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PSAD-81-7 1 (1980-11-26)

handle is hein.gao/gaobabbgh0001 and id is 1 raw text is: -) -> ~ COMPTROL-IER GENERAL OF THE UNITED STATES . WASrHING0ON, D.C. 20548 B-201056 NOVEMBER 26, 1980 To the Cognizant Congressional Committees and Subcommittees: - Subject: Need for the National Aeronautics and /?<i rAwmSPee i-sLation to Provide the Congress More Complete Cost Information on its Projects (PSAD-Bl-7) This report discusses our observations on the need for the National Aeronautics and Space Administration (NASA) to provide the Congress more complete cost information in its annual budget justification documents. Our observations arose during a study we made of NASA's cost estimating pro- cess. As you know, NASA has underestimated the costs for some of its major projects--for example, the space shuttle and the Landsat-D project. As a result, NASA has had to request supplemental appropriations to continue the development of the space shuttle program and is anticipating a cost overrun of about $100 million in the Landsat-D project. Consequently, we made this study to determine if there were weaknesses in NASA's cost estimating process which, if corrected, would result in more accurate and reliable estimates. Our study was limited to three projects at two NASA centers--the Space Telescope and the High Energy Astronomy Observatory at the Marshall Space Flight Center, Huntsville, Alabama, and the Dynamics Explorer at the Goddard Space Flight Center, Greenbelt, Maryland. We did not include either the space shuttle or the Landsat-D project in our study because NASA was conducting its own cost study of those two projects. For the three projects included in our study, we found no major problems regarding those costs which NASA included in its project estimates. However, as discussed on page 2, NASA does not include certain major categories of costs in its estimates. Also, as we have reported in the past, the (952254)

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