NASA's $675M JPL Contract with Caltech: Long-Term R&D for Space Exploration

Contract Overview

Contract Amount: $67,550,572 ($67.6M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2019-10-31

Contract Duration: 2,586 days

Daily Burn Rate: $26.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF MARS ODYSSEY: PHASE E 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 $67.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF MARS ODYSSEY: PHASE E 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 FO… Key points: 1. This contract funds the Jet Propulsion Laboratory (JPL) for NASA's Science Mission Directorate, focusing on Earth, planetary, and heliophysics. 2. The sole-source nature of the contract for FFRDC operations raises questions about competitive pricing and alternative providers. 3. Long-term funding for critical R&D highlights the importance of space exploration but necessitates robust oversight. 4. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for cost efficiency and value for taxpayer money.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, while common for R&D, can lead to cost overruns if not tightly managed. Benchmarking against similar FFRDC contracts is difficult due to their unique nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is sole-source due to JPL's designation as a Federally Funded Research and Development Center (FFRDC). This limits price discovery and competition, relying on NASA's oversight to ensure fair pricing.

Taxpayer Impact: Taxpayer funds are committed to a specific entity for specialized research, with the primary impact being the advancement of scientific knowledge and technological capabilities.

Public Impact

Supports critical scientific research in Earth science, planetary science, and heliophysics, advancing our understanding of the universe. Funds the operation of the renowned Jet Propulsion Laboratory (JPL), a key asset for U.S. space exploration and innovation. Ensures continued development of technologies essential for future space missions and scientific discovery. The long-term nature of the agreement provides stability for research programs and personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source procurement limits competitive pressure on pricing.
  • Cost-plus-fixed-fee contracts can incentivize higher costs if not managed effectively.
  • Lack of detailed cost breakdowns for FFRDC operations makes direct comparison difficult.

Positive Signals

  • Supports critical national R&D objectives in space science.
  • Leverages a unique and highly capable research institution (JPL).
  • Provides long-term stability for vital scientific endeavors.

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 requires careful oversight to ensure value. FFRDCs like JPL represent a significant, specialized segment of R&D spending.

Small Business Impact

This contract does not appear to involve small business participation directly, as it is a sole-source agreement with a large non-profit educational institution (Caltech) for FFRDC operations. Subcontracts to small businesses are not detailed here.

Oversight & Accountability

NASA's oversight is critical for managing this sole-source FFRDC contract. Task orders issued by the NASA Management Office Contracting Officers are the primary mechanism for directing work and controlling costs. Robust monitoring of performance and expenditures is essential.

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 nature limits competitive pressure.
  • Cost-plus-fixed-fee structure potential for cost overruns.
  • Lack of transparency in FFRDC operational costs.
  • Long contract duration requires sustained oversight.
  • Dependence on a single entity for critical R&D functions.

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 $67.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF MARS ODYSSEY: PHASE E 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 NAS

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 $67.6 million.

What is the period of performance?

Start: 2012-10-01. End: 2019-10-31.

What is the justification for the sole-source award to Caltech/JPL for these specific R&D services, and how does NASA ensure fair and reasonable pricing without competition?

The sole-source award is justified by JPL's unique status as an FFRDC, operated by Caltech, specifically chartered to support NASA's science mission. NASA ensures fair and reasonable pricing through rigorous negotiation, cost analysis, and ongoing oversight of JPL's operations and expenditures, comparing them against established benchmarks and internal cost models for similar FFRDC activities.

How does NASA mitigate the risks associated with cost-plus-fixed-fee contracts, particularly regarding potential cost overruns and ensuring maximum value for taxpayer investment?

NASA mitigates risks by establishing clear performance metrics, detailed task orders, and robust oversight mechanisms. They conduct regular reviews of JPL's financial performance, progress, and adherence to budget. Incentive structures within the fixed fee and continuous negotiation of future task orders help align JPL's objectives with NASA's cost-containment goals.

What is the long-term strategy for ensuring the continued effectiveness and relevance of JPL's research and development capabilities in alignment with evolving scientific priorities?

NASA's long-term strategy involves continuous dialogue with JPL leadership, alignment of task orders with evolving scientific priorities outlined in NASA's strategic plans, and periodic reviews of JPL's technological capabilities and research infrastructure. This ensures JPL remains at the forefront of space science and exploration, adapting to new challenges and opportunities.

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: $89,587,299

Exercised Options: $89,587,299

Current Obligation: $67,550,572

Actual Outlays: $199,898

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: 2019-10-31

Potential End Date: 2019-10-31 00:00:00

Last Modified: 2020-06-23

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