Correct me if I’m wrong, but does that mean Caltech gets to prevent the public release of software taxpayers have funded through NASA (unless excepted by the tech transfer dept)?
Once upon a time, before the internet and open source were a thing, leaving copyright and patents with the university was believed to be the best way to make innovation broadly available. The theory was it gave the university an incentive to publicize and license tech. Otherwise the fear was that government funded research would never be transferred to industry. This may no longer be the old or best solution but it is the system in place.
IME (and I've worked on a number of federally funded projects at this point, both in and out of academia), these contracts typically get written such that the institution retains all rights to the software, but grants the US government unlimited rights to use the software.
(I will note that it's also not unheard of for these contracts to stipulate that the end product becomes open source-- software I've worked on that was funded through DARPA is up on GitHub, for example.)