NASA's CLOUDSAT contract awarded to California Institute of Technology for $32.17M, focused on physical sciences R&D

Contract Overview

Contract Amount: $32,170,393 ($32.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2006-06-30

End Date: 2012-09-30

Contract Duration: 2,284 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: CLOUDSAT

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $32.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: CLOUDSAT Key points: 1. Value for money assessed through cost-plus award fee structure, allowing for performance-based incentives. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and increasing risk. 3. Risk indicators include the sole-source nature and cost-plus contract type, which can lead to cost overruns. 4. Performance context is tied to research and development in physical sciences, requiring specialized expertise. 5. Sector positioning within R&D highlights a focus on scientific advancement rather than immediate service delivery.

Value Assessment

Rating: fair

The contract utilized a Cost Plus Award Fee (CPAF) structure, which incentivizes contractor performance. However, without a competitive bidding process, it's challenging to benchmark the pricing against market rates or similar contracts. The total award value of $32.17 million over its duration suggests a significant investment in specialized research. Further analysis would require access to performance metrics and award fee determinations to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, the California Institute of Technology, was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be obtained through full and open competition. The lack of multiple bidders means there was no direct price competition, which could potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The justification for a sole-source award needs to be robust to ensure public funds are used efficiently.

Public Impact

The primary beneficiary is NASA, which receives critical research data and scientific insights. Services delivered include advanced research and development in physical sciences, contributing to scientific knowledge. Geographic impact is primarily national, supporting NASA's research objectives and scientific community. Workforce implications involve highly skilled researchers and scientists at the California Institute of Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
  • Cost-plus contract type can incentivize cost growth if not managed stringently.
  • Lack of transparency in award fee determination could obscure true value for money.
  • Limited competition may reduce opportunities for innovative solutions from a broader market.

Positive Signals

  • Award to a reputable institution (Caltech) suggests high-quality research execution.
  • Performance-based award fee structure encourages meeting or exceeding research objectives.
  • Focus on R&D aligns with NASA's mission to advance scientific understanding.
  • Long contract duration (2284 days) indicates a sustained and important research effort.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences. This sector is characterized by innovation, long-term investment, and often involves partnerships with academic institutions or specialized research firms. Comparable spending benchmarks in this area are difficult to establish due to the unique nature of scientific research, but NASA's overall R&D budget provides a broad context for such investments.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large academic institution like Caltech typically means the primary work is performed in-house or through collaborations with other research entities, rather than through a broad network of small business suppliers.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The CPAF structure implies performance monitoring and evaluation to determine award fees. Transparency is limited due to the sole-source nature and the proprietary aspects of research data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • NASA Research and Development Contracts
  • Physical Sciences Research Grants
  • Aerospace Technology Development
  • Atmospheric Science Research

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • Potential for cost overruns
  • Limited price competition

Tags

nasa, research-and-development, physical-sciences, california, sole-source, cost-plus-award-fee, satellite-technology, academic-institution, large-contract, science-and-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $32.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. CLOUDSAT

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 $32.2 million.

What is the period of performance?

Start: 2006-06-30. End: 2012-09-30.

What specific research objectives was the CLOUDSAT contract designed to achieve?

The CLOUDSAT contract, awarded to the California Institute of Technology, was primarily aimed at advancing research in atmospheric science through the development and operation of the CloudSat satellite mission. This mission's objective was to collect data on cloud properties (like height, water content, and particle size) to improve our understanding of cloud formation, climate impacts, and weather patterns. The research sought to provide unprecedented vertical profiles of clouds, enabling scientists to better model atmospheric processes and improve weather forecasting and climate change predictions. The contract supported the scientific payload, data analysis, and dissemination of findings to the broader scientific community.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for R&D projects?

The Cost Plus Award Fee (CPAF) contract type is often used for research and development (R&D) projects where the scope of work can be difficult to define precisely upfront, and performance outcomes are critical. Unlike fixed-price contracts, CPAF allows for the reimbursement of allowable costs plus a fee that is composed of a base amount and an award amount. The award amount is contingent upon the contractor meeting or exceeding specific performance objectives, which are typically outlined in a Performance Work Statement (PWS). This structure incentivizes high performance and innovation, which is crucial for R&D. However, it also carries a risk of cost growth if performance objectives are not well-defined or if the government's oversight is insufficient. Compared to Cost Plus Incentive Fee (CPIF), CPAF places more discretion in the government's hands for determining the award fee, whereas CPIF has a pre-defined formula for sharing cost savings or overruns.

What are the potential risks associated with a sole-source award for a significant R&D contract?

Sole-source awards, like the one for CLOUDSAT to Caltech, carry inherent risks primarily related to cost and innovation. Without competition, there is no direct pressure on the contractor to offer the lowest possible price, potentially leading to higher costs for the government and taxpayers. The absence of multiple bidders also means the government misses out on potentially innovative solutions or alternative approaches that other qualified organizations might have proposed. Furthermore, a sole-source award can create a perception of favoritism or a lack of due diligence in exploring all available options. Justification for sole-source procurement must be exceptionally strong, demonstrating that only one source possesses the required unique capabilities or that urgency precludes a competitive process, to mitigate these risks.

Can the performance of the California Institute of Technology on this contract be benchmarked against other NASA R&D awards?

Benchmarking Caltech's performance on the CLOUDSAT contract against other NASA R&D awards is challenging without specific performance metrics and award fee determinations. NASA generally awards contracts to institutions with proven track records in scientific research. Caltech is a highly respected institution with extensive experience in aerospace and scientific research, suggesting a strong likelihood of competent performance. However, the unique nature of each R&D project means direct comparisons are difficult. Factors like scientific breakthroughs achieved, data quality, adherence to research timelines, and budget management would be key performance indicators. A comparative analysis would ideally involve examining award fee scores, peer reviews of scientific output, and project completion rates across similar NASA-funded research initiatives.

What is the historical spending trend for NASA's R&D contracts in the physical sciences sector?

NASA's spending on Research and Development (R&D) contracts in the physical sciences sector has historically been substantial, reflecting the agency's core mission. While specific figures fluctuate annually based on budgetary allocations and program priorities, NASA consistently invests significant resources into areas like astrophysics, planetary science, Earth science, and fundamental physics. These investments often involve long-term projects, including satellite missions, ground-based observatories, and theoretical research. The CLOUDSAT contract represents a portion of this broader investment. Analyzing historical spending trends would reveal patterns in funding for specific scientific disciplines, the average duration and value of R&D contracts, and the prevalence of partnerships with academic institutions versus private industry.

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: $33,695,229

Exercised Options: $33,695,229

Current Obligation: $32,170,393

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2006-06-30

Current End Date: 2012-09-30

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

Last Modified: 2021-02-17

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