NASA Must Reconsider Operations Pricing Policy To Compensate for Cost Growth on the Space Transportation System
MASAD-82-15
Published: Feb 23, 1982. Publicly Released: Feb 23, 1982.
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Highlights
GAO reviewed the National Aeronautics and Space Administration (NASA) pricing policy and operating cost for the Space Transportation System (STS) to determine the overall effect that STS cost increases would have on future NASA budget requests and on its other research and development.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| National Aeronautics and Space Administration | The Administrator, NASA, should direct that the agency's annual budget presentations to Congress show the NASA subsidies by user class; that is, the Department of Defense, civil U.S. Government agencies, and nongovernment users. |
Congress reviewed the NASA-revised STS pricing policy and gave its approval. Congress did not pursue the recommendation with NASA, therefore, GAO no longer believes it should pursue this recommendation.
|
| National Aeronautics and Space Administration | The Administrator, NASA, should reconsider its use fee policy. Alternatives that could be considered are: (1) charge DOD and other government users the current use fee charged to commercial and foreign users; (2) update the current use fee to reflect all appropriate facilities and equipment costs and a more realistic orbiter flight rate, and charge the updated fee to commercial and foreign users where legally binding agreements have not been signed; and (3) update the use fee as above and charge it to all users, including DOD and other government users. |
The NASA-revised STS pricing policy was reviewed and approved by Congress and the Office of Management and Budget (OMB). GAO no longer believes the recommendations should be pursued.
|
| National Aeronautics and Space Administration | The Administrator, NASA, should reconsider the STS pricing policy. Alternatives that could be considered are: (1) void the current pricing policy as it pertains to DOD and other agencies, and establish a price more in line with the cost to NASA to launch a shuttle flight; (2) void the pricing policy as it pertains to all users and establish a price more in line with the cost to NASA to launch a shuttle flight except for those launches that have legally binding agreements; and (3) ensure that the soon to be established phase II prices adequately recoup the previous losses and fully recognize the potential cost increases during the early years of operation. |
The NASA-revised STS pricing policy was reviewed and approved by Congress and OMB. GAO no longer believes the recommendations should be pursued.
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