NASA's $80M+ contract for Herschel Space Observatory Phase E awarded to California Institute of Technology

Contract Overview

Contract Amount: $80,138,388 ($80.1M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2008-08-01

End Date: 2012-09-30

Contract Duration: 1,521 days

Daily Burn Rate: $52.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: HERSCHEL SPACE OBSERVATORY-PHASE E

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $80.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: HERSCHEL SPACE OBSERVATORY-PHASE E Key points: 1. Contract awarded for a significant duration, suggesting complex and long-term project needs. 2. The awardee, California Institute of Technology, is a well-established research institution. 3. The contract type, Cost Plus Award Fee, allows for flexibility but requires robust oversight. 4. The absence of competition raises questions about potential cost efficiencies and market engagement. 5. The contract's value is substantial, indicating a critical role in the observatory's operations. 6. The geographic location of the awardee in California may have implications for local economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar observatory phases. The Cost Plus Award Fee structure implies that the final cost could vary based on performance, making a direct price comparison difficult. However, the base contract value of over $80 million for a four-year period suggests a significant investment in scientific operations and data analysis.

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 approach is typically used when a specific entity possesses unique capabilities or is the only responsible source for the required services. The lack of competition means that NASA did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. This could potentially lead to higher overall program costs compared to a competed contract.

Public Impact

The primary beneficiaries are NASA and the scientific community, who gain access to data and operational support for the Herschel Space Observatory. Services delivered include mission operations, data processing, and scientific support for the observatory. The geographic impact is primarily national, supporting a key U.S. scientific endeavor, with potential for international collaboration. Workforce implications include employment for scientists, engineers, and support staff at the California Institute of Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition, potentially increasing costs for taxpayers.
  • Cost Plus Award Fee contracts require diligent oversight to ensure performance and control costs.
  • The long duration of the contract (over 4 years) necessitates sustained monitoring for effectiveness and efficiency.

Positive Signals

  • Award to a reputable institution like Caltech suggests a high likelihood of technical competence.
  • The contract supports a significant scientific mission, contributing to valuable research.
  • The Cost Plus Award Fee structure incentivizes performance, potentially leading to better mission outcomes.

Sector Analysis

This contract falls within the Research and Development sector, specifically supporting space-based astronomical research. The market for such specialized scientific support services is often limited, with a few key institutions possessing the necessary expertise and infrastructure. Comparable spending benchmarks would likely involve other large-scale scientific missions or observatories managed by agencies like NASA or NSF.

Small Business Impact

This contract does not appear to have a small business set-aside component. Given the specialized nature of the work and the sole-source award to a large research institution, subcontracting opportunities for small businesses may be limited unless specifically incorporated into the prime contract's scope.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The Cost Plus Award Fee structure necessitates performance metrics and evaluation criteria to determine award fees, providing a mechanism for accountability. Transparency would depend on NASA's public reporting practices regarding contract performance and expenditures.

Related Government Programs

  • NASA Space Science Missions
  • Astrophysics Research Programs
  • Space Observatory Operations
  • Federal Research and Development Contracts

Risk Flags

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

Tags

research-and-development, nasa, california, sole-source, cost-plus-award-fee, space-observatory, scientific-research, large-contract, federal-agency, aerospace

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $80.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. HERSCHEL SPACE OBSERVATORY-PHASE E

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 $80.1 million.

What is the period of performance?

Start: 2008-08-01. End: 2012-09-30.

What is the track record of the California Institute of Technology in managing large-scale NASA contracts?

The California Institute of Technology (Caltech) has a long and distinguished history of managing complex scientific research and development projects for NASA and other federal agencies. They are renowned for their scientific expertise and operational capabilities, particularly in areas related to astronomy and space science. Caltech manages NASA's Jet Propulsion Laboratory (JPL) under a unique contract, demonstrating their extensive experience in handling large, critical, and often sole-source programs. Their consistent involvement in major scientific endeavors suggests a strong track record of successful performance and responsible stewardship of federal funds in research and development.

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

The Cost Plus Award Fee (CPAF) contract type is often used for research and development efforts where the scope of work is not precisely defined at the outset, or where performance incentives are crucial. Unlike fixed-price contracts, CPAF allows for costs to be reimbursed, plus a base fee and an additional award fee determined by the government's evaluation of the contractor's performance against pre-defined criteria. This differs from Cost Plus Fixed Fee (CPFF), where the fee is fixed, or Cost Plus Incentive Fee (CPIF), where the fee is adjusted based on achieving specific cost and performance targets. CPAF offers flexibility and incentivizes high performance but requires robust government oversight to manage costs and ensure fair award fee determinations, making it suitable for complex, evolving scientific projects like observatory operations.

What are the primary risks associated with a sole-source award for a long-duration project like this?

The primary risks associated with a sole-source award for a long-duration project are the potential for inflated costs due to a lack of competition and reduced incentive for the contractor to innovate or become more efficient over time. Without competitive pressure, the contractor may not feel compelled to seek cost savings or explore alternative, more cost-effective methods. Furthermore, the government has limited leverage to negotiate better terms or pricing once the award is made. For a project spanning several years, this can lead to significant overspending compared to what might have been achieved through a competitive bidding process. Ensuring strong contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

What are the implications of the contract's duration (over 4 years) on program effectiveness?

The contract's duration of over four years (1521 days) for the Herschel Space Observatory Phase E suggests a commitment to sustained operational support and scientific data analysis. This extended timeframe is beneficial for ensuring the continuity of scientific research, allowing for long-term data collection, processing, and interpretation. It provides stability for the research team and infrastructure, fostering expertise and efficiency. However, such a long duration also necessitates ongoing vigilance from the awarding agency (NASA) to ensure that the contractor remains effective, efficient, and aligned with evolving scientific objectives. Regular performance reviews and potential contract modifications are crucial to maintain program effectiveness and adapt to any unforeseen challenges or opportunities over the project's lifecycle.

How does the $80M+ contract value compare to other NASA observatory support contracts?

The $80 million contract value for the Herschel Space Observatory Phase E, awarded over approximately four years, represents a substantial investment in supporting a major scientific instrument. While direct comparisons are difficult without knowing the specific scope and duration of other observatory support contracts, this figure is in line with the significant funding required for the operations, data management, and scientific support of complex space-based observatories. For instance, contracts supporting missions like the Hubble Space Telescope or the James Webb Space Telescope involve billions of dollars over their lifespans, encompassing development, launch, and extended operations. This $80M+ award for Phase E suggests a critical, long-term operational phase for Herschel, reflecting the high costs associated with maintaining and utilizing advanced astronomical facilities.

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: $94,487,678

Exercised Options: $94,487,678

Current Obligation: $80,138,388

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2008-08-01

Current End Date: 2012-09-30

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

Last Modified: 2021-02-17

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