NASA's $18.9M STARDUST-NEXT contract to Caltech for R&D in physical sciences shows long-term investment

Contract Overview

Contract Amount: $18,892,494 ($18.9M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2007-01-19

End Date: 2012-09-30

Contract Duration: 2,081 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: STARDUST-NEXT

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: STARDUST-NEXT Key points: 1. The contract represents a significant, long-term investment in specialized research and development. 2. Sole-source nature limits competitive pressure, potentially impacting price efficiency. 3. The duration and cost-plus award fee structure suggest a focus on achieving specific research outcomes rather than fixed-price deliverables. 4. Performance context is tied to the successful execution of complex scientific research objectives. 5. This contract falls within the broad R&D sector, specifically focusing on physical sciences. 6. The absence of small business set-asides indicates a focus on large, specialized research institutions.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. The Cost Plus Award Fee (CPAF) structure incentivizes performance but can lead to higher costs than fixed-price contracts if not managed carefully. Without comparable sole-source R&D contracts in the physical sciences, a precise value-for-money assessment is difficult. However, the extended duration suggests a sustained need for the research capabilities provided.

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 vendors. This typically occurs when a specific contractor possesses unique capabilities or expertise essential for the project. While it ensures access to specialized knowledge, it bypasses the competitive process that could drive down prices and foster innovation through broader market participation.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive bidding, which is a primary mechanism for ensuring the government receives the best possible price. This can result in higher overall spending compared to a competed contract.

Public Impact

The primary beneficiaries are the researchers at the California Institute of Technology, who receive funding to conduct advanced scientific inquiry. The contract supports the delivery of cutting-edge research and development in the physical sciences, contributing to scientific advancement. The geographic impact is concentrated in California, where Caltech is located, potentially benefiting the local research ecosystem. Workforce implications include the employment of scientists, engineers, and support staff at Caltech dedicated to the project's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
  • Cost-plus award fee structure can incentivize cost growth if not rigorously overseen.
  • Long contract duration may indicate potential for scope creep or evolving research needs that are not fully defined upfront.

Positive Signals

  • Award to a reputable research institution (Caltech) suggests a high likelihood of technical success.
  • Long-term funding commitment indicates a strategic focus on critical scientific areas by NASA.
  • The research is likely to contribute valuable knowledge and innovation in the physical sciences.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically within the North American Industry Classification System (NAICS) code 541710 for Research and Development in the Physical, Engineering, and Life Sciences. This sector is characterized by innovation, specialized expertise, and often long project timelines. Comparable spending benchmarks are difficult to establish for highly specialized, sole-source R&D efforts, but NASA's overall R&D spending is substantial, reflecting a commitment to scientific exploration and technological advancement.

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 research institution like Caltech typically means the primary work is performed in-house, limiting the direct impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure implies performance metrics and award criteria that are monitored to determine fee payouts. Transparency is generally maintained through contract reporting requirements, but the specifics of internal research progress and financial oversight are typically not publicly detailed beyond aggregated reporting.

Related Government Programs

  • NASA Research and Development Contracts
  • Federal Science and Technology Funding
  • Physical Sciences Research Grants
  • University Research Partnerships

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • Long contract duration

Tags

nasa, research-and-development, physical-sciences, california, sole-source, cost-plus-award-fee, university-research, long-term-contract, grant-like-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $18.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. STARDUST-NEXT

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: 2007-01-19. End: 2012-09-30.

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 receiving federal funding, particularly from agencies like NASA, NSF, and NIH, for its cutting-edge research. As a premier research institution, Caltech consistently secures significant grant and contract funding. Its track record with NASA is extensive, encompassing numerous projects across various scientific disciplines, including astrophysics, planetary science, and fundamental physics. Caltech is known for its ability to manage complex, long-term research endeavors and for producing high-impact scientific discoveries. While specific performance metrics for individual contracts are not always public, Caltech's overall reputation and consistent funding levels suggest a strong and reliable performance history as a federal contractor.

How does the $18.9 million total value compare to similar R&D contracts in the physical sciences awarded by NASA?

The $18.9 million total value for the STARDUST-NEXT contract is moderate within the context of NASA's overall R&D portfolio. NASA awards contracts ranging from a few million dollars for smaller, focused research projects to billions for large-scale space missions and programs. Contracts for fundamental research in physical sciences, especially those awarded to leading academic institutions like Caltech, often fall within the multi-million dollar range over several years. While not exceptionally large compared to major hardware development or exploration missions, $18.9 million over approximately five years (2007-2012) represents a substantial and sustained investment in a specific area of scientific inquiry, indicative of its perceived importance to NASA's research objectives.

What are the primary risks associated with a sole-source, cost-plus award fee contract for R&D?

Sole-source, Cost-Plus Award Fee (CPAF) contracts for R&D present several inherent risks. The primary risk of a sole-source award is the lack of competitive pressure, which can lead to higher prices than might be achieved through open competition. There's also a risk that the unique capabilities cited for the sole-source award might be overstated or that alternative solutions could emerge if competition were allowed. For CPAF contracts, risks include potential cost overruns if the award fee criteria are not sufficiently stringent or if contractor performance is not rigorously monitored. There's also a risk that the focus shifts from achieving the best scientific outcome to maximizing the award fee. Effective oversight and clear performance metrics are crucial to mitigate these risks.

How effective is the Cost Plus Award Fee (CPAF) structure in ensuring program effectiveness for R&D projects?

The Cost Plus Award Fee (CPAF) structure can be an effective tool for ensuring program effectiveness in R&D projects, provided it is well-structured and managed. It allows the government to reimburse the contractor for allowable costs while providing an incentive (the award fee) for exceeding performance expectations. This is particularly useful in R&D where outcomes can be uncertain and defining precise deliverables upfront is difficult. The effectiveness hinges on clearly defined, measurable, and achievable performance objectives linked to the award fee. If these objectives align with the program's strategic goals and are rigorously assessed, CPAF can motivate contractors to achieve high levels of performance, innovation, and efficiency. However, poorly defined criteria or weak oversight can lead to inflated costs without commensurate gains in effectiveness.

What are historical spending patterns for NASA's R&D in physical sciences, and how does this contract fit?

NASA's historical spending on R&D in physical sciences has been a consistent and significant component of its budget, reflecting its core mission of scientific exploration and understanding the universe. Funding supports a wide array of activities, from fundamental theoretical research to experimental work and the development of new technologies. This STARDUST-NEXT contract, valued at $18.9 million over five years, fits within this pattern as a dedicated investment in a specific area of physical sciences research conducted by a leading academic institution. It represents a typical allocation for a focused, long-term research endeavor that contributes to NASA's broader scientific objectives, rather than a large-scale mission or program.

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: $20,077,600

Exercised Options: $20,077,600

Current Obligation: $18,892,494

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2007-01-19

Current End Date: 2012-09-30

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

Last Modified: 2021-02-17

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