NASA's $712M Jet Propulsion Laboratory contract with Caltech for R&D faces scrutiny over competition and value

Contract Overview

Contract Amount: $71,195,231 ($71.2M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2022-03-31

Contract Duration: 3,468 days

Daily Burn Rate: $20.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF EUCLID PROJECT 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 $71.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF EUCLID PROJECT 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 O… Key points: 1. The contract funds the operation of a Federally Funded Research and Development Center (FFRDC) for NASA's Science Mission Directorate. 2. Work is performed under task orders, indicating a flexible but potentially less defined scope. 3. The 'NOT COMPETED' status raises questions about price discovery and potential for better value. 4. The sector is Research and Development, a critical area for national scientific advancement.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without detailed task order breakdowns and performance metrics. The cost-plus-fixed-fee structure can incentivize cost growth, and the lack of competition makes benchmarking challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, likely due to the unique nature of operating an FFRDC like JPL. This limits price discovery and may not yield the best possible value for taxpayer funds.

Taxpayer Impact: The lack of competition for a significant contract raises concerns about whether taxpayers are receiving optimal value for the $712 million allocated.

Public Impact

Supports critical NASA science missions in Earth, planetary, and heliophysics. Funds advanced research and development, potentially leading to technological breakthroughs. Operates a unique FFRDC, a specialized government asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus-fixed-fee structure
  • Potential for cost overruns

Positive Signals

  • Supports critical national scientific research
  • Operates a unique FFRDC asset

Sector Analysis

This contract falls under Research and Development, specifically in physical, engineering, and life sciences. Spending in this sector is crucial for innovation but requires careful oversight to ensure efficiency and effectiveness.

Small Business Impact

The data does not indicate any specific provisions or analysis related to small business participation in this contract. The primary contractor is a large academic institution.

Oversight & Accountability

The FFRDC structure implies a degree of inherent oversight, but the 'NOT COMPETED' status warrants closer examination of task order management and cost controls by NASA.

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

  • Lack of competitive bidding
  • Potential for inflated costs due to sole-source award
  • Cost-plus-fixed-fee contract type can incentivize spending
  • Limited transparency on specific task order costs and performance

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $71.2 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF EUCLID PROJECT 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 MANAG

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 $71.2 million.

What is the period of performance?

Start: 2012-10-01. End: 2022-03-31.

How does NASA ensure cost-effectiveness and value for money when contracting with FFRDCs on a sole-source basis?

NASA typically ensures cost-effectiveness through robust contract administration, including detailed review of task orders, performance metrics, and regular cost audits. For FFRDCs, the unique relationship allows for long-term strategic planning, but requires diligent oversight to prevent inefficiencies and ensure alignment with agency goals. Benchmarking against similar FFRDC operations, where possible, and independent cost analyses can also inform value assessments.

What are the risks associated with a sole-source contract for a large R&D initiative like the JPL operation?

The primary risks include a lack of competitive pressure leading to higher costs and potentially less innovation. There's also a risk of vendor lock-in, making it difficult to switch providers even if performance declines. Without competition, it can be harder to identify and rectify inefficiencies, potentially leading to cost overruns and suboptimal resource allocation for taxpayer-funded projects.

How effectively does the current contract structure support NASA's long-term scientific objectives given the FFRDC model?

The FFRDC model, by its nature, is designed for long-term, stable support of government research needs, which aligns well with NASA's long-term scientific objectives. The task order system allows flexibility to adapt to evolving research priorities. However, the effectiveness hinges on NASA's ability to clearly define objectives within task orders and maintain rigorous oversight to ensure the FFRDC remains focused on strategic goals and operates efficiently.

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: $102,547,428

Exercised Options: $102,547,428

Current Obligation: $71,195,231

Actual Outlays: $0

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: 2022-03-31

Potential End Date: 2022-03-31 00:00:00

Last Modified: 2024-05-13

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