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093832 1 (1973-05-30)

handle is hein.gao/gaobacxgv0001 and id is 1 raw text is: 


              UNITED STATES GENERAL ACCOUNTING  OFFICE
< 0                 WASHINGTON  REGIONAL  OFFICE
                             FIFTH FLOOR
                         803 WEST BROAD STREET
                     FALLS CHURCH, VIRGINIA 22046
                                                      MAY 3 0 1973



  Mr. Richard C. McCurdy, Associate Admifnistrator
  Office of Organization and Management
  National Aeronautics and Space Administration                   LM093832

  Dear Mr. McCurdy:

       Congressional interest in the increasing cost of major
  research and development programs prompted us to initiate a re-
  view of the reasons for changes in cost estimates on selected
  National Aeronautics and Space Administration (NASA) unmanned
  spaceflight projects.  The following projects were included in
  our reviewi  Applications Technoloqy Satellite--? end C missios
  Viking; Earth Resources Technology Satellite--A  and B missions;
  Pioneer-F  and 0 missions; Kariner Mars 1971; Orbiting Solar
  Observatory--I, J, and K missions; Uimbus--E and T missions; and
  Orbiting Astronomical Observatory--A, D, and C missions.

       e  completed the review in February 1972, and in March 1972
  requested that NASA officially comment on the pronosed report.
  Over the next several months, meetings ware held with NASA officials
  to discuss the draft report, and in iNoveober 1972 NASA provided
  detailed comments on the draft.  NASA's basic objection was to our
  using initial cost estirates provided the Congress as a base for
  tracking changes made to the estimates.  Since then actions have
  been taken by NASA and the Congress which directly affect recomm aen
  dations made in the draft report.

       In July 1972 NASA revised its project planning guidelines to
  include, among other things, a more detailed discussion of cost
  estimating.  The revised guidelines require that all costs, direct
  or ancillary, related to a project be identified even if sore of the
  costs are not under the direct control of the project manager.  The
  guidelines identify specific types of costs to be considered.

       Wa also suggested in the drAft report that the Congress consider
  requiring NASA to report to it periodically on the status of mnjor
  projects showing the significant changes in estimated cost and the
  reasons for such changes.  We orally comunicated  this sutgestion in
  December 1971, to the Subcammittee on NASA Oversight of the House
  Committee on Science and Astronautics.  They subsequently made
  arrangements with KASA to be provided periodically with project
  status data.

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