NASA's $183M Jet Propulsion Laboratory contract with Caltech for R&D faces scrutiny over competition and value

Contract Overview

Contract Amount: $183,450,562 ($183.5M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2013-09-04

End Date: 2019-09-30

Contract Duration: 2,217 days

Daily Burn Rate: $82.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF TECHNOLOGY DEVELOPMENT 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 $183.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF TECHNOLOGY DEVELOPMENT 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 F… Key points: 1. The contract funds the operation of the Jet Propulsion Laboratory (JPL) as a Federally Funded Research and Development Center (FFRDC). 2. JPL's primary mission is to support NASA's Science Mission Directorate across Earth, planetary, and space science. 3. The contract was not competed, raising questions about price discovery and potential value for taxpayer dollars. 4. The sector is Research and Development, a critical area for technological advancement and scientific discovery.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without a competitive bidding process, it's difficult to benchmark pricing against similar FFRDC operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source to the California Institute of Technology for operating JPL. The lack of competition limits NASA's ability to ensure the most cost-effective arrangement and explore alternative providers.

Taxpayer Impact: The sole-source nature of this contract means taxpayers may not be receiving the best possible value, as competitive pressures that drive down costs are absent.

Public Impact

Supports critical scientific research in Earth, planetary, and space sciences. Operates the renowned Jet Propulsion Laboratory, a key asset for space exploration. Potential for groundbreaking discoveries that benefit society and advance human knowledge. Lack of competition raises concerns about long-term cost efficiency for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Cost-plus contract type can lead to cost overruns.
  • Lack of clear performance metrics for FFRDC operations.

Positive Signals

  • Supports vital scientific research.
  • Operates a world-class research facility.
  • Long-standing relationship with a reputable institution.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. FFRDCs like JPL are crucial for long-term, complex research projects that require specialized infrastructure and expertise, often exceeding the capabilities of typical government labs or private contractors.

Small Business Impact

There is no indication that small businesses are involved in this contract, as it is a direct agreement with a large educational institution for the operation of an FFRDC.

Oversight & Accountability

As an FFRDC, JPL is subject to specific oversight requirements. However, the sole-source nature of the contract and the cost-plus fee structure warrant close monitoring by NASA to ensure accountability and efficient 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

  • Sole-source award
  • Cost-plus contract type
  • Potential for cost overruns
  • Limited transparency in pricing
  • Lack of direct small business participation

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 $183.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF TECHNOLOGY DEVELOPMENT 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 NA

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 $183.5 million.

What is the period of performance?

Start: 2013-09-04. End: 2019-09-30.

What is the justification for the sole-source award of this FFRDC contract, and how does NASA ensure fair and reasonable pricing without competition?

The justification for sole-source awards to FFRDCs typically stems from their unique capabilities, infrastructure, and established mission alignment. NASA likely relies on historical data, independent cost estimates, and robust negotiation processes to ensure fair and reasonable pricing. However, the absence of a competitive environment inherently limits the ability to validate pricing against market alternatives, making rigorous internal review paramount.

What are the key performance indicators (KPIs) for JPL under this contract, and how is their achievement measured to ensure mission success and value for money?

JPL's performance is likely measured against the scientific objectives outlined in NASA's Science Mission Directorate's plans and specific task orders. KPIs would include successful mission execution, scientific data return, technological innovation, and adherence to budget and schedule constraints. NASA's oversight would involve regular reviews of progress reports, milestone achievements, and scientific outcomes to assess value and mission effectiveness.

Given the cost-plus fixed fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization by the contractor?

Cost-plus fixed fee contracts inherently carry a risk of cost overruns. NASA mitigates this through stringent oversight, detailed budgeting, regular financial reviews, and performance-based incentives where applicable. Clear task orders with defined scopes and deliverables, along with robust change control processes, help manage costs. The fixed fee component provides a ceiling, but effective management relies on proactive monitoring of expenditures and contractor performance.

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: $223,203,045

Exercised Options: $223,203,045

Current Obligation: $183,450,562

Actual Outlays: $393,989

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: 2013-09-04

Current End Date: 2019-09-30

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

Last Modified: 2024-08-26

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