NASA's $103M contract with Caltech for Jet Propulsion Laboratory operations shows strong R&D focus

Contract Overview

Contract Amount: $102,987,707 ($103.0M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-10-01

End Date: 2014-09-28

Contract Duration: 727 days

Daily Burn Rate: $141.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF TECHNOLOGY SUPPORT (AGA) 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 $103.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF TECHNOLOGY SUPPORT (AGA) 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 RELATIONSHI… Key points: 1. Contract supports NASA's Science Mission Directorate across Earth, planetary, and space science. 2. Operates the Jet Propulsion Laboratory (JPL) as a Federally Funded Research and Development Center (FFRDC). 3. Focuses on research and development in physical, engineering, and life sciences. 4. Long-term relationship between NASA and Caltech for critical scientific endeavors. 5. Contract duration of approximately two years, with potential for task order extensions. 6. Performance is tied to specific task orders issued by NASA.

Value Assessment

Rating: good

This contract represents a significant investment in scientific research and development, specifically for the operation of the Jet Propulsion Laboratory. As an FFRDC, JPL's unique structure allows for long-term, strategic research support to NASA. Benchmarking value is complex due to the specialized nature of FFRDCs and their mission-oriented work, but the sustained funding indicates perceived value by the agency. The cost-plus-fixed-fee structure is common for R&D where exact costs are difficult to predict.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is structured as a sole-source agreement, which is typical for FFRDCs. The California Institute of Technology operates JPL under this designation, meaning it is established for a specific government purpose and is not subject to full and open competition. This arrangement allows for a stable, long-term partnership focused on specialized research needs.

Taxpayer Impact: While sole-source contracts can sometimes lead to higher costs, the FFRDC model is intended to provide dedicated, specialized capabilities that might not be readily available through competitive means, thus serving a unique taxpayer interest in advanced research.

Public Impact

Benefits NASA's Science Mission Directorate by enabling advanced research in Earth science, planetary science, and space exploration. Supports the operation of the Jet Propulsion Laboratory, a critical national asset for robotic space missions. Contributes to scientific discoveries and technological advancements with potential global implications. Impacts the scientific research community and the workforce involved in space exploration and R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

• Potential for cost overruns in research and development projects with uncertain outcomes.
• Reliance on a single entity (Caltech/JPL) for critical FFRDC functions.

Positive Signals

• Established and proven track record of the contractor (Caltech/JPL) in space exploration and research.
• Long-standing partnership with NASA, indicating a high degree of trust and alignment.
• Focus on critical scientific missions aligned with national strategic goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The FFRDC model, exemplified by JPL, is a unique construct designed to provide long-term, strategic research and development capabilities to the government. Comparable spending benchmarks are difficult to establish due to the specialized nature of FFRDCs, but NASA's consistent investment in JPL highlights its importance within the national R&D landscape.

Small Business Impact

This contract is not directly related to small business set-asides, as it is a sole-source agreement with a large educational institution 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 broader small business ecosystem is indirect, primarily through potential innovation spillover or specialized support needs.

Oversight & Accountability

Oversight is provided by NASA through the National Management Office (NMO) and contracting officers who issue task orders and monitor performance. As an FFRDC, JPL operates under specific agreements that include reporting requirements and performance metrics. Transparency is maintained through NASA's contract reporting and public dissemination of scientific findings resulting from JPL's work.

Related Government Programs

• NASA Research and Development Contracts
• Federally Funded Research and Development Centers (FFRDCs)
• Space Exploration Programs
• Earth Science Research
• Planetary Science Missions

Risk Flags

• Sole-source award may limit price competition.
• FFRDC model requires careful government oversight to ensure value.
• Complexity of R&D projects can lead to cost uncertainty.

Tags

research-and-development, nasa, california, sole-source, ffrdc, space-exploration, jet-propulsion-laboratory, cost-plus-fixed-fee, science-mission-directorate, educational-institution

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $103.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF TECHNOLOGY SUPPORT (AGA) 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

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 $103.0 million.

What is the period of performance?

Start: 2012-10-01. End: 2014-09-28.

What is the historical spending trend for the Jet Propulsion Laboratory operations contract with Caltech?

The provided data indicates a contract value of $102,987,707.47 with a duration from October 1, 2012, to September 28, 2014. This specific contract appears to be for a defined period, likely encompassing a set of task orders. To understand historical spending trends, one would need to examine a series of these contracts or task orders over a longer timeframe. FFRDCs like JPL typically receive consistent, substantial funding from their sponsoring agencies to maintain long-term research capabilities. Analyzing annual reports, budget allocations for JPL, and previous contract awards would provide a clearer picture of the overall historical spending trajectory and how this specific contract fits within that pattern. Without access to a broader dataset of past contracts and task orders, it's challenging to establish a definitive trend solely from this single data point.

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

The Cost-Plus-Fixed-Fee (CPFF) pricing structure is common for research and development contracts where the scope of work and final costs can be uncertain. In this model, the contractor (Caltech/JPL) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work but may offer less direct cost control compared to fixed-price contracts. For value for money, it's crucial that NASA effectively manages and audits the allowable costs. The 'value' is derived from the successful execution of critical scientific missions and research objectives, rather than solely on cost minimization. Benchmarking against similar FFRDC operations or R&D efforts is essential to assess if the overall costs, including the fixed fee, are reasonable for the scientific and technological outcomes achieved.

What are the primary risks associated with operating an FFRDC like JPL under a sole-source contract?

Operating an FFRDC like JPL under a sole-source contract presents several primary risks. Firstly, the lack of competition can potentially lead to reduced pressure on cost efficiency, although FFRDCs are typically managed with a focus on mission objectives rather than pure profit maximization. Secondly, there's a risk of complacency or a lack of innovative drive if the contractor becomes too accustomed to the established relationship without sufficient external challenge. Thirdly, the government's reliance on a single entity for critical capabilities means that any disruption at the contractor's end (e.g., financial instability, loss of key personnel, or strategic shifts) could have significant impacts on program continuity. NASA mitigates these risks through robust oversight, performance metrics, and regular reviews of the FFRDC's strategic alignment and operational effectiveness.

What is the significance of the National Aeronautics and Space Administration (NASA) sponsoring the Jet Propulsion Laboratory (JPL)?

NASA's sponsorship of the Jet Propulsion Laboratory (JPL) is highly significant as JPL is a premier U.S. center for robotic exploration of the solar system and Earth science. As a Federally Funded Research and Development Center (FFRDC), JPL operates under the administration of the California Institute of Technology (Caltech) but is dedicated to NASA's mission. This unique arrangement allows NASA to have a dedicated, long-term research and development partner focused on cutting-edge space science and technology. JPL's work directly supports NASA's strategic goals, including planetary exploration, Earth observation, and astrophysics, contributing to scientific discovery and technological innovation that benefits national interests and global understanding.

How does the contract's focus on 'Research and Development in the Physical, Engineering, and Life Sciences' align with NASA's broader objectives?

The contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS code 541712) directly aligns with NASA's core mission. NASA's objectives heavily rely on advancements in these scientific and engineering fields to design, build, and operate spacecraft, instruments, and systems for space exploration and Earth observation. This includes developing new materials, propulsion systems, life support technologies, robotics, and advanced scientific instruments. The 'Life Sciences' aspect is crucial for understanding the potential for life beyond Earth and for supporting human spaceflight. By funding R&D in these areas through entities like JPL, NASA ensures it remains at the forefront of scientific discovery and technological capability, enabling ambitious missions and addressing complex scientific questions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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: $106,014,595

Exercised Options: $106,014,595

Current Obligation: $102,987,707

Actual Outlays: $292,472

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: 2014-09-28

Potential End Date: 2014-09-28 00:00:00

Last Modified: 2024-04-17

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