NASA's Mars Science Laboratory contract awarded to California Institute of Technology for over $1.7 billion

Contract Overview

Contract Amount: $1,725,568,202 ($1.7B)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-30

End Date: 2012-09-30

Contract Duration: 3,288 days

Daily Burn Rate: $524.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: MARS SCIENCE LABORATORY

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $1.73 billion to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: MARS SCIENCE LABORATORY Key points: 1. Contract value exceeds $1.7 billion, indicating a significant investment in advanced scientific research. 2. Sole-source award suggests unique capabilities or a lack of market alternatives for this specific project. 3. Long contract duration of over 9 years implies a complex, multi-phase research and development effort. 4. The contract type (Cost Plus Award Fee) incentivizes performance while allowing for cost flexibility. 5. This project represents a substantial commitment to space exploration and planetary science. 6. The awardee's extensive experience in scientific research likely influenced the sole-source decision.

Value Assessment

Rating: good

Benchmarking the value of a sole-source R&D contract like the Mars Science Laboratory is challenging due to its unique nature. However, the extensive scope and duration suggest a substantial investment commensurate with the complexity of developing and operating a Mars rover mission. The Cost Plus Award Fee structure allows for performance-based incentives, which can drive value, but also carries inherent cost risks. Without comparable sole-source contracts for similar missions, a precise value-for-money assessment is difficult, but the scale of the project implies significant scientific return is expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that NASA did not conduct a competitive bidding process. This typically occurs when a single source possesses unique capabilities, proprietary technology, or is the only entity capable of performing the required work. For a project as specialized and complex as the Mars Science Laboratory, it is plausible that the California Institute of Technology was identified as the sole qualified entity.

Taxpayer Impact: Sole-source awards can limit opportunities for other businesses and potentially lead to higher costs compared to a competitive environment. Taxpayers may not benefit from the price discovery that competition typically provides.

Public Impact

The primary beneficiaries are the scientific community and the public, through advancements in our understanding of Mars. The contract supports the development, testing, and operation of the Mars Science Laboratory mission, including the Curiosity rover. Geographic impact is global, with data shared internationally, though the primary operational base is in California. Workforce implications include highly skilled scientists, engineers, and technicians involved in space exploration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Mars Science Laboratory falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, with a strong emphasis on space exploration and planetary science. This contract represents a significant investment in a highly specialized area of scientific endeavor. Comparable spending benchmarks are difficult to establish due to the unique nature of space missions, but large-scale scientific instruments and missions often involve multi-billion dollar investments over extended periods.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. Given the sole-source nature and the highly specialized requirements of the Mars Science Laboratory mission, it is unlikely that subcontracting opportunities for small businesses would be mandated or extensively utilized, unless specific components or services were identified as suitable for such set-asides by the prime contractor.

Oversight & Accountability

Oversight for this contract would be provided by NASA, likely through program management offices and contracting officers responsible for monitoring progress, costs, and performance against award fee criteria. Transparency is generally high for NASA flagship missions due to public interest, with regular mission updates and scientific findings disseminated. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

nasa, mars-science-laboratory, california-institute-of-technology, research-and-development, space-exploration, sole-source, cost-plus-award-fee, large-contract, planetary-science, california, nasa-jet-propulsion-laboratory

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $1.73 billion to CALIFORNIA INSTITUTE OF TECHNOLOGY. MARS SCIENCE LABORATORY

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 $1.73 billion.

What is the period of performance?

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

What is the track record of the California Institute of Technology in managing large-scale NASA contracts?

The California Institute of Technology (Caltech) has an extensive and highly successful track record in managing complex NASA projects, particularly in space science and engineering. As the operator of NASA's Jet Propulsion Laboratory (JPL), Caltech has been responsible for numerous groundbreaking missions, including the Voyager, Galileo, Cassini, and Mars Exploration Rover programs. Their deep expertise in scientific research, mission design, and project management makes them a trusted partner for NASA's most ambitious endeavors. The successful execution of the Mars Science Laboratory mission, despite its complexity and cost, further solidifies Caltech's reputation for delivering exceptional scientific and engineering outcomes on behalf of the agency.

How does the $1.7 billion contract value compare to other major NASA science missions?

The $1.7 billion contract value for the Mars Science Laboratory is substantial and aligns with the typical investment scale for NASA's flagship science missions. For context, the James Webb Space Telescope (JWST) had an estimated total cost of around $10 billion. The Cassini-Huygens mission to Saturn had a total cost of approximately $3.26 billion. The Juno mission to Jupiter cost around $1.1 billion. Therefore, the Mars Science Laboratory's cost is within the expected range for complex, multi-year robotic space exploration endeavors that involve significant technological development, instrument design, and mission operations over extended periods.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for a mission like Mars Science Laboratory?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for a mission like the Mars Science Laboratory revolve around cost control and performance management. While CPAF incentivizes performance through award fees, it also provides cost reimbursement plus a fee that is subject to adjustment based on performance. This can lead to potential cost overruns if the base cost estimates are inaccurate or if unforeseen technical challenges arise, increasing the total cost to the government. Effective oversight is crucial to ensure that the contractor is managing costs diligently and that award fees are appropriately tied to measurable performance objectives. There's also a risk that the contractor might prioritize achieving award fee criteria over other critical, but less directly incentivized, aspects of the mission.

What is the expected program effectiveness and scientific return from the Mars Science Laboratory?

The Mars Science Laboratory, carrying the Curiosity rover, has been exceptionally effective in achieving its scientific objectives. Its primary goal was to determine if Mars is, or ever was, capable of supporting microbial life. Curiosity has successfully analyzed rocks and soil, finding evidence of ancient habitable environments, including the presence of key chemical ingredients for life and a past environment that was chemically and physically suitable for microbial life. The rover's sophisticated instruments have provided unprecedented data on Martian geology, atmosphere, and radiation environment. The scientific return has been immense, significantly advancing our understanding of Mars' potential habitability and paving the way for future exploration missions.

How has NASA's spending on Mars exploration evolved over time, and where does MSL fit in?

NASA's spending on Mars exploration has evolved significantly, starting with early flyby and orbiter missions and progressing to increasingly complex landers and rovers. The Mars Science Laboratory (MSL) represents a major leap in capability and cost compared to earlier missions like the Mars Exploration Rovers (Spirit and Opportunity), which were significantly less expensive. MSL's budget of over $1.7 billion reflects a strategic shift towards more ambitious, in-situ scientific investigations aimed at answering fundamental questions about habitability. This investment is part of a broader, sustained commitment to Mars exploration, with subsequent missions like the Mars 2020 Perseverance rover building upon the technological and scientific foundations laid by MSL.

What are the implications of the sole-source award for future Mars missions or similar large-scale R&D projects?

The sole-source award for the Mars Science Laboratory highlights the unique nature of highly specialized, large-scale R&D projects in space exploration. It suggests that for certain cutting-edge endeavors, a single entity may possess the indispensable expertise, infrastructure, or intellectual property required. While this ensures mission success through specialized capability, it also raises questions about market competition and potential cost efficiencies. For future missions, NASA may continue to utilize sole-source awards when justified by unique capabilities, but there will likely be ongoing scrutiny to ensure competition is pursued whenever feasible to maximize value for taxpayers. This award underscores the importance of nurturing diverse capabilities within the aerospace R&D ecosystem.

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: $1,796,821,724

Exercised Options: $1,796,821,724

Current Obligation: $1,725,568,202

Actual Outlays: $897,092

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2003-09-30

Current End Date: 2012-09-30

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

Last Modified: 2021-02-18

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