Space Programs

The Advisory Committee on the Future of the U.S. Space Program recommended in December 1990 that the National Aeronautics and Space Administration (NASA) establish an independent cost analysis group to advise on cost estimates provided to Congress and the Office of Management and Budget. NASA's efforts to date have not met the committee's intent, although the agency recently announced plans that may be more responsive. NASA's initial actions were deficient because (1) results of formal cost review were reported to program officials rather than directly to the head of NASA; (2) advice provided to the head of NASA on cost estimates was informal and undocumented; (3) cost estimates were reviewed only at the start of new initiatives, not at all major decision points over a program's life; and (4) the cost analysis group did not have adequate staff to do independent estimates at all major decision points. NASA recently announced plans to establish a new independent cost assessment group to be staffed with enough resources to function as envisioned by the committee.

GAO found that: (1) NASA actions to implement an independent cost estimating function did not meet the intent of the committee's recommendation; (2) NASA reported results of formal cost reviews to program officials rather than directly to the Administrator; (3) estimates and advice provided to the Administrator were undocumented; (4) NASA reviewed cost estimates only at the start of new initiatives, not at all major decision points over a program's life span; and (5) the cost analysis group did not have adequate staff to perform independent estimates at all major decision points.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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