Activities that are to  take place during this period include establishing a technical baseline and a  life-cycle cost estimate for the remainder of the program, prioritizing the  core complete science program, and reaching an agreement with the  international partners on the station’s final configuration and capabilities. Reasons for Cost Increases and Mechanisms That Should Have Alerted NASA Management

According to NASA officials, as a consequence of the inadequate definition  of requirements, changes in program content, schedule delays, and  inadequate program oversight, the estimated development cost of the  space station has grown by about $13 billion since 1995 of which about $5  billion is attributable to growth since the fiscal year 2001 estimate. Some research disciplines were severely affected by  the fiscal year 2002 reduction. Specifically, the  preparation of a reliable life-cycle cost estimate may be difficult because  NASA currently lacks a modern integrated financial management system to  track and maintain data needed for estimating and controlling costs. In addition, many tasks and studies  being undertaken will not be completed until September 2002, leaving  NASA with a very short time frame to incorporate its results into the 2004  budget. Lastly, NASA has not yet reached agreements with its international partners  on an acceptable on-orbit configuration as well as how research facilities  and costs should be shared. Because of  the cost growth, the program is essentially unable to carry out the full  intent of its original objectives. Comments from the National Aeronautics and Space Administration

Prior GAO Reports and Testimonies Related to the International Space Station Program

NASA: Compliance With Cost Limits Cannot Be Verified. Space Station: Cost to Operate After Assembly Is Uncertain.
What GAO Found

The National Aeronautics and Space Administration (NASA) revealed that the cost to complete assembly of the international space station has risen from $25 billion to $30 billion. Much of that cost growth is due to inadequate definition of requirements, changes in program content, schedule delays, and poor program oversight. Weaknesses in the program's cost-estimating process call into question the credibility of NASA's plans to carry out its budget through fiscal year 2006. The cost growth has also severely affected the space station's ability to conduct scientific research. NASA has instituted several management and cost-estimating reforms, including a life-cycle cost estimate, a program management plan, and a reprioritized science program. However, significant challenges remain. Preparation of the life-cycle cost estimate may be difficult because NASA's financial management system is unable to adequately track space station costs. Many tasks and studies being undertaken will not be completed until September 2002, leaving NASA with little time to incorporate its results into its budget for fiscal year 2004. Finally, NASA has yet to reach an agreement with its international partners on an acceptable on-orbit configuration, the sharing of research facilities, and cost sharing.