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Space Shuttle: Incomplete Data and Funding Approach Increase Cost Risk for Upgrade Program

NSIAD-94-23 Published: May 26, 1994. Publicly Released: Jun 27, 1994.
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Highlights

Pursuant to a congressional request, GAO reviewed the National Aeronautics and Space Administration's (NASA) Space Shuttle program, focusing on NASA: (1) assumptions regarding the length of time the current Shuttle fleet will remain operational; and (2) processes and criteria for selecting needed safety and obsolescence upgrades.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
National Aeronautics and Space Administration Since NASA will have to use the Shuttle for at least 12 to 15 years, the Administrator, NASA, should direct Shuttle program managers to use that time frame as a basis for estimating the life-cycle costs of proposed upgrades. However, if circumstances change where the Shuttle would be used for a shorter or longer time frame, it may be necessary to reevaluate life-cycle costs of the upgrade.
Closed – Implemented
NASA agreed to use a 12 to 15 year timeframe in its life cycle cost analyses of space shuttle upgrades.
National Aeronautics and Space Administration The Administrator, NASA, should require decision justifications that include life-cycle cost analysis of alternatives before requesting authority to start new Shuttle upgrade projects.
Closed – Implemented
NASA agreed to include alternatives in its life cycle analyses when reasonable alternatives are available.
National Aeronautics and Space Administration The Administrator, NASA, should require an assessment of the risk associated with not providing funds for early design studies and contingency reserves and consider whether in light of these risks the agency should begin two new upgrades in fiscal year 1995.
Closed – Implemented
NASA agreed to assess the risk of having small reserves and evaluate the need to increase funding of early design studies.

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Topics

Aerospace researchBudget cutsCost analysisFunds managementFuture budget projectionsLife cycle costsMission budgetingResearch and development costsSafety standardsSpace exploration