NASA's Spitzer Space Telescope contract awarded to Caltech for $487M, highlighting R&D in physical sciences
Contract Overview
Contract Amount: $486,896,884 ($486.9M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-09-08
End Date: 2012-09-30
Contract Duration: 3,310 days
Daily Burn Rate: $147.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SPITZER SPACE TELESCOPE (SST)
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $486.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SPITZER SPACE TELESCOPE (SST) Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost efficiencies. 2. Significant investment in research and development, indicating a focus on scientific advancement. 3. Long contract duration suggests a sustained commitment to the project's objectives. 4. The 'Cost Plus Award Fee' structure incentivizes performance but requires careful oversight to manage costs. 5. The absence of small business participation warrants examination of subcontracting opportunities. 6. This contract represents a substantial portion of federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category.
Value Assessment
Rating: fair
The contract's value of $486.9 million over its period of performance is substantial for a research and development project. Benchmarking this against similar large-scale scientific instrument development contracts is challenging due to the unique nature of space telescope projects. The 'Cost Plus Award Fee' (CPAF) structure allows for flexibility and performance incentives, but it also carries a risk of cost overruns if not managed diligently. Without comparable contract data, a definitive value-for-money assessment is difficult, but the scale suggests significant investment in scientific capability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is often justified for highly specialized research or development where only one entity possesses the necessary expertise or technology. However, the lack of competition limits price discovery and may result in higher costs for the government compared to a competitively bid contract. The justification for sole-source procurement in this instance would need to be thoroughly reviewed to ensure it was appropriate.
Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process. This could translate to a higher overall expenditure for the government.
Public Impact
The primary beneficiaries are the scientific community and the public, who gain access to new astronomical data and discoveries. The contract supports the development, operation, and scientific utilization of the Spitzer Space Telescope, a major astronomical observatory. The geographic impact is national, with the primary contractor located in California, but the scientific data has global reach. This contract likely supports a highly specialized workforce of scientists, engineers, and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs.
- Cost Plus Award Fee contracts require robust oversight to prevent uncontrolled spending.
- Lack of transparency in the sole-source justification could obscure potential alternatives.
- The long duration and high value necessitate continuous monitoring for performance and cost adherence.
Positive Signals
- Award to a reputable institution (Caltech) suggests a high likelihood of technical success.
- The CPAF structure incentivizes meeting or exceeding performance objectives.
- The project's scientific goals are significant, promising valuable contributions to astronomy.
- The contract duration aligns with the complex and lengthy nature of space telescope missions.
Sector Analysis
The contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and astronomy. This sector is characterized by long development cycles, high upfront investment, and significant technological risk. Federal spending in this area is crucial for advancing scientific knowledge and maintaining technological leadership. Comparable spending benchmarks are difficult to establish due to the unique nature of space-based observatories, but large R&D contracts often represent substantial investments in national capabilities.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. Given the specialized nature of developing and operating a space telescope, it is possible that the prime contractor relies on large, specialized subcontractors. Further investigation into subcontracting opportunities would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee contract, NASA would be responsible for monitoring the contractor's costs, performance against award fee criteria, and overall project progress. Transparency would be facilitated through regular reporting requirements and potentially through NASA's Inspector General if any concerns arise regarding fraud, waste, or abuse. The specific oversight mechanisms would be detailed in the contract's terms and conditions.
Related Government Programs
- NASA Research and Development Contracts
- Space Science Missions
- Astrophysics Research
- Large-Scale Scientific Instrumentation
Risk Flags
- Sole-source procurement
- Cost Plus Award Fee structure
- Lack of small business participation noted
Tags
nasa, caltech, california, research-and-development, space-telescope, sole-source, cost-plus-award-fee, physical-sciences, astronomy, large-contract, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $486.9 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SPITZER SPACE TELESCOPE (SST)
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 $486.9 million.
What is the period of performance?
Start: 2003-09-08. End: 2012-09-30.
What is the track record of the California Institute of Technology (Caltech) in managing large-scale federal research and development contracts, particularly in space science?
The California Institute of Technology (Caltech) has a long and distinguished history of managing major scientific projects for NASA, including the development and operation of significant space observatories. Caltech, through its Jet Propulsion Laboratory (JPL), has been instrumental in numerous successful missions, such as the Hubble Space Telescope (in partnership), the Mars rovers, and the Spitzer Space Telescope itself. Their track record generally indicates strong technical expertise and project management capabilities for complex, high-stakes scientific endeavors. However, like any large institution managing extensive projects, there may have been instances of cost adjustments or schedule changes, which are not uncommon in cutting-edge R&D. A detailed review of their performance on specific past contracts would provide a more granular understanding of their strengths and any potential areas for improvement in managing federal funds.
How does the 'Cost Plus Award Fee' (CPAF) structure for this contract compare to other NASA R&D contracts of similar scale?
The 'Cost Plus Award Fee' (CPAF) structure is a common contracting method used by NASA and other agencies for research and development projects where the scope of work can be difficult to define precisely upfront, or where performance incentives are critical. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria. Compared to fixed-price contracts, CPAF offers more flexibility for the government to adjust requirements and incentivize desired outcomes. However, it also places a greater burden on the government to establish objective performance metrics and conduct rigorous evaluations to ensure fair and appropriate award fees are paid. For large-scale R&D like the Spitzer Space Telescope, CPAF is often preferred over other structures to balance cost control with the need for innovation and adaptability.
What are the primary risks associated with a sole-source award for a contract of this magnitude and duration?
The primary risks associated with a sole-source award for a contract of this magnitude and duration are related to cost and innovation. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for the government and taxpayers. The lack of alternative bidders also reduces the government's leverage in negotiations. Furthermore, sole-source awards can sometimes stifle innovation, as the contractor may not feel the same imperative to explore novel or more cost-effective solutions that might be brought forward by competing firms. There's also a risk that the government may not be aware of all available technological capabilities or alternative approaches if a thorough market survey and justification for sole-sourcing are not rigorously conducted and documented. This can lead to suboptimal outcomes or missed opportunities for technological advancement.
What are the expected scientific outcomes or deliverables from the Spitzer Space Telescope project funded by this contract?
The Spitzer Space Telescope project, funded by this contract, was designed to conduct astronomical observations in the infrared spectrum, which allows scientists to peer through dust clouds and observe cooler objects in the universe that are not visible in optical light. Key scientific outcomes and deliverables include groundbreaking data and discoveries related to the formation of stars and planets, the evolution of galaxies, the study of exoplanets, and the nature of dark matter and dark energy. The telescope's mission was to provide unprecedented views of the universe's most distant and obscured objects, contributing significantly to our understanding of cosmic origins and evolution. The data collected has been made publicly available, fueling further research and analysis by the global scientific community, leading to numerous peer-reviewed publications and advancements in astrophysics.
How has federal spending in 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) trended over the period encompassing this contract?
Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) has generally seen fluctuations over the years, influenced by budget priorities, economic conditions, and national strategic goals. During the period of this contract (roughly 2003-2012), federal R&D spending, particularly in areas like space exploration and scientific research, was a significant component of the federal budget. While specific year-over-year trends for this precise NAICS code can vary, overall federal investment in R&D saw periods of growth, especially in the early to mid-2000s, driven by initiatives in areas like homeland security and scientific advancement. However, subsequent budget constraints and shifts in national priorities may have led to more modest growth or even some contraction in certain R&D sub-sectors in later years. Understanding the broader R&D funding landscape provides context for the scale and importance of individual projects like the Spitzer Space Telescope.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 51
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 4800 OAK GROVE DR, PASADENA, CA, 91109
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $518,622,210
Exercised Options: $518,622,210
Current Obligation: $486,896,884
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2003-09-08
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2020-10-19
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