NASA's $125M contract with Caltech for Jet Propulsion Laboratory operations shows R&D focus

Contract Overview

Contract Amount: $125,409,812 ($125.4M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2017-04-23

Contract Duration: 1,665 days

Daily Burn Rate: $75.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF LOW DENSITY SUPERSONIC DECELERATOR TECHNOLOGY DEMONSTRATION MISSION (LDSD) 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 $125.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF LOW DENSITY SUPERSONIC DECELERATOR TECHNOLOGY DEMONSTRATION MISSION (LDSD) THE CONTRACT IS THE SPONSORING AGREEMENT BETWEEN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) AND THE CALIFORNIA INSTITUTE OF TECHNOLOGY (CONTRACTOR), A PRIVATE NONPROFIT EDUCATIO… Key points: 1. Contract supports NASA's Science Mission Directorate, aligning with strategic science objectives. 2. Operates the Jet Propulsion Laboratory (JPL), a Federally Funded Research and Development Center (FFRDC). 3. Focuses on research and development in physical, engineering, and life sciences. 4. Contract duration spans over 1600 days, indicating a long-term research commitment. 5. Primarily supports NASA's scientific endeavors rather than direct procurement of goods or services. 6. The contractor is a non-profit educational institution, suggesting a mission-driven approach.

Value Assessment

Rating: good

This contract represents a significant investment in foundational research and development, managed through a unique FFRDC structure. While direct value-for-money comparisons are difficult due to the nature of R&D and the FFRDC model, the sustained funding indicates NASA's confidence in JPL's capabilities. The cost-plus-fixed-fee structure incentivizes cost control while allowing for flexibility in research scope. Benchmarking is challenging as FFRDCs operate under specific government agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is sole-source, awarded to the California Institute of Technology for the operation of the Jet Propulsion Laboratory (JPL), which functions as a Federally Funded Research and Development Center (FFRDC). FFRDCs are established to meet specific long-term research needs of the government and are typically operated by a single entity under a long-term agreement. This structure inherently limits competition.

Taxpayer Impact: The sole-source nature means taxpayers do not benefit from competitive bidding, but it ensures continuity and specialized expertise for critical research missions.

Public Impact

Benefits NASA's Science Mission Directorate by enabling advanced research and development. Delivers scientific discovery and technological innovation through JPL's research activities. Impacts the scientific community through the dissemination of research findings. Supports a highly skilled workforce in aerospace engineering and scientific research. Contributes to national capabilities in space exploration and Earth science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term, complex R&D projects.
  • Reliance on a single entity (JPL) for critical research functions.
  • Difficulty in benchmarking performance and cost against commercial alternatives.

Positive Signals

  • Established relationship with a reputable research institution (Caltech).
  • JPL's proven track record in space exploration and scientific missions.
  • FFRDC structure provides dedicated, long-term research capabilities for NASA.
  • Contract aligns with clear scientific objectives outlined in NASA's plans.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The FFRDC model, exemplified by JPL, is a common mechanism for government agencies to secure specialized, long-term research capabilities. Comparable spending in this area often involves large-scale scientific instruments, space missions, and advanced technology development, where sustained expertise and infrastructure are paramount.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is a sole-source award to a large non-profit educational institution for FFRDC operations. Subcontracting opportunities for small businesses may exist within specific task orders issued under this agreement, but they are not a primary focus of the overarching contract structure.

Oversight & Accountability

Oversight is provided by the NASA Management Office (NMO) through contracting officers who issue task orders and monitor performance. As an FFRDC, JPL operates under specific government agreements and oversight protocols. Transparency is facilitated through NASA's reporting requirements and public dissemination of research outcomes. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

  • NASA Research and Development Contracts
  • Federally Funded Research and Development Centers (FFRDCs)
  • Space Exploration Programs
  • Scientific Research Grants

Risk Flags

  • Sole-source award limits competitive pricing.
  • Long-term R&D contracts can face scope creep and cost overruns.
  • Reliance on a single FFRDC operator carries inherent risks.

Tags

research-and-development, nasa, california, sole-source, ffrdc, non-profit, aerospace, science, long-term, cost-plus-fixed-fee

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $125.4 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF LOW DENSITY SUPERSONIC DECELERATOR TECHNOLOGY DEMONSTRATION MISSION (LDSD) 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 WO

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 $125.4 million.

What is the period of performance?

Start: 2012-10-01. End: 2017-04-23.

What is the historical spending trend for the Jet Propulsion Laboratory (JPL) under NASA contracts?

Historical spending data for JPL under NASA contracts shows a consistent and significant investment over many years, reflecting its critical role in space exploration and scientific research. While the provided data point is for a specific contract period (2012-2017) totaling approximately $125 million, broader historical analysis would reveal multi-billion dollar cumulative investments. JPL's operational funding is typically managed through a series of large, long-term contracts and agreements with NASA, often structured as cost-plus arrangements to accommodate the complex and evolving nature of its missions. These contracts are essential for maintaining JPL's infrastructure, supporting its scientific and engineering workforce, and executing its diverse portfolio of space missions and research projects. Analyzing year-over-year or mission-specific spending would provide further insight into NASA's resource allocation priorities for deep space exploration and planetary science.

How does the cost structure of this contract compare to other NASA R&D agreements?

This contract utilizes a Cost Plus Fixed Fee (CPFF) structure, which is common for research and development efforts where the scope may evolve. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of costs incurred. Compared to other NASA R&D agreements, CPFF offers flexibility, allowing NASA to fund innovative research that may have uncertain cost trajectories. However, it places a greater emphasis on robust oversight to manage costs effectively. Benchmarking CPFF contracts requires careful consideration of the specific research domain, project complexity, and the contractor's overhead structure. While direct cost comparisons are difficult without detailed project specifics, the CPFF model is generally considered appropriate for the exploratory nature of work performed at JPL.

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

While specific Key Performance Indicators (KPIs) for this particular contract are not detailed in the provided data, NASA typically assesses FFRDC performance through a combination of technical, programmatic, and management metrics. For JPL, these often include the successful execution of mission objectives (e.g., spacecraft deployment, data acquisition, scientific discovery), adherence to project schedules and budgets, technological innovation and advancement, and the quality of scientific and engineering output. Performance is also evaluated based on the contractor's ability to maintain state-of-the-art facilities and a highly skilled workforce. NASA's oversight likely involves regular reviews, milestone assessments, and adherence to established research protocols. The effectiveness of JPL's contributions to NASA's strategic science goals would be a primary measure of success.

What is the risk profile associated with a sole-source contract for operating a critical research facility like JPL?

A sole-source contract for operating a critical research facility like JPL presents a unique risk profile. The primary risk is the lack of competitive pressure, which could potentially lead to reduced cost efficiency or innovation compared to a competed contract. However, this risk is often mitigated by the specialized nature of FFRDCs and the long-standing, established relationship between NASA and Caltech/JPL. The government relies on the unique capabilities and infrastructure that JPL possesses, making a competitive transition impractical and potentially disruptive. Risks also include potential over-reliance on a single entity, making NASA vulnerable if JPL faces significant operational challenges. Mitigation strategies typically involve strong government oversight, clear performance expectations, and robust communication channels to ensure alignment with NASA's strategic objectives and to manage costs and risks proactively.

How does the FFRDC designation influence the nature and oversight of this contract compared to a standard R&D contract?

The Federally Funded Research and Development Center (FFRDC) designation fundamentally shapes this contract. Unlike standard R&D contracts awarded through competitive bidding for specific projects, FFRDCs like JPL are established to provide long-term, strategic research and development capabilities to a sponsoring government agency (NASA, in this case). This necessitates a sole-source, long-term agreement that ensures continuity of expertise and infrastructure. Oversight for FFRDCs is typically more integrated and continuous than for project-specific contracts. NASA maintains a close relationship with JPL, overseeing its overall operations, strategic direction, and resource allocation, rather than just the deliverables of discrete tasks. This includes ensuring the FFRDC remains objective and free from conflicts of interest, and that its capabilities align with the agency's evolving needs. The FFRDC model prioritizes strategic partnership and sustained capability over transactional procurement.

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: $138,040,679

Exercised Options: $138,040,679

Current Obligation: $125,409,812

Actual Outlays: $-2,253

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM 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: 2017-04-23

Potential End Date: 2017-04-23 00:00:00

Last Modified: 2022-04-05

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