NASA's $797M contract with Caltech for Jet Propulsion Laboratory operations supports vital Earth and planetary science missions

Contract Overview

Contract Amount: $796,696,902 ($796.7M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2013-07-23

End Date: 2018-10-28

Contract Duration: 1,923 days

Daily Burn Rate: $414.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF EUROPA CLIPPER PRE-PHASE A 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 $796.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF EUROPA CLIPPER PRE-PHASE A 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 RELATIONSH… Key points: 1. This contract funds the operation of a Federally Funded Research and Development Center (FFRDC), ensuring specialized research capabilities. 2. The work directly supports NASA's Science Mission Directorate, focusing on critical areas like Earth science and planetary exploration. 3. As a sole-source FFRDC agreement, it bypasses traditional competition to maintain a dedicated, expert research entity. 4. The contract's long duration and cost-plus-fixed-fee structure are typical for complex, long-term research and development projects. 5. Performance is measured through task orders issued by NASA, allowing for flexibility in directing research priorities. 6. The contractor, Caltech, is a private non-profit educational institution with a long-standing relationship with NASA for JPL operations.

Value Assessment

Rating: good

The contract value of approximately $797 million over five years for operating a major FFRDC like JPL is substantial but aligns with the scale and complexity of its scientific endeavors. Benchmarking is difficult due to the unique nature of FFRDCs, which are established for specific, long-term national needs rather than typical procurement. However, the cost-plus-fixed-fee (CPFF) structure is common for R&D where final costs are uncertain, aiming to incentivize efficiency while covering expenses. The fixed fee component provides a degree of cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is sole-source, as is typical for FFRDCs. These centers are established through specific agreements to provide unique, long-term research and development capabilities to the government that cannot be easily replicated or competed. The rationale is to maintain a stable, expert organization dedicated to specific national interests, in this case, space exploration and Earth science.

Taxpayer Impact: Sole-source FFRDC contracts mean taxpayers do not benefit from competitive bidding, but they secure access to specialized, enduring research infrastructure and expertise crucial for national scientific advancement.

Public Impact

The primary beneficiaries are the scientific community and the public, through advancements in Earth science, planetary science, and space exploration. Services delivered include the operation and management of the Jet Propulsion Laboratory (JPL), a leading center for robotic space missions. The geographic impact is global, with missions exploring Earth's climate, other planets, and the wider solar system. Workforce implications include the employment of highly skilled scientists, engineers, and technicians at JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns inherent in CPFF contracts if not closely monitored.
  • Reliance on a single contractor for critical FFRDC functions could pose a risk if contractor performance degrades.
  • The sole-source nature limits opportunities for new entrants and potentially stifles innovation from external sources.

Positive Signals

  • Long-standing, proven expertise of Caltech and JPL in space exploration and research.
  • FFRDC structure provides a stable, dedicated resource for critical national scientific objectives.
  • Contract directly supports high-impact scientific discovery and technological advancement.
  • Clear alignment with NASA's strategic science goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for operating large-scale, government-funded research centers like JPL is highly specialized, dominated by a few academic institutions and non-profit organizations with the requisite expertise and infrastructure. Comparable spending benchmarks are difficult to establish due to the unique FFRDC model, which prioritizes long-term capability over transactional competition.

Small Business Impact

This contract is not subject to small business set-asides as it is a sole-source agreement for the operation of an FFRDC. Subcontracting opportunities may exist, but the primary focus is on the core mission of JPL. The impact on the small business ecosystem is indirect, primarily through potential opportunities with JPL's supply chain rather than direct set-aside awards.

Oversight & Accountability

Oversight is provided by NASA through the issuance of task orders and regular performance reviews. The FFRDC structure itself implies a close working relationship and ongoing government oversight. Accountability is managed through the terms of the contract and the performance requirements outlined in task orders. Transparency is maintained through NASA's public reporting on its missions and research outcomes, though the internal operational details of the FFRDC may be less public.

Related Government Programs

  • NASA Science Mission Directorate Programs
  • Jet Propulsion Laboratory Operations
  • Federally Funded Research and Development Centers (FFRDCs)
  • Planetary Science Exploration
  • Earth Science Research

Risk Flags

  • Sole-source procurement
  • Cost-plus-fixed-fee contract type
  • Long-term duration
  • FFRDC operation

Tags

research-and-development, nasa, california, sole-source, cost-plus-fixed-fee, ffrdc, space-exploration, earth-science, planetary-science, non-profit, educational-institution, large-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $796.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF EUROPA CLIPPER PRE-PHASE A 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 TH

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 $796.7 million.

What is the period of performance?

Start: 2013-07-23. End: 2018-10-28.

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

Historical spending data for JPL operations under NASA indicates a consistent and significant investment over many years. While the specific contract cited covers a period with approximately $797 million in obligations, previous and subsequent agreements have maintained a high level of funding to support JPL's ongoing mission. For instance, prior to this contract, similar agreements would have funded JPL's operations, and post-2018, new agreements would have continued this support. The total annual expenditure for JPL operations has historically been in the hundreds of millions of dollars, reflecting its role as a premier center for space exploration and scientific research. This sustained funding underscores the long-term commitment NASA has to JPL's capabilities and its strategic importance in achieving national space exploration goals.

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

The Cost-Plus-Fixed-Fee (CPFF) structure in this contract aims to balance cost control with the need for flexibility in research and development. For value for money, CPFF is generally considered fair when the scope of work is not precisely defined or is expected to evolve, as is common in R&D. The 'cost-plus' element means NASA reimburses the contractor (Caltech/JPL) for allowable costs incurred. The 'fixed-fee' component provides a predetermined profit margin for the contractor, incentivizing them to manage costs efficiently to maximize their fee within that fixed amount. While it doesn't offer the same potential for savings as fixed-price contracts, it prevents cost overruns from eroding contractor profit, which could otherwise disincentivize performance. NASA's oversight is crucial to ensure costs are reasonable and allocable, thereby maximizing the value derived from taxpayer funds.

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

While specific KPIs are not detailed in the provided data, performance assessment for JPL under NASA contracts typically revolves around mission success, scientific return, technological advancement, and operational efficiency. Key indicators would likely include the successful execution of mission objectives (e.g., spacecraft launches, data acquisition, mission longevity), the quality and impact of scientific discoveries and publications, the development and application of new technologies, adherence to budget and schedule constraints for specific projects managed under task orders, and the effective management of personnel and resources. NASA's Contracting Officers and the NASA Management Office (NMO) would monitor these aspects through regular reporting, reviews, and milestone achievements defined within the task orders issued against the overarching contract.

What is the risk associated with relying on a single contractor (Caltech) for FFRDC operations?

The primary risk associated with relying on a single contractor for FFRDC operations, such as Caltech operating JPL, is the potential for vendor lock-in and a lack of competitive pressure to innovate or control costs. If the contractor's performance declines or their strategic direction diverges from NASA's needs, the government has limited immediate alternatives without significant disruption. However, the FFRDC model is specifically designed to mitigate some of these risks by fostering a deep, long-term partnership built on trust and shared objectives. NASA maintains significant oversight and can influence JPL's direction through task orders and strategic guidance. Furthermore, the unique capabilities and institutional knowledge vested in JPL make a direct replacement extremely difficult and costly. The risk is managed through strong government-industry collaboration and continuous performance monitoring.

How does this contract contribute to NASA's broader strategic goals in space exploration and Earth science?

This contract is fundamental to NASA's strategic goals, particularly within the Science Mission Directorate (SMD). By funding the operation of the Jet Propulsion Laboratory (JPL), NASA ensures the continued capability to design, build, and operate robotic missions for exploring the solar system and observing Earth. JPL is at the forefront of missions related to planetary science (e.g., Mars rovers, missions to Jupiter and Saturn) and Earth science (e.g., climate monitoring satellites, atmospheric studies). The contract enables the sustained development of cutting-edge technologies and scientific expertise necessary to achieve NASA's objectives of understanding the universe, searching for life beyond Earth, and studying our own planet's changing climate. It represents a core investment in NASA's long-term scientific discovery and exploration agenda.

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: $1,091,372,163

Exercised Options: $1,091,372,163

Current Obligation: $796,696,902

Actual Outlays: $201,145

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: 2013-07-23

Current End Date: 2018-10-28

Potential End Date: 2018-10-28 00:00:00

Last Modified: 2024-09-23

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