Space Station

NASA has estimated that it will cost $1.3 billion annually to operate the international space station. However, this amount does not include all funding requirements for space station operations. NASA does not prepare budget estimates on a full-cost basis because it has not completely implemented its full cost accounting system. Additional items that will have to be paid for in the future include upgrading obsolete systems and operating an alternative propulsion module. Also, NASA has not estimated the cost to run an alternative propulsion module being bought to provide reboost if Russia is unable to deliver that equipment. Items that GAO found were being funded in other NASA budget lines include space shuttle flights, civil service personnel, principal investigations, and space communications. These are estimated to cost $2.5 billion in 2004. When NASA implements full cost accounting in 2001, some costs now in other NASA budget lines will be included in the space station budget. In commenting on GAO's draft report, NASA said that shuttle flights should be allocated to the overall cost of operating the space station using a marginal cost of $84 million per flight rather than an average cost of $435 million. GAO believes that the average cost per flight more accurately represents the resources NASA will spend to run the space station. Moreover, there is a high degree of uncertainty in NASA's estimate for the cost to run the space station from 2005 to 2014. Not enough information exists to determine the amount that NASA funding requirements could be reduced by international partners' contributions toward common operating costs.

GAO noted that: (1) NASA's $1.3 billion estimate does not include all funding requirements related to space station operations; (2) additional items that will have to be funded in the future within the space station budget include costs for upgrading obsolete systems and operating an alternative propulsion module; (3) NASA has not developed detailed estimates for potential upgrades to combat component obsolescence and improve performance, but space station officials believe that a robust enhancement program could cost $100 million or more per year; (4) NASA has not estimated the cost of operating an alternative propulsion module being procured to provide reboost if Russia is unable to provide that function; (5) items that GAO determined to be space station-related that are funded in other NASA budget lines include space shuttle flights, civil service personnel, principal investigators, and space communications; these are estimated to cost a total of $2.5 billion in fiscal year 2004; (6) there is a high degree of uncertainty in NASA's estimate for the cost to operate the space station from 2005 to 2014; (7) NASA's original estimate of $13 billion for operating the space station was developed to aid in evaluating life-cycle costs of redesign options rather than to accurately forecast budget needs; (8) this estimate did not consider end-of-mission costs for either extending the life of the space station beyond 10 years or decommissioning it; (9) adding to the uncertainty of future costs, the full impact on operations if Russia is unable to fulfill its obligations is not known at this time; (10) NASA would incur costs to operate an alternative propulsion module, but does not yet know whether there will be a shortfall in Russian logistics flights or how such a shortfall would be spread among the shuttle and international partner resupply vehicles; (11) there is insufficient information at this time to determine the amount that NASA funding requirements could be reduced by international partners' contributions toward common operating costs; (12) in sharing operating responsibilities for the space station, NASA and Russia have agreed to exchange services rather than funds; (13) however, NASA and Russia may not be able to achieve a balance in the services provided to each other if Russia cannot fulfill its obligations; (14) NASA's share of common operating costs has increased and could change again if international partners revise their participation in the space station program; and (15) allowing partners to pay common costs with services may not reduce NASA funding requirements.