Space Programs: NASA's Independent Cost Estimating Capability Needs Improvement

Highlights

Pursuant to a congressional request, GAO determined whether the National Aeronautics and Space Administration (NASA) implemented an advisory committee's recommendation to strengthen its independent cost estimating capability.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
National Aeronautics and Space Administration	To establish an independent cost estimating function, the Administrator, NASA, should ensure that the cost analysis group operates with the independence that the Advisory Committee intended, with results of cost reviews being reported directly to the Administrator.	Closed – Implemented NASA established the Systems and Cost Analysis Division within the Office of the CFO/Comptroller. The Division performs the independent cost analysis and reports directly to the Office of the Administrator.
National Aeronautics and Space Administration	To establish an independent cost estimating function, the Administrator, NASA, should require that the advice on cost estimates provided to the Administrator by the cost analysis group be formally documented.	Closed – Implemented The new cost analyses group and the related NASA management instruction provide a formal documentation and reporting process.
National Aeronautics and Space Administration	To establish an independent cost estimating function, the Administrator, NASA, should direct the independent cost analysis group to review program estimates at all major milestones, decision points, or other significant events such as a major program restructuring.	Closed – Implemented The applicable NASA management instruction has been revised to specify the new project management approach incorporating a continuing involvement of an independent cost-estimating group throughout a project's life.
National Aeronautics and Space Administration	To establish an independent cost estimating function, the Administrator, NASA, should strengthen the independent cost analysis staff with sufficient personnel to generate independent estimates at all major milestones.	Closed – Implemented NASA's Systems and Cost Analysis Division has added 6 new professional staff members.

Full Report

Full Report (14 pages)

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Topics

Space

Cost analysisCost effectiveness analysisStaff utilizationLife cycle costsProgram evaluationProjectionsSpace explorationAdvisory committeesCost estimatesEconomic analysis