NASA awards $14.7M for Sounder Product Evaluation & Test Element Implementation to Caltech

Contract Overview

Contract Amount: $14,705,547 ($14.7M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2007-12-21

End Date: 2013-09-03

Contract Duration: 2,083 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: NPP SOUNDER PRODUCT EVALUATION & TEST ELEMENT (PEATE)IMPLEMENTATION - GSFC

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $14.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: NPP SOUNDER PRODUCT EVALUATION & TEST ELEMENT (PEATE)IMPLEMENTATION - GSFC Key points: 1. Contract awarded to California Institute of Technology for R&D services. 2. Significant duration of 2083 days suggests a complex, long-term project. 3. Cost Plus Award Fee contract type can incentivize performance but may lead to higher costs. 4. No small business participation noted, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure can be effective for R&D where outcomes are uncertain, but it requires robust oversight to manage costs and ensure value. The final cost of $14.7M over nearly 6 years needs careful review against deliverables.

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 not yield the best value for taxpayers if alternative qualified sources were available.

Taxpayer Impact: The lack of competition for a contract of this size raises concerns about potential overspending and missed opportunities for cost savings.

Public Impact

Research and Development funding directed to a specific institution. Long-term contract duration impacts budget predictability. Potential for innovation stemming from specialized research.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Award Fee structure

Positive Signals

  • Award to a reputable research institution
  • Long-term project commitment

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement but requires careful management to ensure efficient use of funds.

Small Business Impact

The contract data indicates no small business participation. This suggests that the prime contractor did not subcontract with small businesses, potentially missing opportunities to foster small business growth and innovation.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates strong oversight from NASA to ensure performance objectives are met and costs are controlled. Regular reviews of award fees and expenditures 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 and potential cost savings.
  • Cost Plus Award Fee structure can lead to higher costs without strict oversight.
  • Lack of small business participation.
  • Long contract duration increases risk of cost overruns and scope creep.

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 $14.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. NPP SOUNDER PRODUCT EVALUATION & TEST ELEMENT (PEATE)IMPLEMENTATION - GSFC

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 $14.7 million.

What is the period of performance?

Start: 2007-12-21. End: 2013-09-03.

What specific research outcomes or technological advancements were achieved through this $14.7M contract, and how do they justify the cost?

The contract focused on the NPP Sounder Product Evaluation & Test Element (PEATE) Implementation. While specific deliverables are not detailed here, the value is tied to the successful evaluation and testing of critical sounding products for NASA's Earth observation missions. Justification would lie in the quality and reliability of the data produced, enabling better climate monitoring and scientific understanding.

Given the sole-source nature of the award, what steps were taken to ensure the California Institute of Technology's pricing was fair and reasonable?

For sole-source awards, agencies typically conduct a thorough price analysis based on historical data, commercial pricing, or other cost-estimating methods. NASA would have likely reviewed Caltech's proposed costs, including labor rates, material costs, and indirect expenses, to determine if they were fair and reasonable in the absence of competitive bids.

How effectively did the Cost Plus Award Fee structure incentivize Caltech to achieve optimal performance and cost control over the contract's 2083-day duration?

The effectiveness of a Cost Plus Award Fee contract hinges on the clarity and measurability of performance metrics and award fee criteria. NASA's ability to objectively assess Caltech's performance against these criteria would determine if the fee structure successfully drove desired outcomes and encouraged cost consciousness throughout the lengthy project lifecycle.

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: $16,132,260

Exercised Options: $16,132,260

Current Obligation: $14,705,547

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2007-12-21

Current End Date: 2013-09-03

Potential End Date: 2013-09-03 00:00:00

Last Modified: 2021-02-17

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