NASA's $218M Jet Propulsion Laboratory contract with Caltech for R&D faces scrutiny over competition and value

Contract Overview

Contract Amount: $21,830,410 ($21.8M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2013-01-16

End Date: 2019-09-30

Contract Duration: 2,448 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF PRESIDENT'S AND DIRECTOR'S RESEARCH&DEVELOPMENT FUND (PDRDF) 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 $21.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF PRESIDENT'S AND DIRECTOR'S RESEARCH&DEVELOPMENT FUND (PDRDF) 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) as a Federally Funded Research and Development Center (FFRDC). 2. Primary work supports NASA's Science Mission Directorate, focusing on physical, engineering, and life sciences research. 3. The contract was not competed, raising questions about price discovery and potential value for taxpayer dollars. 4. While JPL is a unique entity, the lack of competition warrants further examination of cost-effectiveness.

Value Assessment

Rating: questionable

The contract value is substantial at over $218 million. Without competitive benchmarks, assessing its pricing against similar FFRDC operations or private sector R&D is difficult. The cost-plus-fixed-fee structure requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was not competed, as JPL is a unique FFRDC operated by Caltech. While this structure is common for specialized research centers, it limits price discovery and necessitates robust oversight to ensure fair pricing and efficient use of funds.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for the research and development services provided. Oversight is critical to mitigate this risk.

Public Impact

Supports critical scientific research and development for NASA's space exploration and scientific discovery missions. The Jet Propulsion Laboratory is a unique national asset for advanced research and technology. Potential for groundbreaking discoveries in physical, engineering, and life sciences that could benefit society. Contract duration spans several years, indicating long-term investment in scientific advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus-fixed-fee contract type
  • Limited transparency on specific task order costs

Positive Signals

  • Supports critical national R&D objectives
  • Operates a unique and vital research facility (JPL)
  • Long-term contract for sustained scientific progress

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be complex to benchmark due to the specialized nature of the work and the unique capabilities of FFRDCs like JPL.

Small Business Impact

The provided data does not indicate any specific subcontracting or involvement of small businesses in this contract. The primary contractor is a large non-profit educational institution.

Oversight & Accountability

Given the non-competed nature and the cost-plus-fixed-fee structure, robust oversight by NASA's Management Office is essential. This includes monitoring task orders, ensuring adherence to objectives, and verifying cost reasonableness to ensure accountability and effective use of funds.

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 cost overruns in cost-plus contracts
  • Reliance on a single entity (JPL/Caltech) for critical R&D
  • Limited public data on specific task order performance and costs

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 $21.8 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF PRESIDENT'S AND DIRECTOR'S RESEARCH&DEVELOPMENT FUND (PDRDF) 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 $21.8 million.

What is the period of performance?

Start: 2013-01-16. End: 2019-09-30.

How does NASA ensure cost-effectiveness and value for money when contracting with a sole-source FFRDC like JPL, especially under a cost-plus-fixed-fee arrangement?

NASA employs rigorous oversight mechanisms, including detailed review of task orders, performance metrics, and regular audits. They establish target costs and fee structures that incentivize efficiency and cost control. Benchmarking against historical data and similar FFRDC operations, where possible, also informs value assessment, though direct competition is absent.

What are the primary risks associated with a non-competed contract for a critical research facility like JPL, and how are they mitigated?

The primary risk is the potential for inflated costs and reduced efficiency due to the absence of competitive pressure. Mitigation strategies include strong contract management, performance-based incentives, clear statement of work, and independent cost analyses. NASA's active involvement in directing research objectives and monitoring progress is crucial.

Beyond NASA's direct mission objectives, what is the broader public impact of the research conducted at JPL under this contract?

Research at JPL has historically led to significant technological advancements with broad civilian applications, including in areas like medical imaging, materials science, and environmental monitoring. Discoveries in space science also expand fundamental knowledge and inspire future generations, contributing to education and technological leadership.

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: $25,809,859

Exercised Options: $25,809,859

Current Obligation: $21,830,410

Actual Outlays: $57,424

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: 2013-01-16

Current End Date: 2019-09-30

Potential End Date: 2019-09-30 00:00:00

Last Modified: 2020-10-13

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