NASA's Jet Propulsion Laboratory contract with Caltech totals over $564M for R&D in physical and engineering sciences

Contract Overview

Contract Amount: $564,235,812 ($564.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2020-11-29

Contract Duration: 2,981 days

Daily Burn Rate: $189.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF INSIGHT (INTERIOR STRUCTURE FOR SEISMIC INVESTIGATION, GEODESY, HEAT TRANSFER) THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCATIONAL INSTITUTION, WHICH ESTABLISHES THE RELATIONSHIP FOR THE OPERATION OF THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) KNOWN AS THE JET PROPULSION LABORATORY. THE CONTRACTOR, JPL, IS REQUIRED TO PERFORM WORK THAT IS DESIGNATED IN TASK ORDERS ISSUED BY THE NASA MANAGEMENT OFFICE (NMO) CONTRACTING OFFICERS. NASA SPONSORED WORK: JPL S PRIMARY MISSION IS TO SUPPORT THE NASA SCIENCE MISSION DIRECTORATE (SMD) IN CARRYING OUT THE SPECIFIC OBJECTIVES IDENTIFIED IN THE SMD SCIENCE PLAN. THE FOUR BROAD SCIENTIFIC AREAS ARE: EARTH SCIENCE, PLANETARY SCIENCE, HELIOPHYSICS, AND ASTROPHYSICS. IN PERFORMANCE OF THIS CONTRACT, JPL SHALL: 1) SUPPLY A BROAD BASE OF SCIENTIFIC AND TECHNICAL CAPABILITIES RELEVANT TO NASA PROGRAM AND PROJECT RESPONSIBILITIES AND ASSIGNMENTS. 2) FOSTER ITS UNIQUE RELATIONSHIP WITH A TOP-TIER UNIVERSITY TO FACILITATE THE INVOLVEMENT OF SCIENTISTS, ENGINEERS, AND STUDENTS FROM THE UNIVERSITY AND RESEARCH COMMUNITIES IN NASA MISSION AND IN SUPPORTING OTHER GOVERNMENT AGENCIES. 3) SUPPORT NASA IN ENABLING PROGRAM AND INSTITUTIONAL CAPABILITIES. 4) DEVELOP SPACECRAFT AND INSTRUMENTS THAT ARE SENT TO VARIOUS DESTINATIONS WITH OUR SOLAR SYSTEM, INCLUDING EARTH ORBIT, PLANETS, PLANETARY SATELLITES, ASTEROIDS, AND COMETS. THESE MISSIONS MAY BE ORBITERS, LANDERS, OR ROVERS, AND TYPICALLY INCLUDE CUTTING-EDGE TECHNOLOGIES REQUIRED TO MEET SCIENTIFIC REQUIREMENTS. 5) PERFORM PROJECT TASKS INVOLVING: (I) AUTONOMOUS DEEP-SPACE, INNER-SPACE AND EARTH-ORBITING SPACECRAFT OR MAJOR SUBSYSTEMS, (II) EXPERIMENTS, INSTRUMENTS, OR OTHER DEVICES WHICH MAY BE CARRIED AS PAYLOAD ON SPACECRAFTS IN MISSIONS MANAGED BY OTHERS, AND/OR (III) GROUND-BASED SYSTEMS. 6) BEYOND ITS PRIMARY MISSION, JPL MAY PERFORM WORK FOR OTHER NASA MISSION DIRECTORATES OR OFFICES. 7) JPL IS ALSO RESPONSIBLE FOR THE OPERATION, RESEARCH, TECHNOLOGY INSERTION, AND MANAGEMENT OF NASA S DEEP SPACE NETWORK TO PROVIDE TELECOMMUNICATION AND OPERATION SERVICES, INCLUDING DATA ACQUISITION AND DATA DELIVERY REQUIRED TO MEET ESTABLISHED AGENCY OBJECTIVES. 8) JPL IS ALSO REQUIRED TO MAINTAIN AND CONDUCT AN EDUCATION PROGRAM IN CLOSE COORDINATION WITH THE NASA HEADQUARTERS EDUCATION OFFICE, THE ACADEMIC COMMUNITY AT LARGE, AND IN SUPPORT TO NASA STRATEGIC OBJECTIVES TO IMPROVE STUDENT RETENTION IN THE SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS (STEM) DISCIPLINES. WORK FOR NON-NASA SPONSORS: JPL MAY PERFORM WORK FOR NON-NASA SPONSORS. THIS WORK WILL BE DESIGNATED IN TASK ORDERS ISSUED BY NMO CONTRACTING OFFICERS BASED ON TASK PLANS INITIATED BY THE CONTRACTOR.

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91109

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $564.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF INSIGHT (INTERIOR STRUCTURE FOR SEISMIC INVESTIGATION, GEODESY, HEAT TRANSFER) THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCA… Key points: 1. This contract funds a Federally Funded Research and Development Center (FFRDC) operated by a private nonprofit educational institution. 2. The work is designated by task orders issued by NASA, focusing on supporting the Science Mission Directorate's objectives. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of the contract is substantial, spanning nearly 8 years, indicating long-term research and development needs. 5. The geographic location of the contractor is California, a hub for aerospace and technology industries. 6. The contract is not competed, which is typical for FFRDC operations but limits price discovery.

Value Assessment

Rating: fair

The contract's value of over $564 million over nearly 8 years represents a significant investment in R&D. As a Cost Plus Fixed Fee contract for an FFRDC, direct cost comparisons to commercial contracts are difficult. However, the fixed fee component should provide some level of cost control. The value is consistent with the operational costs of a major research center like JPL. Ongoing oversight by NASA is crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is sole-source, as it establishes the operating relationship between NASA and the California Institute of Technology for the Jet Propulsion Laboratory (JPL), which is designated as an FFRDC. FFRDCs are typically operated by universities or non-profit organizations under long-term agreements due to their specialized nature and the need for continuity. This structure inherently limits competition.

Taxpayer Impact: For taxpayers, the lack of competition means that the price is not subject to market forces, and NASA relies on its oversight and the fixed fee structure to ensure reasonable costs.

Public Impact

The primary beneficiaries are NASA's Science Mission Directorate, which receives support for its specific scientific objectives. The contract enables cutting-edge research and development in physical, engineering, and life sciences, contributing to scientific advancement. The geographic impact is primarily in California, where JPL is located, but the scientific discoveries have global implications. The contract supports a highly specialized workforce of scientists, engineers, and researchers at JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
  • Sole-source nature limits opportunities for competitive pricing and innovation from other potential contractors.
  • Long contract duration requires sustained oversight to ensure continued alignment with NASA's evolving research priorities.

Positive Signals

  • FFRDC structure provides a stable, long-term research capability for critical national needs.
  • Partnership with a reputable educational institution (Caltech) suggests a strong foundation for research excellence.
  • Clear designation of work through task orders allows for focused research aligned with NASA's strategic goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for FFRDCs is specialized, with a limited number of institutions capable of operating such centers. NASA's spending on R&D through FFRDCs is a critical component of its mission to explore space and advance scientific knowledge. Comparable spending benchmarks are difficult due to the unique nature of FFRDCs, but the scale of this contract is consistent with major government-funded research operations.

Small Business Impact

This contract is not directly related to small business set-asides, as it is a sole-source agreement with a large non-profit educational institution for the operation of an FFRDC. Subcontracting opportunities may exist, but the primary focus is on the core research mission of JPL. The impact on the broader small business ecosystem is indirect, primarily through potential innovation spillover or the development of technologies that could later be commercialized.

Oversight & Accountability

Oversight is provided by NASA's Jet Propulsion Laboratory Management Office. Accountability is established through the contract terms, task orders, and performance reporting requirements. Transparency is maintained through NASA's public reporting of contract awards and the nature of FFRDC operations, although specific internal research details may be proprietary. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Contracts
  • Federally Funded Research and Development Centers (FFRDCs)
  • Aerospace Research and Development
  • Space Exploration Funding

Risk Flags

  • Sole-source award limits price competition.
  • Cost-plus contracts require diligent oversight to control costs.
  • Long-term nature of FFRDC requires continuous alignment with evolving agency priorities.

Tags

research-and-development, nasa, california-institute-of-technology, jet-propulsion-laboratory, ffrdc, sole-source, cost-plus-fixed-fee, science-mission-directorate, aerospace, non-profit, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $564.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF INSIGHT (INTERIOR STRUCTURE FOR SEISMIC INVESTIGATION, GEODESY, HEAT TRANSFER) THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCATIONAL INSTITUTION, WHICH ESTABLISHES THE RELATIONSHIP FOR THE OPERATION OF THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) KNOWN AS THE JET PROPULSION LABORATORY. THE CONTRACTOR, JPL, IS REQUIRED TO PERFORM

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 $564.2 million.

What is the period of performance?

Start: 2012-10-01. End: 2020-11-29.

What is the historical spending trend for this contract and similar FFRDC agreements?

The provided data shows a total award of $564,235,812.37 for the period of 2012-2020. To assess historical trends, one would need to examine prior contracts with JPL and potentially other NASA FFRDCs. Generally, FFRDC funding can fluctuate based on NASA's strategic priorities and budget allocations. For instance, if NASA's focus shifts towards deep space exploration, funding for JPL's relevant projects might increase. Conversely, budget constraints or shifts in scientific focus could lead to decreases. Comparing this contract's value to previous years would reveal if spending has been consistent, increasing, or decreasing. Furthermore, benchmarking against other FFRDCs operated by different agencies (e.g., Department of Defense) could provide context on the relative scale of NASA's investment in JPL.

How does the fixed fee component compare to industry standards for FFRDC management?

The contract type is Cost Plus Fixed Fee (CPFF). In a CPFF contract, the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. For FFRDCs, the fixed fee is typically a small percentage of the total contract value, reflecting the non-profit nature of the operating entity and the long-term, stable relationship. Industry standards for FFRDC fixed fees generally range from 3% to 7% of the total anticipated cost. Without the specific breakdown of costs and the fixed fee amount for this contract, a precise comparison is not possible. However, given the total value of over $564 million, a typical fixed fee would be in the range of $17 million to $39 million. NASA's oversight would ensure this fee is reasonable and commensurate with the services provided and the FFRDC's unique role.

What are the key performance indicators (KPIs) used to evaluate JPL's performance under this contract?

While specific KPIs are not detailed in the provided data, NASA's oversight of FFRDCs like JPL typically involves rigorous performance evaluation. Key performance indicators would likely align with the objectives set forth in the Science Mission Directorate's science plan and specific task orders. These could include metrics related to research output (e.g., publications, patents), mission success rates for any deployed instruments or missions managed by JPL, adherence to project timelines and budgets, technological innovation, and the effective utilization of resources. Regular reviews, milestone achievements, and technical assessments by NASA program managers are standard practice to ensure JPL is meeting its contractual obligations and advancing scientific goals.

What is the risk profile associated with a sole-source, long-term FFRDC contract like this?

The primary risks associated with a sole-source, long-term FFRDC contract stem from the lack of competition and the potential for complacency or misalignment over time. Without competitive pressure, there's a risk that costs could escalate beyond what might be achieved in a competitive environment, although the fixed fee and NASA's oversight aim to mitigate this. Another risk is 'mission creep' or a drift in focus if NASA's strategic priorities change significantly and the FFRDC's capabilities are not agile enough to adapt, or if the FFRDC develops its own internal priorities. Ensuring continued innovation and efficiency requires robust program management and regular strategic reviews by NASA. The long-term nature also means that any initial selection of an inappropriate contractor could have prolonged negative consequences, though JPL's established track record mitigates this specific risk.

How does this contract contribute to NASA's broader strategic goals in space exploration and scientific discovery?

This contract is fundamental to NASA's mission. JPL, operated by Caltech, is a critical asset for NASA's Science Mission Directorate (SMD). The work performed under this agreement directly supports SMD's objectives, which encompass a vast range of scientific inquiry, from understanding the origins of the universe to searching for life beyond Earth and studying our own planet. JPL is responsible for designing, building, and operating many of NASA's robotic space missions, including planetary probes, space telescopes, and Earth-observing satellites. Therefore, this contract is not just funding R&D; it's enabling the execution of NASA's core scientific exploration and discovery agenda, pushing the boundaries of human knowledge and technological capability in space.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4800 OAK GROVE DR, PASADENA, CA, 91109

Business Categories: Category Business, Federally Funded Research and Development Corp, Government, U.S. National Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $634,352,941

Exercised Options: $634,352,941

Current Obligation: $564,235,812

Actual Outlays: $22,475

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNN12AA01C

IDV Type: IDC

Timeline

Start Date: 2012-10-01

Current End Date: 2020-11-29

Potential End Date: 2020-11-29 00:00:00

Last Modified: 2024-09-23

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