NASA's $393M Space Interferometry Contract with Caltech: A Deep Dive into R&D Spending

Contract Overview

Contract Amount: $393,073,909 ($393.1M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-23

End Date: 2012-09-30

Contract Duration: 3,295 days

Daily Burn Rate: $119.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: SPACE INTERFEROMETRY MSN

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $393.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: SPACE INTERFEROMETRY MSN Key points: 1. Significant investment in advanced space research and development. 2. Sole-source award to a leading research institution raises questions about competition. 3. Long contract duration and cost-plus structure may present cost control risks. 4. Focus on physical sciences R&D aligns with national scientific priorities.

Value Assessment

Rating: questionable

The contract's total value of $393M over nearly a decade suggests substantial investment. However, without competitive benchmarks, assessing its value for money is difficult. The cost-plus award fee structure allows for flexibility but requires robust oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the California Institute of Technology, indicating a lack of full and open competition. This approach may be justified by unique capabilities but limits price discovery and potentially higher costs for taxpayers.

Taxpayer Impact: The absence of competition could lead to higher overall costs for taxpayers compared to a competitively bid contract.

Public Impact

Advancement of space-based astronomical observation capabilities. Potential for groundbreaking scientific discoveries in astrophysics. Development of cutting-edge technologies with dual-use applications. Long-term commitment to a single research institution for a critical mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to space-based interferometry. Spending in this area is often characterized by long development cycles, high upfront costs, and specialized expertise, making sole-source awards sometimes necessary but requiring careful justification.

Small Business Impact

The data indicates no specific allocation or consideration for small business participation in this contract. Given the specialized nature of space interferometry research, it is likely that large research institutions are the primary performers, with limited opportunities for small businesses.

Oversight & Accountability

The contract's long duration and cost-plus award fee structure necessitate strong oversight from NASA to ensure that funds are used efficiently and effectively towards achieving the project's scientific objectives. Regular performance reviews and cost audits are crucial.

Related Government Programs

Risk Flags

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 $393.1 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. SPACE INTERFEROMETRY MSN

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 $393.1 million.

What is the period of performance?

Start: 2003-09-23. End: 2012-09-30.

What specific technological advancements or scientific discoveries were enabled by this $393M investment that would not have been possible otherwise?

This contract funded the development and operation of the Space Interferometry Mission (SIM), which aimed to precisely measure the positions and motions of stars. Its primary goal was to detect planets around other stars and to test theories of gravity and cosmology. The unique precision required for such measurements likely necessitated specialized expertise and infrastructure only available at institutions like Caltech, potentially justifying the sole-source award.

What were the key risks associated with the cost-plus award fee structure and the sole-source nature of this contract?

The cost-plus award fee structure inherently carries a risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. The sole-source nature eliminated competitive pressure, potentially leading to less aggressive cost management by the contractor. NASA's oversight was critical to mitigate these risks and ensure value for taxpayer money.

How effective was the California Institute of Technology in achieving the scientific and technical objectives of the Space Interferometry Mission under this contract?

While the contract was awarded in 2003 and ended in 2012, the Space Interferometry Mission (SIM) itself faced significant challenges and reconfigurations over its lifecycle. Post-contract analysis would be needed to definitively assess its overall scientific return and technical success relative to its ambitious goals and substantial investment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTSpace 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: $402,584,801

Exercised Options: $402,584,801

Current Obligation: $393,073,909

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-23

Current End Date: 2012-09-30

Potential End Date: 2012-09-30 00:00:00

Last Modified: 2020-09-29

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