NASA's JUNO Phase B contract awarded to Caltech for $651.6M, a sole-source R&D effort

Contract Overview

Contract Amount: $651,588,745 ($651.6M)

Contractor: California Institute of Technology

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2005-11-23

End Date: 2011-09-25

Contract Duration: 2,132 days

Daily Burn Rate: $305.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: JUNO PHASE B - MSFC

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $651.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: JUNO PHASE B - MSFC Key points: 1. Contract awarded to a single entity, limiting competitive pricing. 2. Significant R&D spending in the physical sciences sector. 3. Long duration (2132 days) suggests complex, multi-year project. 4. Cost-plus award fee structure incentivizes performance but can increase costs.

Value Assessment

Rating: questionable

The cost-plus award fee structure, while incentivizing, can lead to higher final costs compared to fixed-price contracts. Benchmarking is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning NASA did not solicit bids from multiple vendors. This lack of competition limits price discovery and potentially leads to higher costs.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than if the contract had been competitively bid.

Public Impact

Supports advanced scientific research and development in space exploration. Potential for groundbreaking discoveries in physical and engineering sciences. Long-term project requiring sustained funding and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement and scientific discovery, often characterized by high risk and long development cycles.

Small Business Impact

The data indicates no specific allocation or mention of small business participation in this contract. Larger, sole-source R&D contracts often do not prioritize small business subcontracting unless explicitly mandated.

Oversight & Accountability

The long duration and cost-plus nature of this contract necessitate robust oversight from NASA to ensure project milestones are met and costs remain controlled. Tracking performance against award fee criteria is essential.

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 $651.6 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. JUNO PHASE B - MSFC

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 $651.6 million.

What is the period of performance?

Start: 2005-11-23. End: 2011-09-25.

What specific research objectives were achieved under JUNO Phase B, and how did they align with NASA's strategic goals?

The JUNO Phase B contract supported the initial design, development, and testing phases for NASA's Juno mission to Jupiter. Its objectives included refining the spacecraft's scientific instruments, ensuring mission readiness, and finalizing the mission architecture to maximize scientific return within budget and schedule constraints, aligning with NASA's exploration and scientific discovery goals.

Given the sole-source nature, what mechanisms were in place to ensure cost reasonableness and prevent potential overruns?

As a sole-source contract, cost reasonableness was likely managed through detailed negotiation, independent cost estimates by NASA, and rigorous oversight of expenditures. The Cost Plus Award Fee (CPAF) structure incentivized contractor performance against defined criteria, with fee determination based on NASA's evaluation of performance, providing some control over costs tied to outcomes.

How did the Cost Plus Award Fee (CPAF) structure influence the project's execution and ultimate cost compared to other contract types?

The CPAF structure aimed to balance flexibility for R&D with cost control by linking a portion of the contractor's profit to performance metrics. While it incentivized meeting technical and schedule goals, it also allowed costs to fluctuate based on performance, potentially leading to higher final costs than a fixed-price contract if performance was exceptionally high or if cost overruns occurred and were subsequently awarded.

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: $678,019,000

Exercised Options: $678,019,000

Current Obligation: $651,588,745

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NAS703001

IDV Type: IDC

Timeline

Start Date: 2005-11-23

Current End Date: 2011-09-25

Potential End Date: 2011-09-25 00:00:00

Last Modified: 2021-02-17

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