NASA's OCO-2 Tailored Formulation contract awarded to Caltech for $121.3M, focusing on R&D
Contract Overview
Contract Amount: $121,326,383 ($121.3M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-03-01
End Date: 2012-09-30
Contract Duration: 944 days
Daily Burn Rate: $128.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ORBITING CARBON OBSERVATORY-2 (OCO-2) TAILORED FORMULATION
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $121.3 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: ORBITING CARBON OBSERVATORY-2 (OCO-2) TAILORED FORMULATION Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Significant investment in research and development for Earth science applications. 3. Long-term contract duration suggests a sustained need for specialized expertise. 4. Performance-based contract type indicates a focus on achieving specific outcomes. 5. Geographic concentration of awardee in California may have regional economic implications. 6. The contract's value is substantial within the R&D sector for Earth observation.
Value Assessment
Rating: fair
The contract's value of $121.3 million over its period of performance is significant for a research and development initiative. Benchmarking this against similar NASA R&D contracts for Earth observation missions is challenging due to the specialized nature of the 'tailored formulation' aspect. However, the lack of competition suggests potential for higher costs than if multiple bids were considered. The cost-plus award fee structure allows for flexibility but requires careful monitoring to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. The justification for this approach is not detailed in the provided data but typically involves unique capabilities or prior development work by the awarded contractor. The absence of multiple bidders limits the government's ability to leverage price competition to secure the best possible value.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.
Public Impact
Benefits NASA's Earth science research objectives by advancing the understanding of carbon cycles. Delivers specialized formulation services critical for the OCO-2 mission's success. Primarily impacts the scientific community and policymakers relying on climate data. Workforce implications are concentrated within the specialized scientific and engineering teams at Caltech.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Sole-source award requires strong justification and oversight to ensure fair value.
- Long contract duration could present risks if project scope or needs change significantly.
Positive Signals
- Award to a reputable research institution (Caltech) suggests high technical capability.
- Cost-plus award fee structure incentivizes performance and achievement of objectives.
- Focus on a critical scientific mission (OCO-2) aligns with national research priorities.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for specialized Earth observation and climate science research is niche, often dominated by academic institutions and specialized aerospace contractors. NASA's spending in this area is crucial for advancing scientific understanding and developing technologies for environmental monitoring. Comparable spending benchmarks are difficult to establish due to the unique nature of 'tailored formulation' services.
Small Business Impact
This contract does not appear to involve small business set-asides, as indicated by 'ss: false' and 'sb: false'. The awardee, California Institute of Technology, is a large research institution. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's program management and contracting officers. As a cost-plus award fee contract, performance metrics and cost controls would be subject to regular review. The Inspector General's office at NASA would have jurisdiction for audits and investigations if any irregularities were suspected. Transparency is generally maintained through contract awards databases, though detailed performance reports may be internal.
Related Government Programs
- Orbiting Carbon Observatory (OCO) Program
- NASA Earth Science Division Programs
- Climate Change Research Initiatives
- Satellite Technology Development
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus contract type requires diligent oversight for cost control.
Tags
research-and-development, nasa, california, sole-source, large-contract, earth-observation, science, cost-plus-award-fee, national-aeronautics-and-space-administration, orbiting-carbon-observatory-2
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $121.3 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. ORBITING CARBON OBSERVATORY-2 (OCO-2) TAILORED FORMULATION
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 $121.3 million.
What is the period of performance?
Start: 2010-03-01. End: 2012-09-30.
What is the specific nature of the 'tailored formulation' services provided under this contract?
The 'tailored formulation' services likely refer to the specialized development, refinement, and preparation of scientific instruments, data processing algorithms, or mission-specific components required for the Orbiting Carbon Observatory-2 (OCO-2) mission. This could involve adapting existing technologies, developing new methodologies for data analysis, or ensuring the precise calibration and integration of scientific payloads. Given the award to the California Institute of Technology, a leading research institution, these services probably involve advanced scientific research and engineering expertise critical for the mission's success in measuring atmospheric carbon dioxide concentrations.
How does the $121.3 million contract value compare to other NASA R&D contracts for similar Earth observation missions?
Direct comparison of the $121.3 million contract value to other NASA R&D contracts for similar Earth observation missions is complex due to the unique nature of 'tailored formulation' and the sole-source award. However, major Earth observation missions, including their development and research phases, often run into hundreds of millions, sometimes billions, of dollars. For instance, the development of new satellite platforms or advanced sensor technologies can be highly expensive. While this contract is substantial, its specific focus on formulation services for an existing mission might place it in the mid-to-high range for specialized R&D support contracts within NASA's broader portfolio.
What are the potential risks associated with a sole-source award for a contract of this magnitude?
The primary risk associated with a sole-source award of $121.3 million is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not achieve the most favorable pricing. Additionally, there's a risk that the contractor might not be as incentivized to innovate or optimize performance compared to a competitive environment. Ensuring robust oversight, clear performance metrics, and fair negotiation of terms becomes even more critical to mitigate these risks and ensure value for taxpayer money.
What is the track record of the California Institute of Technology in managing large federal research contracts?
The California Institute of Technology (Caltech) has an extensive and highly regarded track record in managing large federal research contracts, particularly with agencies like NASA and the Department of Defense. Caltech operates the Jet Propulsion Laboratory (JPL) for NASA, which manages numerous complex space exploration and Earth science missions. Their history includes successful development and execution of cutting-edge scientific and engineering projects, demonstrating a strong capacity for technical expertise, project management, and fiscal responsibility in handling substantial federal funding for research and development.
How does the 'cost plus award fee' contract type influence contractor performance and cost control?
The 'Cost Plus Award Fee' (CPAF) contract type aims to balance flexibility in R&D with performance incentives. The contractor is reimbursed for all allowable costs incurred, plus a base fee that is a percentage of the estimated cost. Crucially, an additional award fee is paid based on the government's evaluation of the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to meet or exceed performance targets, while the government retains significant control over the award fee, encouraging cost consciousness and efficient execution of the project objectives.
What are the historical spending patterns for NASA's Earth observation research and development?
NASA's historical spending on Earth observation research and development has been substantial and consistent, reflecting the agency's commitment to understanding our planet. Funding typically supports a range of activities, including the design, development, and launch of Earth-observing satellites, the creation and maintenance of ground-based observation networks, advanced data analysis, and fundamental scientific research into Earth systems. Annual budgets for NASA's Earth Science Division often range in the hundreds of millions of dollars, with significant portions allocated to major missions and associated R&D efforts like the OCO-2 program.
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: 1
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: $178,402,117
Exercised Options: $178,402,117
Current Obligation: $121,326,383
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2010-03-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2018-09-25
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