* 99 AR layout - Welcome to NASA Headquarters | NASA · PDF filefrontier can make the third millennium ... developed new technology to allow ... * 99 AR layout 04/05/2000 1:51 PM Page

The future exploration of the spacefrontier can make the third millenniuma magnificent time of achievement forhumankind. We are delivering our pro-grams while continuing to make safetyour number-one priority. Our resultscome from the hard work of the NASAteam—employees, contractors, academ-ic researchers, industry, government,and international partners—and thecontinued support of the President,Congress, and the public.

Our programmatic accomplishmentsinclude new understandings in fourstrategic areas:

• The Space Science Enterprise stud-ies the origin and operations of theuniverse.The Hubble Telescope hasilluminated the universe’s rate ofexpansion, which is essential indetermining the age and size of theuniverse.The first optical images ofa gamma ray burst were captured.The Mars Global Surveyor providedthe first global 3-D map of Mars.The Chandra X-ray Observatory,designed to observe x-rays fromhigh-energy regions of the universe,began sending exciting images backto Earth.

• The Earth Science Enterprise con-tinues to provide invaluable satelliteand aircraft observations that areunraveling the mysteries of Earthsystem processes.We provided dra-matic images and data on the wax-ing and waning of El Niño and LaNiña, enabling seasonal climate pre-diction.The Enterprise producedthe first satellite-derived assess-ments of global forest cover withthe launch of Landsat 7. Researchers

determined thinning and thickeningrates for the Greenland Ice Sheetand provided the first radar-detailedmosaic of Antarctica.

• The Human Exploration andDevelopment of Space Enterprisesuccessfully completed the firstInternational Space Station assemblyand logistics mission, mating theZarya control module and UnityNode and delivering supplies andequipment, which will be needed tooperate and live on the Station.Chandra, the third Great Observatoryand the heaviest payload everlaunched, was safely deployed by theSTS-93 crew, led by the Shuttle pro-gram’s first female Commander,Eileen Collins. John Glenn made hishistoric return to space, studying theeffects of aging and weightlessness.

• The Aero-Space Technology Enter-prise,with industry partners,hasdeveloped new technology to allowplanes to land safely in bad weatheron parallel runways spaced as closelyas 2,500 feet apart.NASA and its gen-eral aviation partners also demonstrat-ed a low-emission combustor thatresulted in reductions in oxides ofnitrogen and carbon monoxide emis-sion levels.A test version of the X-34rocket plane made its first flight aspart of a certification process—theprototype will test new technologiesand methods needed to develop low-cost reusable space vehicles.

As an institution,NASA has reorganizedits Centers around areas of excellence,performance-based contracting, andprivatization and met the severe chal-lenges of reducing budgets on an annu-al basis.

For NASA, 1999 encompassed a cele-bration of the Agency’s past, the excit-ing accomplishment of our currentendeavors, and our visions of thefuture. As the 20th century closes, his-tory will record that in the 1960’shumankind opened the vast frontierbeyond Earth’s atmosphere.The Apolloprogram blazed a trail of the pioneer-ing spirit of exploration, and this yearwe celebrated the 30th anniversary ofour first steps on the Moon.

In coming months, we will be sendingthe first crew to establish permanenthabitation of the International SpaceStation—a long-duration space labora-tory and the largest structure ever builtin space. The Station, by its perma-nence, allows many uses of space inconducting experiments that needmore time than the 14 days a Shuttlemission could provide. It is necessary asa “spaceport” for more advanced spacemissions by humans in deep space andas a launch platform to embark on inter-planetary flights.

Our vision of the 21st century is one ofa future world with nations and indus-try sharing responsibilities, opportuni-ties, and challenges through peacefulinteraction in civil space endeavors.Our exploration of the unknown willlead to discoveries of new worlds andgenerate new knowledge that stirs thesoul, nourishes the mind, and enrichesour lives.

Daniel S. GoldinAdministrator

Statements | 1

Statement of the Administrator Daniel S. Goldin

Administrator

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2 | NASA 1999 Accountability Report

This Accountability Report consoli-dates reports required by variousstatutes and summarizes NASA’s pro-gram accomplishments and its stew-ardship over budget and financialresources. It is a culmination of NASA’smanagement process, which beginswith mission definition and programplanning, continues with the formula-tion and justification of budgets for thePresident and Congress, and ends withthe resulting scientific and engineeringprogram accomplishments. The reportcovers activities from October 1, 1998,through September 30, 1999, with adiscussion of some subsequent events.

Program accomplishments included thedeployment and operation of theChandra X-ray Observatory, the deliveryof supplies and equipment needed tolive and operate on the InternationalSpace Station, and the development ofthe first global 3-D map of Mars.Achievements are highlighted in theStatement of the Administrator and sum-marized in the performance section ofthis report. Accomplishments such asthese continue despite declining budg-

etary resources. Agency budgets havefallen from a high of 4 percent of theFederal budget during the 1960’s to lessthan 1 percent of the current Federalbudget. This budgetary challenge hasbeen met by reorienting programs,elim-inating low-priority efforts, reducingsupport contracts and civil servicestaffing, and reforming procurement.

Internal controls have been improvedand budget and financial managementstreamlined. In that regard, Agencyfinancial management systems substan-tially comply with the Federal FinancialManagement Improvement Act.

Financial statements were prepared inaccordance with Federal generallyaccepted accounting principles, andreporting instructions specified by theOffice of Management and Budget.

NASA has received the highest possiblefinancial statement audit ratings(unqualified opinions) on its financialstatements for six consecutive years. Inaddition, the Agency was honored withthe first-ever “Certificate of Excellence

in Accountability Reporting” by theAssociation of Government Accountants(AGA) in recognition of its exemplaryperformance in the preparation,issuance, and timeliness of its 1998Accountability Report. The AGA awardreflects well on the entire NASA team.

As the Agency continues to advancethe technologies of space, we will con-tinue to lead innovations and improve-ments in the reporting of the account-ability of the Federal Government.Thepreparation of this report required theteamwork and dedicated efforts ofNASA’s staff and its auditors.We appre-ciate their dedication and professional-ism.As we combine cutting-edge tech-nologies and business management,the space program will be a vitalengine of the economy as we moveinto the new millennium.

Arnold G. HolzChief Financial Officer

Statement of the Chief Financial Officer Arnold G. Holz

Chief Financial Officer

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3Contents |

NASA at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Space Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Earth Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Human Exploration and Development of Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Aero-Space Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Crosscutting Management Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49

Compliance With Legal and Regulatory Financial Requirements . . . . . . . . . . . . . . . . . . . . . .61

AGA Certificate of Excellence in Accountability Reporting for 1998 . . . . . . . . . . . . . . . . . . . .72

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73

Auditor’s Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97

Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105

Contents

This Accountability Report coversFederal Fiscal Year 1999 (October 1,1998,through September 30,1999) withdiscussion of some subsequent events.

This report highlights NASA’s programaccomplishments and performancemeasures and summarizes its steward-ship over budget and financial

resources, including the Agency’s audit-ed financial statements and footnotes.We received an unqualified opinionfrom our independent public auditors.The auditor’s opinion on NASA’s finan-cial statements, the report on internalcontrol, and the report on NASA’s com-pliance with laws and regulations arealso included.

NASA’s Accountability Report andother information about the NASA pro-grams are available through theInternet on NASA’s Home Page athttp://www.nasa.gov.The NASA HomePage is updated on an ongoing basiswith current information relating tothe NASA programs and our adminis-tration of those programs.

1999 Accountability Report

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“Eyes on the Environment,” computer-generatedartwork with mixed media by Bryn Barnard. The artist depicts different views of Earth byincorporating studies from NASA’s EarthScience program.

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NASA AT A GLANCE

nasa visionNASA is an investment in

America’s future. As explorers,

pioneers, and innovators, we

boldly expand frontiers in air

and space to inspire and serve

America and to benefit the

quality of life on Earth

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Program

The aeronautics and space programconsists of a variety of national pro-grams, projects, and activities. NASAhas detailed and comprehensive pro-gram, project, and subproject require-ments that are consistent throughoutthe Agency and its systems, includingbudget and accounting. The manage-ment of programs is organized aroundfour Strategic Enterprises:

• Space Science• Earth Science• Human Exploration and

Development of Space• Aero-Space Technology

Agency programs are managed by theseEnterprises, through which we imple-ment our mission and communicatewith our external customers. For exam-ple, Space Science manages the HubbleSpace Telescope and current missionsto other planets. Earth Science isresponsible for our growing knowledgeof Earth as a planetary system. HumanExploration and Development of Spaceis responsible for the Space Shuttle andthe International Space Station. Aero-Space Technology is responsible foradvances in the capabilities and safetyof civil aviation, as well as improvedaccess to space.Additional informationon programs is contained in the plan-ning and budget and performance sec-tions of this report.


NASA is a Federal research and engineering

agency that accomplishes most of its space,

aeronautics, science, and technology pro-

grams through Field Centers and contractors

across the United States. The NASA organiza-

tion consists of approximately 18,600 employ-

ees located at Headquarters and nine Centers

(see “NASA Organization” and “NASA Centers

of Excellence”). It also operates, through a con-

tract with the California Institute of Technology,

the Jet Propulsion Laboratory (JPL), a Federally

Funded Research and Development Center.

NASA’s program and support activities are

guided by a comprehensive strategic planning

process. The Agency’s accomplishments have

been significant, especially in light of budgetary

levels that have continued to decline over the

past 10 years.

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An electronic copy of this report and fur-ther detailed information can be found atNASA’s web site at http://www.nasa.gov,including the Agency’s Strategic andPerformance Plans, which contain agraphic linking NASA’s vision, mission,and roadmaps for the missions,goals,andobjectives of the Enterprises.

Organization

The NASA team is a diverse group atHeadquarters and the Centers. NASAalso relies on large and small contrac-tors, members of the academic com-munity, other Federal agencies, stateand local agencies, and other spaceagencies throughout the world.

Headquarters

The Headquarters organization consistsof the Office of the Administrator, fourStrategic Enterprises, Functional andStaff Offices, and the Office of theInspector General (OIG).The Office ofthe Administrator directs the Agency incarrying out the policies approved bythe President and Congress, as well asoverseeing administrative and programmanagement. The Strategic Enterpriseshave primary responsibility for strategicgoals, objectives, and programs and forserving NASA customers. The StrategicEnterprises also oversee the Centers.

Agency Functional and Staff Officesestablish and disseminate policy and

leadership strategies in their areas ofresponsibility.As a group, they serve inan advisory capacity to the Administratorand work in partnership with EnterpriseAssociate Administrators and CenterDirectors to ensure that activities arebeing conducted in accordance with allstatutory and regulatory requirements,including fiduciary responsibilities.

They also advise the Administrator andsenior managers of potential efficien-cies to be gained through standardiza-tion and consolidation and coordinatethe implementation of approved ini-tiatives.

The OIG serves as an independentaudit, inspection, and investigative

NASA at a Glance | 7

AdministratorA

InspectorGeneral

Small andDisadvantaged

BusinessUtilization

KLife and

MicrogravitySciences andApplications

U

SpaceFlight

M

Aero-SpaceTechnology

R

SpaceScience

S

EarthScience

Y

* Jet PropulsionLaboratory

Lyndon B. JohnsonSpace Center

John F. KennedySpace Center

George C. MarshallSpace Flight Center

John C. StennisSpace Center

Ames ResearchCenter

Dryden FlightResearch Center

Langley ResearchCenter

John H. GlennResearch Center

at Lewis Field

ChiefFinancialOfficer

BGeneralCounsel

G EqualOpportunityPrograms

EExternalRelations

ILegislative

Affairs

L HumanResources and

Education

F

HeadquartersOperations

CPolicy and

Plans

ZManagement

Systems

J Safetyand MissionAssurance

Q

Public AffairsP

ProcurementH

Aerospace SafetyAdvisory Panel

NASA AdvisoryPanel

Goddard SpaceFlight Center

* JPL is a Federally Funded Researchand Development Center

NASA Organization

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organization by performing audits,reviews, inspections, and investigations.The OIG prevents and detects crime,fraud, waste, and abuse and assists man-agement in promoting economy, effi-

ciency, and effectiveness in its programsand operations. OIG auditors, evalua-tors, and agents are located atHeadquarters, the Centers, and the JetPropulsion Laboratory.

Centers

Scientific and engineering work islargely carried out at the Centers andthe Jet Propulsion Laboratory. Theseinstallations are Centers of Excellencein various scientific and engineeringspecialties as well as their assigned mis-sions.Additional work is carried out byoffsite contractors, the academic com-munity, and international partners.

Planning

NASA has steadily improved its plan-ning and management processes consistent with the GovernmentPerformance and Results Act. NASAaligns its organizational and programstructure with the requirements ofthe Agency’s customers and stake-holders, and integrates its strategicplanning, budgeting, and perform-ance management, accounting, andreporting activities.

NASA has developed statements of itsvision, mission, and the fundamentalscientific and engineering questionsaddressed by its programs.These state-ments provide a foundation for itsgoals and objectives. The Agency’svision, mission, goals, and objectivesare a product of close collaborationwith customers, partner agencies(which are carrying out related pro-grams), and stakeholders in theAdministration and Congress. These


1 Ames Research Center Information Technology2 Jet Propulsion Laboratory* Deep Space Systems3 Dryden Flight Research Center Atmospheric Flight Operations4 Johnson Space Center Human Operations in Space5 Stennis Space Center Rocket Propulsion Test and Commercial

Remote Sensing6 Marshall Space Flight Center Space Propulsion Transportation Systems

Development, and Optics ManufacturingTechnology

7 Glenn Research Center Aeropropulsion and Aerospace PowerSystems Research and Technology

8 Kennedy Space Center Launch and Payload Processing Systems9 Langley Research Center Structures and Materials10 NASA Headquarters Agency Management11 Goddard Space Flight Center Scientific Research

* A Federally Funded Research and Development Center

1 2 3 4 5 6 7 8 9

10 11

NASA Centers of Excellence

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goals and objectives are supported bythe budget described on subsequentpages of this section.

Progress toward the achievement ofgoals and objectives is described in theperformance and crosscutting sectionsof this document. These sections pro-vide the detailed performance goalsand accomplishments for eachStrategic Enterprise and the fourCrosscutting Processes. Products andservices are delivered to customersthrough work processes that cutacross the agency’s Enterprises andFunctional and Staff Offices. TheCrosscutting Processes are ManageStrategically, Providing AerospaceProducts and Capabilities, GenerateKnowledge, and CommunicateKnowledge. Details are available in theStrategic Plan at http://www.nasa.gov.

The OIG has its own StrategicImplementation Plan. Each programarea—Audits, Investigations, andInspections—is preparing a moredetailed implementation plan, includ-ing appropriate metrics and will reportseparately on its accomplishments.

Budget

The Agency budget for the past 3 years has averaged approximately$13.6 billion per year. Funding is cur-rently received through the followingappropriations:

• Human Space Flight—This appropriation provides for theInternational Space Station andSpace Shuttle programs, includingflight support for cooperative pro-grams with Russia and othernations.

• Science,Aeronautics, andTechnology—This appropriationprovides funding for variousresearch and development activi-ties: Earth and Space Science,Aeronautics, Life and MicrogravitySciences,Technology Investments,Education Programs, and MissionCommunication Services.

• Mission Support—This appropria-tion provides funding for space

communications services, safety andquality assurance activities, facilitiesmaintenance and construction activ-ities to preserve the core infrastruc-ture, environmental remediation,and civil service workforce.

• Inspector General—This appropria-tion provides funding for thestaffing and support required toperform audits, evaluations, andinvestigations of programs andoperations.

Budget Trends

NASA’s share of Federal spending hasdeclined from a high of 4 percent ofthe Federal budget in 1966, at theheight of the Apollo program, to less


Mill

ions

of D

olla

rs

14,600

14,400

14,200

14,000

13,800

13,600

13,400

13,200

13,000 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99

NASA Budget 14,015 14,316 14,309 14,568 13,853 13,885 13,709 13,648 13,653

Budget Trends

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than 1 percent. Over the past 10 years,the NASA budget has continued todecline. See “Budget Trends.” Importantscientific and engineering advancescontinue to be made with fewerresources.

Recent Program Trends

In the face of declining budgets,changes have been made in programemphasis during the last few years.TheAgency has reoriented its budgets con-sistent with its strategic planning andmissions—explore, use, and enable thedevelopment of space; advance scien-tific knowledge; and research, develop,verify, and transfer space-related tech-nologies. Declining resources havebeen allocated to mission-related toppriorities: safely operating the SpaceShuttle, developing and operating theInternational Space Station, and main-taining a strong program of scienceand technology development.

How Budget Resources Are Spent

NASA spends the greatest part of itsresources through contracts for a widevariety of programs for related supportand services, as well as the acquisitionof capital assets. NASA also supports a civil service workforce and spendssignificant resources through grants,principally research grants with col-leges and universities.A variety of reim-bursable programs are also provided to

NASA MissionTo advance and communicate scientific knowledge and

understanding of Earth, the solar system, and the universe

and use the environment of space for research

To advance human exploration, use, and development

of space

To research, develop, verify, and transfer advanced

aeronautics, space, and related technologies

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Federal, commercial, and internationalagency customers.

NASA Budget Request for FY 2001

The budget request for Fiscal Year (FY)2001 reaffirms the Agency’s commit-ment to a balanced aeronautics andspace program. Priorities include a com-mitment to safety for human aeronauticsand space flight, the assembly of theInternational Space Station, and thedevelopment of the Next GenerationLaunch Vehicle.The budget also providessupport for an aggressive space scienceprogram, a program of long-term obser-vation, research, and analysis of Earthfrom space, and revolutionary advance-ments that will sustain global U.S. lead-ership in civil aeronautics and space.Steps have been taken to minimize sup-port costs, while focusing on low-cost,high-payoff missions to maximize outputfrom a decreasing budget base.

Under the current appropriations struc-ture and that for FY 2001, the MissionSupport appropriation carries a portionof the direct support required to exe-cute Enterprise programs.This includesresearch and operations support andcivil service salaries and travel.As NASAmoves into the era of full-cost manage-ment, the budget for these supportingelements is expected to be directly allo-cated to programs and projects.


NASA Fundamental Questions

1. How did the universe, galaxies, stars, and planets form and evolve?

How can our exploration of the universe and our solar system revolu-

tionize our understanding of physics, chemistry, and biology?

2. Does life in any form, however simple or complex, carbon-based or

other, exist elsewhere than on planet Earth? Are there Earth-like plan-

ets beyond our solar system?

3. How can we utilize the knowledge of the Sun, Earth, and other plan-

etary bodies to develop predictive environmental, climate, natural

disaster, and natural resource models to help ensure sustainable

development and improve the quality of life on Earth?

4. What is the fundamental role of gravity and cosmic radiation in vital

biological, physical, and chemical systems in space, on other plane-

tary bodies, and on Earth, and how do we apply this fundamental

knowledge to the establishment of permanent human presence in

space to improve life on Earth?

5. How can we enable revolutionary technological advances to provide

air and space travel for anyone, anytime, anywhere more safely, more

affordably, and with less impact on the environment and improve busi-

ness opportunities and global security?

6. What cutting-edge technologies, processes, and techniques and engi-

neering capabilities must we develop to enable our research agenda in

the most productive, economical, and timely manner? How can we

most effectively transfer the knowledge we gain from our research and

discoveries to commercial ventures in the air, in space, and on Earth?

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“In the Beginning Nothing Became Everything,”acrylic by Paul Hudson. In his painting, the artistdepicts the birth of the universe, the Big Bang.

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SPACE SCIENCE

to chart the evolution of the

universe, from origins to destiny,

and understand its galaxies,

stars, planets, and life

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Fundamental questions for SSE are:

• How did the universe begin, andwhat is its ultimate fate?

• How do galaxies, stars, and planetsform and evolve?

• What physical processes take placein extreme environments such asblack holes?

• How and where did life begin?• How is the evolution of life linked

to planetary evolution and to cos-mic phenomena?

• How and why does the Sun varyand how do Earth and the planetsrespond?

• How might humans inhabit otherworlds?

Goals and Objectives

In carrying out its mission, SSE’s long-term goals are as follows:

• Establish a virtual presence through-out the solar system, and probedeeper into the mysteries of theuniverse and life on Earth andbeyond—a goal focused on the fun-damental science we will pursue

• Pursue space science programs thatenable and are enabled by futurehuman exploration beyond low-Earth orbit—a goal exploiting our


Mission and Questions

The Space Science Enterprise (SSE) serves

the human quest to understand our origin, exis-

tence, and fate. Broadly stated, the SSE mis-

sion is to solve mysteries of the universe,

explore the solar system, discover planets

around other stars, and search for life beyond

Earth. In pursuing this mission, we develop,

use, and transfer innovative space technologies

that support all of NASA’s Enterprises and con-

tribute to the Nation’s global competitiveness.

We provide scientific support to NASA’s human

exploration program and use our knowledge

and discoveries to enhance science, mathe-

matics, technology education, and the scientif-

ic and technological literacy of all Americans.

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synergy with the human explo-ration of space

• Develop and utilize revolutionarytechnologies for missions impossiblein the past—a goal recognizing theenabling character of technology

• Contribute measurably to achievingscience,mathematics, and technologi-

cal education goals of our Nation, andshare widely the excitement and inspi-ration of our mission and discover-ies—a goal reflecting our commitmentto education and public outreach

SSE’s near-term objectives are identi-fied in the Space Science Roadmap in

the NASA Strategic Plan and are elabo-rated in the Space Science EnterpriseStrategic Plan. As described in thoseplans, these objectives are pursuedthrough a comprehensive and bal-anced program of space science flightmissions, technology development, andsupporting scientific research.

Space Science | 15

Hubble Illuminates the Universe’s Rate of Expansion

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Accomplishments andPerformance Measures

Despite some well-publicized missionfailures in 1999, notably the loss of theMars Climate Orbiter and Mars PolarLander upon their arrivals at Mars, SSEalso enjoyed a number of successes andcontinued to generate a stream of excit-ing scientific discoveries. Hubble scien-tists found a value for how fast the uni-verse is expanding after 8 years ofpainstaking measurement. The rate ofexpansion,called the Hubble Constant,isessential to determining the age and sizeof the universe.Measuring Hubble’s con-stant was one of the three major goalsfor the telescope when it was launchedin 1990. See “Hubble Illuminates theUniverse’s Rate of Expansion.”

Nearly a decade in development, theChandra X-ray Observatory (CXO) wassuccessfully launched in July 1999 and

is working well.After barely 2 monthsin space, CXO took a stunning imageof the Crab Nebula, the most inten-sively studied object beyond our solarsystem, and revealed something neverbefore seen: a brilliant ring around thenebula’s heart. Many other imageshave been released, and initial scientif-ic results have been very exciting. See“Chandra X-ray Image of Crab Nebula.”

Astronomers funded by NASA witnessedfor the first time a distant planet passingin front of its star, providing direct andindependent confirmation of the exis-tence of extrasolar planets that to datehas been inferred only from the wobble

of their star. Other NASA-fundedastronomers added to the list of knownextrasolar planets, bringing the count toapproximately 30 by the end of the year.

An impact basin deep enough to swal-low Mount Everest and surprising slopesin Valles Marineris highlight a global mapof Mars that will influence scientificunderstanding of the Red Planet foryears. Generated by the Mars OrbiterLaser Altimeter (MOLA), the high-resolu-tion map represents millions of meas-urements gathered in 1998 and 1999.Evidence from this map has recentlybeen interpreted to suggest that an enor-mous ocean once existed on Mars. See“Mars Global Surveyor Provides FirstGlobal 3-D Map of Mars.”

Astronomers racing the clock managedto take the first-ever optical images ofone of the most powerful explosions inthe universe—a gamma ray burst—justas it was occurring on January 23,1999.Such bursts occur with no warning andtypically last just for a few seconds.

The Galileo spacecraft continued its inves-tigations of Jupiter’s moon Europa,expand-ing the understanding of its history.


Chandra X-ray Image of Crab Nebula

Mars Global Surveyor

Provides First Global 3-D Map of Mars

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Eight of the 10 required Europa data-taking flybys were successfully complet-ed.Approximately 0.7 percent of the sur-face of Europa has been covered at 30-meter resolution, but over 90 percenthas been covered at lower resolution.Datacollected will help determine the pres-ence and state of water, a central consid-eration in understanding the possibility oflife on the moon.See “Views of Europa.”

In the technology area, the Deep Space 1mission successfully demonstrated all 12 of its advanced technology systems,including the first demonstration of anion drive for primary propulsion.Successful demonstration in space opensthe door for each of the validated com-ponents to be incorporated in future sci-ence missions, resulting in lower cost,better performance, or both. See “DeepSpace 1 Encounter With an Asteroid.”

Significant progress was achieved ineducation and public outreach asimplementation of the Enterprise’swide-ranging and systematic approachto sharing results of its missions andresearch began to reach maturity. All

new flight programs now have fundedcomponents for outreach, and thenational space science network for col-lecting and disseminating educationalmaterials is in place.These steps lay thegroundwork for an expanded realiza-tion of the benefits of space scienceexpenditures in American society.

SSE tracks programwide performancemeasures for several project-relatedareas: annual flight rate, spacecraft devel-opment time, development cost, andtotal program cost versuscommitment.Activities inthese areas support all ofthe scientific objectivesof the Enterprise, andperformance in themreflects the Enterprise’sstrategy to “sustain anaggressive program ofdiscovery while usinglower cost missions.”Furthermore, near-termSSE objectives supportthe Agency near-termgoals, as depicted in theNASA Roadmap, “chart

the evolution of the universe, from ori-gins to destiny, and understand its galax-ies, starts, planets, and life” and “developrobotic missions as forerunners tohuman exploration beyond low-Earthorbit.”These metrics specifically addressthe NASA strategy as noted in the NASARoadmap to “deliver world-class pro-grams and cutting-edge technologythrough a revolutionized NASA.”

Program Cost Status Versus Cost CommitmentPerformance Measure

This measures the annual estimated costof major missions in development versuscommitment to Congress.A gauge of suc-cess in meeting cost performance com-mitments for major development pro-grams within the Enterprise,this measureis the ratio of the present budget

Space Science | 17

Views of Europa

Deep Space 1

Encounter With an

Asteroid

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estimates compared to the commitmentsmade by the Agency to Congress on themaximum cost for each major SSE space-craft. The commitment to Congress isestablished at the time the programmoves from planning and design intodevelopment. The goal is to remainbelow 100 percent, demonstrating thatSSE is doing better than its commitmentsto Congress in holding down the cost ofmajor spacecraft.

This area has shown continued improve-ment in recent years; many larger missions which exceeded their cost com-mitments have been launched, whilemost recent missions are being complet-ed within or under commitment. For FY 2000 through 2001,it is expected thatour actual performance on this metricwill likely stay between 90 and 100 per-cent. In FY 1999, the average cost of

major SSE missions in development wasestimated to be 91 percent of commit-ments to Congress,an excellent perform-ance rating. See “Program Cost StatusVersus Cost Commitment.”

In addition to science and mission goals,SSE also tracks its ongoing performancein providing benefits to society, includingpublic science awareness and postsec-ondary education.

Providing Benefits to SocietyPerformance Measure

SSE continues to use our knowledge anddiscoveries to enhance science, mathe-matics, and technology education andthe scientific and technological literacyof all Americans. This objective con-tributes to the achievement of the goal inthe NASA Roadmap to “share new knowl-

edge with our customers and contributeto educational excellence.” Furthermore,this objective responds specifically to theNASA mission “to advance and communi-cate scientific knowledge and under-standing.”Two metrics are tracked as gen-eral indicators of success in this area: ameasure of the percentage of the year’smost noteworthy science achievementsattributable to SSE programs and a meas-ure of the educational impact of NASA’sscience contributions at colleges and uni-versities across the Nation.

Performance on these metrics is bestassessed by looking at long-term trends.The goal of these metrics is for NASA tocontinue to produce a substantial shareof science news and textbook contribu-tions. The science impact measure isbased on Science News magazine’s end-of-year summary of approximately


1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

125%

120%

115%

110%

105%

100%

95%

90%

85%

80%

Goal:Remain lessthan 100%

Program Cost Status Versus Cost Commitment

* 99 AR layout 04/05/2000 1:54 PM Page 18

150 “most important stories” from allfields of science. By the level of its con-tribution to this independent ranking ofscience results, SSE’s work can be com-pared to NASA’s historical performanceand current worldwide scientific outputin terms of relevancy and interest to thepublic. In 1999, space science accountedfor 5 percent of the “most important sto-ries,”well above the historical average.

The educational impact measure isbased on the percentage of NASA’s con-tribution to a leading college space sci-ence textbook Astronomy: From theEarth to the Universe by Jay Pasachoffover time (from 1975 to 1996). A 24-page supplement to the college text-book was published in 1999; combin-ing the portion of the new materialbased on NASA’s space science pro-

gram with the previous analysis of themost recent edition of the textbook,the new total contribution is 31 per-cent.This metric is derived from infor-mation received from Enterprise edu-cation and public outreach functionsand provides an independent indica-tion of the Agency’s contributions tothe educational needs of students. See“Providing Benefits to Society.”

Space Science | 19

Percentage of textbook basedon NASA Space Science

NASA percentage of reportedworldwide scientific discovery

10%

5%

0%

40%

30%

20%

10%

0%73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99

Science News Metric

Textbook Metric

Goal:Continue to producesubstantial shares ofscience news andknowledge

Providing Benefits to Society

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“Amazon Rivers,” batik onsilk by Mary Edna Fraser.This painting depictsNASA’s efforts to betterunderstand our environ-ment. The work aims tohonor Earth’s fragility andperhaps conveys a peacefulenvironmental communica-tion linking humankind.

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EARTH SCIENCE

to understand the total Earth

system and the effects of natural

and human-induced changes on

the global environment

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Obtaining data from the private sectorwhere applicable is an emerging feature of the Enterprise strategy toreduce costs and encourage growth ofa viable commercial remote-sensingindustry in the United States.

ESE addresses most directly two of thesix fundamental questions NASA hasestablished to focus its activities:

• How can we utilize the knowledgeof the Sun, Earth, and other plane-tary bodies to develop predictiveenvironmental, climate, natural dis-aster, and natural resource modelsto help ensure sustainable develop-ment and improve the quality of lifeon Earth?

• What cutting-edge technologies,processes, and techniques and engi-neering capabilities must we devel-op to enable our research agenda inthe most productive, economical,and timely manner? How can wemost effectively transfer the knowl-edge we gain from our research anddiscoveries to commercial venturesin the air, in space, and on Earth?


ESE has established these goals andobjectives to fulfill its mission:



The Earth Science Enterprise (ESE) mission is to

understand the total Earth system and the

effects of natural and human-induced changes

on the global environment and to conduct glob-

al and regional research requiring the vantage

point of space. ESE programs advance the new

discipline of Earth system science, with a near-

term emphasis on global climate change. In

concert with research and industry partners,

research results will contribute to the develop-

ment of environmental policy and economic

investment decisions. Knowledge and discover-

ies are shared with the public to enhance sci-

ence, mathematics, and technology education

and increase the scientific and technological

literacy of all Americans. The same spirit of

innovation that embodies the ESE flight pro-

grams applies to technology development.

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• Expand scientific knowledge of theEarth system using NASA’s uniquecapabilities from the vantage pointsof space, aircraft, and in situ plat-forms:– Understand the causes and con-

sequences of land-cover andland-use change and impacts onsustained productivity

– Develop and improve the capabil-ity to predict seasonal-to-interannual climate variability

– Understand Earth system process-es to better predict natural haz-ards and mitigate natural disasters

– Understand the causes andimpacts of long-term climate vari-ations on global and regionalscales

– Understand the concentrationsand distributions of ozone in thestratosphere and troposphere

• Disseminate information about theEarth system:– Improve the dissemination of

Earth Science research results– Increase public understanding of

Earth system science througheducation and outreach

• Enable the productive use of ESEscience and technology in the pub-lic and private sectors:– Develop and transfer advanced

remote sensing technology

– Extend the use of ESE research tonational, state, and local applications

– Support the development of arobust commercial remote-sens-ing industry

– Make major scientific contribu-tions to national and internationalenvironmental assessments.


FY 1999 was a year of substantial sci-entific accomplishment in our under-standing of the major elements thatcomprise the Earth system. Over theoceans, ESE reduced the uncertaintyin global rainfall over the tropics by one-half, helping improve short-

term weather prediction and avail-ability of fresh water globally. ESE pro-duced near-daily ocean color mapsthat help us understand the role ofoceans in removing carbon dioxidefrom the atmosphere. See “Map of theOceans.” In addition, the Enterprisedocumented the waxing and waningof El Niño, enabling seasonal climateprediction, and resumed global meas-urement of winds at the ocean sur-face to improve short-term weatherprediction and tracking of major hur-ricanes and tropical storms globally.See “View of El Niño.”

The Sensor Intercomparison and Mergerfor Biological and InterdisciplinaryOcean Studies (SIMBIOS) project devel-

Earth Science | 23

Map of the Oceans

* 99 AR layout 04/05/2000 1:58 PM Page 23

oped algorithms to interrelate and com-pare data sets from different ocean colorscanners, such as the India-sponsoredModular Optoelectronic Scanner (MOS)and the U.S. Sea-viewing Wide Field-of-view Sensor (SeaWiFS).These algorithmsare used to merge the data sets and pro-duce more comprehensive informationabout global ocean productivity. Newdata products quantifying global treecover percentage were created usingspace-based observations as a first steptoward improving estimates of above-ground carbon storage in global forests.

The Tropical Rainfall Measuring Mission(TRMM), launched in 1997, continuedto gather information on rainfall in thetropics where two-thirds of global pre-cipitation falls.This is the key to under-standing Earth’s hydrological cycle, oneof the three major processes drivingEarth’s climate and the global heat bal-ance that drives seasonal change.

The NASA Seasonal to Inter-annualPrediction Project (NSIPP) has imple-mented a baseline coupled climate pre-diction system, consisting of the Ariesglobal atmospheric model coupledto the Poseidon global ocean model.Experimental forecasts are able to predicttropical Pacific sea-surface temperaturesup to 6 months in advance. The ocean

model has been successfully initializedusing Special Sensor Microwave/Imager(SSM/I) surface winds data,a combinationof in situ and remotely measured sea-surface temperatures and subsurface temperature data. An assimilation of sea-surface height data from the Ocean Topography Experiment/Poseidon(TOPEX/Poseidon) is now under waywith the Ensemble Kalman Filter and willbe used for the initialization of the cou-pled forecast experiments.

The Quik Scatterometer (QuikSCAT)spacecraft, launched in FY 1999, joinsTRMM and the TOPEX/Poseidon toform a powerful suite of space-basedobservational assets to track phenome-

na such as El Niño/La Niña and majorhurricanes, including the three thatthreatened the American coasts simul-taneously in November of 1999. See“Three Hurricanes Threaten the UnitedStates.”

Over the ice caps, researchers deter-mined the thinning and thickeningrates for the Greenland ice sheet, andprovided the first detailed radar mosaicof Antarctica and daily observations ofthe polar regions from space. See“Detailed Radar Map of Antarctica.”

Over the land, ESE produced the firstsatellite-derived assessments of global for-est cover with the launch of Landsat 7,


View of El Niño

Three Hurricanes Threaten the United States

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began refreshing the global archive of 30-meter land cover data, and conductedan international field experiment inAmazonia to help understand the role ofvegetation on Earth in removing carbondioxide from the atmosphere.

ESE provided technology and instru-ments to allow for several new obser-vations. Single-pass interferometricSynthetic Aperture Radar (SAR) dataare collected; the first consistent globaltopography data from space.These datawill have a variety of applications,including assessing flood hazards, lay-ing out new roadways and pipelines,providing airline operators withdetailed elevation data for remoteareas, and helping disaster manage-ment in general.

The Shuttle Radar Topography Mission(SRTM) instrument was developed tocreate a near-global high-resolution digi-tal elevation topographic map of theworld.The data set obtained from SRTMwill allow scientists in Federal, state, andlocal agencies and academia to study theterrain for basic research, such as ecolo-gy, geology, geodynamics, hydrology, andatmospheric modeling, as well as appli-cations such as urban and infrastructureplanning and disaster management.

The Moderate Resolution ImagingSpectroradiometer (MODIS), the Multi-Angle Imaging Spectroradiometer(MISR), and the Advanced Spaceborne

Thermal Emission and ReflectionRadiometer (ASTER) instruments havebeen developed to collect global andregional data on temperature and pre-cipitation to measure the solar radia-tion reaching Earth. Data from theseinstruments, combined with data fromthe Clouds and the Earth’s RadiantEnergy System (CERES) will enableNASA to estimate Earth’s solar andinfrared radiative fluxes, which in turnwill determine the heating and coolingof Earth and its atmosphere.

The Solid Earth and Natural Hazardsprogram partnered with several disaster

management practitioners, includingthe Federal Emergency ManagementAgency (FEMA) and state and localagencies, to better understand emer-gency management requirements andbetter communicate and apply sci-ence results, technology, and data tooperational needs. Some highlightsinclude:

• Interferometric SAR data have madeimportant observational discoveries,including a nonlinear elastic crustalresponse to the Manyi earthquakein the Tibetan region. Such aresponse has only been observed

Earth Science | 25

Detailed Radar Map of Antarctica

* 99 AR layout 04/05/2000 1:59 PM Page 25

previously in laboratory experi-ments.

• Interferometric SAR data have beenused to identify and model theemplacement and movement ofmagma within active volcanoes,including Mt. Etna in Italy andMammoth Mountain in California.This has provided insights into theinternal workings of the volcanoesas well as assessments of their stateof activity.

• Mathematical and numerical model-ing infrastructure and capabilitiesfor developing general earthquakemodels, measuring volcanic infla-tion and deflation, and integratingGlobal Positioning System (GPS)geodetic and interferometric SARdata for the inversion of crustalstrain have been established.

In the atmosphere, ESE continued tomeasure concentrations of both ozoneand ozone-depleting substances andassess the recovery of upper ozone cor-

relation.The Enterprise implemented a17-year data record of aerosols andcloud properties toward predictingannual to decadal climate variations viaour satellite measurements from theStratospheric Aerosol and GasExperiment (SAGE). The Total OzoneMapping Spectrometer (TOMS) contin-ues to provide the global view of howozone is responding to these reduc-tions in atmospheric halogen burden. Itis providing new data products, such astropospheric ozone columns.

The Enterprise has continued to broad-en its capabilities to maximize the dis-semination and use of data and infor-mation. A working prototype federa-tion program was begun in 1998,which is now beginning to mature as acoordinated network of Earth ScienceInformation Partners. These partnersare working with our DistributedActive Archive Centers (DAACs) to pro-vide new research products and prod-ucts targeted to specific communities

involved within the applications, Stateand local government, and commercialsectors. We have also established theRegional Earth Science ApplicationsCenters, focused on end-to-end proj-ects involving academia, and a widearray of end user practitioners. See “AllESARP Projects.”

ESE tracks three types of programwideperformance measures: how well itmakes data available to scientists, itscontribution to Earth science educa-tion, and the practical application of itsresearch.

Data Made Available to Scientists

NASA tracks these three performancemeasures regarding ESE’s first-line cus-tomers—the scientists and others whouse Earth science data products.Accordingly,ESE is making a substantialinvestment in data and informationservices to make these data productsreadily accessible. Science data prod-ucts are made accessible through a setof DAACs.For 1999,NASA has achievedits goal of continued increases in thesemeasures.

• A total 284 terabytes of data hasbeen archived.

• A total of 1,233,666 users accessedthe DAACs.

• A total of 5,783,425 data productshas been delivered to users.


All ESARP Projects

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See “Data Volume Archived at theDAACs (in terabytes),” “Number ofDistinct Users Accessing the DAACs,”and “Number of Products Delivered bythe DAACs.”

Education in Earth SciencesPerformance Measures

Education in the Earth sciences is oneof the key products of ESE. Its exten-sive and growing collection of sciencedata and research results is used todevelop new educational productsand support curriculum developmentand teacher training. The Enterprisehad the following accomplishments inFY 1999:

• ESE has an annual target of sponsor-ing at least 300 workshops to trainteachers in the use of its educationproducts. In FY 1999, 477 work-shops were sponsored.

• ESE met its annual target of award-ing 50 new graduate studentresearch fellowships in FY 1999.

• ESE is a key participant in theGlobal Learning and Observationsto Benefit the Environment(GLOBE) program, which involvesschools in collecting temperature,precipitation, and related dataaround the world.The number ofparticipating schools in FY 1999was 7,610, and the number of par-ticipating countries was 84.

Practical Applications of Earth SciencePerformance Measure

The Enterprise also has an interest inseeing that its research results in prac-tical applications in the U.S. economy.To this end, the Commercial RemoteSensing Program, at Stennis SpaceCenter, works with U.S. industries tohelp them become suppliers ofremote-sensing data. The goal of this

performance measure is to increasethe number of partnerships with out-side entities for using Earth scienceinformation.The Commercial RemoteSensing Program is engaged in morethan 100 partnerships with commer-cial entities for the development of“value-added” remote-sensing infor-mation products.The number of part-nerships increased significantly over1998 (37) and exceeds the FY 1999goal of 75.

Earth Science | 27

Data Volume Archived at the DAACs (in terabytes)

FY97 FY98 FY99

300200100

0

Number of Distinct Users Accessing the DAACs

FY97 FY98 FY99

1,500,0001,000,000

500,0000

Number of Products Delivered by the DAACs

g

FY97 FY98 FY99

6,000,0004,000,0002,000,000

0

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“Working in Space,” oil by Linda Draper showsastronauts performing extravehicular activities(EVA) around the Shuttle’s cargo bay area.

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HUMANEXPLORATIONAND DEVELOPMENTOF SPACE

to open the space frontier

by exploring, using, and enabling

the development of space and to

expand human experience into

the far reaches of space

* 99 AR layout 04/05/2000 1:59 PM Page 29

allow people to thrive physically andpsychologically while exploring andopening the space frontier.

HEDS seeks out synergies between com-mercial capabilities and Governmentneeds—promoting investments incommercial assets as pathfinders in ISScommercial operations and reducingthe cost of Space Shuttle operationsthrough privatization,eventual commer-cialization, and flying payloads. HEDSserves as a catalyst for commercialspace development by facilitating com-mercial research and product develop-ment on the ISS and the Space Shuttle.

HEDS pursues answers to numerousresearch and engineering questions aswe learn to live and work in space,including:

• What is the fundamental role ofgravity and cosmic radiation in vitalbiological, physical, and chemicalsystems in space, on other planetarybodies, and on Earth, and how dowe apply this fundamental knowl-edge to the establishment of perma-nent human presence in space toimprove life on Earth?

HEDS also plays an important roleworking with other Enterprises to pur-


The mission of the Human Exploration and

Development of Space (HEDS) Enterprise is to

open the space frontier by exploring, using,

and enabling the development of space and

to expand the human experience into the far

reaches of space. In exploring space, HEDS

brings people and machines together to over-

come challenges of distance, time, and envi-

ronment. The Space Shuttle and the

International Space Station (ISS) serve as

research platforms to pave the way for sus-

tained human presence in space through crit-

ical research on human adaptation. The

Enterprise contributes new scientific knowl-

edge by studying the effects of gravity and the

space environment on important biological,

chemical, and physical processes and devel-

ops biomedical knowledge and technology to


* 99 AR layout 04/05/2000 1:59 PM Page 30

sue answers to other fundamentalquestions, including:

• Does life in any form, however sim-ple or complex, carbon based orother, exist elsewhere than on plan-et Earth?


HEDS pursues the following goals andobjectives to achieve its mission:

• Expand the space frontier:– Enable human exploration

through collaborative roboticmissions

– Define innovative, safe, and afford-able human exploration missionarchitectures

– Invest in enabling high-leveragetechnologies

• Expand scientific knowledge:– In partnership with the scientific

community, use the space envi-ronment to explore chemical, bio-logical, and physical systems

• Enable and establish a permanentand productive human presence inEarth orbit:– Provide safe and affordable access

to space– Deploy and use the ISS to

advance scientific, exploration,

engineering, and commercialobjectives

– Ensure and enhance the health,safety, and performance ofhumans in space

– Meet strategic space missionoperations’ needs while reducingcosts and increasing standardiza-tion and interoperability

• Expand the commercial develop-ment of space:– Facilitate access to space for com-

mercial researchers• Share the experience and discovery

of human space flight– Engage and involve all Americans

in the exploration and develop-ment of space

– Increase the scientific, technologi-cal, and academic achievement ofthe Nation by sharing our knowl-edge, capabilities, and assets


International Space Station

FY 1999 was a proud and successful yearfor the ISS program. The United Statesand its international partners (Canada,Europe, Japan, and Russia) made signifi-cant progress in the design and develop-ment of the ISS. In FY 1999,HEDS began

its assembly. The U.S.-owned, Russian-built Zarya Functional Cargo Block wassuccessfully launched and delivered toorbit in November 1998, and the U.S.-built Unity Node followed two weekslater and mated with Zarya. See “Matingof Zarya and Unity.”

The first ISS logistics mission wascompleted in May 1999, deliveringalmost 2 tons of supplies and equip-ment, which will be needed to oper-ate and live on the ISS. The programcompleted the early phases of theMulti-Element Integrated Test (MEIT)with several ISS elements, includingthe U.S. Laboratory Module, to suc-cessfully demonstrate overall hard-ware and software compatibility andphysical integration. See “The U.S.Laboratory Module.”

At the close of FY 1999, the on-orbitvehicle was approaching 10 monthsof service with most on-orbit systemsoperating at or above design specifi-cations. While launching and main-taining on-orbit operations, the pro-gram continued to deliver all majorflight hardware.The ISS program alsosuccessfully demonstrated its leadmission management responsibility,continuing the excellent level ofcooperation between the United

Human Exploration and Development of Space | 31

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States and Russia that was establishedduring the Shuttle-Mir program.

FY 1999 included substantial progresstoward obtaining commitment to com-mercial investment in the ISS. HEDSdeveloped policy recommendationsleading to a White House legislative ini-tiative to establish an ISS CommercialDemonstration Program. NASA expectsto announce the first commercial proj-ects within the Space StationCommercial Development program inFY 2000.

Although great progress was made dur-ing FY 1999, several ongoing issuescontinued to constrain the program.Russian funding shortfalls delayed theService Module delivery to its launchsite and are likely to continue to impactthe Russian ground infrastructure,spares and sustaining engineering, andSoyuz and Progress vehicle availability.ISS contingency planning includes near-term plans to augment Russian propul-

sion and logistics capabilities with theSpace Shuttle and the preparation ofthe Interim Control Module for launch-on-need reboost and attitude control.

Space Shuttle

The Space Shuttle program goal is toprovide safe, reliable, and affordableaccess to space.The Shuttle is the onlyU.S. vehicle that provides human trans-portation to and from orbit.The priori-

ties of the Space Shuttle program are to:(1) fly safely, (2) meet the flight mani-fest, (3) improve mission supportability,and (4) continuously improve the sys-tem.HEDS supported four Space Shuttlelaunches in FY 1999 while accomplish-ing several important improvementmilestones for the Shuttle fleet:

• STS-95 carried a pressurized modulefor conducting laboratory researchas its primary payload. Some mis-sion records included: first flight ofthree Block IIA main engines, firstflight test using space-to-space com-munications, and Senator JohnGlenn’s Space Shuttle mission (old-est astronaut to fly at 77 years and4 months), studying the effects ofage and weightlessness. See“Astronaut John H. Glenn, Jr., in HisSpacesuit in 1961 and Preparing forHis Return to Space in 1998 as Partof the STS-95 Crew.”


The U.S. Laboratory Module

Mating of Zarya and Unity

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• STS-88 was the first U.S. launch ofISS hardware, the Unity Node.Thecrew deployed the Node and matedit to the Russian-launched Zaryamodule.

• STS-96 delivered supplies and con-ducted a checkout of the ISS onorbit. See “STS-96 Launch.”

• STS-93 launched and deployed the Chandra X-ray Observatory,designed to observe x-rays fromhigh-energy regions of the universe,such as hot gas in the remnants ofexploded stars. See “Chandra X-rayObservatory.” The nearly 50,000-pound payload was the heaviestpayload ever launched by a SpaceShuttle.This flight was also the firstflight of a female Commander,Eileen Collins. See “MissionCommander Eileen M. Collins onthe Forward Flight Deck on STS-93.”

The Space Shuttle program continued tomake great strides toward the privatiza-tion of operations under the Space FlightOperations Contract.Contributing to theability of the contractor to achieve pro-gram goals with a reduced workforce

(decreased from 1,973 to 1,883 in FY 1999) is the implementation ofimprovements and efficiencies to theSpace Shuttle through its upgrade pro-gram. During FY 1999, the Space Shuttleupgrade program accomplished manysignificant improvement milestones forthe Shuttle fleet, including the upgradingof Atlantis with a “glass”cockpit and thecontinued development of the high-pres-sure turbo fuel pump and the Checkoutand Launch Control System.This new sys-tem, designed and being built “in-house,”will replace Shuttle control room sys-tems with state-of-the-art commercialequipment and software, thereby assur-ing that sound, safe, and efficient prac-

tices and processes are in place for priva-tized launch site processing.

Life and Microgravity Research

HEDS seeks to take advantage of themicrogravity environment to pursueresearch questions in biology, chemistry,physics, and technology. Microgravityenables groundbreaking new research insystems ranging from cells to flames. InFY 1999, the HEDS Office of Life andMicrogravity Sciences and Applicationsconcentrated on taking advantage ofavailable opportunities during ISS assem-bly to develop and prepare the scientificcommunity for the era of ISS research.Despite difficult budget constraints,HEDShas increased the number of investiga-tions it supports by more than 7 percentto about 850, without significantly reduc-ing the average size of grants awarded.

The 1-year anniversary of the majorNeurolab Space Shuttle mission wasobserved in FY 1999 with a symposium


Astronaut John H. Glenn, Jr., in His Spacesuit in 1961 and Preparing for His Return to

Space in 1998 as Part of the STS-95 Crew

Above: Chandra X-ray Observatory

Background: STS-96 Launch

Mission Commander Eileen M. Collins on

the Forward Flight Deck on STS-93

* 99 AR layout 04/05/2000 2:02 PM Page 33

on findings and results. The Neurolabresults confirm and expand previousspace flight data, suggesting that thevestibular system (the system that sens-es gravity, maintains balance, and helpsregulate movement control) undergoessignificant remodeling in response tomicrogravity. Results from Neurolabinclude the observation that cells in thecerebral cortex of fetal mice dividedmore rapidly in space than on Earth.Neurolab data disprove a longstandinghypothesis on the way the brain inter-prets acceleration in the microgravityenvironment. Prior to Neurolab, it waswidely believed that accelerometers inthe inner ear reinterpret signals so thattilting the head is perceived as linearmotion in microgravity.

HEDS researchers produced a num-ber of important findings in FY 1999.Among the highlights in the physicalsciences are new findings in fluidphysics based on a colloidal systemof hard spheres used to model mate-rials structures. When carried toorbit, this classic model system hasdisplayed new and unanticipatedproperties, and these findings maylead to a better understanding ofmaterials formation. In microgravity,the system shows a dendritic growthpattern that is similar to growth pat-terns of crystals in solidifying metalon Earth. Because these growth pat-terns play a major role in determin-ing properties such as strength and

flexibility in metals, new models forpredicting and describing thisprocess may lead to improved indus-trial processes on Earth.

As part of a continuing effort in theapplication of NASA technologies totelemedicine, a Virtual CollaborativeClinic was held at Ames Research Center.Physicians and technical staff at multipleremote sites interacted in real time with

three-dimensional visualizations ofpatient-specific data using next-genera-tion high-bandwidth networks. Medicalvisualizations were a stereo reconstruc-tion from a scan of a heart with a graft;stereo dynamic reconstructions (beatingheart) of echocardiograms with Dopplereffects and three-dimensional virtual jawsurgery using our CyberScalpel for irreg-ular-shaped or round bones and organs.See “Stereo Reconstruction of a Heart.”


Stereo Reconstruction of a Heart

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In biotechnology,researchers have doc-umented the surprisingly strong effectgravity has on the expression of genes.Substantial and unexpected differencesin gene expression between flight andground cell culture samples werefound.

As recent events on the Mir OrbitalStation have shown, spacecraft firesafety is critical for long-durationspace flight. Spacecraft fire safetydata were verified through coopera-tive U.S.-Russian Mir experiments.The flammability of selected U.S.-supplied plastic materials was testedunder microgravity conditions in aRussian-supplied combustion tunneloperated on the Mir Orbital Station.The data were compared to referencetesting of the f lammability, heatrelease, thermal properties, and com-bustion products of identical materi-als in ground laboratories at both theRussian Keldysh Research Center andthe Johnson Space Center’s WhiteSands Test Facility.

Commercial Research

The HEDS Space Product Developmentprogram works in partnership withindustry through 14 Commercial SpaceCenters representing more than 100 affil-iated companies and institutions. Theprogram facilitates access to space forcommercially sponsored research tobring the opportunities for new

advances, technological understanding,products, and jobs. Some highlights ofthis work include:

• The production of the antibioticactinomycin D—used in conjunc-tion with cancer treatments—bymicroorganisms was 75 percenthigher in microgravity than incomparable ground control exper-iments, providing Bristol-MyersSquibb, the industry partner ofBioServe, with new insights thatmay improve ground-based pro-duction.

• Technology for creating high-tem-perature superconducting wires—which will reduce the size oftransformers, increase efficiency,and make them more environmen-tally friendly by eliminating theneed for oil cooling—using oxidethin films has been licensed byMetal Oxide Technologies fromthe Space Vacuum Epitaxy Center,which developed the technologyin cooperation with the TexasCenter for Superconductivity.

• A gene transfer experiment byRapigen and its partners showedthat microgravity provided at leasta tenfold increase in the success-ful transfer of traits to soybeanseedlings over ground-based 0.1-percent success rates—especially important given thatthe U. S. Department ofAgriculture estimates that more

than 70 percent of the soybeansplanted in the United States are ofgenetically engineered varieties.

Space Operations

The phase-in of the ConsolidatedSpace Operations Contract (CSOC) tomanage the Agency’s space opera-tions activities was completed inDecember 1998.The CSOC covers allof NASA’s data collection, telemetry,and communication operations sup-porting its Earth-orbiting satellites,planetary exploration, and humanspace flight activities. The contractconsolidates management responsi-bility from five NASA Centers to a sin-gle entity, an unprecedented step fora change of this magnitude. Cost per-formance is on track, customer opera-tions are meeting proficiency targets,and workforce reductions are beingeffected consistent with the plan.Thiscontract is expected to save taxpay-ers approximately $1.4 billion over10 years.

Outreach and Education

One of the objectives of HEDS is toinvolve citizens in the adventure ofexploring space and transfer knowl-edge and technologies to enhance thequality of life on Earth. During FY1999, HEDS continued to sponsor avariety of programs and initiatives thatsupport the Agency’s Education Plan


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and are in line with the NationalEducation Goals to improve math andscience literacy.

Specific education projects, such asEarthKam and SAREX, directly involvestudents in Shuttle flights. Students(K–12) had the opportunity to partici-pate with researchers in the analysisand interpretation of research data.HEDS will continue to create a won-derment and excitement in students inthe future through educational pro-grams conducted through the ISS.

HEDS developed and operated anonline project called Space TeamOnline (STO). This project focuses onthe people behind the scenes whomake the Shuttle fly and uses theInternet to connect primarily K–12 stu-dents with NASA’s exciting Shuttleteam.The purpose of STO is to motivatestudents toward math, science, andtechnology studies while demonstrat-ing the variety of skills and educationalbackgrounds required to make theShuttle program fly.Thousands of class-rooms made use of STO.

Space Shuttle Safety,Reliability, and EfficiencyPerformance Measures

Improving Space Shuttle safety andreliability is indicated by a reducedrate of in-flight anomalies, increasedon-time success for launches, and

reduced time required for missionpreparation.The goal of this perform-ance measure is to sustain SpaceShuttle operations by safely flying themanifest (scheduled missions) andaggressively pursuing a systemsupgrade program that will reducepayload-to-orbit costs.This Enterpriseobjective directly supports theAgency goal of improving SpaceShuttle efficiency, while achievingmission goals and transitioning to pri-

vate-sector operations as appropri-ate. Specifically, the HEDS Enterprisesought to achieve the following tar-gets for 1999:

• Achieve seven or fewer flight anom-alies per mission

• Achieve 85 percent on-time, suc-cessful launches (excluding the riskof weather)

• Reduce manifest preparation to 13 months


Space Shuttle On-Time Success Rate

Note: “On-time” launch, on this chart, means that the launch occured sometime during the launch window.

100

80

60

40

20

0FY96 FY97 FY98 FY99

67

Goal:85%

89 80

67

Per

cent

Space Shuttle In-Flight Anomalies per Mission

20181614121086420

FY96 FY97 FY98 FY99

6.75 5.25 5.75 4.75Goal: 7

* 99 AR layout 04/05/2000 2:22 PM Page 36

In FY 1999, an average rate of 4.75 orbiter in-flight anomalies wasobserved. See “Space Shuttle In-FlightAnomalies per Mission.” An on-timelaunch rate of 67 percent was observed.See “Space Shuttle On-Time Success Rate.”Launch delays were called to assure a safelaunch and the successful completion ofthe mission.While the target was not met,we did meet the intent of the strategicobjective, which is to safely fly each mis-

sion.A 12-month flight preparation cycleand an 8-month cargo integration dura-tion were achieved. See “Space ShuttleManifesting and Cargo Integration Time.”

Scientific InvestigationsFunded PerformanceMeasure

HEDS is actively developing a com-munity of researchers to explore fully

the role of gravity in physical, chemi-cal, and biological processes and tomaximize the scientific return fromHEDS assets. The near-term objectiveis to expand scientific knowledge byexploring the role of gravity and thespace environment in physical, chem-ical, and biological processes througha vigorous peer-reviewed researchprogram in space and enabling theresearch community to use gravity asan experimental variable. ThisEnterprise objective directly supportsthe Agency’s goal to “explore the roleof gravity and the space environmentin physical, chemical, and biologicalprocesses.”An expanded research pro-gram funded about 850 investigationsin FY 1999, an increase of more than7 percent over FY 1998 as reportedby the Lead Centers. See “FundedInvestigations.”

These target performances were veri-fied and validated with data from theProgram Management Council SpaceShuttle Program Quarterly StatusReviews and by documentation fromSpace Shuttle Program RequirementsControl Boards.


Funded Investigations

1000900800700600500400300200100

0FY97 FY98 FY99

Space Shuttle Manifesting and Cargo Integration Time

15

10

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0FY96 FY97 FY98 FY99 FY00 FY01

Mon

ths

Manifest Flight Preparation Cargo Integration Duration

* 99 AR layout 04/06/2000 8:03 AM Page 37

Seventy-five years of aerospace accomplish-ments are depicted in this montage illustrationby artist Fred Otnes, commemorating the cre-ation of the National Advisory Committee forAeronautics (NACA) in 1915 and its successoragency, the National Aeronautics and SpaceAdministration (NASA), in 1958.

* 99 AR layout 04/05/2000 3:22 PM Page 38

AERO-SPACETECHNOLOGY

to pioneer the identification,

development, verification, transfer,

application, and commercialization

of high-payoff aeronautics and

space transportation technologies

* 99 AR layout 04/05/2000 3:13 PM Page 39

technology accomplishments, it pro-motes economic growth and nationalsecurity through a safe,efficient nation-al aviation system and affordable, reli-able space transportation. The plansand goals of the Enterprise directly sup-port national policy in aerospace, doc-umented in “Goals for a NationalPartnership in Aeronautics Researchand Technology” and “National SpaceTransportation Policy.” The Enterpriseworks in alliance with its aerospacecustomers—including U.S. industry, theuniversity community, the Departmentof Defense (DOD), the Federal AviationAdministration (FAA), and the otherNASA Enterprises—to ensure thatnational investments in aerospace tech-nology are effectively defined andcoordinated and that NASA’s technolo-gy products and services add value, aretimely, and have been developed to thelevel at which the customer can confi-dently make decisions regarding theapplication of those technologies.

The Enterprise also has responsibilityfor technology transfer and commer-cialization.This function is provided asan Agencywide service to ensure thewide, rapid transfer of NASA-devel-oped technologies to U.S. industry forthe social and economic benefit of allcitizens.



Research and technology play a vital role in

ensuring the safety, environmental compatibility,

and productivity of the air transportation system

and in enhancing the economic health and

national security of the Nation. However,

numerous factors, including growth in air traffic,

increasingly demanding international environ-

mental standards, an aging aircraft fleet,

aggressive foreign competition, and launch

costs that impede affordable access and the

utilization of space, represent formidable chal-

lenges to the Nation.

The mission of the Aero-Space Technology

Enterprise is to pioneer the identification, devel-

opment, verification, transfer, application, and

commercialization of high-payoff aerospace

technologies. Through its research and

* 99 AR layout 04/05/2000 3:13 PM Page 40

The Enterprise addresses the followingfundamental question:

• How can we enable revolutionarytechnological advances to provideair and space travel for anyone,anytime, anywhere more safely,more affordably, and with lessimpact on the environment andimprove business opportunitiesand global security?


The Aero-Space Technology Enterprisehas three goals (pillars) supported by10 enabling technology objectives thataddress the critical aerospace needs ofour Nation. The goals and objectivesare stated as “outcomes,” or what the“world as we know it” could be like ifthe goals are achieved. In addition, theEnterprise has a service goal. Thesegoals are as follows:

• Pillar One: Global Civil Aviationwill develop an environmentallyfriendly global air transportation sys-tem for the next century of unques-tioned safety that improves theNation’s mobility. Pillar One is sup-ported by enabling technologyobjectives that address challenges inAviation Safety, Emissions Reduction,

Noise Reduction,Aviation SystemCapacity, and Affordable Air Travel.

• Pillar Two: RevolutionaryTechnology Leaps will revolution-ize air travel and the way in whichaircraft are designed, built, and oper-ated. Pillar Two is supported byenabling technology objectives thataddress challenges General AviationRevitalization and Design Tools andExperimental Planes.

• Pillar Three: Space Transporta-tion will achieve the full potential ofspace for all human endeavorthrough affordable space transporta-tion. Pillar Three is supported byenabling technology objectives thataddress challenges in Low-Cost SpaceAccess and In-Space Transportation.

• The Service Goal will (1) enable,and as appropriate provide, on anational basis, world-class aerospaceresearch and development services,including facilities and expertise,and (2) create alliances with indus-try to develop technology systemsand transfer NASA technology.


The Enterprise produced many excitingaccomplishments in support of its goalsand objectives.These accomplishments

will directly benefit the American peo-ple through safer, more affordable andmore environmentally friendly air traveland more efficient and affordable accessto space.A few accomplishments,organ-ized by goals and objectives of theEnterprise, are highlighted here.

Pillar One: Global Civil Aviation

Aviation Safety: Reduce the aircraftaccident rate by a factor of 5 within10 years, and by a factor of 10 within25 years.

Controlled Flight into Terrain (CFIT):More than 30 percent of all fatal acci-dents worldwide are categorized as CFITaccidents, in which a functioning aircraftimpacts terrain or obstacles the flightcrew were unable to see.As part of theAirframe Systems Program,several under-lying causes of CFIT were identified, and13,2- to 3-year contracts were awarded todevelop and demonstrate approaches forfully operational and certifiable syntheticvision (7 awards) and health manage-ment (6 awards) systems.Preparation forthe flight evaluation of a crew-centeredsynthetic vision display was also com-pleted, as was a study of synthetic visionapplicability to general aviation aircraft.See “Synthetic Vision Display.”

Aero-Space Technology | 41

* 99 AR layout 04/05/2000 2:44 PM Page 41

Supercooled Large Droplet Icing FlightTest: Under the Aviation OperationsSystems Program, Glenn ResearchCenter’s Twin Otter Icing ResearchAircraft completed flight tests for the1998–1999 winter icing season withhigh-fidelity icing cloud instrumenta-tion mounted underside its wing. Incombination with instrumentationcomparison testing from Glenn’s IcingResearch Tunnel conducted inNovember 1998, this database providesenhanced knowledge of ice formationprocesses. Because of the wealth ofdata gathered, reduction and analysiswere 70 percent complete at the end ofFY 1999,with the remainder completedby the end of the calendar year. Bothactivities were a cooperative effort withAtmospheric Environmental Services ofCanada and the FAA to improve under-standing of severe icing hazard, andthus enhance aviation safety.

Emissions Reduction: Reduce emis-sions of future aircraft by a factor of3 within 10 years, and by a factor of5 within 25 years.

Fifty Percent NOx Reduction Low-Emission Combustor As part of theAdvanced Subsonic Technology Pro-gram, a low-emission combustor wasdemonstrated on a Pratt & Whitney4000 development engine. The low-emission combustion concept utilizesinitially rich front-end combustion fol-lowed by air-quench and lean combus-tion.The engine was operated over thenormal operating envelope with bothconventional and low-sulfur fuel, and itincluded limited combustor operabilityand durability assessment. The resultsincluded reductions in nitrogen oxide(NOx) levels during the landing andtakeoff cycle, reductions in carbonmonoxide and unburned hydrocarbonlevels, and comparable reductions incruise NOx emissions.

Noise Reduction: Reduce the per-ceived noise levels of future aircraftby a factor of 2 from today’s subsonicaircraft within 10 years, and by a fac-tor of 4 within 20 years.

Prediction and Minimization Metho-dology for Community Noise Impact:Advanced prediction methods and oper-ational procedures to reduce communi-ty noise are required to meet the 10- and25-year Enterprise noise reduction goals.

The Advanced Subsonic TechnologyProgram’s Aircraft Noise Impact Modelcombines airport noise prediction, cen-sus data, and satellite imagery into aGeographical Information System. Themodel optimizes ground tracks and tra-jectories for minimized impact and vali-dates the need for improvement at longrange. Improved high-lift systems, incombination with advanced operationalprocedures,have the potential to reducecommunity source noise impact by 2–4decibels. See “Airport Noise Impact.”

Aviation System Capacity: Whilemaintaining safety, triple the avia-tion system throughput, in all weath-er conditions, within 10 years.

Aircraft Vortex Spacing System(AVOSS): Under the Aviation SystemCapacity Program, the developmentof the core code for Build 1,Version 2of AVOSS was completed and inte-grated with the real-time shell. Newfeatures include improved wake pre-diction (decay and ground effect),improved wake sensor tracking algo-rithms and sensor-derived wake resi-dence time in corridor, improve-ments to the observational weathersystem, and Weather Nowcast for sev-eral hours’ forecast of runwaythroughput. AVOSS Build 1, Version 2is now operational in the AVOSS labo-ratory at Langley Research Centerwith live data feeds from the Dallas-Fort Worth airport.


Synthetic Vision Display

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Affordable Air Travel: Reduce thecost of air travel by 25 percent with-in 10 years, and by 50 percent with-in 20 years.

Stitched Composite Semi-Span WingAssembly: The assembly of the semi-span wing test article represents a keymilestone on the way to verification ofthe cost (20 percent) and weight (25 percent) reduction goals of theAdvanced Subsonic TechnologyProgram. Stitched composite upperand lower cover panels were fabricat-ed, inspected, and installed in theassembly fixture, along with nearly allof the composite internal substructure(ribs and spars). The as-fabricated netshape of the one-piece integral coverpanels was excellent and representsthe largest stitched parts ever fabricat-ed (42 feet in length).The integral, net-shape fabrication leads to precisionassembly with minimal postfabricationmachining and shimming, which con-tributes to the overall cost reduction.Performance verification at Langley’sfull-scale structural test facility was alsoinitiated in FY 1999. See “Semi-SpanWing Components Being Installed inthe Wing Assembly Fixture.”

Pillar Two: RevolutionaryTechnology Leaps

General Aviation: Invigorate the gen-eral aviation industry, delivering10,000 aircraft annually within

10 years, and20,000 aircraftannually within25 years.

General AviationPropulsion: Thoughslowed by technicalproblems, progresscontinued duringFY 1999 in NASA’scooperative effortswith industry to develop advancedengine technology for general aviationaircraft. Both the advanced internalcombustion engine and the small gasturbine engine completed assembly aswell as initial performance and oper-ability testing. Design modifications tocorrect problems uncovered during theground-based tests were completed andincorporated in the their respectiverebuilds, with testing scheduled tobegin again in early 2000. In both cases,confidence remains high in the poten-tial to demonstrate both the internalcombustion andturbine engines onexperimental air-craft at the Summer2000 Oshkosh Fly-In in Wisconsin.

AGATE PrototypeSystems Evaluatedand Downselectedfor Integrated Test-ing: Under the

Advanced Subsonic Technology Pro-gram, final systems have been downs-elected for future integration into anAdvanced General Aviation TechnologyExperiment (AGATE) aircraft.The pro-totype systems include an AGATEIntuitive Pilot Interface and improvedstructural materials. The IntuitivePilot Interface (the “Highway in theSky”), in concert with a multifunc-tional display, is being developed toprovide a pilot with a graphic depic-tion of a desired flight path, takinginto account weather, traffic, terrain,


Airport Noise Impact

Semi-Span Wing Components

Being Installed in the Wing Assembly Fixture

* 99 AR layout 04/05/2000 2:45 PM Page 43

and any airspace issues without theuse of voice communications. Theprototype system will lead toincreased safety, improved situationalawareness, and reduced operationalworkload. NASA has led an effort todefine the epoxy-based compositematerial qualification methodology.The FAA has published the finalguidelines for these materials. Thishas resulted in a substantial reductionin certification cost and certificationtime. See “AGATE Prototype Systems.”

Design Tools and ExperimentalPlanes: Provide next-generationdesign tools and experimental air-craft to increase design confidence,and cut the development cycle timefor aircraft in half.

Full Combustor Simulation Demon-strates Improvement in Design Timeand Cost: In September 1998, the High Performance Computing andCommunications Program achieved a200:1 reduction in turnaround time

(3,174 hours on the Intel Paragon or 13hours on a Silicon Graphics Origin 2000)on a full combustor simulation fromcompressor exit to turbine inlet. In June1999, the reduction turnaround timeimproved to 307:1 and,by year end,wasat 320:1 (10 hours on Silicon GraphicsOrigin 2000). This improvement in theNational Combustor Code will con-tribute to a significant reduction in air-craft engine combustor design time andcost by reducing the need for combustorrig testing by one-third,resulting in a sav-ings estimated at $2 million. This alsoaids in accomplishing the national goalto reduce aircraft engine emissions.

Remotely Piloted Aircraft (RPA) to55,000 Feet for 4-Hour Duration: In July1999, the Flight Research Program con-ducted an RPA flight demonstration ofAltus (General Atomics ERAST vehicle)at Edwards Air Force Base.The purposeof the demonstration was to validate RPAtechnology for use in science missionsof greater than 4 hours duration in


AGATE Prototype Systems

* 99 AR layout 04/05/2000 2:45 PM Page 44

deployment to areas such as the polarregions above 55,000 feet. The flightdemonstration was a success and furtherincreases design confidence in theapplication of RPA’s as science measure-ment platforms. See “Altus in Flight.”

Helios First Flight: The Flight ResearchProgram also completed the first low-altitude flight of a Helios prototype inSeptember 1999.The flight demonstra-tion included a battery-powered,remotely piloted vehicle aircraft with awingspan greater than 245 feet, suit-able for flight to 100,000 feet in alti-tude or a duration of 100 hours onceoutfitted with high- performance solarcells. Based on the excellent resultsfrom these flights, the procurement of

advanced solar cells will be initiatedduring 2000. See “Helios Flight.”

Pillar Three: Space Transportation

Low-Cost Space Access: Reduce thepayload cost to low-Earth orbit by anorder of magnitude, from $10,000 to$1,000 per pound, within 10 years,and by an additional order of magni-tude within 25 years.

X-33 Aerospike Engine DevelopmentTesting: Testing of the first develop-ment Aerospike engine for the X-33began during FY 1999 at Stennis SpaceCenter. The second and third enginesare the flight engines for the X-33 and

were scheduledfor acceptancetests at Stennisnear the end of thecalendar year.Unfortunately, theliquid hydrogen

tank for the vehicle experienced adelamination following pressure andstructural load testing at MarshallSpace Flight Center in early November1999. The evaluation of the situationand its impact to the program were ini-tiated in December and will continueinto early 2000.

X-34 Vehicle Fabrication: Thoughslowed by hardware delivery problemsand the resolution of environmentalconcerns at the White Sands test site,progress toward the first flight of the X-34 continued during FY 1999. Hotfire testing of the Fastrac engine wasinitiated at Stennis, and the build of thefirst powered flight vehicle (A-2) con-tinued.The replanned program includesthe modification of vehicle A-1 (used forcaptive-carry testing with the L-1011launch aircraft) as an unpowered vehi-cle for testing at White Sands, withpowered testing (using vehicle A-2)moved to Dryden Flight ResearchCenter at Edwards Air Force Base.


Altus in Flight Helios Flight

* 99 AR layout 04/05/2000 2:48 PM Page 45

Program replanning also includes achange in engine test sites from Stennisto Rocketdyne’s facility in California.The first unpowered flight of the X-34is now scheduled for April 2000. See “X-34 Flight Vehicles.”

Rocket Based Combined Cycle (RBCC)Flowpaths: As a major step in the devel-opment of next-generation space trans-portation propulsion systems, andunder the Advanced SpaceTransportation Program,a pair of hydro-gen-fueled RBCC flowpaths have beenground tested.The flowpaths have beentested in all expected operating modes,and transition from air-augmented rock-

et to ramjet operating mode has beendemonstrated in a new, unique facilitythat allows for the continuous variationof the simulated Mach number.

In-Space Transportation: Reducethe payload cost of interorbital trans-fer by an order of magnitude andtravel time for planetary missions bya factor of 2 within 15 years.

Critical Design Review (CDR) ofPropulsive Small Expendable DeployerSystem (ProSEDS): The AdvancedSpace Transportation Program held aCritical Design Review of the ProSEDSexperiment in early September 1999, toreview maturity of the system design.The experiment is scheduled for launchin August 2000, and it is intended todemonstrate the use of electrodynamictethers as a means of propulsion inspace without the use of propellants.See “Artist’s Concept of ProSEDSExperiment.”

The Aero-Space Technology Enterprisetracks programwide performancemeasures for its performance commit-ments and its customers’ satisfaction.

Aggregate DeliverablesCompleted as a Percentageof Planned DeliverablesPerformance Measure

Each Enterprise program uses measura-ble customer-negotiated product and

service deliverables to track annualperformance against plans, includingspecific success criteria for milestonecompletion assessment.

This metric aggregates the performanceof individual program milestones to pro-vide a composite indicator of progresstoward the goals and objectives of theEnterprise.The Enterprise goal is to com-plete 90 percent of customer-negotiatedproduct and service deliverables within 3months of the established commitmentdate. The Enterprise completed 84 per-cent of its planned deliverables withinthe 3-month metric;6 percent were com-pleted 4 to 6 months late. See “AggregateDeliverables Compared as Percentage ofPlanned Deliverables.”

Satisfaction With Facility UsePerformance Measure

One of the major services provided bythe Enterprise to its customers is


X-34 Flight Vehicles

Artist’s Concept of ProSEDS Experiment

* 99 AR layout 04/05/2000 2:48 PM Page 46

access to NASA’s critical research anddevelopment facilities, such as windtunnels. Each of the four NASAResearch Centers (Ames, Dryden,Langley, and Glenn) conducts exitinterviews at selected facilities. Thismetric aggregates the interview resultsto provide an overall indicator of cus-tomer satisfaction relative to theEnterprise research and developmentservices goal.Facility-by-facility data areavailable and used to improve cus-tomer satisfaction.

The Enterprise metric is to have 80 per-cent of facility exit interview respon-dents rate satisfaction with aeronauticsfacilities at “8” or above (on a scale of 1 to 10) and to have 95 percent ratefacilities at “5”or above.For FY 1999,theEnterprise exceeded both goals, scoring100 percent and 90 percent, respective-ly. See “Facility Utilization Satisfaction.”

With the exception of the survey andeducation outreach targets, the dataused to substantiate actual performanceoriginated at the NASA Field Centerresponsible for program implementa-tion. The data were verified by seniorofficials at those Centers and also duringthe periodic Enterprise review processat NASA Headquarters, including theNASA Program Management Council onselected programs and projects. Theabove assessment was also reviewed bythe Aero-Space Technology Committeeof the NASA Advisory Council.


FY97 FY98 FY99

9694929088868482807876

Goal: 90%

82

84

94

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with

in 3

mon

ths

of s

ched

ule

FY97 FY98 FY99

100

95

90

85

80

75

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100

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age

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Aggregate Deliverables Compared as Percentage of Planned Deliverables

Facility Utilization Satisfaction

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“Emergence,” acrylic on canvas by DanNamingha. The artist combined his Indian her-itage, the Hopitewa spirituality and mysticism,with today’s technology.

* 99 AR layout 04/05/2000 2:48 PM Page 48

CROSSCUTTINGMANAGEMENTACTIVITIES

to manage strategically,

provide aerospace products

and capabilities, generate and

communicate knowledge to

enable the Agency to achieve

goals in aeronautics and space,

and meet the interests of

NASA’s various customers

* 99 AR layout 04/05/2000 2:49 PM Page 49

Manage Strategically

The Manage Strategically processinvolves planning, direction, and over-sight of Agency activities.

Mission and Goals

The mission of this process is to pro-vide policy, direction, and oversight tothe Strategic Enterprises, functionalstaff, and Centers to enable the accom-plishment of programs. The goal is toprovide a basis to carry out responsi-bilities effectively and safely andenable management to make criticaldecisions regarding implementationactivities and resource allocations,while ensuring consistency with thegoals, objectives, and strategies con-tained in its Strategic, Implementation,and Performance Plans.Through strate-gic management, NASA measures itsperformance and communicates theresults, demonstrating their relevanceand contribution to national needs.

Objectives

The objectives of the Manage Strategi-cally process are to:

• Align direction and deploymentdecisions with external mandates

The work of the Agency’s four Enterprises

is supported by the following Crosscutting

Processes:

• Manage Strategically

• Provide Aerospace Products and

Capabilities

• Generate Knowledge

• Communicate Knowledge

Through these processes, we transform

inputs, such as policies and resources, into

outputs, such as knowledge.


* 99 AR layout 04/05/2000 2:49 PM Page 50

and the requirements of our cus-tomers, partners, and stakeholders

• Communicate direction and decisionsthroughout the NASA team and to theexternal community in a timely, con-sistent, and understandable manner

• Optimize investment strategies andsystems to align human, physical,and financial resources with cus-tomer requirements, while ensuringcompliance with applicable statutesand regulations

• Improve the effectiveness and effi-ciency of acquisitions through theincreased use of techniques andmanagement that enhance contrac-tor innovation and performance

• Ensure that information technologyprovides an open and secureexchange of information, is consis-tent with our technical architec-tures and standards, demonstrates aprojected return on investment,reduces risk, and directly con-tributes to mission success

• Foster leadership that demonstratesa commitment to our values, princi-ples, goals, and objectives

Accomplishments and Performance Measures

The accomplishments and performancemeasures for this process are summa-

rized in several areas:Human Resources,Physical Resources, Procurement,Information Technology, and FinancialManagement.

Human Resources. NASA continuedto carefully manage full-time equivalent(FTE) reductions to maintain programschedules and safe operations. Thesereductions were accomplished by volun-tary losses, buyouts, intercenter trans-fers,and the restriction of outside hiring.At the same time, the Agency focusedadditional emphasis on refreshing andrevitalizing the workforce via the imple-mentation of development initiatives,such as the Program ManagementDevelopment Process AcceleratingLeadership Option (PMDP-ALO).

The PMDP-ALO, involving a strategicpartnership between NASA and theMassachusetts Institute of Technology(MIT), is designed to provide technicalprogram and project managers theopportunity to obtain systems perspec-tive, gain hands-on experience, anddevelop the ability to perform insightduties in NASA aerospace endeavors,combined with a rigorous academic cur-riculum. Topics currently include sys-tems design, safety/risk, and modeling,with future tracks in information tech-nology and biological sciences. The

PMDP-ALO blends the best of tailoredpractitioner experiences and academiclearning to prepare future NASA techni-cal program and project leaders in thesystem design of complex programs andsound business management practices.

Increase Workforce Diversity Perfor-mance Measure. NASA has made signifi-cant strides in diversifying its workforceat all levels. In addition,NASA takes greatpride in its astronaut corps, whichreflects the face of America. NASA isincreasing workforce diversity by work-ing toward a long-term goal that reflectsthe diversity of America and of the civil-ian labor force (CLF). The effort alignshuman resources with external man-dates and increases alignment with cus-tomer requirements. Since FY 1992, thepercentage of minorities, women, andindividuals with targeted disabilities hasincreased,while the total workforce sizehas decreased.See “Workforce Diversity.”

Physical Resources. Through tech-niques such as principal centers, part-nering, performance-based contracting,energy conservation, recycling, pollu-tion prevention, and outsourcing, NASAhas been able to increase its return oninvestments in its physical assets.Execution of a fully consolidated andintegrated asset management system

Crosscutting Management Activities | 51

* 99 AR layout 04/05/2000 2:49 PM Page 51

that enables and supports full cost principles will maximize the value ofphysical resources management to itsprograms. Improvements in the knowl-edge and skills of the workforce facili-tate the achievement of breakthroughresults in functional management areas.These outcomes have been demonstrat-ed through a cost avoidance indicatorthat shows that we exceeded the

expected target by approximately 163 percent through proactive, effi-cient, and effective management ofphysical resource responsibilities.Indicators of improved facilities engi-neering, environmental management,and logistics management are validatedby analyses of data obtained fromCenter reports,the NASA EnvironmentalTracking System database, and annual

Personal Property Reports. Cost avoid-ance is a result of an action that avoids apotential greater future cost. It measuresthe effect of the following strategies:leasing reductions, maintenance initia-tives, alternative investments, and facili-ty closures; energy conservation, recy-cling, and pollution prevention initia-tives; and acquisition of idle and excessproperty and exchange/sale allowance


0

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White Males White Females Blacks Hispanics American Asian/Pacific PersonsIndians Islanders With Targeted

Disabilities

FY 1998

FY 1999

CLF

Population

Workforce Diversity

* 99 AR layout 04/05/2000 2:49 PM Page 52

proceeds returned to NASA to offsetnew procurement expenditures.

Procurement. NASA continues itsactivities to improve the efficiency andeffectiveness of the procurementprocess and enhance contract manage-ment through improved systems andinformation for monitoring. For exam-ple, a new strategy for evaluating theefficacy of procurement operations has been implemented; it combinesperiodic Headquarters Office ofProcurement onsite surveys of Centerswith Center self-assessments and peri-odic International Organization forStandardization (ISO) audits. The pro-curement management survey teamsreview Centers triennially and validatecontract management activities. As aresult of the explosion of web technol-ogy, enhanced access to information,the work of the NASA AcquisitionInternet Service (NAIS) Team in devel-oping a range of tools for the contract-ing community, and the need to assimi-late procurement activities with theIntegrated Financial ManagementSystem (IFMS), the Office ofProcurement began work in FY 1999to establish the Virtual ProcurementOffice (VPO).The VPO, when complet-ed, will assemble in one place on theInternet the myriad of references,tools, and sample documents availableto contract specialists. The VPO willprovide a convenient reminder of tasksthat need to be accomplished and

immediate access to the tools availableto accomplish the tasks.

The NASA Office of Procurement alsoworked closely with the Office ofSafety and Mission Assurance to initiatea Risk-Based Acquisition Management(RBAM) initiative. RBAM will integraterisk and safety principles throughoutthe entire acquisition process by considering the implications of pro-grammatic risk when developing acquisition strategy, selecting sources,choosing contract type, structuring feeincentives, and conducting contractorsurveillance.

Funding to Small DisadvantagedBusinesses Performance Measure.Achieving a percentage of 16.1, NASAexceeded its congressionally mandatedgoal of providing 8 percent of its annu-al funding to small disadvantaged busi-nesses, including Historically BlackColleges and Universities, other minori-ty educational institutions, and women-owned small businesses, via prime and

subcontracts awarded in support ofauthorized programs. See “Funding toSmall Disadvantaged Businesses as aPercentage of Agency Funding.”

Information Technology. NASA’sstrategic focus areas for InformationTechnology (IT) are:

• Safety and Security• Cost-Effective Common

Infrastructure and Services • Transfer of Innovative Technology

Into the NASA Infrastructure

Safety and Security. NASA is commit-ted to providing an exemplary ITsecurity posture by aggressivelyreducing system vulnerabilities, train-ing system and network administra-tors, and ensuring effective securityplans for all mission-critical systems.IT security, infrastructure protection,and privacy of data are requiringmore management attention and anincreasing share of the IT budget.TheAgency continued to implement a


FY94 FY95 FY96 FY97 FY98 FY99

20151050

Per

cent

Goal:8%

Funding to Small Disadvantaged Businesses as a Percentage of Agency Funding

* 99 AR layout 04/05/2000 2:49 PM Page 53

comprehensive security program thataddresses policy, training, incidentresponse and reporting, auditing andmonitoring, penetration testing, trust,and key security technologies. On anAgencywide level, implementation ofa Public Key Infrastructure (PKI) hasbegun based on various pilots, whichassessed the effectiveness of PKIcryptographic technologies. AtHeadquarters, network securityimprovements have been made inwhich aggressive data security poli-cies have been established, a firewallinfrastructure has been deployed andusers have been migrated behind thefirewall, and strong, industry-leading,cost-effective dial-in security mecha-nisms have been provided.

Aggressive actions were taken toensure that missions, systems, and sup-porting infrastructure and facilitieswere not disrupted by the transition tothe new millennium.The renovation ofall mission-critical systems (MC) andnonmission-critical systems (NMC)and business continuity and contin-gency plans are complete, culminatingin more than 3 years of analysis, exten-sive testing, and formal certificationprocesses.

Cost-Effective Common Infrastructureand Services. As an early adopter ofprogressive business approaches fordelivering common infrastructure andservices, NASA continued to realize

efficiencies through outsourcing andconsolidation initiatives, as well asmore optimum use of IT forAgencywide services.The OutsourcingDesktop Initiative for NASA (ODIN)and the outsourcing of NASAIntegrated Services Network (NISN)support are examples of key initiativesthat enabled efficiencies and improvedbusiness practices.

Technology is employed as a way toprovide improved support at lowercost. For example, the NASA AutomatedData Processing (ADP) ConsolidationCenter (NACC) upgraded its bipolartechnology computer systems withcomplementary metal oxide semicon-ductor technology systems. Thisupgrade substantially reduced hard-ware maintenance and software licens-ing costs, significantly increased systemspeed and capacity, and reduced cus-tomer processing costs.

Transfer of Innovative TechnologyInto the NASA Infrastructure. NASAcontinued its role as a critical contributor to national IT researchgoals in three key program areas:the High Performance Computingand Communications, the IntelligentSynthesis Environment, and theIntelligent Systems initiatives. Each ofthese programs delivered innovativetechnologies and capabilities to sup-port mission requirements at anaffordable cost, at minimum risk, with

a goal of maximum science returnand engineering productivity.

The new Mission Control Center atJohnson Space Center illustrates howinnovative commercial IT has facilitat-ed the transition of the program-unique, 1960’s-based manned spaceflight control center to one that meetsthe needs of the 21st century andbeyond.The new control center elimi-nates the NASA-unique equipment andmassive hardware orientation of theoriginal Mission Control, replacing itwith a modular, software-orienteddesign that uses standard, commercial-ly available equipment. In similar fash-ion, the current Launch ProcessingSystem is being replaced at KennedySpace Center to ensure economicaloperation of the Space Shuttle fleetthrough 2012; it is anticipated to saveapproximately 50 percent of the cur-rent system costs.

Improving IT Capability and ServicesPerformance Measure. An Agencywideperformance objective of improving ITcapability and services has been estab-lished to evaluate accomplishmentthrough performance measurementsand is tracked against targets on a quar-terly basis.One of the targets establishedunder this objective was the completionof the Year 2000 remediation of mission-critical systems by March 1999 and non-mission-critical systems consistent withgovernment-wide guidelines. See “Y2K


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Quarterly Performance Metric.”These ITperformance data are verified by theCenter Chief Information Officers andthe staff of the NACC and the NISN; theverification process consists of reviewby several layers of management andcompliance testing.

Financial Management. This areaincludes all Agency budget and account-ing activities. Two performance meas-ures have been established for financialmanagement. One focuses on the plan-ning and use of budget resources; theother on the payment process.

Financial Resources Used Perfor-mance Measure. Planning and use ofbudgetary resources are critical activi-ties. NASA must effectively plan, con-trol, distribute, and use availableresources in a timely manner, consis-tent with legal and policy guidelines.Akey metric is the rate of use during theperformance period, measured by thepercentage of costs incurred of finan-cial resources available. The use ofavailable financial resources is signifi-cantly influenced by the unpredictablenature of highly technical research anddevelopment activities. In recognitionof this, a significant proportion ofappropriations is normally available forobligations for a 2-year period.

This metric focuses on efforts to opti-mize investment strategies and systemsfor use of financial resources and to

align financial resources with customerrequirements. The target level of per-formance is to incur cost totaling 70percent or more of available financialresources. Such resources includethose against which costs have notbeen incurred from prior years, as wellas new appropriations. Costs incurredinclude costs used for capital acquisi-

tion. In FY 1999, the financial resourcesusage rate reached 87 percent. See“Financial Resources Used.”

Timely Bill Payment PerformanceMeasure. Vendors’ invoices are paid ina timely and accurate manner. Prompt,accurate payment of vendors is a criti-cal part of proper management of


MC Actuals

NMC Actuals NMC Target

MC Target

FY 98 FY 99 FY 00

120

100

80

60

40

20

0

Per

cent

Com

ple

te

FY 95 FY 96 FY 97 FY 98 FY 99

100

90

80

70

60

50

Goal:70%

81

74

87

82

Per

cent

87

Y2K Quarterly Performance Metric

Financial Resources Used

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financial resources and a critical ele-ment in the maintenance and enhance-ment of working relationships withindustry. This performance measurefocuses on the percentage of vendordollar billing paid on time and requiressupporting capabilities from programand administrative officials, and timely,accurate, and reliable information. See“Timely Bill Payment.”

Provide Aerospace Products and Capabilities

Mission and Goals

This process is the means by whichthe Enterprises and their Centersdeliver systems (ground, aeronautics,and space), technologies, data, andoperational services to customers sothey can conduct research, explore

and develop space, and improve life onEarth. The advancement of researchand technology is conducted throughthe construction and operation ofsuch facilities as telescopes and satel-lites and ground-based laboratoriesand test facilities.

The Agency uses the process to answerfundamental questions:

• What cutting-edge technologies,processes, techniques, and engineer-ing capabilities must we develop toenable our research agenda in themost productive, economical, andtimely manner?

• How can we most effectively trans-fer the knowledge we gain from ourresearch and discoveries to com-mercial ventures in the air, in space,and on Earth?

The goals of the process are to:

• Enable Enterprises and theirCenters to deliver products andservices to customers more effec-tively and efficiently while extend-ing the technology, research, andscience benefits broadly to the pub-lic and commercial sectors

• Reduce cost and development timeto deliver products and operationalservices that meet or exceed cus-tomers’ expectations

• Seek out and apply innovativeapproaches, in cooperation withpartners and customers, to enableambitious new science, aeronautics,and exploration missions

• Focus on integrated technologyplanning and technology develop-ment driven by Enterprise and cus-tomer needs

• Facilitate the insertion of technolo-gy into all programs and proactivelytransfer technology, form commer-cialization partnerships, and inte-grate all innovative approaches tostrengthen U.S. competitiveness

• Improve and maintain engineeringcapability, so that NASA will be rec-ognized as the leading aerospaceengineering research and develop-ment organization in the world

• Capture and preserve engineeringand technological best practicesand process knowledge to continu-ously improve program and projectmanagement


FY 94 FY 95 FY 96 FY 97 FY 98 FY 99

Goal:95%P

erce

nt

99989796959493929190

98

97

95

98 98

95

Timely Bill Payment

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This process enables the Enterprises toreduce development cost and time forcutting-edge technology to enableincreased opportunities for research,exploration, and discovery.


A comprehensive Program ManagementDevelopment Process (NPG 7120.5A)has been developed and is beingreassessed to establish appropriate mea-sures for performance.

Percentage of NASA R&D ProgramInvolved in Partnerships Perfor-mance Measure. This metric assessesthe quality and alignment with cus-tomer needs of technology develop-ment by measuring the percentage ofthe research and development (R&D)program in partnership with industry.Using data input by Centers, the base-line was defined in FY 1999.The goalis to have 10 to 20 percent of the dol-lar value of the total R&D programinvolved in partnerships; in FY 1999,the Agency contributed 13.9 percentof its R&D investment to commercialpartnerships.

Generate Knowledge

Mission and Goals

NASA provides new scientific andtechnological knowledge gained

from exploring the Earth system, thesolar system, and the universebeyond, as well as from conductingthe necessary supporting R&D. TheGenerate Knowledge process ensuresthat this information is shared withvarious customers in industry, acade-mia, other Government organizations,and the public. Project implementa-tion is carried out in the ProvideAerospace Products and Capabilitiesprocess, and dissemination of knowl-edge is coordinated with theCommunicate Knowledge process.The goals of the Generate Knowledgeprocess are to extend the boundariesof knowledge of science, technology,and engineering, capture new knowl-edge in useful and transferablemedia, and share new knowledgewith customers.


The process encompasses scientific andtechnical progress in many fields, includ-ing space and Earth science, space labo-ratory science, and basic and appliedspace technology. Progress is accom-plished through flight experiments andlaboratory and theoretical studies.

Peer-Reviewed and Merit-BasedCompetitive Process PerformanceMeasure. Process performance can bemeasured in the selection of researchprojects through peer-reviewed andmerit-based competition. Eighty-threepercent of Agency research projectswere submitted to peer-review process-es exceeding the established target of 80percent. See “FY 1999 Peer-ReviewedResearch Projects.”


Enterprise $ of Research % Conforming $ Conforming

SSE R&A $176 million 98% $173 million

SSE DA $211 million 96% $203 million

SSE tech* $198 million 33% $66 million

ESE $155 million 90% $140 million

OLMSA $218 million 97% $793 million

Total $958 million 83% $793 million

* These figures represent only technology research applicable to multiple objectives. Technologydevelopment activities that support only a single program or project are not included.

FY 1999 Peer-Reviewed Research Projects

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Communicate Knowledge

Mission and Goals

NASA uses this process to increaseunderstanding of science and technolo-gy, advance its broad application, andinspire achievement and innovation.Theprocess augments the transfer of tech-nology performed within the normalcourse of conducting research,perform-ing missions, and executing programsand projects overall. This processensures that knowledge derived fromthe public’s investment is presented andtransmitted to meet the specific needsand interests of the public, educators,and other constituency groups.

The goal of this process is to ensurethat customers receive the informationderived from research and technologydevelopment efforts that they want,when they want it, for as long as theywant it. This process addresses twoobjectives:

• Highlight existing and identifyingnew opportunities for customers,including the public, the academiccommunity, and the Nation’s stu-dents, to directly participate in thespace research and discovery expe-rience

• Improve the external constituentcommunities’ knowledge, understand-ing, and use of the results and oppor-tunities associated with programs


Centers use the Internet to make edu-cational programs and the latest tech-nological developments available tothe public. For example, AerospaceTechnology Innovation, the public’ssource for current information onNASA projects and opportunities in theareas of technology transfer and com-mercialization, aerospace technologydevelopment, and the commercialdevelopment of space, is available on-line. Spinoff is a publication producedannually, featuring the successful com-mercial and industrial applications ofNASA technology. A user can browseprevious or current editions or go tothe Spinoff Home Page to submit his orher desired application of NASA tech-nology and search the database forleads.Another avenue for the public to“shop” for technology is by searchingthe TechTracS system to find technolo-gy that is available for transfer, licens-ing, and commercialization.The searchservice scans across all commercialtechnology sites to discover advancedtechnologies and commercializationopportunities.

In our efforts to enhance the externalcommunity’s knowledge of programsand results of investments, we haveenhanced the Science and TechnologyData Base, which includes historicalpublications that provide the public

with a comprehensive understandingof the social, economic, technical, andscientific contribution from aeronau-tics and space.The public and technicalcommunity have access to Agency doc-uments, taped oral history interviews,biographical files, and much more.

The Scientific and Technical Informationprogram acquires, processes, archives,and disseminates information for the sci-entific community. The informationrecords basic and applied researchresults from the efforts of scientists andengineers. The material is available onpaper, film, multimedia, and electronicformat. In addition, periodic bibliogra-phies are developed, ranging from tech-nical, medical, and aeronautical subjectsto space flight.

Considerable effort has been expendedto increase the public’s awareness ofour Earth Science Enterprise (ESE)activities through the use of the nation-al media. ESE increased the number ofannual national news releases three-fold, providing at least one majornational news story a month, reachingthe American people through broad-cast and print media. The Enterprisecontributed supporting video footageand animation that brought home therelevance ESE research to the Americanpeople—whether through the continu-ing studies of annual weather phenom-ena such as El Niño and La Niña, themonitoring of the global ozone situa-


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tion,or the use of satellite technologiesfor precision farming.

Extensive national news coverage oftwo major spacecraft launches caughtthe attention of the taxpayers—Landsat 7 (joint NASA-U.S. GeologicalSurvey partnership) and the QuikSCAToceanography mission that capturedthree hurricanes at once as they threat-ened the American coasts onNovember 20, 1999.

ESE continues to develop fact sheets onclimate issues, upcoming satellite mis-sions, and educational products for useby teachers across the country.The pro-gram has supported educational televi-sion programs and hosted a sciencewriter’s workshop, teacher workshops,and an educator conference. ESE contin-ues to show the relevance of its researchto the American people through travel-ling exhibits, scientific conferences, andnumerous media outlets.

The History Office issued 11 new pub-lications and 1 CD–ROM, chroniclingand placing NASA’s activities andachievements in perspective for theAmerican public.The Agency also host-ed and cosponsored the symposium“Space Exploration at the Millennium:In Remembrance of Carl Sagan.” Thesymposium offered a retrospective onone of this century’s crowning accom-plishments—the genesis of spaceexploration.


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“Fluid Dynamics,” mixed media by Tina York.The artist depicts the effect of airflow as a planeor other flying object moves through the air.

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COMPLIANCEWITH LEGAL ANDREGULATORYFINANCIALREQUIREMENTS

FMFIA Assurance Statement

On the basis of NASA’s comprehensive managementcontrol program, I am pleased to certify, with reasonableassurance, that NASA’s systems of accounting andinternal controls are in compliance with the internal con-trol objectives in OMB’s Bulletin Number 98-08, asamended. I also believe these same systems ofaccounting and internal controls provide reasonableassurance that the Agency is in compliance with the provisions of the Federal Managers’ FinancialIntegrity Act.

Daniel S. GoldinNASA Administrator

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Federal Managers’ FinancialIntegrity Act (FMFIA)

The Federal Managers’ FinancialIntegrity Act (FMFIA) requires agenciesto annually provide a statement ofassurance regarding management con-trols and financial systems.

NASA is pleased to report continuedprogress in strengthening managementcontrols.The reengineered program/proj-ect management process is in place. AllCenters and Headquarters have obtainedthird-party International Organization forStandardization (ISO) certification. Theestablishment of ISO quality manage-ment systems is a major managementcontrol initiative and provides for ongo-ing corrective action and continuousimprovement of key managementprocesses. Management has identifiedand is in the process of taking additionalcorrective actions to improve informa-tion technology security.

Agency financial management controlsand systems, taken as a whole, providereasonable assurance that its accountingsystems comply with appropriate Federalrequirements.This conclusion is based onthe review and consideration of a widevariety of evaluations, internal analyses,reconciliations, reports, and other infor-


This section provides information on compli-

ance with the:

• Federal Managers’ Financial Integrity Act

• Inspector General Act Amendments

• Federal Financial Management

Improvement Act

• Prompt Payment Act

• Civil Monetary Penalty Act

• Debt Collection Improvement Act

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mation, including quality assurance evalu-ations, General Accounting Office andOffice of Inspector General audits,and anindependent public accountant’s opinionon our financial statements and reportson our internal control structure andcompliance with laws and regulations.

Our conclusion that reasonable controlsare in place does not mean there are nomanagement improvement opportuni-ties. Audits, internal reviews, and otherevaluations have revealed managementweaknesses in individual systems. Weare aggressively correcting identifiedweaknesses.This year,corrective actionswere completed on three areas of con-cern reported in FY 1998, and our levelof effort is increasing on the two previ-ously reported significant areas of con-cern.Two new significant areas of con-cern,described below,have been added.

Status of Significant Areas of Concern

Financial Management Systems.Validation testing of the system deliveredby the Integrated Financial ManagementSystem (IFMS) contractor revealed sub-stantially more defects than anticipated.This resulted in instituting a more com-prehensive program of software testingand remediation than planned. In addi-

tion, key resources needed for initialCenter implementations were devoted tosoftware remediation.These events haveresulted in a slip in schedule of at least 12months. Additional testing is ongoing.Until an IFMS is in place, NASA will con-tinue to report financial managementsystems as a significant area of concern.

Equitable Environmental CostSharing. Controls have been estab-lished and potentially responsibleparties have been identified inaddressing equitable environmentalcost sharing. NASA will pursue cost-sharing agreements when it is deter-mined to be the appropriate courseof action.This significant area of con-cern is closed.

Information Technology (IT)Security. NASA procured and is nowinstalling a common set of networkmonitoring tools to improve our intru-sion detection, reporting, and coordina-tion capability. Steps have been takento improve the effectiveness of theNASA Automated Systems IncidentResponse Capability (NASIRC), and aMemorandum of Agreement with theFederal Computer Incident ResponseCapability (FEDCIRC) has been negoti-ated, which includes the expeditedexchange of information on incidents.

We are working aggressively toimprove Information TechnologySecurity (ITS) training. In FY 1999, amultimedia CD–ROM was distributed,created in close cooperation with theDefense Information Systems Agency,as part of all employees’ mandatoryannual ITS awareness training. TheChief Information Officer (CIO) orDeputy CIO visited all Centers forbriefings on the need for ITS and therequirement to adhere to policies.Center Directors attended andensured participation by civil servantsand contractors, as well as senior andline management.

System and network administrators arethe first line of defense in protectingIT assets from intrusions and detectingintrusions. Working with other agen-cies and the private sector, an ITS train-ing program is being created for sys-tem and network administrators; it iscurrently in the pilot stage. When theprogram is available, demonstratedproficiency of both civil service andcontractor administrators in ITS willbe mandatory.

We are also integrating training on ITSrisk assessment and management intothe curriculum of the Agency’s Academyof Program/Project Leadership.The life

Compliance With Legal and Regulatory Financial Requirements | 63

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cycle approach used in the training willincrease systems security and furthersensitize managers to its importance.

Year 2000 (Y2K) Program. Theimplementation of Year 2000 Compati-bility and Cost Analysis was completed.This significant area of concern report-ed in FY 1998 is now closed.

Cost-Benefit Analysis. NASA recog-nizes the important role cost-benefitanalyses play in investment decisionsand will continue to strengthen itscost-benefit capabilities. TheOutsourcing Desktop Initiative forNASA (ODIN) is now in the implemen-tation stage and closely monitored. Acost comparison study of aircraft uti-lization at Marshall Space Flight Centerwas completed in accordance withguidance in OMB Circular A-76,Performance of Commercial Activities,and A-76 studies at all Centers are inprocess. As a result, we consider thissignificant area of concern closed.

New Significant Areas of Concern

There are two new significant areas ofconcern to report: funding of thedecommissioning of the Plum Brookreactor and implementation of controlsrelating to Flight Termination Systems.

Decommissioning of Plum BrookReactor. A decommissioning plan isbeing submitted to the Nuclear

Regulatory Commission. The total esti-mated cost for decommissioning thePlum Brook reactor is $157 million.Funding requirements have been submit-ted to the Office of the Chief FinancialOfficer (CFO) and the Capital InvestmentCouncil. Decommissioning is currentlyscheduled to begin in FY 2002.

Flight Termination Systems(FTS). Work began on the FTS project in FY 1999 to canvas current-ly available FTS products, coordinateefforts with the Range Commander’sCouncil, and, in cooperation with the National Security Agency, consid-er new, more secure products.New policy covering FTS will be pro-posed to the National SecurityTelecommunications and InformationSystems Security Committee (NSTISSC),co-chaired by NASA, for approval byJuly 2000. The NSTISSC is expectedto approve the new policy shortlythereafter, and Agency policy, derivedfrom the new NSTISSC policy, will becompleted 90 days after the newFederal policy becomes effective.

Commitment to StrongManagement Controls

The reporting of corrective actions forsignificant areas of concern does notprovide a full account of the manage-ment control improvements undertak-en. NASA is committed to continuouslyimprove the management of programs

and related controls independently, aswell as part of Governmentwide reengi-neering and reinventing processes, andto removing unnecessary, burdensomerequirements and controls, while evalu-ating streamlined processes to ensurethat reasonable controls remain inplace. NASA is committed to improvingevery aspect of management.

Inspector General ActAmendments

The Inspector General Act (as amended)requires semiannual reporting on auditsand related activities as well as Agencyfollowup. For the second year in a row,this report is now included in theAccountability Report. It is required bySection 106 of the Inspector General ActAmendments (Public Law 100-504) andprovides information on the status ofaudit reports open over 1 year as ofSeptember 30, 1999. See “Audits OpenOver 1 Year.” Statistics on the total num-ber of audit reports and dollar value ofdisallowed costs for FY 1999, as well asstatistics on the total number of auditreports and dollar value of recommenda-tions that funds be put to better use asagreed to by management decision, arealso addressed (see Table I).

Audit Followup and InternalManagement Controls

Effective audit followup and internalmanagement controls are a high priority


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for all levels of management. In con-junction with the Office of theInspector General (OIG), we strive toidentify and correct deficiencies as earlyas possible. In accordance with thetenets of the National PerformanceReview,we continue to collaborate withthe OIG to discover new and betterprocesses that will best serve the needsof NASA and the public.

The Headquarters ManagementAssessment Division continues toimprove the audit resolution and follow-up process.We are strengthening our vir-tual team of Audit Liaison Representatives(ALR’s) with improved automation andcommunication.We are working with theOIG to develop process flow charts andAgencywide roles and responsibilities forALR’s.We are also talking to and meeting

with other Federal agencies to discusshow they manage audit resolution andclosure.

In the last fiscal year, management hasseen a sizable increase in open OIGrecommendations. The ManagementAssessment Division is acutely aware ofthis situation and is producingAgencywide metrics to identify where


Table I.Disallowed Costs and Funds Put to Better Use

(October 1, 1998, Through September 30, 1999)

A. Audit Reports With B. Audit Reports WithDisallowed Costs Recommendations That

Funds Be Put to Better Use

Category Number Value Number Value

A. Audit reports with managementdecisions on which final action had notbeen taken at the beginning of thereporting period 1 $108,000 2 $17,600,000

B. Audit reports on which managementdecisions were made during the reportingperiod 3 $1,160,000 4 $64,184,000

C.Total audit reports pending final actionduring the reporting period (total of A + B) 4 $1,268,000 6 $81,784,000

D.Audit reports on which final action wastaken during the reporting period

1. Value of disallowed costs collectedby management 3 $1,160,000 1 $4,470,000

2. Value of costs disallowed that waswritten off by management. 0 $0 3 $59,714,000

3. Total (lines D1 + D2) 3 $1,160,000 4 $64,184,000

E. Audit reports needing final action at theend of the reporting period (C - D) 1 $108,000 2 $17,600,000

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these open recommendations are andalerting the ALR network so additionalresources can be applied to determinethe cause for this increase. Trainingmodules and standard procedures havebeen developed to better educate man-agement in the art of monitoring time-ly responses and report followup.Finally,we are working with the OIG tomaintain an electronic service thatallows for the delivery of reports andother information effectively and effi-ciently. This service transmits auditinformation to the appropriate audi-ence minutes after the document isofficially released.

In a September 1999 report, the OIGstated that “NASA management did notensure that authorized funds were usedfor their intended purposes by properlymatching disbursements to obligations . . . disbursements . . . may have beencharged to the incorrect appropriation,which may have resulted in violations offiscal law.” The OIG report also con-tended that the practice of charging dis-bursements to the oldest costed obliga-tion did not ensure that appropriatedfunds were used for the intended pur-pose on contracts funded with multipleappropriations.The OIG recommendedthat NASA “. . . require contractors tosubmit specific obligation data, includ-ing the appropriation and program year,with their invoices to enable financialmanagement personnel to properlymatch disbursements to the appropriate

obligations on contracts involving mul-tiple appropriations.”

NASA management did not agree withthese conclusions and recommenda-tions. It believes that disbursements areproperly matched with obligationsthrough its well-controlled contractorfinancial reporting and Agency account-ing processes. Contractors report costsin categories that track the NASAaccounting structure, which identifiesthe project, funding source, and pro-gram year. The discipline imposed inthe combined costing and disbursingprocesses ensures that disbursementsare charged to the correct appropria-tion. The NASA General Counsel sup-ported management’s conclusion thatcurrent processes ensure compliancewith applicable law. The issue is stillunder consideration by the OIG.

NASA has addressed each item in amanagement letter of recommenda-tions resulting from the audit of our FY1998 financial statements.A number ofthese recommendations have beenfully implemented and work will con-tinue to see full implementation of theremaining items.

Federal FinancialManagement ImprovementAct (FFMIA)

This law requires agencies to report ontheir substantial compliance with

Federal financial management systemrequirements, Federal accounting stan-dards, and the U. S. GovernmentStandard General Ledger. NASA sub-stantially complies with the FFMIA.

Prompt Payment Act

This Act requires agencies to payvendors’ invoices on time. In FY 1999, NASA processed 95 percentof its 119,322 payments on time.Virtually all recurring payments areprocessed electronically. Centershave maximized electronic paymentfor all vendors and implemented theelectronic funds transfer provisionsof the Debt Collection ImprovementAct of 1996 in accordance with theact and Department of the Treasuryregulations.

Civil Monetary Penalty Act

NASA does not assess civil penaltiesand therefore has none to report.

Debt Collection Improvement Act

Accounts receivable totaled $131,107million at September 30, 1999. Of thatamount, $127,720 million was receiv-able from other Federal agencies. Theremaining $3,387 million (net of$1,121—allowance for uncollectablereceivables) was receivable from thepublic.


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Audits Open Over 1 Year

Report Report Disallowed Better UseNo. Date Costs of Funds

LA-95-001 03/28/95 $0 $16,400,000NASA Aircraft ManagementThe OIG contended that management has not complied with OMB Circular No. A-76. Management disagreed. A finalmanagement decision not accepting the OIG’s recommendations was made by the Audit Follow-up Official after aDecember 1999 meeting. This report is closed.

IG-97-011 12/20/96 $2,076,000 $0Shuttle Processing Contract Subcontracting—Circumstances Indicate Procurement FraudThis matter is currently under OIG criminal and civil investigation.

IG-97-024 06/06/97 $0 $57,000,000Cost Sharing for Cleanup Activities at JPLThe OIG recommended that NASA pursue negotiations with all parties responsible for cleanup activities. NASA hasinitiated negotiations, but does not expect to reach settlement for some time because of technical and legal aspects.

IG-97-026 06/24/97 $108,000 $0Commercial Use of NASA’s Tracking and Data Relay Satellite SystemManagement concurred with all recommendations; three recommendations have been closed. The fourth will remainopen until final resolution of an ongoing OIG investigation.

IG-97-038 09/12/97 $0 $0Status of Plum Brook Station Nuclear ReactorsNASA has committed to the Nuclear Regulatory Commission to submit a decommissioning plan to terminate thelicense for the Reactor Facility at the end of 1999 and to complete decommissioning activities by the end of 2007.

IG-97-040 09/30/97 $0 $0Facility Cost Recovery at NASA’s Aeronautics CentersThe remaining open recommendation concerns development of criteria for approving nonreimbursable test agree-ments. Management anticipates completion of the criteria within the next few months.

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PA-98-002 08/17/98 $0 $0Single Process InitiativeManagement concurred with all recommendations. Of the seven recommendations, three remain open pending man-agement implementation of proposed corrective actions.

PA-98-005 09/30/98 $0 $0FAA/NASA Research and Development Coordinating EffortsFour recommendations remain open. Corrective actions are under way; completion scheduled for November 1999.

PA-98-003 09/28/98 $0 $0Aeronautics and Astronautics Coordinating Board (AACB)The remaining open recommendations offer potential opportunities to improve operations and reduce costs. NASA’sAACB Executive Secretary plans to discuss how to resolve open recommendations with the newly appointedDepartment of Defense AACB Executive Secretary.

IG-98-019 08/06/98 $0 $0Aeronautics Program Grant Financial TransactionsNASA has completed corrective actions for four of the nine recommendations. Corrective action is under way for theremaining five, but will require coordination among several organizational elements.

IG-98-020 07/24/98 $0 $0Consolidation Decision for Secure SupercomputingThe Chief Information Officer is developing a Memorandum of Understanding (MOU) with the NavalOceanographic Office (NAVO) for secure supercomputer services. The MOU is written, and NAVO approval isexpected in January 2000.

IG-98-021 07/24/98 $0 $0Improved Controls Needed Over NASA’s Supercomputing InventoryTwo recommendations remain open. Management submitted a closure request to the OIG in September 1999 and isawaiting the OIG’s response.

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IG-98-024 08/18/98 $0 $0Cost Sharing for Santa Susana Field Laboratory (SSFL) Cleanup ActivitiesManagement is awaiting completion of negotiations concerning environmental cleanup cost sharing at another NASAfacility before proceeding with negotiations concerning cost sharing at the SSFL. With respect to the preventive costs,management is waiting for completion of the contracting officer’s review of the contractor’s charging practices.

IG-98-027 09/21/98 $13,000 $0NASA Costs Paid to Rehired Former JPL EmployeesOne recommendation remains open. Management anticipates the plan to address this recommendation will be inplace in December 1999 and action will be completed, with closure of the audit by the end of January 2000.

IG-98-028 09/08/98 $0 $0Transportation Costs for Non-NASA Payloads Flown on Spacehab ModelsNASA concurred with the recommendation and is developing a pricing strategy. We anticipate completion inDecember 1999.

IG-98-030 09/14/98 $0 $0Single Source Suppliers of Critical ItemsManagement concurred with all recommendations. One recommendation remains open pending completion of addinglanguage to NPG 7120.5A.

IG-98-031 09/22/98 $0 $0National Technology Transfer Center (NTTC)Two recommendations remain open. Management entered into a new cooperative agreement, which takes effect inOctober 1999; new reporting requirements will be included.

IG-98-034 09/25/98 $0 $0IT Capital Planning/Investment ControlThe OIG’s wording recommendations were provided for inclusion in NPG 7120.5A; it has not been reissued.

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IG-98-035 09/25/98 $0 $965,000NASA General Purpose Vehicles Acquisitions and UseThe OIG made recommendations to establish policy for vehicle usage, disposal, and leasing. Management has imple-mented the recommendations, but not agreed to an amount of funds put to better use. The logistics office has estab-lished a reporting requirement to document savings resulting from the policies.

IG-98-038 09/30/98 $0 $0Commercial Use of the SSFLManagement notified the contractor that future commercial use of SSFL property is subject to compensation requiredby the Federal Acquisition Regulation. Management has initiated actions to review the potential for collecting rent forpast commercial use of the facility.

IG-98-041 09/30/98 $0 $0Consolidated Network Mission Operations Support (CNMOS) Cost SavingsManagement requested the Defense Contract Audit Agency (DCAA) conduct a review of the contractor’s claimed sav-ings. The DCAA and contractor are discussing the findings and recommendations. The DCAA will have a final reportto the NASA contracting officer by October 31, 1999.

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“View of Earth,” oil by Dennis Davidson.

These panels, an Earth Orbital Science

Project, represent windows or portals

between ourselves and Earth.

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FINANCIALSTATEMENTS

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Introduction to Financial Statements

The National Aeronautics and Space Administration’s (NASA’s) financial state-

ments reflect the overall financial position of NASA offices and activities, including

assets and liabilities, and the results of operations, pursuant to the requirements

of Federal law (31 U.S.C. 3515b). The statements have been prepared from

NASA’s books and records.

These statements are in addition to separate financial reports prescribed by the

Office of Management and Budget (OMB) and the U.S. Department of the

Treasury used to monitor and control budgetary resources, which are prepared

from the same books and records. The statements should be read with the

understanding that they are for a component of the U.S. Government, a sover-

eign entity. For example, the U.S. Department of the Treasury, another Federal

agency, holds NASA’s Fund Balance. Also, NASA has no authority to pay liabili-

ties not covered by budgetary resources. Liquidation of such liabilities requires

enactment of an appropriation.

NASA received six consecutive “Unqualified Opinions” on its financial statements.

The first two opinions were provided by the Inspector General. The last four opin-

ions were provided by an independent public accounting firm. These noted

statements and related opinions represent major milestones in NASA’s continuing

quest for financial management excellence.

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National Aeronautics and Space AdministrationStatement of Financial Position

as of September 30(In Thousands)

Assets (Note 9): 1999 1998

Intragovernmental Assets:Fund Balance With Treasury (Note 2) $6,211,702 $6,256,007 Investments (Note 3) 16,730 16,759 Accounts Receivable, Net (Note 4) 127,720 153,825 Advances and Prepaid Expenses 15,560 4,234

Total Intragovernmental Assets 6,371,712 6,430,825

Accounts Receivable, Net (Note 4) 3,387 4,662 Advances and Prepaid Expenses — 190 Operating Materials and Supplies (Note 5) 2,256,179 2,280,577 Property, Plant, and Equipment, Net (Note 6) 23,478,807 21,367,659

Total Assets $ 32,110,085 $ 30,083,913

Liabilities:

Intragovernmental Liabilities:Accounts Payable $ 172,144 $ 275,318 Other Liabilities (Note 7) 48,407 35,687

Total Intragovernmental Liabilities 220,551 311,005

Accounts Payable 2,910,280 2,840,341 Other Liabilities (Notes 7 and 8) 332,597 334,407 Environmental Cleanup Costs (Note 1) 1,110,412 1,405,372 Workers’ Compensation (Note 1) 57,371 51,455 Commitments and Contingencies (Note 1) 351 68,268

Total Liabilities $ 4,631,562 $ 5,010,848

Net Position:

Unexpended Appropriations (Note 11) $ 3,082,983 $ 3,116,819 Cumulative Results of Operations 24,395,540 21,956,246

Total Net Position $ 27,478,523 $ 25,073,065 Total Liabilities and Net Position $ 32,110,085 $ 30,083,913

The accompanying notes are an integral part of this statement.

Financial Statements | 75

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National Aeronautics and Space AdministrationStatement of Net Cost

for the Fiscal Year Ended September 30, 1999(In Thousands)

Program/Operating Expenses by Enterprise:

Human Exploration and Development of Space:Space Shuttle $ 3,285,407 Space Station 2,555,850 Life and Microgravity 296,645 U.S./Russian Cooperative 151,396 Payload Utilization and Operations 375,970

Total Human Exploration and Development of Space 6,665,268

Space Science:Space Science 2,543,408 Planetary Exploration 34,181

Total Space Science 2,577,589

Earth Science:Mission to Planet Earth 1,741,667

Total Earth Science 1,741,667

Aero-Space Technology:Aeronautics Research and Technology 1,287,168 Space Access and Technology 569,775 Commercial Programs 167,931

Total Aeronautics and Space Transportation 2,024,874 Total Enterprise Program Costs 13,009,398

Costs Not Assigned to Enterprises:

Mission Communication Services 430,503 Space Communication Services 184,978 Academic Programs 126,819 Other Programs 28,922 Trust Funds 832 Reimbursable Expenses 817,810

Total Costs Not Assigned to Enterprises 1,589,864 Total Program Expenses 14,599,262

Costs Not Assigned to Programs:

Change in Unfunded Expenses (Note 12) (363,120)Depreciation Expense 2,076,695 Funded Changes in Capitalized Property and Inventory (4,056,211)Total Costs Not Assigned to Programs (2,342,636)

Less: Earned Revenues Related to Reimbursable Expenses (817,810)

Net Cost of Operations (Note 13) $ 11,438,816



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National Aeronautics and Space AdministrationStatement of Changes in Net Position


Net Cost of Operations $ (11,438,816)

Financing Sources:Appropriations Used 13,656,145 Net Property Transfers 9,788Donations 9,018 Interest Revenue, Federal 812 Imputed Financing 120,400 Other Revenues 22,646 Less: Receipts Transferred to Treasury (22,646)

Net Results of Operations 2,357,347

Asset Adjustments (Note 1) 81,947Net Change in Cumulative Results of Operations 2,439,294

Decrease in Unexpended Appropriations (33,836)Change in Net Position 2,405,458 Net Position - Beginning of Period 25,073,065 Net Position - End of Period $ 27,478,523



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National Aeronautics and Space AdministrationStatement of Budgetary Resources

for the Fiscal Year Ended September 30(In Thousands)

Budgetary Resources (Note 14): 1999 1998

Budget Authority $ 13,650,336 $ 13,649,576 Unobligated Balances - Beginning of Period 1,065,239 1,067,624 Net Transfers of Prior-Year Balances, Actual — (45)Spending Authority from Offsetting Collections 708,017 630,046 Recoveries of Prior-Year Obligations 685,805 — Cancellation of Expired Accounts (34,668) (27,616)

Total Budgetary Resources $ 16,074,729 $ 15,319,585

Status of Budgetary Resources:

Obligations Incurred $ 15,210,387 $ 14,254,346 Unobligated Balances - Available 747,646 935,394 Unobligated Balances - Restricted 116,696 129,845

Total Status of Budgetary Resources $ 16,074,729 $ 15,319,585

Outlays:

Obligations Incurred, Net $ 14,524,582 $ 14,254,346 Less: Spending Authority from Offsetting Collections (708,017) (630,046)Obligations Incurred, Net 13,816,565 13,624,300 Obligated Balance, Net - Beginning of Period 5,100,309 5,682,216 Less: Obligated Balance, Net - End of Period (5,253,158) (5,100,309)

Total Outlays $ 13,663,716 $ 14,206,207



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National Aeronautics and Space AdministrationStatement of Financing


Obligations and Nonbudgetary Resources:Obligations Incurred, Net $ 14,524,582 Less: Spending Authority from Reimbursable Customers (851,475)Financing Imputed for Cost Subsidies 120,400

Total Obligations as Adjusted and Nonbudgetary Resources 13,793,507

Resources That Do Not Fund Net Cost of Operations:Change In Amount of Goods, Services, and Benefits Ordered But Not (13,902)

Yet Received or ProvidedChange in Inventory 1,847 Costs Capitalized in the Statement of Financial Position (4,056,211)

Total Resources That Do Not Fund Net Cost of Operations (4,068,266)

Costs That Do Not Require Resources:Depreciation 2,076,695

Total Costs That Do Not Require Resources 2,076,695

Change in Financing Sources Yet to be Provided (363,120)

Net Cost of Operations $ 11,438,816



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National Aeronautics and Space AdministrationNotes to Financial Statements

for the Fiscal Year Ended September 30, 1999

The following notes represent integral disclosures to NASA’s financial statements.

1. Summary of Accounting Policies and Operations:

This note summarizes NASA’s accounting policies and operations.

Reporting EntityNASA is an independent agency established to plan and manage the future of the Nation’s civil aeronautics andspace program. It has established four Strategic Enterprises—Space Science, Earth Science, Human Explorationand Development of Space, and Aero-Space Technology—to implement its mission and communicate with externalcustomers. These financial statements reflect all activities, including those of its nine Centers, Headquarters, andthe Jet Propulsion Laboratory. The Jet Propulsion Laboratory is a Federally Funded Research and DevelopmentCenter owned by NASA, but managed by an independent contractor. Financial management of operations is theresponsibility of Agency officials at all organizational levels. The NASA accounting system consists of 10 distinctoperations located at the Centers and Headquarters. Although each Center is independent of the others and has itsown Chief Financial Officer, they all operate under Agencywide financial management policies. The accounting sys-tem provides basic information necessary to meet internal and external budget and financial reporting requirementsand provide fund control and accountability. All significant intra-entity activities have been eliminated.

Basis of Presentation These financial statements were prepared to report the financial position and results of operations as required bythe Chief Financial Officers Act of 1990 and the Government Management Reform Act of 1994. They were preparedfrom the books and records of NASA, in accordance with Statements of Federal Financial Accounting Standards(SFFAS) promulgated by the Federal Accounting Standards Advisory Board, which constitute generally acceptedaccounting principles (GAAP) for Federal Government entities, as well as accounting policies and practices summa-rized in this note. These financial statements were prepared under the accrual basis of accounting, in which expens-es and revenues are recorded in the period in which they are incurred or earned, respectively.

Implementation of New Accounting StandardsNASA implemented the provisions of SFFAS No. 14, “Amendments to Deferred Maintenance Reporting.” Deferredmaintenance will now be reported as required supplementary information and not in association with the Statementof Net Cost.

NASA will implement two additional standards in future reports.

(1) SFFAS No. 10, “Accounting for Internal Use Software.” This statement establishes accounting standards for thecost of software developed or obtained for internal use. The provisions of this standard are effective for fiscalyear 2001.

(2) SFFAS No. 15, “Management’s Discussion and Analysis.” This statement establishes the requirements forreporting an entity’s performance measures, financial statements, systems and controls, compliance with lawsand regulations, and actions taken or planned to address problems. The provisions of this standard are effec-tive for fiscal year 2000.

NASA is working toward the timely implementation of these reporting standards.

Budgets and Budgetary AccountingNASA is funded by four appropriations that require individual treatment in its accounting and control system.Reimbursements to appropriations for 1999 totaled approximately $800 million. As part of its reimbursable program,the Agency launches devices into space and provides tracking and data relay services for the U.S. Department ofDefense, the National Oceanic and Atmospheric Administration, and the National Weather Service.


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On the Statement of Budgetary Resources, Unobligated Balances - Available represent the amount remaining inappropriation accounts available for obligation in the next fiscal year. Unobligated Balances - Restricted represent theamount remaining in appropriation accounts that can only be used for adjustments to previously recorded obligations.

Use of EstimatesThe preparation of financial statements in conformity with generally accepted accounting principles requires man-agement to make estimates and assumptions that affect the reported amounts of assets and liabilities and the dis-closure of contingent assets and liabilities at the date of the financial statements and the reported amounts of rev-enues and expenses during the reporting period. Actual results could differ from these estimates.

Fund Balance With Treasury Cash receipts and disbursements are processed by the U.S. Department of the Treasury (Treasury). Fund BalanceWith Treasury includes appropriated funds, trust funds, and deposit funds for advances received for reimbursableservices.

Investments in U.S. Government SecuritiesIntragovernmental nonmarketable securities include the following investments:

(1) National Aeronautics and Space Administration Endeavor Teacher Fellowship Trust Fund established from pub-lic donations in tribute to the crew of the Space Shuttle Challenger

(2) Science Space and Technology Education Trust Fund established from public donations for programs toimprove science and technology education

Accounts ReceivableMost receivables are for the reimbursement of research and development services related to satellites and launchservices that were provided to other Federal Government agencies. The allowance for uncollectible accounts isbased upon each Center’s evaluation of its individual accounts receivable, considering the probability of failure tocollect based upon current status, financial and other relevant characteristics of debtors, and the relationship withthe debtor. Under a cross-servicing arrangement, accounts receivable over 180 days delinquent are turned over tothe Treasury for collection.

Advances and Prepaid ExpensesAdvances and prepaid expenses represent amounts paid in advance of the receipt of goods and services to otherFederal government agencies. Prepaid amounts are recognized as expenses when related goods and services arereceived. The Department of the Navy was prepaid $14 million to support work on the Interim Control Module forSpace Station. The remaining $1.6 million was prepaid to eight other agencies.

Property, Plant, and EquipmentNASA-owned property, plant, and equipment are held by the Agency and its contractors and grantees. Property witha unit cost of $100,000 or more and a useful life of 2 years or more is capitalized; other property is expensed whenpurchased. Capitalized cost includes all costs incurred to bring the property to a form and location suitable for itsintended use. The Agency continues to maintain physical accountability for all property, plant, and equipmentregardless of cost.

Under provisions of the Federal Acquisition Regulation (FAR), contractors are responsible for control over andaccountability for Government-owned property in their possession. Contractors and grantees report on property intheir custody annually.

In accordance with SFFAS No. 6, these financial statements report depreciation expense using the straight-linemethod. Useful lives were established as follows: 40 years for buildings; 15 years for other structures and facilities;15 years for space hardware; 7 years for special test equipment and tooling; 5 to 20 years for other equipmentdepending on its nature; and 25 years for Space Shuttle orbiters. Useful lives for assets in space are generally theirbasic mission lives, ranging from 2 to 20 years.


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The implementation of SFFAS Nos. 6 and 8 during fiscal year 1998 required procedural changes in the reporting ofcapitalized property. These changes have precipitated residual adjustments in the fiscal year 1999 Statement ofChanges in Net Position, which have been reported as asset adjustments.

Liabilities Covered by Budgetary ResourcesNASA accrues costs and recognizes liabilities based on information provided monthly by contractors on NASAContractor Financial Management Reports (NASA Forms (NF) 533M and Q). In addition, accounts payable includesamounts recorded for receipt of goods or services furnished to the Agency. Independent audits by the DefenseContract Audit Agency ensure the reliability of reported costs and estimates. To provide further assurance, financialmanagers are required to test the accuracy of cost accruals generated from the monthly reports, and Headquartersindependently analyzes the validity of Centers’ data.

Liabilities Not Covered by Budgetary Resources Liabilities not covered by budgetary resources include certain environmental matters, legal claims, pensions andother retirement benefits, workers’ compensation, annual leave (see discussion below), and closed appropriations.

Liabilities not covered by budgetary resources consist primarily of environmental cleanup costs as required byFederal, State, and local statutes and regulations. Parametric models are used to estimate the total cost of cleaningup these sites over future years. The estimates also include a 5-year minimum operational period within the remedi-al action phase unless Centers indicate the exact number of years if different than 5 years. In addition, a 5-yearmonitoring period was added to the estimate for ground water, surface water/sediment, and ecological monitoring.This year, the total cost of environmental cleanup is estimated to be $1.1 billion; an unfunded liability has beenrecorded in the financial statements for that amount. This estimate reflects a reduction of $300 million from 1998 pri-marily due to the identification of new factual information used in the parametric models. This estimate could beaffected in the future by changes from inflation, deflation, technology, or applicable laws and regulations. Therefore,the estimated environmental liability could range from $710.5 million to $1.65 billion because of future changes. Theestimate represents an amount that will be spent to remediate currently known sites, subject to availability of appro-priated funds. Other responsible parties that may be required to contribute to the remediation funding could sharethis liability. In fiscal year 1999, NASA was appropriated $40 million for environmental compliance and restoration.Included in the $1.1 billion liability is $22 million for the cleanup of current operations as required by SFFAS No. 6.

NASA is a party in various administrative proceedings, court actions (including tort suits), and claims brought by oragainst it. In the opinion of management and legal counsel, the ultimate resolution of these proceedings, actions,and claims will not materially affect the financial position or results. A liability of $351,000 was recorded for thesematters as of September 30, 1999, which represents management’s estimation in accordance with SFFAS No. 5 ofthe probable amount of damages that will be assessed against NASA. The Treasury Judgment Fund, which wasestablished by Congress to pay court judgments and settlement agreements negotiated by the Justice Department,could be used to fund assessments.

Contingencies, related to proceedings, actions and claims, in which it is possible but not probable that some costwill be incurred, range from zero to $429 million, as of September 30, 1999. This range is the result of NASA’s inclu-sion in several government-wide proceedings, actions, and claims. Because of the high degree of uncertainty sur-rounding these matters, no accrual for a probable loss contingency has been recorded on the Statement ofFinancial Position.

An actuarial liability for $57 million was recorded, as of September 30, 1999, for workers’ compensation claimsrelated to the Federal Employees’ Compensation Act (FECA), which is administered by the U.S. Department ofLabor (DOL). FECA provides income and medical cost protection to covered Federal civilian employees injured onthe job, employees who have incurred a work-related occupational disease, and beneficiaries of employees whosedeath is attributable to a job-related injury or occupational disease. The FECA program initially pays valid claimsand subsequently seeks reimbursement from the Federal agencies employing the claimants. This liability does notinclude the estimated future costs for claims incurred but not reported and/or approved as of September 30, 1999.The present value of these estimates at the end of fiscal year 1999 was calculated by the DOL using a discountrate of 5.5 percent for fiscal year 2000 and 2001, 5.55 percent for fiscal year 2002, and 5.6 percent for fiscal year2003 and thereafter.


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NASA has approximately $38 million recorded in accounts payable related to closed appropriations for which thereis a contractual commitment to pay. These payables will be funded from appropriations that are available for obliga-tion at the time a billing is processed, in accordance with Public Law 101–510.

Annual, Sick, and Other LeaveAnnual leave is accrued as it is earned; the accrual is reduced as leave is taken. Each year, the balance in theaccrued annual leave account is adjusted to reflect current pay rates. To the extent current or prior year appropria-tions are not available to fund annual leave earned but not taken, funding will be obtained from future financingsources. Sick leave and other types of nonvested leave are expensed as taken.

Employee BenefitsAgency employees participate in the Civil Service Retirement System (CSRS), a defined benefit plan, or the FederalEmployees Retirement System (FERS), a defined benefit and contribution plan. For CSRS employees, NASAmakes contributions of 8.51 percent of pay. For FERS employees, NASA makes contributions of 10.7 percent to thedefined benefit plan and contributes 1 percent of pay to the retirement savings plan (contribution plan), and matchesemployee contributions up to an additional 4 percent of pay. For FERS employees, the Agency also contributes theemployer’s matching share for Social Security.

SFFAS No. 5, “Accounting for Liabilities of the Federal Government,” requires government agencies to report the fullcost of employee benefits for the CSRS, the FERS, the Federal Employee Health Benefit (FEHB), and the FederalEmployees Group Life Insurance (FEGLI) programs. NASA used the applicable cost factors and imputed financingsources from the Office of Personnel Management (OPM) Financial Management Letter F-99-09 in these financialstatements.

ReclassificationsCertain reclassifications have been made to the 1998 financial statement balances to conform to the 1999 presentation.


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2. Fund Balance With Treasury:(In Thousands)

Fund Balances: Unobligated Unobligated Obligated Available Restricted Total

Appropriated Funds $ 5,265,238 $ 747,595 $ 102,625 $ 6,115,458 Trust Funds — 51 676 727

Total $ 5,265,238 $ 747,646 $ 103,301 $ 6,116,185

Deposit Funds 100,187 Clearing Accounts (4,670)

Total Fund Balance With Treasury $ 6,211,702

Obligated balances represent the cumulative amount of obligations incurred, including accounts payable, which aresupported by documentary evidence, for which outlays have not yet been made. Unobligated available balancesrepresent the amount remaining in appropriation accounts that are available for obligation in the next fiscal year.Unobligated restricted balances represent the amount remaining in appropriation accounts that can only be used foradjustments to previously recorded obligations. Unobligated restricted trust fund balances represent amounts thatmust be apportioned by the Office of Management and Budget before being used to incur obligations.

Deposit funds represent advance payments from reimbursable customers that will be transferred to the fundingappropriation accounts when the reimbursable order is earned. Clearing accounts are used for unidentified remit-tances presumed to be applicable to budget accounts but are being held in the clearing account because the specif-ic appropriation account is not yet known.

3. Investments:(In Thousands)

Amortization Discounts and Net Amount Par Value Method Premiums, Net Invested

IntragovernmentalNon-Marketable InterestSecurities $ 13,442 method $ 3,288 $ 16,730

Intragovernmental securities are nonmarketable Treasury securities issued by the Bureau of Public Debt.

Interest rates range from 5 percent to 9 percent.

4. Accounts Receivable, Net:(In Thousands)

Allowance for Accounts Uncollectible Net Amount

Receivable Receivables DueIntragovernmental $ 127,720 $ — $ 127,720 Governmental 4,508 (1,121) 3,387

Total $ 132,228 $ (1,121) $ 131,107


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5. Operating Materials and Supplies:(In Thousands)

ValuationMethod

Stores Stock $ 2,253,538 Weighted Average CostStandby Stock 2,641 Weighted Average Cost

Total $ 2,256,179

Stores stock represents material being held in inventory that is repetitively procured, stored, and issued on the basisof recurring demand. Standby stock represents material held for emergencies. These amounts are held for use incurrent operations. Excess, obsolete, and unserviceable items have been removed from these amounts.

NASA Centers are responsible for continually reviewing operating materials and supplies on-hand to identify itemsthat are no longer needed for operational purposes or that need to be replaced.

6. Property, Plant, and Equipment:(In Thousands)

Accumulated Net Asset Cost Depreciation Value

Government-owned/Government-held:Land $ 108,799 $ — $ 108,799 Structures, Facilities, and Leasehold 5,133,020 (3,070,906) 2,062,114

ImprovementsAssets in Space 20,352,345 (13,027,849) 7,324,496 Equipment 1,727,611 (935,865) 791,746 Work-in-Process 4,045,224 — 4,045,224

Total 31,366,999 (17,034,620) 14,332,379

Government-owned/Contractor-held:Land 10,349 — 10,349 Structures, Facilities, and Leasehold 734,103 (453,506) 280,597

ImprovementsEquipment 10,483,683 (5,955,700) 4,527,983 Work-in-Process 4,327,499 — 4,327,499

Total 15,555,634 (6,409,206) 9,146,428

Total Property, Plant, and Equipment $ 46,922,633 $ (23,443,826) $ 23,478,807

Assets in Space are various spacecraft that operate above the atmosphere for exploration purposes. Equipmentincludes special tooling, special test equipment, and space hardware, such as the Space Shuttle and other configu-rations of spacecraft: engines, unlaunched satellites, rockets, and International Space Station and other scientificcomponents unique to NASA space programs. Structures, Facilities, and Leasehold Improvements includes build-ings with collateral equipment and capital improvements such as airfields, power distribution systems, flood control,utility systems, roads, and bridges. NASA also has use of certain properties at no cost. These properties includeland at the Kennedy Space Center withdrawn from the public domain and land and facilities at the Marshall SpaceFlight Center under a no-cost, 99-year lease with the U.S. Department of the Army. Work-in-Process is the costincurred for property, plant, and equipment items not yet completed.


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7. Other Liabilities:(In Thousands)

Current Non-Current TotalIntragovernmental Liabilities:

Liability for Deposit and Suspense Funds $ 20,392 $ — $ 20,392 Accrued Payroll and Benefits 9,288 — 9,288Accounts Payable for Closed Appropriations 4 2,555 2,559 Workers’ Compensation 7,660 7,791 15,451 Liability for Receipt Accounts 717 — 717

Total Intragovernmental 38,061 10,346 48,407

Governmental Liabilities:Liability for Deposit and Suspense Funds 75,443 — 75,443 Contract Holdbacks 3,593 — 3,593 Accrued Payroll and Benefits 83,015 — 83,015 Lease Liabilities 637 — 637 Accounts Payable for Closed Appropriations 3,884 31,936 35,820 Unfunded Annual Leave — 131,362 131,362 Liability for Receipt Accounts 2,727 — 2,727

Total Governmental 169,299 163,298 332,597 Total Other Liabilities $ 207,360 $ 173,644 $ 381,004

All liabilities covered by budgetary resources are current. Liability for Deposit and Suspense Funds includes cashadvances received from other Government agencies and public reimbursable customers. Also included are funds ondeposit with the U.S. Department of the Treasury for employees’ savings bonds and state tax withholdings.

See Note 8 for further discussion of liabilities not covered by budgetary resources.

8. Liabilities Not Covered by Budgetary Resources:(In Thousands)

Current Non-Current TotalIntragovernmental Liabilities:

Accounts Payable for Closed Appropriations $ 4 $ 2,555 $ 2,559 Workers’ Compensation 7,660 7,791 15,451 Liability for Receipt Accounts 717 — 717

Total Intragovernmental 8,381 10,346 18,727

Governmental Liabilities:Accounts Payable for Closed Appropriations 3,884 31,936 35,820 Unfunded Annual Leave — 131,362 131,362 Liability for Receipt Accounts 2,727 — 2,727 Lease Liabilities 294 — 294

Total Governmental 6,905 163,298 170,203 Total Liabilities Not Covered by Budgetary Resources $ 15,286 $ 173,644 $ 188,930

See Note 1 for further discussion of liabilities not covered by budgetary resources.


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9. Non-Entity Assets:(In Thousands)

Due from Total Non-Asset Intragovernmental the Public Entity AssetsAccounts Receivable, Net $ 135 $ 3,309 $ 3,444

Non-Entity Assets includes deposit accounts for U.S. savings bonds and state tax deductions related to the processing of payroll. Accounts receivable related to closed appropriations, which will be deposited in miscellaneousreceipts, are also included in Non-Entity Assets.


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10. Leases:(In Thousands)

Entity as Lessee:Capital Leases:Summary of Assets Under Capital Lease:

Equipment $ 1,356 Accumulated Amortization (719)

$ 637

NASA capital leases consist of assorted ADP and copier equipment with noncancelable terms longer than 1 year, afair market value of $100,000 or more, a useful life of 2 years or more, and agreement terms equivalent to aninstallment purchase.

Future Lease Payments: Fiscal Year2000 $ 343 2001 323 2002 — 2003 — 2004 — 2005 and after — Future Lease Payments 666 Less: Imputed Interest (29)

Net Capital Lease Liability $ 637

Liabilities Covered by Budgetary Resources $ 343 Liabilities Not Covered by Budgetary Resources 294

Total $ 637

Operating Leases:

NASA’s fiscal year 1999 operating leases are for an airplane hangar, warehouse storage, copiers, and land.

Future Lease Payments: Fiscal Year2000 $ 1,340 2001 1,896 2002 1,756 2003 1,756 2004 1,756 2005 and after 558

Total $ 9,062

Entity as Lessor:Operating Leases:

NASA leases and allows use of its land, facilities, and equipment by the public and other Government agencies for a fee.

Future Projected Receipts: Fiscal Year2000 $ 293 2001 290 2002 280 2003 251 2004 217 2005 and after 21

Total $ 1,352


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11. Unexpended Appropriations:(In Thousands)

Appropriated FundsUnexpended Appropriations:

Undelivered Orders $ 2,232,712 Unobligated:

Available 747,646 Restricted 102,625

Total $ 3,082,983

12. Change in Unfunded Expenses:(In Thousands)

Current FiscalYear Increase

Unfunded Expense Transaction Type (Decrease)Closed appropriations accounts payable $ 2,606 Annual leave (2,059)Probable contingent liabilities (67,917)Environmental cleanup (294,960)Workers’ Compensation (790)

Total Current Fiscal Year Unfunded Expenses $ (363,120)

The change in unfunded expenses represents a decrease, during fiscal year 1999, of the amounts estimated to bepaid from future appropriations.

13. Gross Cost and Earned Revenue by Budget Functional Classification:(In Thousands)

EarnedFunctional Classification Gross Cost Revenue Net Cost

General Science, Space, and Technology $ 13,261,246 $ 767,794 $ 12,493,452 Transportation 1,337,184 50,016 1,287,168 Costs Not Assigned to Programs (2,342,636) — (2,342,636)Trust Funds 832 — 832 Total $ 12,256,626 $ 817,810 $ 11,438,816


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99.


* 99 AR layout 04/06/2000 8:32 AM Page 90

National Aeronautics and Space AdministrationRequired Supplementary Stewardship Information

Heritage Assetsfor the Fiscal Year Ended September 30, 1999

Federal agencies are required to classify and report heritage assets, in accordance with the requirements of Statementof Federal Financial Accounting Standards No. 8, “Supplementary Stewardship Reporting.” Heritage assets are property,plant, and equipment that possess one or more of the following characteristics: historical or natural significance; cultural,educational, or aesthetic value; or significant architectural characteristics.

Because the cost of heritage assets is not often relevant or determinable, NASA does not attempt to value them or toestablish minimum value thresholds for the designation of property, plant, or equipment as heritage assets. The usefullives of heritage assets are not reasonably estimable for depreciation purposes.

Because the most relevant information about heritage assets is their existence, they are reported in terms of physicalunits, as follows:

1998 Additions Withdrawals 1999Buildings and structures 20 11 (6) 25Air and space displays and artifacts 103 287 (2) 388Miscellaneous items 6 1093 0 1,099

Total heritage assets 129 1,391 (8) 1,512

NASA heritage assets are considered collectible, except for its fixed assets. Heritage assets were generally acquiredthrough construction by NASA or its contractors, and they are expected to remain in this category, except where there islegal authority for transfer or sale. NASA’s heritage assets are generally in fair condition, suitable only for display.

Many of the buildings and structures are designated as National Historic Landmarks. Numerous air and spacecraft andrelated components are on display at various locations to enhance public understanding of NASA programs. NASA elimi-nated their cost from its property records when they were designated as heritage assets. A portion of the amount report-ed for deferred maintenance is for heritage assets.

For more than 30 years, the NASA Art Program, an important heritage asset, has documented America’s major accom-plishments in aeronautics and space. During that time, more than 200 artists have generously contributed their time andtalent to record their impressions of the U.S. aerospace program in paintings, drawings, and other media. Not only dothese art works provide a historic record of NASA projects, they give the public a new and fuller understanding ofadvancements in aerospace. Artists are in fact given a special view of NASA through the “back door.” Some have wit-nessed astronauts in training or scientists at work. The art collection, as a whole, depicts a wide range of subjects, fromSpace Shuttle launches to aeronautics research, the Hubble Space Telescope, and even virtual reality.

Artists commissioned by NASA receive a small honorarium in exchange for donating a minimum of one piece to theNASA archive, which now numbers more than 700 works of art. In addition, more than 2,000 works have been donatedto the National Air and Space Museum.


* 99 AR layout 04/05/2000 3:10 PM Page 91


Stewardship Investments: Research and Developmentfor the Fiscal Year Ended September 30

(In Thousands)

Program/Application: 1999 1998

Space StationApplied Research $ 99,678 $ 137,529 Development 2,456,172 2,362,996

2,555,850 2,500,525 Life and Microgravity

Basic 162,858 221,217 Applied Research 119,548 157,727 Development 14,239 20,365

296,645 399,309 Payload Utilization and Operations

Applied Research 375,970 401,528 375,970 401,528

Space ScienceBasic 757,812 1,049,037 Applied Research 827,405 429,895 Development 992,372 857,453

2,577,589 2,336,385 Earth Science

Basic 358,782 331,095 Applied Research 130,625 156,835 Development 1,252,260 1,254,677

1,741,667 1,742,607 Aeronautics Research and Technology

Basic 356,546 438,923 Applied Research 910,027 937,011 Development 20,595 —

1,287,168 1,375,934 Space Access and Technology

Applied Research 569,775 678,036 569,775 678,036

Commercial ProgramsBasic 99,080 — Applied Research 45,341 98,198 Development 23,510 45,788

167,931 143,986 Mission Communication Services

Development 430,503 444,933 430,503 444,933

Academic ProgramsBasic 93,339 90,468 Applied Research 19,657 19,481 Development 13,823 37,634

126,819 147,583

Total Research and Development Expenses by Program $ 10,129,917 $ 10,170,826


* 99 AR layout 04/05/2000 3:10 PM Page 92


Stewardship Investments: Research and Developmentfor the Fiscal Year Ended September 30

(In Thousands)

Program/Application (continued): 1999 1998

Non-Research and Development Expenses by ProgramSpace Shuttle $ 3,285,407 $ 3,369,846 Space Communication Services 184,978 254,440 U.S./Russian Cooperative 151,396 152,625 Other Programs 28,922 218,109

Trust Funds 832 1,457 Reimbursable Expenses 817,810 715,407

Total Non-Research and Development $ 4,469,345 $ 4,711,884 Expenses by Program

Total Program Expenses $ 14,599,262 $ 14,882,710

NASA makes substantial research and development investments for the benefit of the Nation. These amounts areexpensed as incurred in determining the net cost of operations.

NASA’s research and development programs include activities to extend our knowledge of Earth, its space environment,and the universe and to invest in new aeronautics and advanced space transportation technologies that support thedevelopment and application of technologies critical to the economic, scientific, and technical competitiveness of theUnited States.


* 99 AR layout 04/05/2000 3:10 PM Page 93

National Aeronautics and Space AdministrationRequired Supplementary Information

Deferred Maintenancefor the Fiscal Year Ended September 30, 1999

NASA has deferred maintenance only on its facilities, including structures. There is no significant deferred maintenanceon other physical property, such as land, equipment, assets in space, work-in-process, leasehold improvements, andassets under capital lease. Contractor-held property is subject to the same considerations.

The condition assessment survey method is used for facilities to determine asset condition and maintenance required.Several methods are used for evaluating facility condition: (1) 100 percent inspection and condition assessment on a 5-year cycle; (2) metrics to support long-term trend analyses; and (3) application of industry standards. Furthermore, in1997, NASA conducted a NASA-wide Facility Investment Study to identify future repairs and maintenance activitiesthroughout the Agency. Acceptable operating condition is in accordance with standards comparable to those used in private industry, including the aerospace industry.

There have been no changes to Agency condition assessment procedures in the past several years. NASA’s estimate ofits backlog of maintenance and repair is approximately $1.26 billion. This estimate was derived from the 1997 NASA-wide Facility Investment Study and was adjusted as of September 30, 1999, to reflect inflation and the amounts budget-ed to correct existing facility deficiencies.

Deferred maintenance related to heritage assets is included in the deferred maintenance for general facilities.Maintenance is not deferred on assets that require immediate repair to restore them to safe working condition and havean Office of Safety and Mission Assurance Risk Assessment Classification Code 1 (see NASA STD 8719.7).


* 99 AR layout 04/05/2000 3:10 PM Page 94

National Aeronautics and Space AdministrationRequired Supplementary Information

as of September 30, 1999(In Thousands)

Intragovernmental Assets:

Fund Balance Accounts Advances and Agency with Treasury Receivable Investments Prepaid Expenses

Treasury $ 6,211,702 $ 45 $ 16,730 $ —Air Force — 20,263 — 80 Army — 13,616 — — Commerce — 38,246 — 1,131 Navy — 12,280 — 14,155 Secretary of Defense — 34,990 — 120 Other — 8,280 — 74

Total Intragovernmental Assets $ 6,211,702 $ 127,720 $ 16,730 $ 15,560

Intragovernmental Liabilities:

Liability for Deposit and

Suspense Funds Closed Workers’ and Other

Agency Accounts Payable Accounts Payable Compensation Liabilities

Air Force $ 81,130 $ 1,470 $ — $ 11,660 Army 14,402 1 — 496 Commerce 14,636 313 — 2,174 Energy 15,518 8 — 37 Labor 15 — 15,451 — Navy 17,185 455 — 599 Office of Personnel

Management — — — 9,288Secretary of Defense 10,636 262 — 4,219 Transportation 2,518 — — 1,113 Other 16,104 50 — 811

Total Intragovernmental Liabilities $ 172,144 $ 2,559 $ 15,451 $ 30,397


* 99 AR layout 04/05/2000 3:24 PM Page 95

“Soyuz Launch,” mixed media by AndreasNottebohm. This painting depicts the launch ofa Russian Soyuz Rocket, similar to the one thatlaunched American astronaut Norman Thagardto the Mir Space Station on March 14, 1995.

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AUDITORS’ REPORTS

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Auditors’ Reports | 99

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“Visions of Space,” acrylic painting by Bill Shields. The artist’s interpretation ofthe combined effort of astronauts, spaceshuttles, and humankind’s scientificknowledge opens up new vistas in space.

* 99 AR layout 04/05/2000 3:11 PM Page 104

105List of Acronyms |

3-D Three-dimensional

AAACB Aeronautics and

AstronauticsCoordinating Board

ADP Automated DataProcessing

AGA Association ofGovernment Accountants

AGATE Advanced GeneralAviation TransportExperiment

ALR Audit LiaisonRepresentative

ASTER Advanced SpaceborneThermal Emission andReflection Radiometer

AVOSS Aircraft Vortex SpacingSystem

CCDR Critical Design ReviewCD–ROM Compact Disk–Read

Only MemoryCERES Clouds and the Earth’s

Radiant Energy SystemCFIT Controlled Flight Into

TerrainCFO Chief Financial OfficerCIO Chief Information

OfficerCLF Civilian Labor ForceCNMOS Consolidated Network

Mission OperationsSupport

CSOC Consolidated SpaceOperations Contract

CSRS Civil Service RetirementSystem

CXO Chandra X-rayObservatory

DDA Data AnalysisDAAC Distributed Active

Archive CenterDCAA Defense Contract Audit

AgencyDFRC Dryden Flight Research

CenterDOD (U.S.) Department of

DefenseDOL (U.S.) Department of

Labor

EEOS IDS Earth Observing System

Interdisciplinary ScienceInvestigation

EPA EnvironmentalProtection Agency

ERAST Experimental ResearchAircraft SensorTechnology

ESE Earth Science EnterpriseESARP Earth Science

Applications ResearchProgram

ESIP Earth ScienceInformation Partner

EVA Extravehicular Activity

FFAA Federal Aviation

Administration

FAR Federal AcquisitionRegulation

FASAB Federal AccountingStandards Advisory Board

FECA Federal EmployeesCompensation Act

FEDCIRC Federal ComputerIncident ResponseCapability

FEGLI Federal Employee GroupLife Insurance

FEHB Federal Employee HealthBenefit

FEMA Federal EmergencyManagement Agency

FERS Federal EmployeesRetirement System

FFMIA Federal FinancialManagementImprovement Act

FMFIA Federal Managers’Financial Integrity Act

FTE Full Time EquivalentFTS Flight Termination

SystemsFY Fiscal Year

GGAAP Generally accepted

accounting principlesGAO General Accounting

OfficeGLOBE Global Learning and

Observations to Benefitthe Environment

GPS Global PositioningSystem

List of Acronyms

* 99 AR layout 04/05/2000 3:11 PM Page 105


HHEDS Human Exploration and

Development of Space

HPCC High PerformanceComputing andCommunications

HTS High-TemperatureSuperconducting

IICM Interim Control ModuleIFMS Integrated Financial

Management SystemISO International

Organization forStandardization

ISS International SpaceStation

IT Information TechnologyITS Information Technology

Security

JJPL Jet Propulsion

Laboratory

KK–12 Kindergarten–12th grade

MMC Mission-criticalMEIT Multi-Element Integration

TestingMISR Multi-Angle Imaging

SpectroradiometerMIT Massachusetts Institute

of Technology

MODIS Moderate ResolutionImagingSpectroradiometer

MOLA Mars Orbiter LaserAltimeter

MOS Modular OptoelectronicScanner

MOU Memorandum ofUnderstanding

NNACA National Advisory

Committee forAeronautics

NACC NASA ADP ConsolidationCenter

NAIS NASA AcquisitionInternet Service

NASA National Aeronautics andSpace Administration

NASIRC NASA Automated SystemsIncident ResponseCapability

NAVO Naval OceanographicOffice

NF NASA FormNISN NASA Integrated Services

NetworkNMC Non-mission-criticalNOA New Obligational

AuthorityNOX Nitrogen oxideNPD NASA Policy DirectiveNPG NASA Procedures and

GuidanceNSIPP NASA Seasonal to Inter-

annual Prediction Project

NSTISSC National SecurityTelecommunications andInformation SystemsSecurity Committee

NTTC National TechnologyTransfer Center

OODIN Outsourcing Desktop

Initiative for NASAOIG Office of Inspector

GeneralOLMSA Office of Life and

Microgravity Sciencesand Applications

OMB Office of Managementand Budget

OPM Office of PersonnelManagement

ORB Other RetirementBenefits

PPBC Performance-Based

ContractingPKI Public Key InfrastructurePMDP-ALO Program Management

Development ProcessAccelerating LeadershipOption

ProSEDS Propulsive SmallExpendable DeployerSystem

QQuikSCAT Quik Scatterometer

* 99 AR layout 04/05/2000 3:11 PM Page 106

List of Acronyms | 107

RR&A Research and AnalysisR&D Research and

Development

RBAM Risk-Based AcquisitionManagement

RBCC Rocket Based CombinedCycle

RESAC Regional Earth ScienceApplications Center

RPA Remotely Piloted Aircraft

SSAGE Stratospheric Aerosol

and Gas ExperimentSAR Synthetic Aperture RadarSeaWIFS Sea-viewing Wide Field-

of-view SensorSFFAS Statements of Federal

Financial AccountingStandards

SIMBIOS Sensor Intercomparisonand Merger for Biologicaland InterdisciplinaryOcean Studies

SF Standard FormSRTM Shuttle Radar

Topography MissionSSE Space Science EnterpriseSSFL Santa Susana Field

LaboratorySSM/I Special Sensor

Microwave/ImagerSTO Space Team OnlineSTS Space Transportation

System

TTOMS Total Ozone Mapping

SpectrometerTOPEX Ocean Topography

ExperimentTRMM Tropical Rainfall

Measuring Mission

UU.S. United StatesUSC United States CodeUSGS U.S. Geological SurveyUSDA U.S. Department of

Agriculture

VVPO Virtual Procurement

Office

YY2K Year 2000

* 99 AR layout 04/05/2000 3:11 PM Page 107

Notes

* 99 AR layout 04/05/2000 3:11 PM Page 108

Documents

* 99 AR layout - Welcome to NASA Headquarters | NASA · PDF filefrontier can make the third millennium ... developed new technology to allow ... * 99 AR layout 04/05/2000 1:51 PM Page