Tag Archives: GAO

GAO warns of more cost overruns for SLS/Orion

The Government Accountability Office today issued two reports, both of which said that the SLS and Orion programs are faced with more cost overruns and schedule delays.

The GAO found that cost overruns for Orion could be as high as $707 million and that work is “not being accomplished as scheduled.” It also found challenges with the capsule’s software and heat shield, and said that the space capsule’s cost and schedule “estimates are not reliable.”

Other than that, everything is peachy keen! These reports, (the Orion report is found here [pdf] and the SLS report here [pdf], especially the Orion one, also suggest that the first manned Orion mission, now scheduled for 2021, stands a good chance of being delayed again, possibly for two more years.

This just confirms what I have written in my soon-to-be published policy paper, Exploring Space in the 21st Century. In fact, I need to add these GAO reports to my sources!

Government overpayments going up by billions

Government marches on! A GAO report has found that since 2003 the federal government has wasted almost a trillion dollars in improper overpayments, with the numbers increasing by 20% in 2014.

The GAO said three programs were most at fault: Medicare, Medicaid and the Earned Income Tax Credit (EITC). These three government programs were responsible for a full three-quarters of the nearly $19 billion in erroneous payments the federal government made in fiscal 2014, the GAO said. “Improper payments remain a significant and pervasive government-wide issue,” the congressional watchdog unit warned.

The Earned Income Tax Credit program was the worst offender. The Internal Revenue Service estimated that the program erroneously handed out $17.7 billion worth of “improper” payments. That amounts to a whopping 27.2 percent of the total $65.2 billion in EITC refund checks that the IRS sent out in fiscal 2014. And that means the federal government is now fast approaching the day when one out of every three earned income tax credits is erroneous.

Medicare was nearly as bad. The program, which covers about 54 million elderly and disabled beneficiaries, incorrectly doled out $59.9 billion in fiscal 2014, which is about a tenth of its $603 billion budget. So, one out of every $10 that Medicare spent last year was erroneous, the GAO found. Medicaid made $17.5 billion in mistaken payments out of its $304 billion budget, for a nearly 6 percent error rate.

It is obvious that the solution to this government problem is to give the government more power and money. How else can they reduce this waste but by spending more money!

The GAO discovers another out-of-control NASA project

Government marches on! A new GAO report has found that NASA’s effort to upgrade the ground-based portion of its satellite communications system, used by both military satellites and manned spacecraft, is more than 30 percent over budget, with its completion now delayed two years to 2019.

Worse, the GAO found that this problem program was actually one of three that have had budget problems. And that doesn’t include the disastrously overbudget James Webb Space Telescope.

In its latest assessment of NASA’s biggest programs, the U.S. Government Accountability Office identified the Space Network Ground Segment Sustainment (SGSS) as one of three — not counting the notoriously overbudget James Webb Space Telescope — that account for most of the projected cumulative cost growth this year. The others are the Magnetospheric Multiscale Mission, which launched March 12, and the Ice, Cloud, and Land Elevation Satellite-2, or ICESat-2, mission, the congressional watchdog agency said.

The last two projects are part of the climate focus that Obama imposed on NASA.

GAO denied access to Webb telescope workers by Northrop Grumman

In a report as well as at House hearings today the GAO reported that Northrop Grumman has denied them one-on-one access to workers building the James Webb Space Telescope.

The interviews, part of a running series of GAO audits of the NASA flagship observatory, which is billions of dollars overbudget and years behind schedule, were intended to identify potential future trouble spots, according to a GAO official. But Northrop Grumman Aerospace, which along with NASA says the $9 billion project is back on track, cited concerns that the employees, 30 in all, would be intimidated by the process.

To give Northrop Grumman the benefit of the doubt, these interviews were a somewhat unusual request. Then again, if all was well why would they resist? Note too that the quote above says the cost of the telescope project is now $9 billion. That’s a billion increase since the last time I heard NASA discuss Webb. If the project was “back on track: as the agency and Northrop Grumman claim, than why has the budget suddenly increased by another billion?

Sierra Nevada loses its protest of NASA contract decision

The GAO has ruled against Sierra Nevada’s protest of NASA’s decision to pick Boeing for its manned spacecraft decision.

The ruling is not really a surprise. Even if political considerations gave Boeing an unfair advantage, the space agency has enough legal leeway to make this decision as it did. The GAO recognized that it would be inappropriate to overrule them.

SLS needs more money!

Surprise, surprise! A GAO report finds that SLS is over budget and that NASA will need an additional $400 million to complete its first orbital launch in 2017.

NASA isn’t meeting its own requirements for matching cost and schedule resources with the congressional requirement to launch the first SLS in December 2017. NASA usually uses a calculation it calls the “joint cost and schedule confidence level” to decide the odds a program will come in on time and on budget. “NASA policy usually requires a 70 percent confidence level for a program to proceed with final design and fabrication,” the GAO report says, and the SLS is not at that level. The report adds that government programs that can’t match requirements to resources “are at increased risk of cost and schedule growth.”

In other words, the GAO says SLS is at risk of costing more than the current estimate of $12 billion to reach the first launch or taking longer to get there. Similar cost and schedule problems – although of a larger magnitude – led President Obama to cancel SLS’s predecessor rocket system called Constellation shortly after taking office. [emphasis mine]

I want to underline the current $12 billion estimate for the program’s cost to achieve one unmanned launch. That is four times what it is costing NASA to get SpaceX, Boeing, and Sierra Nevada to build their three spaceships, all scheduled for first manned launch before 2017. SLS not only can’t get off the ground before 2017, it can’t even get built for $12 billion.

If this isn’t the definition of a wasteful, boondoggle designed merely as pork, I don’t know what is. And what I do know is that there is no way SLS is going to ever get the United States back into space. It should be shut down, now.

A GAO report says that NASA has been hiding the true and very expensive cost of the SLS/Orion projects by specifically excluding the cost of any actual missions that go anywhere.

It is nothing but pork: A GAO report says that NASA has been hiding the true and very expensive cost of the SLS/Orion projects by specifically excluding the cost of any actual missions that go anywhere.

NASA so far has put only two SLS missions on the manifest: a late-2017 test launch of an unmanned Orion into lunar space followed by a repeat of the mission in 2021 with crew onboard. NASA officials told GAO auditors it expects to have spent at least $22 billion on SLS and Orion through 2021, an estimate that does not include the cost of building the SLS launcher for the second mission. … Moreover, NASA provided no cost estimate for the more powerful SLS rocket NASA would need to mount a crewed Mars expedition the Obama administration envisions happening in the 2030s. According to NASA’s early plans, such a mission would entail multiple SLS-Orion launches.

The cost estimates NASA has offered so far “provide no information about the longer-term, life cycle costs of developing, manufacturing, and operating the launch vehicle, crew capsule, and ground systems” the agency has identified as crucial to the eventual Mars mission, the GAO wrote in its report.

In other words, they are going to spend $22 billion to launch the thing once. Meanwhile, NASA’s commercial manned space effort is producing three different spacecraft for about $3 billion total. If anyone in Congress had any brains, picking between these two programs would be easy, a no-brainer. Sadly, they have no brains, and really aren’t making their budgetary decisions with the needs of the nation in mind.

According to a GAO report, the sequester cuts that were going to destroy civilization as we know it resulted in exactly one layoff across the entire federal government.

According to a GAO report, the sequester cuts that were going to destroy civilization as we know it resulted in exactly one layoff across the entire federal government.

That is not a typo. Only one person total was laid off to meet the mandated cuts imposed by sequestration. Most agencies froze hiring or imposed furloughs, though even the number of furloughs was less than predicted.

Remember this fact the next time a politician screams dire warnings about any cuts in the federal budget.

A new GAO report says that Obamacare will increase the federal government’s long term debt by $6.2 trillion.

Who woulda thunk it? A new GAO report says that Obamacare will increase the federal government’s long term debt by $6.2 trillion.

The worse part of this is that these government predictions of debt are always wrong, but in the wrong direction. If this is the prediction, the actual increase in debt caused by Obamacare is likely to be far higher.

Note also that this is no surprise to the Republicans who opposed this bill. It also proves just how much Obama was either incompetent or simply lying when he said this:

“I will not sign a plan that adds one dime to our deficits — either now or in the future,” Obama told a joint-session of Congress in September 2009. “I will not sign it if it adds one dime to the deficit, now or in the future, period.”

The GAO is concerned about the future budget and schedule of the James Webb Space Telescope.

O goody: The GAO is concerned about the future budget and schedule of the James Webb Space Telescope.

This is very bad news if true for NASA’s astronomy program. Webb was originally budgeted at $1 billion and scheduled to launch in 2011. Its budget is now $8.8 billion and its launch is now set for October 2018. And until it launches there is little money to build any other space telescope.

Rather than follow through on $200 billion of cuts proposed by GAO, the Senate cuts GAO

Don’t you dare tell us to cut spending! Rather than follow through on $200 billion of cuts of “wasteful, duplicative, and fraudulent spending” proposed by General Accountability Office (GAO), the Senate, controlled by the Democrats, has proposed slashing GAO’s budget instead.