NASA's $31.9M JPL contract for nuclear systems support awarded without competition, raising value questions
Contract Overview
Contract Amount: $31,931,284 ($31.9M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2009-05-19
End Date: 2012-09-30
Contract Duration: 1,230 days
Daily Burn Rate: $26.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: JPL RADIOISOTOPE NUCLEAR SYSTEMS AND TECHNOLOGY PROGRAM SUPPORT TO NASA RADIOISOTOPE POWER SYSTEMS (RPS) PROGRAM
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $31.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: JPL RADIOISOTOPE NUCLEAR SYSTEMS AND TECHNOLOGY PROGRAM SUPPORT TO NASA RADIOISOTOPE POWER SYSTEMS (RPS) PROGRAM Key points: 1. Contract awarded on a cost-plus basis, which can lead to cost overruns. 2. Lack of competition limits price discovery and potentially increases costs for taxpayers. 3. The contract's duration of over three years suggests a significant, ongoing need for these specialized services. 4. Performance is tied to award fees, incentivizing contractor performance but also adding complexity to cost assessment. 5. The contract falls under R&D in physical, engineering, and life sciences, a highly specialized sector. 6. California Institute of Technology is a sole-source provider for this specific NASA program.
Value Assessment
Rating: questionable
The contract's cost-plus award fee structure makes direct value-for-money assessment challenging without detailed performance and fee data. Given the sole-source nature, there's no direct comparison to market rates for similar services. The total value of $31.9 million over its period of performance suggests a substantial investment. Without competitive bidding, it's difficult to ascertain if this represents a fair price or if taxpayers are receiving optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, the California Institute of Technology, was solicited. This approach is typically used when a unique capability or specialized expertise is required that cannot be met by other sources. The lack of competition means there were no other bidders to compare against, and no mechanism for price negotiation through a competitive process.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates strong internal oversight to ensure the awarded price is reasonable and the work performed is essential.
Public Impact
Benefits NASA's Radioisotope Power Systems (RPS) Program by providing essential research and development support. Services delivered are critical for advancing nuclear systems and technology for space exploration. Geographic impact is primarily in California, where the California Institute of Technology is located. Workforce implications include specialized scientific and engineering roles at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and potential cost savings.
- Cost-plus award fee structure can incentivize higher spending if not carefully managed.
- Lack of competition makes it difficult to benchmark pricing and ensure optimal value.
Positive Signals
- Contract awarded to a reputable research institution (Caltech) with a history of supporting NASA.
- Award fee structure aims to incentivize contractor performance and successful program outcomes.
- Focus on critical R&D for space exploration aligns with national strategic interests.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a highly specialized area often dominated by a few key research institutions and companies with unique expertise. NASA's investment in radioisotope power systems is crucial for deep space missions where solar power is insufficient. Comparable spending in this niche R&D area is difficult to benchmark due to its specialized nature and limited number of qualified entities.
Small Business Impact
This contract does not appear to involve small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of the specialized research and development work likely requires highly specific expertise typically found in larger research institutions or dedicated R&D firms, rather than small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The cost-plus award fee structure necessitates close monitoring of contractor expenditures and performance against defined award criteria. Transparency is limited due to the sole-source nature and proprietary research aspects. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- NASA Radioisotope Power Systems (RPS) Program
- NASA Research and Development Contracts
- Nuclear Systems Technology Support
Risk Flags
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Lack of competitive pricing benchmark
Tags
research-and-development, nasa, california, sole-source, cost-plus-award-fee, nuclear-systems, space-exploration, jpl, large-contract, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $31.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. JPL RADIOISOTOPE NUCLEAR SYSTEMS AND TECHNOLOGY PROGRAM SUPPORT TO NASA RADIOISOTOPE POWER SYSTEMS (RPS) PROGRAM
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 $31.9 million.
What is the period of performance?
Start: 2009-05-19. End: 2012-09-30.
What is the specific expertise of the California Institute of Technology that justified a sole-source award for this contract?
The California Institute of Technology (Caltech), through its Jet Propulsion Laboratory (JPL), possesses unique and long-standing expertise in nuclear systems and radioisotope technology, particularly as it applies to space exploration. This includes the design, development, and testing of radioisotope power systems (RPS) and radioisotope thermoelectric generators (RTGs), which are critical for missions to deep space where solar power is not viable. Caltech's established track record and specialized facilities for handling radioactive materials and conducting advanced nuclear research make it a singular source for certain aspects of NASA's RPS program. The sole-source justification likely hinges on the irreplaceable nature of this expertise and infrastructure for the specific research and development tasks required by NASA.
How does the 'Cost Plus Award Fee' (CPAF) contract type typically impact cost control and value for money compared to other contract types?
The Cost Plus Award Fee (CPAF) contract type is designed to provide flexibility and incentivize performance in research and development or complex service contracts where the scope of work may evolve or be difficult to define precisely upfront. Under CPAF, the contractor is reimbursed for all allowable costs incurred, plus a fee that consists of a fixed base amount and an award amount. The award amount is determined based on the contractor's performance against pre-defined criteria. While CPAF can encourage high performance and innovation, it also presents challenges for cost control. The 'cost plus' element means the government bears the risk of cost overruns, and the 'award fee' component can lead to higher total costs if the contractor achieves high performance ratings. This contrasts with fixed-price contracts, which place cost risk on the contractor and offer greater price certainty for the government. Therefore, effective oversight and clearly defined performance metrics are crucial to ensure value for money under a CPAF structure.
What are the potential risks associated with a sole-source award for a contract of this magnitude ($31.9M)?
Sole-source awards, especially for significant contract values like $31.9 million, carry inherent risks. The primary risk is the lack of competition, which can lead to inflated pricing as there is no market pressure to drive costs down. Without competing bids, it's challenging for the government to ascertain if the awarded price is fair and reasonable. Another risk is reduced innovation; a sole-source contractor may have less incentive to explore novel or cost-saving approaches compared to a competitive environment. Furthermore, it can create a dependency on a single provider, potentially limiting future flexibility or options. Ensuring robust justification for the sole-source determination and rigorous oversight of performance and costs become paramount to mitigate these risks and protect taxpayer interests.
How does this contract fit into NASA's broader strategy for space exploration, particularly concerning deep space missions?
This contract is integral to NASA's strategy for enabling deep space exploration. Radioisotope Power Systems (RPS), such as Radioisotope Thermoelectric Generators (RTGs), are essential for powering spacecraft and instruments on missions to the outer planets, moons, and other celestial bodies where sunlight is too weak for solar panels. These systems provide reliable, long-lasting power and heat, crucial for maintaining instrument functionality and communication over vast distances and extended mission durations. The research and development supported by this contract likely focuses on improving the efficiency, longevity, safety, and cost-effectiveness of RPS technology, thereby expanding the possibilities for future scientific discovery and human exploration beyond Earth's orbit.
What historical spending patterns exist for similar R&D support contracts within NASA or other agencies?
Historical spending patterns for similar R&D support contracts within NASA and other agencies involved in advanced technology development often show significant, long-term investments. Contracts in areas like nuclear technology, advanced propulsion, or materials science tend to be substantial due to the complexity and specialized nature of the work. These contracts are frequently awarded to a limited number of highly specialized research institutions (like universities with national labs) or established aerospace and defense contractors. Award types often include cost-plus variations (like CPAF or CPFF) due to the inherent uncertainties in R&D. Spending can fluctuate based on specific mission needs, technological breakthroughs, and overall budget allocations for science and exploration programs. Benchmarking requires careful consideration of the specific technology, scope, and duration of comparable contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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: $39,781,400
Exercised Options: $39,781,400
Current Obligation: $31,931,284
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2009-05-19
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2021-02-17
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