NASA OIG Criticizes Current JPL Contract

NASA OIG: NASA Should Reconsider the Award Evaluation Process and Contract Type for the Operation of the Jet Propulsion Laboratory (Redacted)

"NASA can improve its management of the JPL contract:

- NASA's overall assessment of contractor performance may have been overstated because the Agency's performance evaluations for fiscal year (FY) 2007 were incomplete or did not otherwise comply with its guidance.
- The contractor's poor performance on a large, significant project was offset in NASA's assessment by higher performance on smaller projects because the Agency did not use proportional weighting in its evaluations.
- NASA's award of $16 million in fees and 27 months of contract term extensions, value at $3.375 billion, were unsupported because the Agency's performance evaluation factors did not include an assessment of required cost control measures.
- NASA does not have assurance that the existing contract still meets its needs or provides the best value for the taxpayer because the Agency did not fully comply with Federal Acquisition Regulation (FAR) requirements for a 5-year comprehensive review of the use and need for the FFRDC.
- NASA's use of a single CPAF contract for all aspects of the FFRDC creates a significant administrative and management burden for the Agency that is unnecessary given that there is a basis for the contracting officer to establish fair and reasonable prices for routine operations and maintenance of the facility."

NASA audit criticizes contract awarded to Caltech for the operation of JPL, Pasadena Star News

"Officials from JPL and Caltech declined to comment on the report."


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JPL has world class engineers but JPL management needs to be replaced. What the JPL workers send to their management is NOT what goes to NASA HQ. The ridiculous number of reviews that MSL has had for overruns is a reason to cancel it. JPL insiders have already said they expect to request an augmentation in the next couple months. SMAP is another mission with management game playing.

The worst part of this contract with NASA is Elachi gets to sit on the NASA Management Councils yet APL doesn't. APL is an URDC but doesn't get the benefits JPL does. In fact APL has to report to a center programs and doesn't have the direct link that JPL does to HQ.

Bottom line - the JPL management needs to be replaced. They constantly manipulate the truth of their projects to NASA HQ to piecemeal funding to their Lab for the broken projects. However, NASA HQ are partially to blame for allowing JPL to continuously get away with this behavior.

I find it odd that while showing MSL's failings when weighting the projects under the Mars Program's perfomance (page 18 in the pdf) it excludes Mars Odyssey and the Mars Exploration Rovers.

Seems if weighted scores are to be examined, the least the report can do is include all projects inside a program.

...and the beat goes on. JPL does do good work, however its ability to operate as it does is getting very old for the agency.

I agree some form of change would be good for JPL and NASA.

If the NASA OIG criticizes the way JPL is operated by NASA, let's hope it also does a complete job and looks at how the in-house NASA Centers are operated. At least JPL runs under full-cost accounting, so everybody knows what things really cost. Constellation, Shuttle, Hubble, and countless other NASA projects operated by JSC, MSFC, KSC, and GSFC only report a portion of their costs, with everything else being lumped into agency overhead.

I would suggest that people living in glass houses stop throwing stones. While some of JPL's projects have gone over budget, NASA know the real cost numbers and can apply real fixes. When Constellation and other programs go south, we're only seeing the tip of the overrun iceberg.

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richard: "If the NASA OIG criticizes the way JPL is operated by NASA, let's hope it also does a complete job and looks at how the in-house NASA Centers are operated."

A few years ago NASA was moving toward full cost accounting across the agency. Perhaps it was under O'Keefe? Can't remember now. Anyway, it was canned. Never knew why, but I'm guessing the centers were afraid of the fallout when everyone had to be above board about true costs. I still think full cost accounting across the agency is a good idea. Especially when centers end up competing for funding. Perhaps another reason was NASA's archaic financial reporting system, which I believe NASA still gets low marks on.

@richard
I was wondering what the heck JPL did to CxP - it seems like it's been getting picked on alot, but I'm not familiar with JPL much less insider politics there. But seems odd from the outside that 1st there was the invasive personnel thing that went to court, then this stuff.

@full cost accounting
Agree. Not sure, but thought that in Shuttle anyways, the contractor (USA) was maintaining full cost accounting for NASA, at least on the Direct Shuttle stuff. Thought that was part of their Logistics, Procurement, & Program Controls functions? The NASA overhead blackhole was only for non-direct stuff?

But maybe the "GFE+no bid FTEs from multi-contractors" trend in creative CxP (no)contract management has muddied all that up?

JPL(NASA) have done some really great work over the years. However, JPL really needs a change in mode of operations. However, humility has never been a JPL strong suit. And "change" won't come easy for those rascals. Lots of taxpayer dollars going down the tubes because of the 'ole project management practices at JPL. But in true JPL style -of arrogance and myopia - they keep on keep'n on. Actually, all of the NASA funded centers can't manage themselves well and quite frankly changing accounting practices won't cure what confounds them. Tough love by NASA = let them all go!!!! The strongest will prevail and that's where the real breakthroughs will happen in aviation, space, and earth sciences. Good luck!!!!!!

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