NASA awards $33.4M for JASON-3 mission formulation and preliminary design to California Institute of Technology

Contract Overview

Contract Amount: $33,382,604 ($33.4M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2010-11-29

End Date: 2012-09-30

Contract Duration: 671 days

Daily Burn Rate: $49.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JASON-3 MISSION: PROJECT FORMULATION AND PRELIMINARY DESIGN PHASES

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $33.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: JASON-3 MISSION: PROJECT FORMULATION AND PRELIMINARY DESIGN PHASES Key points: 1. Contract awarded for early-stage project development, indicating investment in future scientific endeavors. 2. Sole-source award suggests limited availability of specialized expertise or unique capabilities. 3. Project duration of 671 days covers critical initial phases of a complex scientific mission. 4. Focus on research and development in physical, engineering, and life sciences aligns with NASA's core mission. 5. California Institute of Technology, a known research institution, is the recipient of this award.

Value Assessment

Rating: fair

The contract value of $33.4 million for preliminary design and formulation phases of a complex scientific mission like JASON-3 appears reasonable given the specialized nature of space research and development. Benchmarking against similar early-stage R&D contracts for satellite missions is challenging due to unique technical requirements and the limited number of entities capable of performing such work. However, the cost-plus-fixed-fee (CPFF) contract type suggests that costs are monitored, but there is potential for cost overruns if not managed tightly.

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. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only responsible source capable of meeting the government's requirements. For NASA, this might be due to Caltech's established expertise in specific scientific domains or their role in prior related missions.

Taxpayer Impact: Sole-source awards can limit opportunities for other qualified contractors and may not always result in the most competitive pricing for taxpayers, as the government does not benefit from a bidding process.

Public Impact

The primary beneficiaries are NASA and the scientific community, who will gain valuable data from the JASON-3 mission. The services delivered include project formulation and preliminary design, crucial for the success of future space-based Earth observation. The geographic impact is national, supporting NASA's research objectives, with potential global implications for climate and ocean monitoring. Workforce implications include employment for scientists, engineers, and technical staff at the California Institute of Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition, potentially impacting cost-effectiveness for taxpayers.
  • Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost escalations.
  • Limited public information on the specific technical challenges addressed in this preliminary phase.

Positive Signals

  • Award to a reputable research institution (Caltech) suggests strong technical capability.
  • Focus on early project phases indicates proactive planning for future scientific missions.
  • Contract supports critical R&D in Earth science, aligning with national and global priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The aerospace industry, a significant part of this sector, involves substantial government investment in scientific missions and technological advancement. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of space missions, but R&D contracts for satellite development and scientific instrumentation often represent multi-million dollar investments.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large research institution, it is unlikely to have direct implications for the small business ecosystem, other than potentially through indirect subcontracting opportunities if Caltech engages smaller specialized firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a cost-plus-fixed-fee contract, NASA's contracting officers and technical representatives would be responsible for monitoring expenditures, ensuring progress aligns with the fixed fee objectives, and verifying the quality of deliverables during the formulation and preliminary design phases. Transparency is generally maintained through NASA's public contract databases and reporting requirements.

Related Government Programs

  • JASON-1 Mission
  • JASON-2 Mission
  • Earth Observing System
  • Climate Science Research
  • Satellite Technology Development

Risk Flags

  • Sole-source award may limit competitive pricing.
  • Cost-plus-fixed-fee requires diligent cost oversight.
  • Early-stage project carries inherent R&D uncertainties.

Tags

nasa, california-institute-of-technology, research-and-development, space-technology, satellite-development, earth-observation, sole-source, cost-plus-fixed-fee, preliminary-design, california, science-and-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $33.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. JASON-3 MISSION: PROJECT FORMULATION AND PRELIMINARY DESIGN PHASES

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 $33.4 million.

What is the period of performance?

Start: 2010-11-29. End: 2012-09-30.

What is the track record of the California Institute of Technology in performing similar NASA R&D contracts?

The California Institute of Technology (Caltech) has a long and distinguished history of collaborating with NASA on numerous scientific missions and research projects. Caltech's Jet Propulsion Laboratory (JPL), managed by Caltech for NASA, is a leading center for robotic exploration of the solar system and Earth science. They have been instrumental in developing and managing missions like the Mars rovers, Cassini-Huygens, and various Earth-observing satellites. Their extensive experience in managing complex R&D projects, scientific instrument development, and mission operations makes them a highly qualified entity for contracts like the JASON-3 formulation and preliminary design phase. Their consistent performance and scientific contributions underscore their strong track record with NASA.

How does the value of this contract compare to similar preliminary design phases for Earth observation satellite missions?

Comparing the $33.4 million award for the JASON-3 mission's formulation and preliminary design phases to similar contracts is challenging due to the highly specialized nature of space missions and the varying scope of 'preliminary design.' However, for complex Earth observation satellites, early-phase development, including concept studies, feasibility analyses, and preliminary design, can indeed cost tens of millions of dollars. Factors influencing this cost include the complexity of the scientific objectives, the required sensor technology, the mission's orbit, and the integration with existing ground systems. Given Caltech's role and the mission's objectives (likely related to oceanography and climate monitoring, building on previous JASON missions), this funding level appears within the expected range for such critical early-stage work.

What are the primary risks associated with a sole-source award for this type of R&D contract?

The primary risks associated with a sole-source award for an R&D contract like the JASON-3 preliminary design phase revolve around potential lack of price competition and reduced incentive for innovation. Without multiple bidders, there's a risk that the negotiated price may not be the most cost-effective achievable. Furthermore, a sole-source award can sometimes lead to complacency, as the contractor doesn't face the pressure of competing for future work based on performance against rivals. For taxpayers, this means a greater reliance on the government's negotiation skills and oversight capabilities to ensure fair pricing and optimal value. NASA must ensure robust contract management to mitigate these risks.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) classification imply for this contract?

The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' signifies that this contract is for activities aimed at discovering new knowledge and applying it to create new or improved products and processes. For the JASON-3 mission's formulation and preliminary design, this involves scientific inquiry into physical phenomena (e.g., ocean dynamics, atmospheric interactions), engineering challenges (e.g., satellite design, instrument development), and potentially life sciences if the data has implications for biological systems or climate impacts on life. This classification highlights the contract's focus on innovation, scientific advancement, and the creation of novel capabilities rather than routine services or product acquisition.

What is the significance of the contract type 'Cost Plus Fixed Fee' (CPFF) for this project?

The 'Cost Plus Fixed Fee' (CPFF) contract type means that the contractor (California Institute of Technology) is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. This type of contract is often used when the scope of work is not precisely defined at the outset, or when there is significant uncertainty in the costs, which is common in R&D projects like preliminary mission design. The fixed fee provides a ceiling on the contractor's profit, offering some cost control compared to a cost-plus-percentage-of-cost contract. However, it places a strong emphasis on NASA's ability to effectively monitor and control the contractor's costs to ensure the project stays within budget.

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

Pricing Type: COST PLUS FIXED FEE (U)

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: $42,806,664

Exercised Options: $42,806,664

Current Obligation: $33,382,604

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2010-11-29

Current End Date: 2012-09-30

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

Last Modified: 2021-03-11

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