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<classification authority="sudocs">GA 1.13:T-NSIAD-97-177</classification>
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 <subject>Federal procurement</subject>
 <subject>Contract costs</subject>
 <subject>Contractor performance</subject>
 <subject>International relations</subject>
 <subject>Satellites</subject>
 <subject>Cost control</subject>
 <subject>Foreign governments</subject>
 <subject>Space exploration</subject>
 <subject>Future budget projections</subject>
 <subject>Budgetary reserves</subject>
 <identifier>Russia</identifier>
 <identifier>NASA International Space Station Alpha Program</identifier>
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 <title>Space Station: Cost Control Problems Continue to Worsen</title>
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<abstract>GAO discussed its current work on the International Space Station
program, focusing on an update of information reported in July 1996 on
the: (1) status of the program&apos;s financial reserves; and (2) prime
contract&apos;s cost and schedule variances and estimates at completion.&lt;p/&gt;GAO noted that: (1) in GAO&apos;s report and subsequent testimony before the
Senate Subcommittee on Science, Technology, and Space in 1996, GAO
pointed out the deterioration in the prime contractor&apos;s cost and
schedule performance and noted that the station&apos;s near-term funding
included only limited financial reserves; (2) GAO also identified what
was, at that time, an emerging risk to the program, which were
indications of problems in the Russian government&apos;s ability to meet its
commitment to furnish a Service Module providing power, control, and
habitation capability for the International Space Station; (3) GAO
concluded that, if program costs continued to increase, threats to
financial reserves worsened, and the Russian government failed to meet
its commitment in a timely manner, the National Aeronautics and Space
Administration (NASA) would either have to exceed its funding limitation
to cope with the increased costs or defer or rephase activities, which
could delay the space station&apos;s schedule and would likely increase its
overall cost; (4) since GAO&apos;s report and testimony in 1996, the risks to
the space station&apos;s cost and schedule have in fact increased; (5) the
Russian government has not been able to meet its financial
responsibilities to the International Space Station, resulting in a
currently projected 8-month delay in launching the Service Module; (6)
cost control problems under the station prime contract have also
steadily worsened; (7) since April 1996, the cost overrun has more than
tripled to $291 million and the estimated cost to get the contact back
on schedule has increased by almost 50 percent to $129 million; (8) the
station&apos;s financial reserves have also deteriorated significantly; (9)
NASA has taken several steps to avoid exceeding its annual and assembly
completion funding limitation and to replenish its financial reserves;
(10) such efforts have included transferring work to others, rephasing
or deferring work, redefining the &quot;assembly completion&quot; milestone, and
keeping additional funding outside the capped portion of the program;
(11) in addition to the adverse cost and schedule impacts of the Service
Module delay recently announced by NASA, considerable further cost and
schedule problems could occur if the Russian government continues to be
unable to fulfill its partnership commitment to the International Space
Station; (12) if further problems do materialize, GAO believes a congre*</abstract>
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<identifier type="preferred citation">GAO/T-NSIAD-97-177</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-NSIAD-97-177; Space Station: Cost Control Problems Continue to Worsen;
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<subject>
 <topic>Federal procurement</topic>
 <topic>Contract costs</topic>
 <topic>Contractor performance</topic>
 <topic>International relations</topic>
 <topic>Satellites</topic>
 <topic>Cost control</topic>
 <topic>Foreign governments</topic>
 <topic>Space exploration</topic>
 <topic>Future budget projections</topic>
 <topic>Budgetary reserves</topic>
 <topic>Russia</topic>
 <topic>NASA International Space Station Alpha Program</topic>
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