Federal Manager's Daily Report

A lack of disciplined cost-estimating processes has

hindered effective program management at the National

Aeronautics and Space Administration, the General

Accounting Office has said, following a spate of wide

praise for NASA management in general.


It said NASA contract management is a decade-old concern

because of its inability to collect, maintain and report

the full cost of its programs and projects, something

that translates to cost growth.


After analyzing 27 programs — 10 of them in detail — GAO

found development cost estimates for more than half of

the 27 programs increased by as much as 94 percent.


Cost estimates increased for eight of the 10 programs GAO

looked at in detail, and although NASA cited specific

reasons for the changes, estimate fluctuation suggests

the programs lacked the knowledge to establish priorities,

quantify risks, make informed decisions, and ultimately

to predict costs, said GAO.


It said none of the programs defined the life cycles

clearly enough to establish commitment and manage program

costs — and just three programs provided a breakdown of

the work to be performed.

gao.gov