NASA's Jet Propulsion Laboratory contract with Caltech for R&D in physical sciences exceeds $26.9 million

Contract Overview

Contract Amount: $26,966,486 ($27.0M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2023-09-24

Contract Duration: 4,010 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF LASER COMMUNICATIONS RELAY DEMONSTRATION (LCRD) 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 $27.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF LASER COMMUNICATIONS RELAY DEMONSTRATION (LCRD) 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 ESTAB… Key points: 1. Contract supports NASA's Science Mission Directorate, focusing on Earth Science and other scientific objectives. 2. Long-term contract (2012-2023) indicates sustained investment in research and development. 3. Cost-plus-fixed-fee contract type suggests potential for cost overruns, requiring close oversight. 4. FFRDC structure implies a dedicated research entity aligned with government priorities. 5. Contractor is a private nonprofit educational institution, typical for specialized research. 6. Primary focus on Earth Science aligns with critical national and global research needs.

Value Assessment

Rating: good

The contract's value of over $26.9 million over its duration reflects a significant investment in specialized research. As a cost-plus-fixed-fee contract, it allows for flexibility in research scope but necessitates robust oversight to manage costs effectively. Benchmarking this against similar FFRDC contracts for scientific research indicates a reasonable investment given the specialized nature of JPL's work and its alignment with NASA's strategic goals. The fixed fee component provides some cost control, but the variable cost component requires careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is structured as a sole-source agreement, which is common for Federally Funded Research and Development Centers (FFRDCs) like JPL. The rationale is that JPL is uniquely positioned and equipped to perform the designated research for NASA. While this structure ensures alignment with NASA's mission, it bypasses traditional competitive bidding processes, potentially limiting price discovery and innovation from external entities.

Taxpayer Impact: Sole-source contracts for FFRDCs like JPL mean taxpayers are investing in a pre-established, specialized research capability rather than exploring potentially more cost-effective solutions from a broader market.

Public Impact

Benefits NASA's Science Mission Directorate by providing critical research capabilities. Delivers scientific research and development in areas like Earth Science, contributing to a better understanding of our planet. Geographic impact is national, with research findings potentially influencing global scientific understanding and policy. Workforce implications include supporting highly skilled scientists, engineers, and researchers at JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee structure can lead to cost escalations if not managed tightly.
  • Sole-source nature limits opportunities for broader market competition and potential cost savings.
  • Long contract duration requires ongoing performance monitoring to ensure continued value.

Positive Signals

  • FFRDC designation ensures alignment with specific, long-term government research objectives.
  • Contractor (Caltech/JPL) has a proven track record in space exploration and scientific research.
  • Focus on critical areas like Earth Science addresses significant societal and scientific needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by high innovation, specialized expertise, and significant government investment. FFRDCs play a crucial role in this sector by providing long-term, objective research capabilities to government agencies. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of FFRDCs, but NASA's overall R&D budget provides context for the scale of investment in scientific advancement.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is a sole-source agreement with a large research institution (Caltech/JPL). Subcontracting opportunities for small businesses may exist but are not a primary focus of the contract's structure. The impact on the small business ecosystem is likely indirect, through potential innovation spillover or the development of technologies that could later be commercialized or procured from smaller firms.

Oversight & Accountability

Oversight is primarily managed by the NASA Management Office (NMO) through contracting officers who issue task orders. As an FFRDC, JPL operates under specific agreements that include oversight mechanisms. Accountability is built into the FFRDC structure and the cost-plus-fixed-fee contract terms. Transparency is generally maintained through NASA's reporting requirements, though specific details of research progress and expenditures may be subject to standard government reporting protocols.

Related Government Programs

  • NASA Science Mission Directorate Programs
  • Federally Funded Research and Development Centers (FFRDCs)
  • Earth Science Research Initiatives
  • Space Exploration Technology Development

Risk Flags

  • Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
  • Sole-source nature limits competitive price discovery.
  • Long contract duration necessitates ongoing performance monitoring.

Tags

research-and-development, nasa, california-institute-of-technology, jet-propulsion-laboratory, sole-source, cost-plus-fixed-fee, earth-science, ffrdc, science, nonprofit, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $27.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF LASER COMMUNICATIONS RELAY DEMONSTRATION (LCRD) 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 TAS

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 $27.0 million.

What is the period of performance?

Start: 2012-10-01. End: 2023-09-24.

What is the historical spending trend for this contract with Caltech/JPL?

The provided data indicates a total contract value of $26,966,486.48 spanning from October 1, 2012, to September 24, 2023, a duration of approximately 11 years. While a specific year-over-year spending breakdown isn't available in this snippet, the total value suggests an average annual expenditure of roughly $2.45 million. This consistent, long-term funding pattern is typical for FFRDC agreements that support ongoing strategic research objectives. Further analysis would require access to detailed financial records to identify any fluctuations or specific periods of higher/lower spending within the contract's lifecycle.

How does the cost-plus-fixed-fee (CPFF) structure impact the value for money in this contract?

The Cost-Plus-Fixed-Fee (CPFF) structure aims to provide value by allowing flexibility in research scope while capping the contractor's profit (the fixed fee). This is often used for R&D where exact costs are difficult to predict. For taxpayers, the value depends heavily on NASA's oversight. If NASA effectively manages the 'cost' portion, ensuring efficiency and necessity, and the 'fixed fee' is reasonable for the specialized work performed by JPL, then it can represent good value. However, CPFF contracts carry inherent risks of cost overruns if oversight is lax, potentially diminishing the value for money compared to fixed-price contracts. The unique capabilities of JPL as an FFRDC often justify this structure despite the risks.

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

Specific Key Performance Indicators (KPIs) for this particular contract are not detailed in the provided data. However, for FFRDC contracts supporting NASA's Science Mission Directorate, performance is typically assessed based on the successful achievement of research objectives outlined in task orders, adherence to scientific methodologies, timely delivery of research findings and reports, and the overall contribution to NASA's strategic scientific goals. NASA's contracting officers and program managers would monitor progress against milestones, peer review research outputs, and evaluate the scientific impact and innovation stemming from JPL's work. The long-term nature of the FFRDC relationship implies a continuous assessment of capability and alignment with evolving scientific priorities.

Are there any comparable contracts that could provide a benchmark for this NASA-JPL agreement?

Directly comparable contracts are scarce due to the unique nature of FFRDCs like JPL, which are established for long-term, specific government missions. However, one could look at other FFRDC agreements managed by different agencies (e.g., MIT Lincoln Laboratory for DoD, RAND Corporation for various agencies) or large, sole-source R&D contracts awarded to major research universities or institutions for similar scientific domains. Benchmarking would focus on the structure (e.g., CPFF), duration, total value relative to the scope of work, and the established expertise of the contractor. The key differentiator for JPL is its specific mandate within NASA for space science and engineering, making direct cost comparisons challenging but essential for assessing overall program efficiency.

What is the risk profile associated with this sole-source R&D contract?

The primary risks associated with this sole-source R&D contract include: 1) Cost Control: The CPFF structure inherently carries a risk of cost escalation if not rigorously managed. 2) Lack of Competition: Sole-source awards bypass competitive pressures that could drive down costs or spur innovation from a wider pool of contractors. 3) Performance Risk: While JPL is highly capable, there's always a risk that research objectives may not be met as planned due to the inherent uncertainties in R&D. 4) Strategic Alignment Drift: Over the long term, ensuring the FFRDC's work remains perfectly aligned with evolving NASA priorities requires continuous communication and oversight. Mitigating these risks relies heavily on NASA's program management, oversight capabilities, and clear definition of deliverables and success criteria.

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: $39,413,188

Exercised Options: $39,413,188

Current Obligation: $26,966,486

Actual Outlays: $54,318

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: 2023-09-24

Potential End Date: 2023-09-24 00:00:00

Last Modified: 2021-02-09

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