Space Station: Cost Control Problems Are Worsening
NSIAD-97-213
Published: Sep 16, 1997. Publicly Released: Sep 16, 1997.
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Highlights
Pursuant to a congressional request, GAO provided information on the International Space Station (ISS), which is being developed by the United States and others, focusing on: (1) Russia's performance problems and the National Aeronautics and Space Administration's (NASA) reaction to them, including the additional cost and cost risk assumed by NASA; (2) cost and schedule experience under the prime contract; and (3) the status of and outlook for the program's financial reserves. GAO also identified actions taken by NASA to keep the space station program's funding within certain limits through the completion of the station's assembly.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| After more complete estimates of the cost and schedule impacts of ongoing and planned changes to the program are available, the Congress may wish to consider reviewing the space station program. This review could focus on reaching agreement with the executive branch on the future scope and cost level for a station program that merits continued U.S. government support. In view of the expected availability of revised cost estimates, the first opportunity for such a review would be in conjunction with NASA's fiscal year 1999 budget request. | The House Science Committee conducted a hearing on June 24, 1998. The purpose of the hearing was to review recent work by GAO and NASA's Cost Assessment and Validation (CAV) Team and to address the direction of the space station program. This hearing provided a forum for a thorough review of the program, but the issues raised by the CAV were left unresolved, pending NASA's budgetary response to the CAV findings. The agency's FY2000 budget submission included additional funds for the space station program based on the CAV findings. In addition, the Senate Committee on Commerce, Science, and Transportation, Subcommittee on Science, Technology, and Space held a hearing on April 29, 1999, providing a forum for discussion of space station budget issues after the FY2000 submission. | |
| At the end of the review, if the Congress decides to continue the space station program, it may wish to consider, after consultation with NASA, reestablishing funding limitations that include firm criteria for measuring compliance. | The imposition of funding caps was suggested as part of an overall matter for consideration, which included a full congressional review of the program first. In subsequent years, the Congress has included funding cap language in draft authorization bills, but has failed to pass authorization legislation (as of September 15, 2000). |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| National Aeronautics and Space Administration | The Administrator, NASA, with the concurrence of the Office of Management and Budget, should direct the space station program to discontinue the use of the current funding limitations. |
NASA concurred with this recommendation. In its response to congressional committees, NASA noted that the funding cap "is no longer operative." The letter explains that NASA submitted an FY1998 request to Congress for an additional $430 million over the $2,121.3 million originally requested for FY1998, increasing the total request to $2,551.3 million. Congress ultimately approved $2,351.3 million, which, according to NASA, "essentially eliminated the funding cap for the space station program."
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Aerospace researchBudgetary reservesCost analysisCost overrunsFuture budget projectionsInternational cooperationInternational relationsPrime contractorsResearch and development costsSpace exploration