NASA
Issues Surrounding the Transition from the Space Shuttle to the Next Generation of Human Space Flight Systems Gao ID: GAO-07-595T March 28, 2007On January 14, 2004, the President announced a new Vision for space exploration that directs the National Aeronautics and Space Administration (NASA) to focus its efforts on returning humans to the moon by 2020 in preparation for future, more ambitions missions. Implementing the Vision will require hundreds of billions of dollars and a sustained commitment from multiple administrations and Congresses. Some of the funding for implementing exploration activities is expected to come from funding freed up after the retirement of the Space Shuttle, scheduled for 2010, and projected termination of U.S. participation in the International Space Station by 2016. Congress, while supportive of the effort has voiced concern over the potential gap in human space flight. In the NASA Authorization Act of 2005, Congress stated that it is the policy of the United States to have the capability for human access to space on a continuous basis. NASA has made it a priority to minimize the gap to the extent possible. GAO provides no recommendations in this statement. However, GAO continues to emphasize that given the Nation's fiscal challenges and NASA's past difficulty developing systems within cost, schedule, and performance parameters, it is imperative that the agency adequately manage this transition in a fiscally competent and prudent manner.
NASA is in the midst of a transition effort of a magnitude not seen since the end of the Apollo program and the start of the Space Shuttle Program more than 3 decades ago. This transition will include a massive transfer of people, hardware, and infrastructure. Based on ongoing and work completed to-date, we have identified a number of issues that pose unique challenges to NASA as it transitions from the shuttle to the next generation of human space flight systems while at the same time seeking to minimize the time the United States will be without its own means to put humans in space. These issues include: sustaining a viable workforce; effectively managing systems development efforts; managing the supplier base; providing logistical support to the International Space Station; identifying and disposing of property and equipment; ensuring adequate environmental remediation; and transforming its business processes and financial management system. NASA already has in place many processes, policies, procedures and support systems to carry out this transition. However, successful implementation of the transition will depend on thoughtful execution and effective oversight. How well NASA overcomes some of the challenges we have identified will not only have an effect on NASA's ability to effectively manage the gap in the U.S. human access to space, but will also affect the agency's ability to secure a sound foundation for the President's space exploration policy.
GAO-07-595T, NASA: Issues Surrounding the Transition from the Space Shuttle to the Next Generation of Human Space Flight Systems
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Testimony before the Subcommittee on Space, Aeronautics, and Related
Sciences, Committee on Commerce, Science and Transportation, U.S.
Senate:
United States Government Accountability Office:
GAO:
For Release on Delivery Expected at 2:30 p.m. EDT:
Wednesday, March 28, 2007:
NASA:
Issues Surrounding the Transition from the Space Shuttle to the Next
Generation of Human Space Flight Systems:
Statement of Allen Li, Director Acquisition and Sourcing Management:
GAO-07-595T:
GAO Highlights:
Highlights of GAO-07-595T, a testimony before the Subcommittee on
Space, Aeronautics, and Related Sciences, Committee on Commerce,
Science and Transportation, U. S. Senate
Why GAO Did This Study:
On January 14, 2004, the President announced a new Vision for space
exploration that directs the National Aeronautics and Space
Administration (NASA) to focus its efforts on returning humans to the
moon by 2020 in preparation for future, more ambitions missions.
Implementing the Vision will require hundreds of billions of dollars
and a sustained commitment from multiple administrations and
Congresses. Some of the funding for implementing exploration activities
is expected to come from funding freed up after the retirement of the
Space Shuttle, scheduled for 2010, and projected termination of U.S.
participation in the International Space Station by 2016. Congress,
while supportive of the effort has voiced concern over the potential
gap in human space flight. In the NASA Authorization Act of 2005,
Congress stated that it is the policy of the United States to have the
capability for human access to space on a continuous basis. NASA has
made it a priority to minimize the gap to the extent possible. GAO
provides no recommendations in this statement. However, GAO continues
to emphasize that given the Nation‘s fiscal challenges and NASA‘s past
difficulty developing systems within cost, schedule, and performance
parameters, it is imperative that the agency adequately manage this
transition in a fiscally competent and prudent manner.
What GAO Found:
NASA is in the midst of a transition effort of a magnitude not seen
since the end of the Apollo program and the start of the Space Shuttle
Program more than 3 decades ago. This transition will include a massive
transfer of people, hardware, and infrastructure. Based on ongoing and
work completed to-date, we have identified a number of issues that pose
unique challenges to NASA as it transitions from the shuttle to the
next generation of human space flight systems while at the same time
seeking to minimize the time the United States will be without its own
means to put humans in space. These issues include: sustaining a viable
workforce; effectively managing systems development efforts; managing
the supplier base; providing logistical support to the International
Space Station; identifying and disposing of property and equipment;
ensuring adequate environmental remediation; and transforming its
business processes and financial management system.
NASA already has in place many processes, policies, procedures and
support systems to carry out this transition. However, successful
implementation of the transition will depend on thoughtful execution
and effective oversight. How well NASA overcomes some of the challenges
we have identified will not only have an effect on NASA‘s ability to
effectively manage the gap in the U.S. human access to space, but will
also affect the agency‘s ability to secure a sound foundation for the
President‘s space exploration policy.
Figure: Moving to the Next Generation of human space flight vehicles:
[See PDF for Image]
Source: NASA images; GAO graphic.
[End of figure]
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-595T].
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Allen Li at (202) 512-
4841 or lia@gao.gov.
[End of section]
Mr. Chairman and Members of the Subcommittee:
Thank you for inviting me to discuss the challenges faced by the
National Aeronautics and Space Administration (NASA) in transitioning
from the space shuttle to the next generation of human space flight
systems. In 2004, the President established a new exploration policy--
A Renewed Spirit of Discovery: The President's Vision for U.S. Space
Exploration (Vision)--which calls for the retirement of the space
shuttle and the development of a new family of exploration systems.
NASA's implementation of the Vision is expected to cost hundreds of
billions of dollars. A NASA effort of this size and scope has not been
seen since the end of the Apollo program and the start of the Space
Shuttle Program more than 3 decades ago. The transition includes a
massive transfer of people, hardware, and infrastructure. Although NASA
has in place many processes, policies, procedures, and support systems
to carry out this effort, successful transition will depend on
thoughtful execution and effective oversight.
The need for NASA to implement the Vision in a fiscally prudent and
effective manner cannot be overemphasized given the competing fiscal
demands facing the federal government and an already troubling funding
profile projected for human spaceflight activities. We have issued a
number of reports that touch on various aspects of retiring the space
shuttle and transitioning its assets and people to exploration
activities. These reports have questioned the affordability of the
exploration program, NASA's acquisition strategy for the development of
new space vehicles, agencywide contract management, and workforce
planning for current and future agency needs. We also have an ongoing
body of work being performed at the request of the House Committee on
Science and Technology regarding effective management of the industrial
base, development of the Ares I Crew Launch Vehicle, and the logistical
support needed by the International Space Station (ISS). In addition,
at the request of the Senate Committee on Homeland Security and
Governmental Affairs, Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia, we are
reviewing NASA's ability to attract and retain a skilled workforce. My
statement today will focus on the overarching challenges that NASA
faces in transitioning from the shuttle to the next generation of human
space flight systems and will discuss our prior work on shuttle
workforce and development of the Orion Crew Exploration Vehicle, one of
the agency's complex programs. I will also discuss areas where we have
related ongoing work.
This testimony is based on work conducted in accordance with generally
accepted government auditing standards.
Summary:
NASA faces numerous challenges as it transitions from the Space Shuttle
Program to the next generation of human space flight systems. We have
undertaken a body of work over the past 3 years that has highlighted
two of these challenges--sustaining the shuttle workforce and
developing new systems. Sustaining the shuttle workforce through
retirement and ensuring that the workforce is available to support
future exploration activities presents an enormous challenge for NASA.
In 2005, we reported that NASA has made limited progress toward
developing a detailed strategy to retain a critically skilled workforce
for shuttle operations. We recommended that the agency begin
identifying the shuttle program's future workforce needs. NASA has
recognized that shuttle workforce management and critical skills
retention will be a major challenge and has taken action to address
this issue. In 2006, we reported that NASA's acquisition strategy for
the Orion Crew Exploration Vehicle was risky because it committed the
government to a long-term contract before establishing a sound business
case. We recommended that NASA modify the current Orion Crew
Exploration Vehicle acquisition strategy to ensure that the agency does
not commit itself to a long-term contractual obligation prior to
establishing a sound business case. Although it initially disagreed
with our recommendation, NASA subsequently revised its acquisition
strategy to address some of the concerns we raised.
We are currently conducting a body of work relating to the transition,
including NASA's management of the supplier base, development of the
Crew Launch Vehicle, and logistical support of the space station. Our
work to date has also identified other issues that NASA will face
during the transition, including disposing of property and equipment,
completing environmental clean up, managing the overall workforce, and
integrating financial information into how NASA does business. Each
area contains its own set of unique challenges, but they are all
critical to NASA's overall transition effort and will require
significant management attention.
Background:
The President's Vision for Space Exploration for NASA announced in 2004
calls for the retirement of the shuttle upon completion of the ISS and
the creation of new vehicles for human space flight that will allow a
return to the moon by 2020 and voyages to Mars and points beyond. The
shuttle manifest currently consists of 16 flights--15 to complete
assembly and integration of the ISS and a servicing mission[Footnote 1]
to the Hubble Space Telescope. The first new space vehicles currently
are targeted to begin operating no later than 2014--thereby creating a
potential gap in U.S. human space flight. Congress has voiced concern
over the United States not having continuous access to space. NASA has
made it a priority to minimize the gap to the extent possible.
NASA has begun planning for the retirement of the shuttle, scheduled
for 2010, by identifying best practices in closing facilities and the
transitioning of capabilities. Specifically, NASA has conducted a
number of benchmarking studies of previous closures and realignment of
large programs, including the Titan IV rocket fly-out, the F/A-18 C/D
fighter production close, and the Navy Base Realignment and Closure
activities. The benchmarking efforts have highlighted to NASA the
importance of having a plan, effective communication, human capital
management, and effective program management tools. NASA's benchmarking
effort also showed that closing and transitioning facilities,
equipment, and people is expensive and time consuming. Among the
lessons learned is that, historically, it has taken 3.5 years to close
down an installation and another 3 years to complete the transition of
the property. NASA's Office of the Inspector General has recently
reviewed NASA's plan for the space shuttle transition and recommended,
among other improvements, that the two affected space directorates
finalize and implement the Human Space Flight Transition Plan.[Footnote
2]
Development of the Orion crew capsule, Ares I launch vehicle, and other
exploration systems needed to implement the Vision is dependent on a
"go as you can afford to pay" approach, wherein lower-priority efforts
will be deferred, descoped, or discontinued to allow NASA to stay
within its available budget profile. In recent testimony, the NASA
Administrator said that the cost associated with returning the shuttle
to flight, continued shuttle operations, and recent budget reductions
had the combined effect of increasing the gap by delaying the first
manned Orion test flight by 6 months.
In an effort to address the gap in U.S. capability to resupply the
space station following retirement of the shuttle, NASA is investing in
commercial space transportation services. NASA's expectation is that by
acquiring domestic orbital transportation services it will be able to
send cargo and, in the future, transport crews to the ISS in a cost-
effective manner. NASA refers to this as the Commercial Orbital
Transportation Services project. The project is in the early stages of
development. Should these commercial services prove to be unreliable or
more costly than anticipated, NASA will need to purchase space
transportation from its international partners to meet obligations to
the ISS until the new Orion spacecraft become operational.
NASA Faces Significant Challenges in Retiring the Space Shuttle Program
and Transitioning to Exploration Activities:
We have undertaken a substantial body of work over the past 3 years
that has highlighted the significant challenges that NASA will face as
it retires the shuttle and transitions to exploration activities. One
key challenge is sustaining the shuttle workforce through the
retirement of the shuttle while ensuring that a viable workforce is
available to support future activities. Another key challenge will be
developing the Orion Crew Exploration Vehicle within cost, schedule,
and performance goals. Additionally, our ongoing work has identified a
number of other areas that may present challenges during the transition
period. Some of these challenges include managing the supplier base to
ensure its continued viability, developing the Ares I Crew Launch
Vehicle, and completing and supporting the space station.
Maintaining a Skilled Workforce:
The Space Shuttle Program's workforce is critical to the success of the
Vision. The shuttle workforce currently consists of approximately 2,000
civil service and 15,000 contractor personnel, including a large number
of engineers and scientists. In 2005, we reported that NASA had made
limited progress toward developing a detailed strategy for sustaining a
critically skilled shuttle workforce to support space shuttle
operations. We reported that significant delays in implementing a
strategy to sustain the shuttle workforce would likely lead to larger
problems, such as funding and failure to meet NASA program schedules.
Accordingly, we concluded that timely action to address workforce
issues is critical given their potential impact on NASA-wide goals such
as closing the gap in human spaceflight.
When we performed our work several factors hampered the ability of the
Space Shuttle Program to develop a detailed long-term strategy for
sustaining the critically skilled workforce necessary to support safe
space shuttle operations through retirement. For example, at that time,
the program's focus was on returning the shuttle to flight, and other
efforts such as determining workforce requirements were delayed. In our
report, we recommended that NASA begin identifying the Space Shuttle
Program's future workforce needs based upon various future scenarios.
Scenario planning could better enable NASA to develop strategies for
meeting future needs. NASA concurred with our recommendation. It has
acknowledged that shuttle workforce management and critical skills
retention will be a major challenge for the agency as it progresses
toward retirement of the space shuttle and has taken action to address
this issue. For example, since we made our recommendation, NASA has
developed an agencywide strategic human capital plan and developed
workforce analysis tools to assist it in identifying critical skills
needs. NASA has also developed a human capital plan specifically for
sustaining the shuttle workforce through the retirement and, then
transitioning the workforce.
Additionally, in March 2006, the Senate Appropriations Subcommittee on
Commerce, Justice, Science, and Related Agencies, and NASA asked the
National Academy of Public Administration (NAPA) to assist the agency
in planning for the space shuttle's retirement and transition to future
exploration activities. In February 2007, a NAPA panel recommended that
the Space Shuttle Program adopt a RAND model for projecting a core
workforce because of its emphasis on "long-term scheduling projections,
quantification of core competencies and proficiencies, and analysis of
overlapping mission needs."[Footnote 3] Under the RAND model, an
organization maintains a core capability for any competency that will
be needed in the future. According to NAPA, this model is useful where
a given expertise is not immediately required, but is likely to be
needed in the future--in this case, for the Orion Crew Exploration
Vehicle.
Developing New Exploration Systems:
In July 2006, we reported that NASA's acquisition strategy for the
Orion Crew Exploration Vehicle placed the project at risk of
significant cost overruns, schedule delays, and performance shortfalls
because it committed the government to a long-term contract before
establishing a sound business case.[Footnote 4] Our past work has shown
that developing a sound business case--one that matches requirements to
available and reasonably expected resources before committing to a new
product development effort--reduces risk and increases the likelihood
of successful outcomes.[Footnote 5] For a program to increase its
chances of success, high levels of knowledge should be demonstrated
before significant commitments are made (i.e., they should be following
a knowledge-based approach to product development).
At the time of our report, NASA had yet to develop key elements of a
sound business case, including well-defined requirements, mature
technology, a preliminary design, and firm cost estimates that would
support its plans for making a long-term commitment. Without such
knowledge, NASA cannot predict with any confidence how much the program
will cost, what technologies will or will not be available to meet
performance expectations, and when the vehicle will be ready for use.
NASA acknowledged that it would not have these elements in place until
the project's Preliminary Design Review scheduled for fiscal year 2008.
As a result, we recommended that the NASA Administrator modify the
agency's acquisition strategy for the Orion Crew Exploration Vehicle to
ensure that the agency does not commit itself, and in turn the federal
government, to a long-term contractual obligation prior to establishing
a sound business case at the project's Preliminary Design Review.
Although it initially disagreed with our recommendation, NASA
subsequently took steps to address some of the concerns we raised.
Specifically, NASA modified its acquisition strategy for the Orion
project and changed the production and sustainment portions of the
contract into options. The agency will decide whether to exercise these
options after the project's critical design review in 2009. While these
changes are in line with our recommendation and a step in a positive
direction, we continue to believe NASA's acquisition strategy is risky
because it does not fully conform to a knowledge-based acquisition
approach. Attempting to close that gap by pushing forward development
of the Orion Crew Exploration Vehicle without first obtaining the
requisite knowledge at key points could very well result in the
production of a system that not only does not meet expectations but
ends up costing more and actually increases the gap.
Since we last testified on this subject in September 2006,[Footnote 6]
NASA has successfully completed its first major milestone for the Orion
project. It has completed the Systems Requirements Review.[Footnote 7]
This was a major step toward obtaining the information critical for
making informed decisions. According to NASA's Orion contracting
officer, NASA is also in the process of renegotiating the Orion
contract to extend the Initial Operational Capability date of the
system to 2014. Further, while this change will increase contract
costs, the increase has already been accounted for in the Orion budget
because the agency has been planning the change for over a year. In
addition, risks associated with schedule, cost, and weight continue to
be identified for the Orion project.
As we have previously testified, sound project management and oversight
will be key to addressing the risks that remain for the Orion project
as it proceeds with its acquisition approach. To help mitigate the
risks, we have recommended in the past that NASA have in place markers
(i.e., criteria) to assist decision makers in their monitoring of the
project at key junctures in the development process. Such markers are
needed to provide assurance that projects are proceeding with and
decisions are being based upon the appropriate level of knowledge and
can help to lessen project risks. NASA has recently issued its updated
program and project management requirements for flight systems in
response to our recommendation. Changes to the policy,[Footnote 8]
including the incorporation of key decision points throughout the
project development life cycle, should provide an avenue for decision
makers to reassess project decisions at key points in the development
process to ensure that continued investment is appropriate. However, it
should be noted that implementation of the policy in a disciplined
manner will ensure success, not the existence of the policy itself.
Currently, we are evaluating the development of NASA's latest human-
rated launch vehicle--the Ares I Crew Launch Vehicle. When completed,
the Ares I vehicle will be capable of delivering the Orion spacecraft
to low earth orbit for ISS missions and for exploration missions to the
moon. As initially conceived by NASA in the Exploration Systems
Architecture Study completed in 2005, the Ares I design would rely on
the existing solid rocket boosters and main engines from the space
shuttle as major components of its two stages. The current design for
the Ares I, however, diverges from the initial design set forth in the
architecture study and now includes elements from the Apollo-era Saturn
V launch vehicle. Current plans are for Ares I to evolve the solid
rocket boosters from the Space Shuttle Program from four segments to
five segments and to build a new upper-stage engine based on an
original Saturn V design. NASA maintains that these changes are
necessary to increase commonality between the Ares I and the planned
Ares V cargo launch vehicle and to reduce overall development costs for
implementing the Vision. As NASA's design for the Ares I continues to
evolve, careful planning and coordination between the Orion and Ares I
development teams will be critical to ensuring that current
developmental efforts result in hardware that satisfies the future
requirements of these systems. Subsequently, any development problems
on either of these systems could result in increasing the gap.
Our ongoing work is aimed at assessing whether NASA's acquisition
strategy for Ares I reflects the effect of changes to the Ares I design
incorporated since the Ares I was first conceived in the Exploration
Systems Architecture Study as a shuttle-derived alternative. Also, we
are evaluating the extent to which NASA's Ares I acquisition strategy
incorporates knowledge-based concepts designed to minimize technical
and programmatic risk.
The Orion Crew Exploration Vehicle and the Ares I Crew Launch Vehicle
are the first in a series of new systems to be developed in support of
exploration activities. NASA's careful management of these projects
must preclude historical instances of cost and schedule growth. Indeed,
while NASA has had many successes in the exploration of space, such as
landing the Pathfinder and Exploration Rovers on Mars, NASA has also
experienced its share of unsuccessful missions, unforeseen cost
overruns, and difficulty bringing a number of projects to completion.
For example, NASA has made several attempts to build a second
generation of reusable human spaceflight vehicle to replace the space
shuttle, such as the National Aero-Space Plane, the X-33 and X-34, and
the Space Launch Initiative, that never accomplished its objective of
fielding a new reusable space vehicle. We estimate that these
unsuccessful development efforts have cost approximately $4.8 billion
since the 1980s. The high cost of these unsuccessful efforts and the
potential costs of implementing the Vision make it important that NASA
achieve success in developing new systems for its new exploration
program.
Managing the Supplier Base Throughout Retirement and Transition:
NASA's plans to retire the shuttle have the potential to greatly impact
the supplier base that has been supporting that program for the last
several decades, as well as mold the future supplier base needed for
its exploration program. Over the next few years, NASA will be making
decisions about its supplier base needs, including which suppliers will
be required for the remainder of the Space Shuttle Program, which will
no longer be required for the program, and which will be needed to
support exploration efforts. One concern is that NASA will be unable to
sustain suppliers necessary to support the exploration program during
the period between the shuttle's retirement and resumption of human
space flight. Also of concern is that those suppliers determined by
NASA as not needed for the exploration program will prematurely end
their services, thus jeopardizing the safe and efficient completion of
shuttle activities. In addition, issues such as obsolescence--already
being experienced by some shuttle projects--could have an impact on the
exploration program given the planned use of heritage hardware for some
components of the Constellation projects. In an attempt to address
these potential issues, NASA has been developing and implementing plans
and processes to manage the transition of its supplier base.
We are in the process of assessing how well NASA is positioning itself
to effectively manage its supplier base to ensure both sustainment of
the Space Shuttle Program through its scheduled retirement in 2010 and
successful transition to planned exploration activities.
Providing Logistical Support to the International Space Station:
The shuttle is uniquely suited for transporting crew and cargo to and
from the ISS. However, with scheduled retirement of the shuttle in
2010, NASA and its international partners will be challenged to fully
support ISS operations until 2014, when the new crew exploration
vehicle is scheduled to come on line. To fill this gap, NASA plans to
rely on its international partners and commercial services to provide
ISS logistics and crew rotation.
Two recent studies have raised serious concerns about whether future
ISS operations can be continuously supported. A 2006 report by the
National Research Council noted that the capabilities, schedules, and
funding requirements for NASA, international partners, and commercial
cargo and crew vehicles were not yet firm enough to give the panel
confidence that ISS exploration mission objectives have a high
likelihood of being fulfilled.[Footnote 9] A February 2007 report by
the International Space Station Independent Safety Task Force, which
was required by the NASA Authorization Act of 2005[Footnote 10], noted
that the transition from the space shuttle to post-shuttle systems for
logistical support to the ISS will require careful planning and phasing
of new capabilities. Specifically, care must be taken to ensure
adequate logistics and spares are provided to maintain a viable
station.[Footnote 11] The task force report went on to say that if a
commitment is made to an emerging logistics delivery capability and the
capability does not materialize, then logistical support to the ISS
could be lost for some time, seriously decreasing the utility of the
space station and possibly resulting in its abandonment.
We are reviewing NASA's plans for meeting ISS logistics and maintenance
requirements after the shuttle retires, identifying the main risks to
meeting ISS logistics and maintenance requirements, and assessing
NASA's plans for addressing the risks.
Disposing of Property and Equipment:
NASA has not developed a comprehensive cost estimate for transitioning
or disposing of Space Shuttle Program facilities and equipment. This
poses a financial risk to the agency. As NASA executes the remaining
missions needed to complete the assembly of and provide support for the
ISS, it will simultaneously begin the process of disposing of shuttle
facilities and hardware that the Space Shuttle Program will no longer
need, or, transitioning such facilities and hardware to the other NASA
programs.[Footnote 12] As the ninth largest federal government property
holder, NASA owns more than 100,000 acres, as well as over 3,000
buildings and 3,000 other structures totaling over 44 million square
feet. Currently, the Space Shuttle Program uses 654 facilities valued
in excess of $5 billion. The Space Shuttle Program also manages
equipment dispersed across government and its contractors valued at
more than $12 billion. NASA is in the process of evaluating its Space
Shuttle Program facilities and equipment requirements and identifying
existing facilities and equipment that will no longer be needed to
support shuttle operations. Constellation and other NASA programs will
determine whether they need any of the facilities or equipment released
by the Space Shuttle Program. According to NASA officials, assessments
currently project that only 70 to 80 of the existing facilities are
needed to support the development or operation of future exploration
systems. In cases where facilities or equipment are no longer required
by the Space Shuttle Program, no other use is identified, or it is
selected for disposal, it will transition to the resident NASA field
center for disposition.
It is worth noting that even before the retirement of the shuttle, over
10 percent of NASA's facilities are underutilized or not utilized at
all. One option NASA has is to lease underutilized facilities in
exchange for cash and/or in-kind consideration, such as improvement of
NASA's facilities or the provision of services to NASA. As directed by
the NASA Authorization Act of 2005, we recently reported on NASA's
Enhanced Use-Leasing Program.[Footnote 13] Congress authorized NASA to
employ enhanced-use leasing at two demonstration centers. This allowed
the agency to retain the proceeds from leasing out underutilized real
property and to accept in-kind consideration in lieu of cash for rent.
The act allows NASA to deposit the net proceeds (i.e., net of leasing
costs) in a no-year capital account to use later for maintenance,
capital revitalization, and improvement of the facilities, albeit only
at the demonstration centers--Ames Research Center and Kennedy Space
Center. However, unlike other agencies with enhanced-use leasing
authority, NASA is not authorized to lease back the property during the
term of the lease. Furthermore, we found that the agency does not have
adequate controls in place to ensure accountability and transparency
and to protect the government. We recommended that the NASA
Administrator develop an agencywide enhanced use leasing policy that
establishes controls and processes to ensure accountability and protect
the government's interests including developing mechanisms to keep the
Congress fully informed of the agency's enhanced use leasing activity.
NASA concurred with our recommendations. After not receiving additional
authority in the NASA Authorization Act of 2005, the agency is again
requesting that the Congress extend enhanced use leasing authority to
at least six NASA centers. NASA currently has other leasing
authorities, but they require the agency to return to the U.S. Treasury
any amounts exceeding cost. Further, NASA has indicated that it is
preparing a package of legislative and administrative tools to help in
the transition from the Space Shuttle Program to the Constellation
Program. For example, in addition to requesting authority for increased
use of enhanced use leasing, a NASA official informed us that one tool
the agency might consider pursuing is the ability to keep the funds
within NASA from the sale of facilities and equipment, rather than
returning such funds to the Treasury.
Completing Environmental Clean Up:
NASA does not have a comprehensive estimate of the environmental clean
up costs associated with the transition and disposal of Space Shuttle
Program facilities and equipment. The agency must comply with federal
and state environmental laws and regulations, such as the National
Environmental Policy Act of 1969, as amended,[Footnote 14] the
Resource, Conservation, and Recovery Act of 1976, as amended,[Footnote
15] and the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended,[Footnote 16] in identifying and
mitigating the environmental concerns. Although NASA has an approach
for identifying environmental risks, in our report on major challenges
facing the nation in the 21st century, we pointed out that progress in
cleaning up sites frequently does not meet expected time frames and the
costs dramatically exceed available funding levels.[Footnote 17] For
example, it cost the Titan IV program approximately $300 million over
six years on cleaning facilities, equipment, and tools. At this time,
the extent of the Space Shuttle Program's environmental liabilities is
not yet fully known. Paying for this liability may require a
significant future outflow of funds at the same time that NASA will be
facing many other competing demands for its limited dollars, such as
development of Orion, Ares I, and other exploration projects.
Positioning the Science, Engineering, and Technical Workforce:
As it moves away from flying the shuttle, the NASA acknowledges that it
must realign where necessary and plan for a workforce that will not be
quite as large. NASA projects fewer resources will be required for
operating and sustaining hardware, especially during vehicle processing
and launch operations. The reduction in reusability of future space
systems will also result in less refurbishing. In addition, as new
space systems are designed, emphasis will shift to personnel with
skills in systems development and engineering, program management and
systems integration. Unfortunately, these skills will be in high demand
at a time when other federal agencies and the private sector have
similar needs.
NASA projects that by fiscal year 2012 the total number of personnel
needed to meet its strategic goals will decrease from 18,100 to 17,000.
The agency is taking advantage of the flexibilities outlined in the
NASA Flexibility Act of 2004[Footnote 18] to attract highly qualified
candidates, however, continued buy-outs and the threat of a reduction
in force have created a feeling of instability among the science and
engineering workforce. NASA's senior leaders recognize the need for an
effective workforce strategy in achieving mission success. NASA has a
strategic human capital plan, but more work is needed in workforce
planning and deployment. In addition, NASA's transition to full cost
accounting in fiscal year 2004 resulted in a number of its centers
experiencing less than Full Time Equivalent utilization, a situation
referred to by NASA as "uncovered capacity." The Administrator has
committed to operating and maintaining 10 centers and transferred work
to those centers with identified uncovered capacity.
We are examining whether several federal agencies, including NASA, are
taking sufficient steps to address their workforce challenges in a
timely and comprehensive manner, while sustaining focus on its mission
and programmatic goals. Specifically, we are assessing the extent to
which NASA's human capital framework is aligned with its strategic
mission and programmatic goals; whether NASA is effectively recruiting,
developing, and retaining critically skilled staff; and what internal
or external challenges NASA faces in achieving its workforce needs. As
noted earlier, NAPA recently completed a study that made
recommendations to NASA on how to achieve a flexible and scalable
workforce by integrating its acquisition and workforce planning
processes.
Transforming the Way Financial Information Is Used:
Since 1990, GAO has designated NASA's contract management as high risk
principally because NASA has lacked a modern financial management
system that can provide accurate and reliable information on contract
spending and has placed little emphasis on product performance, cost
controls, and program outcomes.[Footnote 19] NASA has made progress
toward implementing a disciplined project management processes, but it
has made only limited progress in certain areas such as reengineering
NASA's contractor cost reporting process. As we reported, the current
Integrated Enterprise Management Program does not provide the cost
information that program managers and cost estimators need to develop
credible estimates and compare budgeted and actual cost with the work
performed on the contract. NASA plans to spend billions of dollars to
develop a number of new capabilities, supporting technologies, and
facilities that are critical to enabling space exploration missions.
The development of such capabilities will be largely dependent on NASA
contractors--on which NASA spends about 85 percent of its annual
budget. Because of such a large reliance on contractors to achieve its
mission, it is imperative that NASA be able to track costs and the
means to integrate financial decisionmaking with scientific and
technical leadership by providing decisionmakers accurate information.
To its credit, NASA is working to improve business processes and
integrating disparate systems in order to improve efficiencies, reduce
redundant systems, and improve business information available to the
acquisition community and mission support organizations. However, more
effort will be needed to make the cultural transformation a reality.
Concluding Observations:
The Vision for Space Exploration puts NASA on a bold new mission.
Implementing the Vision over the coming decades will require hundreds
of billions of dollars and a sustained commitment from multiple
administrations and Congresses over the length of the program. How well
NASA overcomes the transition challenges that we and others have
identified will not only have an effect on NASA's ability to
effectively manage the gap in the U. S. human access to space, but also
will affect the agency's ability to secure a sound foundation of
support for the President's space exploration policy. Consequently, it
is incumbent upon NASA to ensure that these challenges are being
addressed in a way that establishes accountability and transparency to
the effort.
Mr. Chairman and Members of the Subcommittee, this concludes my
prepared statement. I would be happy to answer any questions you may
have at this time.
GAO Contact and Acknowledgments:
For further information regarding this testimony, please contact Allen
Li at (202) 512-4841 or lia@gao.gov. Contact points for our Offices of
Congressional Relations and Public Affairs may be found on the last
page of this testimony. GAO staff who made key contributions to this
testimony include Greg Campbell, Richard Eiserman, Yanina Golburt,
James L. Morrison, Jeffrey M. Niblack, Shelby S. Oakley, Jose A. Ramos,
Sylvia Schatz, and John Warren.
FOOTNOTES
[1] The servicing mission includes installing the Cosmic Origins
Spectrograph and Wide Field Camera 3, installing a refurbished Fine
Guidance Sensor that replaces one degrading unit of the three already
onboard, and an attempt will also be made to repair the Space Telescope
Imaging Spectrograph, which stopped working in 2004.
[2] NASA Office of Inspector General. NASA's Plan for Space Shuttle
Transition Could Be Improved by Following Project Management
Guidelines, IG-07-005, (Washington, D.C.: Jan. 29, 2007).
[3] NAPA also recommended that NASA adopt scenario planning into its
agencywide workforce planning processes and use the results to inform
decisionmaking.
[4] GAO, NASA: Long-Term Commitment to and Investment in Space
Exploration Program Requires More Knowledge, GAO-06-817R (Washington,
D.C.: July 17, 2006).
[5] Examples of our best practices reports include GAO, Best Practices:
Using a Knowledge-Based Approach to Improve Weapon Acquisition, GAO-04-
386SP (Washington, D.C.: Jan. 2004); Space Acquisitions: Committing
Prematurely to the Transformational Satellite Program Elevates Risks
for Poor Cost, Schedule, and Performance Outcomes, GAO-04-71R
(Washington, D.C.: Dec. 4, 2003); Best Practices: Capturing Design and
Manufacturing Knowledge Early Improves Acquisition Outcomes, GAO-02-701
(Washington, D.C.: July 15, 2002); and Best Practices: Better Matching
of Needs and Resources Will Lead to Better Weapon System Outcomes, GAO-
01-288 (Washington, D.C.: Mar. 8, 2001).
[6] GAO, NASA: Sound Management and Oversight Key to Addressing Crew
Exploration Vehicle Project Risks, GAO-06-1127T (Washington, D.C.:
Sept. 28, 2006).
[7] According to NASA's Systems Engineering Procedural Requirements
(NASA Procedural Requirements NPR 7123.1), the SRR examines the
functional and performance requirements defined for the system and the
preliminary program or project plan and ensures that the requirements
and the selected concept will satisfy the mission.
[8] NASA Procedural Requirements (NPR) 7120.5D establishes the
requirements by which NASA will formulate and implement space flight
programs and projects. NPR 7120.5D became effective on March 6, 2007,
and supersedes the previous version of the document, NPR 7120.5C, for
space flight programs and projects.
[9] Review of NASA Plans for the International Space Station, National
Research Council, Washington, D.C., 2006.
[10] Pub. L. No. 109-155, §§ 802, 804 (2005).
[11] Final Report of the International Space Station Independent Safety
Task Force, February 2007.
[12] Facilities refers to real property such as land, buildings and
other structures that cannot be readily moved, and equipment refers to
personal property that could be transported elsewhere with relative
ease.
[13] Pub. L. No. 109-155, § 710 (2005) and GAO, NASA: Enhanced Use
Leasing Program Needs Additional Controls, GAO-07-306R (Washington,
D.C.: Mar. 1, 2007).
[14] 42 U.S.C. § 4321, et seq.
[15] 42 U.S.C. § 6901, et seq.
[16] 42 U.S.C. § 9601 et seq.
[17] GAO, 21st Century Challenges: Reexamining the Base of the Federal
Government, GAO-05-325SP (Washington, D.C.: February 2005).
[18] Pub. L. No. 108-201.
[19] GAO, High-Risk Series: An Update, GAO-07-310 (Washington, D.C.:
Jan. 2007).
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