NASA's $318M Jet Propulsion Laboratory contract with Caltech for space science R&D shows no competition

Contract Overview

Contract Amount: $318,460,243 ($318.5M)

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: $123.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF MARS SCIENCE LABORATORY 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 $318.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF MARS SCIENCE LABORATORY 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 … 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 mission is to support NASA's Science Mission Directorate across Earth, planetary, and astrophysics sciences. 3. The contract has been in place since 2012 and is set to end in 2019. 4. No competition was involved in awarding this contract, raising questions about price discovery. 5. The sector is Research and Development, a critical area for national scientific advancement.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the pricing is reasonable compared to similar FFRDC operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Caltech for operating JPL. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition means taxpayers may be paying more than necessary for the operation of the Jet Propulsion Laboratory.

Public Impact

Supports cutting-edge space exploration and scientific discovery. JPL's work impacts our understanding of Earth, the solar system, and the universe. The contract ensures continued operation of a vital national research asset. Potential for cost inefficiencies due to lack of competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Long duration without re-competition

Positive Signals

  • Supports critical scientific research
  • Operates a key national laboratory
  • Established long-term relationship for complex missions

Sector Analysis

This contract falls under the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight due to its often complex and long-term nature.

Small Business Impact

This contract does not appear to involve small business participation, as it is a direct award to a large educational institution for operating a federally funded research and development center.

Oversight & Accountability

The contract establishes JPL as an FFRDC, implying a certain level of oversight by NASA. However, the lack of competition warrants closer examination of cost controls and performance metrics.

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 may lead to inflated costs.
  • Cost Plus Fixed Fee structure carries inherent risk of cost overruns.
  • Long contract duration without re-competition reduces incentive for efficiency.
  • Potential for mission creep or scope expansion without formal review.
  • Limited transparency into operational costs due to sole-source nature.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $318.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF MARS SCIENCE LABORATORY 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 N

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 $318.5 million.

What is the period of performance?

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

What is the justification for the sole-source award of this critical FFRDC contract?

The justification for a sole-source award typically centers on the unique capabilities and established infrastructure of the contractor, in this case, Caltech's management of JPL. FFRDCs are often structured this way to ensure long-term, stable operation for government-specific research needs, minimizing disruption and leveraging specialized expertise that may not be readily available elsewhere or easily replicated through competitive means.

How are costs controlled and justified under a Cost Plus Fixed Fee contract for an FFRDC?

Cost controls in a Cost Plus Fixed Fee (CPFF) contract for an FFRDC rely heavily on detailed cost accounting standards, regular audits, and robust oversight by the contracting agency. The 'fixed fee' component provides a ceiling for the contractor's profit, incentivizing efficiency. However, the government bears the risk of cost overruns. NASA's Management Office would need to rigorously monitor JPL's expenditures against the approved budget and task orders.

What is the long-term strategy for ensuring value and innovation in FFRDC operations without periodic competition?

Ensuring long-term value and innovation in FFRDCs without periodic competition involves strong government oversight, performance-based metrics, and periodic strategic reviews. NASA must actively manage the FFRDC relationship, setting clear objectives, evaluating performance against those objectives, and ensuring JPL remains at the forefront of scientific and technological advancement. Mechanisms like independent assessments and stakeholder feedback can also drive innovation and accountability.

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: $427,427,164

Exercised Options: $427,427,164

Current Obligation: $318,460,243

Actual Outlays: $179,375

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: 2019-10-31

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

Last Modified: 2024-08-21

More Contracts from California Institute of Technology

View all California Institute of Technology federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending