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<classification authority="sudocs">GA 1.13:OCG-99-18</classification>
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 <subject>Interagency relations</subject>
 <subject>Financial management</subject>
 <subject>Contract administration</subject>
 <subject>Cost control</subject>
 <subject>Schedule slippages</subject>
 <subject>Space exploration</subject>
 <subject>Accountability</subject>
 <subject>Risk management</subject>
 <subject>Strategic planning</subject>
 <identifier>NASA International Space Station Program</identifier>
 <identifier>Russia</identifier>
 <identifier>NASA Integrated Financial Management Project Management Plan</identifier>
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 <title>Major Management Challenges and Program Risks: National Aeronautics and Space Administration</title>
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<abstract>As part of its Performance and Accountability Series, GAO provided
information on the major management challenges and program risks facing
the National Aeronautics and Space Administration (NASA).&lt;p/&gt;GAO noted that: (1) NASA&apos;s contract management function encompasses
several processes, including financial management and oversight; (2)
both of these processes require accurate and reliable information; (3)
however, NASA lacks adequate systems and processes to oversee
procurement activities and to produce accurate and reliable management
information in a timely manner; (4) characterized as one of the most
challenging engineering feats ever attempted, the International Space
Station Program is expected to culminate in 2004 in a football
field-sized laboratory manned by up to seven crew members; (5) however,
until the space station is completed, NASA will continue to face
challenges in controlling the cost and schedule of the program; (6) in
May 1998, GAO reported that since 1995, the life cycle cost for the
station had increased almost +$2 billion, to $95.6 billion; (7) at the
time of GAO&apos;s report, the final assembly date of the station had slipped
from June 2002 to December 2003; (8) NASA and the Department of Defense
(DOD) agreed in 1996 to form joint working groups for aerospace test
facilities to coordinate investments to avoid unnecessary duplication,
coordinate test schedules to spread workload across the facilities, and
develop standardized business processes; (9) however, the agencies&apos;
promise of closer cooperation and the development of a national
perspective on aerospace test facilities remains largely unfulfilled
because NASA and DOD: (a) have not convened most joint test facility
working groups on a regular basis; (b) have competed with each other to
test engines for new rockets; and (c) have not prepared a
congressionally required joint plan on rocket propulsion test
facilities; (10) NASA has made progress in meeting these challenges;
(11) in the contract management area, although it has made some progress
in developing systems to correct contract management weaknesses, NASA
still has not implemented its integrated financial management system;
(12) regarding space station challenges, the final assembly date has
slipped to July 2004; (13) the prime contractor&apos;s performance and
Russia&apos;s problems with funding its portion contributed to the cost
increase and schedule delay in the space station program; (14) NASA and
DOD have agreed to go beyond cooperative working groups in aeronautics
and jointly manage their aeronautical test facilities; (15) however,
they have not reached agreement on key aspects of a management
organization; and (16) GAO&apos;s review of NASA&apos;s 1999 annual performance
plan found that the agency did not recognize major management
challenges.</abstract>
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<identifier type="preferred citation">GAO/OCG-99-18</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Management information systems</topic>
 <topic>Interagency relations</topic>
 <topic>Financial management</topic>
 <topic>Contract administration</topic>
 <topic>Cost control</topic>
 <topic>Schedule slippages</topic>
 <topic>Space exploration</topic>
 <topic>Accountability</topic>
 <topic>Risk management</topic>
 <topic>Strategic planning</topic>
 <topic>NASA International Space Station Program</topic>
 <topic>Russia</topic>
 <topic>NASA Integrated Financial Management Project Management Plan</topic>
 <topic>NASA Procurement Quality Assessment Initiative</topic>
 <topic>Japan</topic>
 <topic>Canada</topic>
 <topic>Performance and Accountability Series 1999</topic>
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