NASA's $765M Jet Propulsion Laboratory contract with Caltech for R&D in physical sciences, engineering, and life sciences

Contract Overview

Contract Amount: $765,458,750 ($765.5M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2014-10-17

End Date: 2021-05-30

Contract Duration: 2,417 days

Daily Burn Rate: $316.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF ISLAND 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 $765.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: IGF::CL::IGF ISLAND 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… Key points: 1. This contract funds the operation of a Federally Funded Research and Development Center (FFRDC), ensuring specialized research capabilities. 2. The work focuses on NASA's Science Mission Directorate objectives across Earth science, planetary science, and heliophysics. 3. As a sole-source FFRDC, competition is inherently limited, focusing on specialized expertise rather than broad market solicitation. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. Performance spans over 2400 days, indicating a long-term commitment to critical scientific endeavors. 6. The geographic location in California positions JPL within a significant hub for aerospace and technology innovation.

Value Assessment

Rating: good

The contract value of $765.5 million over approximately 6.6 years represents a significant investment in specialized R&D. While direct comparisons are difficult due to the unique FFRDC nature, the cost-plus-fixed-fee structure is typical for complex, long-term research projects where final costs are not precisely predictable. Benchmarking against similar FFRDC operations would be necessary for a more granular value assessment, but the scale suggests a substantial commitment to critical national scientific objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is sole-source, as it pertains to the operation of a Federally Funded Research and Development Center (FFRDC) – the Jet Propulsion Laboratory (JPL). FFRDCs are established to meet specific long-term research and development needs of the government that cannot be met as effectively by the private sector. The selection of the California Institute of Technology to operate JPL is based on its unique capabilities and historical role, rather than a competitive bidding process for this specific operational contract.

Taxpayer Impact: For taxpayers, a sole-source FFRDC contract means that the government has pre-selected an entity with proven, specialized expertise. While this ensures access to critical capabilities, it bypasses the price discovery mechanisms inherent in competitive bidding, necessitating robust oversight to ensure value for money.

Public Impact

The primary beneficiaries are NASA and the scientific community, gaining access to advanced research and development capabilities. Services delivered include research and development in Earth science, planetary science, heliophysics, and potentially other areas designated by NASA. The geographic impact is primarily centered in California, where JPL is located, but the scientific findings have global implications. Workforce implications include the employment of highly skilled scientists, engineers, and support staff at JPL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored.
  • The sole-source nature limits opportunities for new entrants and potentially higher innovation through competition.
  • Long-term FFRDC contracts require continuous evaluation to ensure ongoing relevance and efficiency.

Positive Signals

  • Establishes a stable, long-term operational framework for a critical national research asset (JPL).
  • Ensures continuity of specialized expertise vital for NASA's scientific missions.
  • The FFRDC model is designed for unique, long-term government needs, providing a dedicated resource.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation, long-term investment, and highly specialized expertise. FFRDCs like JPL are crucial components of the national R&D ecosystem, often undertaking projects too complex or long-term for typical commercial contracts. Comparable spending benchmarks are difficult due to the unique FFRDC structure, but NASA's overall R&D budget provides context for the scale of investment in scientific exploration.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is a sole-source agreement for the operation of an FFRDC. The primary contractor is the California Institute of Technology, a large non-profit educational institution. Subcontracting opportunities may exist, but the primary focus is on the direct operation and research conducted by JPL itself. The impact on the small business ecosystem is indirect, potentially through research spin-offs or technology transfer, rather than direct contract awards.

Oversight & Accountability

Oversight is provided by the National Aeronautics and Space Administration (NASA) through its Management Office at JPL. As a sole-source FFRDC contract, oversight focuses on ensuring that JPL fulfills its designated research and development mission according to task orders and strategic objectives. Accountability is maintained through performance reviews, milestone tracking, and financial audits. Transparency is facilitated through NASA's reporting requirements and public dissemination of research findings, though the operational details of an FFRDC may have specific disclosure limitations.

Related Government Programs

  • NASA Science Mission Directorate Programs
  • Federally Funded Research and Development Centers (FFRDCs)
  • Aerospace Research and Development
  • Planetary Science Exploration
  • Earth Science Research
  • Heliophysics Research

Risk Flags

  • Cost Overruns Risk (CPFF structure)
  • Technological Obsolescence
  • Mission Failure Risk
  • Sole-Source Dependency

Tags

research-and-development, nasa, california, sole-source, ffrdc, cost-plus-fixed-fee, aerospace, science, long-term, nonprofit, educational-institution

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $765.5 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. IGF::CL::IGF ISLAND 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 OF

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 $765.5 million.

What is the period of performance?

Start: 2014-10-17. End: 2021-05-30.

What is the historical performance record of the California Institute of Technology in operating the Jet Propulsion Laboratory for NASA?

The California Institute of Technology (Caltech) has operated the Jet Propulsion Laboratory (JPL) for NASA since its inception in 1958. JPL has a long and distinguished track record of successfully managing and executing complex space missions and scientific research projects. Notable achievements include the Voyager program, the Mars rovers (Spirit, Opportunity, Curiosity, Perseverance), the Hubble Space Telescope's servicing missions, and numerous other groundbreaking planetary science, Earth science, and astronomy missions. Caltech's consistent performance has led to multiple contract renewals, underscoring NASA's confidence in its ability to manage this critical FFRDC and deliver exceptional scientific and technological outcomes. The continuity of this relationship highlights a strong, established partnership focused on achieving NASA's ambitious scientific goals.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D FFRDC operations?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common for FFRDC operations and complex R&D projects where the scope of work can evolve and precise cost estimation is challenging upfront. Unlike fixed-price contracts, CPFF allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure provides flexibility for research that may encounter unforeseen technical challenges or require adjustments in direction, which is typical in scientific exploration. While it offers flexibility, it also necessitates robust government oversight to ensure costs remain reasonable and that the fixed fee provides adequate incentive for efficient performance. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) might introduce stronger performance incentives, while Firm-Fixed-Price (FFP) would be unsuitable for the inherent uncertainties of long-term R&D.

What are the key risk indicators associated with this long-term FFRDC contract?

Key risk indicators for this long-term FFRDC contract include potential cost growth beyond initial estimates, especially given the CPFF structure and the unpredictable nature of advanced research. There's also a risk of scope creep if NASA task orders are not tightly managed, leading to expanded work without commensurate budget adjustments. Technological obsolescence or failure to achieve critical research milestones could pose programmatic risks. Furthermore, reliance on a single FFRDC operator (JPL/Caltech) carries a risk of complacency or a lack of disruptive innovation compared to a more competitive environment. Ensuring continued alignment between JPL's capabilities and NASA's evolving strategic priorities is also a perpetual risk that requires proactive management and communication.

How does NASA ensure program effectiveness and mission success through this contract?

NASA ensures program effectiveness and mission success through rigorous oversight and management of the JPL FFRDC contract. This involves establishing clear objectives and requirements within task orders, closely monitoring progress against milestones, and conducting regular performance reviews. NASA's presence through the NASA Management Office (NMO) at JPL provides direct oversight of operations and technical execution. The CPFF structure, while flexible, requires diligent auditing of costs to ensure they are allowable and reasonable. Furthermore, NASA relies on JPL's established expertise and track record, fostering a collaborative environment to tackle complex scientific challenges. Success is ultimately measured by the scientific discoveries, technological advancements, and mission outcomes achieved by JPL in support of NASA's strategic goals.

What are the historical spending patterns for JPL operations under NASA contracts?

Historical spending on JPL operations under NASA contracts has consistently been substantial, reflecting the scale and complexity of the missions undertaken. Annual funding levels have typically ranged in the hundreds of millions of dollars, aligning with the overall budget allocated to NASA's science directorates. The total contract value of approximately $765.5 million over its duration is consistent with previous long-term agreements for FFRDC operations. Spending patterns are driven by the specific mission portfolio, including planetary exploration, Earth observation, and astrophysics. While specific year-over-year figures fluctuate based on mission phases and new starts, the overall trend demonstrates a sustained and significant investment in JPL's unique capabilities as a cornerstone of NASA's scientific endeavors.

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: $1,050,227,501

Exercised Options: $1,050,227,501

Current Obligation: $765,458,750

Actual Outlays: $421,695

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: 2014-10-17

Current End Date: 2021-05-30

Potential End Date: 2021-05-30 00:00:00

Last Modified: 2024-09-04

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