Cost Plus Award Fee' structure incentivizes performance but requires careful monitoring of costs and award criteria. 5. The contractor, California Institute of Technology, is a well-established research institution, indicating a strong technical capability. 6. The contract's focus on 'Support to Tech Dev' implies a broad scope, potentially encompassing multiple research areas.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Award Fee (CPA) contract is challenging without detailed performance metrics and award fee payouts. However, the total award of $44.1 million over approximately 4 years for R&D services suggests a substantial investment. Comparing it to similar large-scale, long-term research and development contracts awarded by NASA or other agencies would provide better context. The CPA structure, while common for complex R&D, can lead to costs exceeding initial estimates if not managed rigorously. The absence of a competitive bidding process also limits direct price comparisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential contractors. This approach is typically justified when a specific entity possesses unique capabilities or when it's deemed not to be in the government's best interest to compete. For R&D contracts, especially those involving highly specialized scientific research, sole-source awards can sometimes be appropriate if only one organization can fulfill the requirement. However, it limits the opportunity for price discovery through competition and may result in higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from competitive bidding. The government relies on the contractor's integrity and robust oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are likely researchers and scientists at the California Institute of Technology, who receive funding and resources to advance technological development. The services delivered are centered around research and development in physical, engineering, and life sciences, contributing to scientific knowledge and innovation. The geographic impact is primarily within California, where the California Institute of Technology is located, though the research outcomes could have national or global implications. The contract supports a highly skilled workforce of researchers, engineers, and technical staff, fostering expertise in specialized scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition may lead to higher costs for taxpayers.
  • The Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns and ensure fair award fee distribution.
  • The broad scope of 'Support to Tech Dev' could lead to scope creep if not clearly defined and managed.

Positive Signals

  • Contract awarded to a reputable and highly capable research institution (Caltech).
  • Focus on R&D aligns with NASA's mission to advance scientific and technological capabilities.
  • Long-term nature of the contract allows for sustained progress on complex research objectives.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation, intellectual property generation, and often long-term projects. NASA is a significant spender in this area, funding cutting-edge research that can have dual-use applications. Comparable spending benchmarks would involve looking at other large R&D grants and contracts awarded by agencies like NSF, NIH, and DoD to leading research universities and institutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the contractor's identity as a large research institution, there are likely no direct subcontracting opportunities for small businesses mandated by this specific award. The focus is on Caltech's internal research capabilities. The impact on the small business ecosystem is therefore minimal in terms of direct set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's contracting officer and technical representatives. The 'Cost Plus Award Fee' structure necessitates robust monitoring of expenditures, progress against research milestones, and the justification for any award fees granted. Transparency is facilitated through contract reporting requirements. Given the nature of R&D, specific oversight might also involve peer reviews or scientific advisory boards. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Programs
  • Federal Grants for Scientific Research
  • University Research Partnerships
  • Advanced Technology Development Contracts

Risk Flags

  • Sole-source award limits price competition.
  • Cost Plus Award Fee structure requires diligent oversight.
  • Long contract duration increases exposure to cost escalation.
  • Broad 'Tech Dev' scope may require careful management to avoid scope creep.

Tags

research-and-development, nasa, california-institute-of-technology, sole-source, cost-plus-award-fee, science-and-technology, academic-research, federal-contract, national-aeronautics-and-space-administration, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $44.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. 4X SUPPORT TO TECH DEV

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 $44.2 million.

What is the period of performance?

Start: 2006-03-23. End: 2010-09-30.

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 and distinguished history of collaborating with NASA and other federal agencies on complex research and development projects. As a premier research institution, Caltech consistently secures significant federal funding through competitive grants and contracts. Its track record typically involves high-impact scientific discoveries and technological innovations. While specific performance metrics for past NASA contracts are not detailed here, Caltech's reputation suggests a strong capacity for delivering on research objectives. Their involvement in major NASA initiatives, such as the Jet Propulsion Laboratory (managed by Caltech for NASA), underscores their deep expertise and reliability in space exploration and science.

How does the $44.1 million award compare to other NASA R&D contracts with academic institutions?

The $44.1 million award to Caltech for 'Support to Tech Dev' is a substantial sum, indicative of a significant, multi-year research endeavor. NASA frequently awards large contracts and grants to academic institutions for R&D, with values often ranging from several million to tens or even hundreds of millions of dollars, depending on the scope and duration. Contracts for areas like advanced propulsion, materials science, astrophysics research, or complex simulation often reach these figures. While this specific award is significant, it is within the expected range for major, long-term R&D initiatives undertaken by leading research universities in partnership with NASA. A direct comparison would require analyzing contracts with similar scientific objectives and durations.

What are the primary risks associated with a sole-source 'Cost Plus Award Fee' R&D contract?

Sole-source 'Cost Plus Award Fee' (CPA) contracts for R&D present several key risks. Firstly, the lack of competition inherently removes the downward pressure on price that competitive bidding provides, potentially leading to higher costs for the government. Secondly, the 'Cost Plus' element means the contractor is reimbursed for allowable costs, plus a fee, which can incentivize spending. The 'Award Fee' component adds another layer of complexity, as it requires the government to establish objective performance criteria and evaluate the contractor's performance to determine the fee. Poorly defined criteria or inadequate oversight can lead to either excessive fees being paid for mediocre performance or disputes over fee determination. For R&D, the inherent uncertainty of research outcomes also poses a risk, as costs can escalate unexpectedly, and breakthroughs are not guaranteed.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' category entail for NASA?

This category, under NAICS code 541710, covers a broad spectrum of scientific and technological exploration crucial to NASA's mission. It includes fundamental research aimed at understanding physical phenomena, developing new engineering principles and technologies, and investigating biological systems. For NASA, this could encompass areas such as advanced materials science for spacecraft, novel propulsion systems, robotics, human health in space, Earth observation technologies, astrophysics instrumentation, and computational modeling. The 'Support to Tech Dev' designation suggests the contract focuses on translating scientific discoveries into practical applications or prototypes that could be used in future space missions, aeronautics research, or other agency programs.

How does the contract duration of 1652 days (approx. 4.5 years) impact the assessment of value?

A contract duration of approximately 4.5 years (1652 days) for R&D signifies a long-term commitment to a specific research objective or a series of related research tasks. This extended timeframe allows for deeper investigation, iterative development, and the potential for significant advancements that cannot be achieved in shorter periods. From a value perspective, a longer duration can be beneficial if it enables the contractor to achieve substantial milestones and deliver high-impact results that justify the sustained investment. However, it also increases the risk of cost overruns and requires consistent government oversight throughout the contract's life. The value is realized not just in the immediate deliverables but in the cumulative progress and potential future applications stemming from the sustained research effort.

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: $48,747,800

Exercised Options: $48,747,800

Current Obligation: $44,165,666

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2006-03-23

Current End Date: 2010-09-30

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

Last Modified: 2021-02-17

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