NASA's GRACE-FO Contract with Caltech for JPL Operations Totals $319M, Focused on Earth Science

Contract Overview

Contract Amount: $319,180,793 ($319.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2023-07-31

Contract Duration: 3,955 days

Daily Burn Rate: $80.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF GRAVITY RECOVERY AND CLIMATE EXPERIMENT FOLLOW ON (GRACE-FO) 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 $319.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF GRAVITY RECOVERY AND CLIMATE EXPERIMENT FOLLOW ON (GRACE-FO) 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… Key points: 1. The contract funds the operation of the Jet Propulsion Laboratory (JPL) by Caltech, a Federally Funded Research and Development Center (FFRDC). 2. Primary focus is supporting NASA's Science Mission Directorate, particularly in Earth science research. 3. The contract has been ongoing since 2012 and is set to conclude in July 2023. 4. This represents a significant investment in scientific research and development, specifically in physical and engineering sciences.

Value Assessment

Rating: good

The contract value of $319 million over approximately 11 years suggests a substantial but potentially reasonable cost for operating a major research facility like JPL. Benchmarking against similar FFRDC management contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is sole-source, awarded to the California Institute of Technology for operating JPL, which is designated as an FFRDC. This structure inherently limits competition but is typical for FFRDC management.

Taxpayer Impact: Taxpayer funds are directed towards a long-term research and development initiative managed by a specialized institution, aiming for scientific advancement.

Public Impact

Supports critical Earth science research, providing data for climate change monitoring and understanding. The contract enables continued operation of the Jet Propulsion Laboratory, a key national asset for space exploration and Earth observation. Funds advanced scientific research and development, contributing to technological innovation and scientific discovery. Ensures continuity of operations for vital NASA missions managed by JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source nature limits competitive pricing pressure.
  • Long-term contract duration may obscure potential cost efficiencies.
  • FFRDC structure, while necessary, bypasses standard competitive procurement.

Positive Signals

  • Supports critical scientific research and development.
  • Ensures continuity of operations for a key national research facility.
  • Focus on Earth science aligns with significant national and global priorities.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation and understanding complex systems like Earth's climate, with FFRDCs playing a unique role in long-term, specialized research.

Small Business Impact

The contract is between NASA and the California Institute of Technology, a large educational institution. There is no direct indication of small business involvement within the prime contract structure itself, as the focus is on the management of an FFRDC.

Oversight & Accountability

As a sole-source contract for an FFRDC, oversight likely focuses on performance metrics, adherence to task orders, and financial accountability rather than competitive bidding processes. NASA's oversight is crucial for ensuring mission objectives are met efficiently.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Sole-source award limits competitive pricing.
  • Long contract duration may obscure cost efficiencies.
  • FFRDC management structure bypasses standard competition.
  • Potential for cost creep without strong oversight.
  • Reliance on a single contractor for critical operations.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $319.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF GRAVITY RECOVERY AND CLIMATE EXPERIMENT FOLLOW ON (GRACE-FO) 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 DESI

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 $319.2 million.

What is the period of performance?

Start: 2012-10-01. End: 2023-07-31.

What is the cost-effectiveness of the sole-source FFRDC model for managing complex research facilities like JPL compared to alternative contracting methods?

The sole-source FFRDC model is often chosen for its ability to provide long-term, stable management of highly specialized research and development capabilities, like JPL. While it bypasses direct price competition, it aims for cost-effectiveness through deep institutional expertise, reduced startup costs for new contractors, and continuity of operations. The effectiveness is measured by the achievement of scientific and technological goals rather than just lowest price.

How does NASA ensure that the $319 million allocated to the GRACE-FO contract represents fair value, given the lack of competitive bidding?

NASA ensures fair value through rigorous oversight of JPL's operations and adherence to the established FFRDC agreement. This includes performance reviews, budget scrutiny, and ensuring that work aligns with designated task orders and NASA's strategic objectives. The cost structure is typically negotiated and reviewed periodically, focusing on the value delivered in terms of scientific output and operational capability.

What are the primary risks associated with a long-term, sole-source contract for operating a critical research facility like JPL?

Key risks include potential for cost overruns without competitive pressure, reduced incentive for innovation if not actively managed, and the possibility of institutional inertia. There's also a risk that the contractor's priorities might subtly shift over time if not strictly aligned with NASA's evolving mission needs. Robust oversight and clear performance metrics are essential to mitigate these risks.

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: $392,440,464

Exercised Options: $392,440,464

Current Obligation: $319,180,793

Actual Outlays: $607,556

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: 2023-07-31

Potential End Date: 2023-07-31 00:00:00

Last Modified: 2022-11-18

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