NASA's Jet Propulsion Laboratory contract with Caltech for FFRDC operations exceeds $809 million

Contract Overview

Contract Amount: $809,723,369 ($809.7M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2018-09-30

Contract Duration: 2,190 days

Daily Burn Rate: $369.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF DEEP SPACE NETWORK 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 $809.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF DEEP SPACE NETWORK 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 T… Key points: 1. Contract supports critical space science missions across Earth, planetary, and heliophysics. 2. Sole-source award to a long-standing FFRDC operator highlights specialized capabilities. 3. Contract duration of 6 years indicates a stable, long-term operational requirement. 4. Cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor. 5. Focus on research and development in physical, engineering, and life sciences. 6. Geographic concentration of work in California.

Value Assessment

Rating: good

The contract value of over $809 million for a 6-year period represents a significant investment in space exploration and research infrastructure. While direct comparisons are difficult due to the unique nature of FFRDCs, the cost-plus-fixed-fee structure is standard for R&D where final costs are not precisely predictable. Benchmarking against similar large-scale research and development contracts would be necessary for a more granular value assessment, but the sustained funding suggests perceived value by NASA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the California Institute of Technology for the operation of the Jet Propulsion Laboratory (JPL), a Federally Funded Research and Development Center (FFRDC). JPL is uniquely positioned and structured to fulfill NASA's specific research and development needs in space exploration. The sole-source nature reflects the specialized and established capabilities of JPL as an FFRDC.

Taxpayer Impact: Sole-source awards can limit opportunities for competitive pricing, potentially leading to higher costs for taxpayers compared to a competed contract. However, for highly specialized FFRDC operations like JPL, the unique expertise and infrastructure may justify the lack of competition.

Public Impact

Benefits NASA's Science Mission Directorate by enabling advanced space exploration and scientific discovery. Delivers critical research and development services in Earth science, planetary science, and heliophysics. Primarily impacts the scientific community and the public through advancements in space knowledge. Workforce implications include highly skilled scientists, engineers, and technicians at JPL. Geographic impact is concentrated in California, where JPL is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
  • Sole-source nature limits price discovery and potential savings from competition.

Positive Signals

  • Long-standing relationship and proven track record of JPL in space exploration.
  • FFRDC designation ensures alignment with government strategic objectives.
  • Focus on critical scientific research areas aligns with national priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for operating specialized research centers like JPL is highly concentrated, with FFRDCs playing a unique role in government-sponsored innovation. Comparable spending benchmarks would likely involve other large-scale government research initiatives or major aerospace R&D programs.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. As a sole-source award to a large research institution, the primary focus is on the core mission of JPL. Subcontracting opportunities may exist, but they are not a primary driver of this specific contract's structure. The impact on the small business ecosystem is likely indirect, through potential innovation spillover or specialized support services.

Oversight & Accountability

Oversight is provided by the National Aeronautics and Space Administration (NASA) through its Management Office. As an FFRDC, JPL operates under specific government oversight frameworks designed to ensure alignment with federal objectives and responsible use of funds. Transparency is facilitated through NASA's reporting requirements and public dissemination of research findings. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

  • NASA Science Mission Directorate Programs
  • Federally Funded Research and Development Centers (FFRDCs)
  • Space Exploration Initiatives
  • Aerospace Research and Development

Risk Flags

  • Sole-source award limits competitive pricing.
  • Cost-plus contracts require robust oversight to manage costs.

Tags

research-and-development, nasa, california, sole-source, large-contract, ffrdc, space-exploration, science, cost-plus-fixed-fee, nonprofit

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $809.7 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF DEEP SPACE NETWORK 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 M

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 $809.7 million.

What is the period of performance?

Start: 2012-10-01. End: 2018-09-30.

What is the historical spending trend for the Jet Propulsion Laboratory FFRDC contract with NASA?

The provided data indicates a contract value of $809,723,369.19 for the period of October 1, 2012, to September 30, 2018. This represents a significant, multi-year investment. To understand the historical trend, one would need to examine prior and subsequent contract awards for JPL's operation. FFRDCs typically receive consistent, long-term funding to maintain their specialized capabilities. Analyzing annual spending, contract modifications, and the scope of work over extended periods would reveal trends in NASA's investment in JPL and the evolution of its research priorities.

How does the cost-plus-fixed-fee (CPFF) contract structure impact contractor incentives and government oversight for JPL?

The Cost-Plus-Fixed-Fee (CPFF) structure used for this contract aims to provide the contractor (Caltech/JPL) with reimbursement for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is common for research and development efforts where the final scope and cost are not precisely known at the outset. For JPL, it incentivizes efficient cost management, as the fee is fixed regardless of the final cost. However, it requires robust government oversight from NASA to ensure that all claimed costs are allowable, reasonable, and allocable to the contract. NASA must actively monitor expenditures and performance to prevent cost overruns from eroding the value of the fixed fee and to ensure the project stays within budget.

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

While specific KPIs are not detailed in the provided data, performance evaluation for an FFRDC like JPL typically revolves around the successful execution of assigned task orders, achievement of scientific objectives, adherence to project timelines and budgets, and the quality of research output. NASA likely uses a combination of technical reviews, milestone achievements, scientific publications, mission success rates (e.g., successful deployment or operation of spacecraft), and adherence to safety and operational standards. The contract's success hinges on JPL's ability to deliver cutting-edge research and development that meets NASA's strategic goals in space science.

What is the significance of JPL being designated as a Federally Funded Research and Development Center (FFRDC)?

JPL's designation as an FFRDC signifies a unique, long-term strategic relationship between NASA and the California Institute of Technology. FFRDCs are established to meet specific long-term research and development needs of the government that cannot be effectively met by the private sector or government laboratories alone. They operate in the public interest, free from commercial conflicts of interest, and provide objective analysis and solutions. This designation allows JPL to maintain specialized expertise, infrastructure, and a focus on critical national priorities in space exploration and science, fostering innovation and technological advancement.

Are there any specific risks associated with the sole-source nature of this contract for NASA and taxpayers?

The primary risk associated with a sole-source contract, especially for a significant value like this, is the potential lack of competitive pressure on pricing and innovation. Without competing bids, there's a risk that costs could be higher than if multiple contractors vied for the work. Additionally, reliance on a single source can create vulnerabilities if that source faces operational challenges or strategic shifts. For taxpayers, this means ensuring that NASA's oversight is exceptionally rigorous to validate costs and performance, and that the unique capabilities of the sole-source provider are demonstrably essential and provide value that outweighs the lack of competition.

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: $809,723,369

Exercised Options: $809,723,369

Current Obligation: $809,723,369

Actual Outlays: $45,792

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: 2018-09-30

Potential End Date: 2018-09-30 00:00:00

Last Modified: 2026-01-13

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