The program is to provide satellite  development, satellite launch and operation, and ground-based satellite  data processing. In addition, a demonstration satellite, called the NPOESS Preparatory  Project (NPP), was planned to be launched several years before the first  NPOESS satellite in order to reduce the risk associated with launching  new sensor technologies and to ensure continuity of climate data with  NASA’s Earth Observing System satellites. This decision approved a cost increase of $4 billion over the  prior approved baseline cost and delayed the launch of NPP and the first 2  satellites by roughly 3 to 5 years. Major Restructuring Activities Have Been Completed, but Key Activities Remain

The program office has completed major activities associated with  restructuring NPOESS, but key supporting activities remain—including  obtaining approval of key acquisition documents. During the past year, the program redefined the program’s deliverables,  costs, and schedules, and renegotiated the NPOESS contract. Without executive approval of key  acquisition documents, the program lacks the underlying commitment  necessary to effectively manage a tri-agency program. Moving forward,  risks remain in completing the testing of key sensors and integrating them  on the NPP spacecraft, in resolving interagency disagreements on the  appropriate level of system security, and in revising estimated costs for  satellite operations and support. The program office is aware of these risks  and is working to mitigate them, but continued problems could affect the  program’s overall schedule and cost. These issues delayed VIIRS delivery to the NPP contractor by 8  months. Agencies Have Undertaken Preliminary Steps to Restore Key Sensors, but Lack Timely Plans to Ensure Long-Term Data Continuity

NASA, NOAA, and DOD have taken preliminary steps to restore the  capabilities of selected climate and space weather sensors that were  degraded or removed from the NPOESS program by prioritizing the  sensors, assessing options for restoring them, and making decisions to  restore two sensors in order to mitigate near-term data gaps. However, the  agencies have not yet developed plans to mitigate the loss of these sensors  on a long-term basis. Until such plans are developed, the agencies may lose their  windows of opportunity for selecting cost-effective options or they may  resort to an ad hoc approach to restoring these sensors. Lacking plans  almost 2 years after key sensors were removed from the NPOESS  program, the agencies face increased risk of gaps in the continuity of  climate and space environment data. The Nunn-McCurdy restructuring  decision removed four sensors and degraded the functionality of four  other sensors that were to provide these data. However, agency executives have still not signed off on key  acquisition documents that were to be completed in September 2007, and  one critical sensor has experienced technical problems and schedule  delays that have led program officials to delay the NPP launch date by  about 8 months. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) evaluate the National Polar-orbiting Operational  Environmental Satellite System (NPOESS) program office’s progress in  restructuring the acquisition, (2) assess the status of key program  components and risks, (3) identify how much notice the program office  would need if agency sponsors outside the program choose to restore the  eliminated or degraded sensors to the NPOESS program, and (4) assess  plans of the National Oceanic and Atmospheric Administration (NOAA),  the Department of Defense (DOD), and the National Aeronautics and  Space Administration (NASA) for obtaining the environmental data  originally planned to be collected by NPOESS sensors, but then eliminated  under the restructuring.
Why GAO Did This Study

The National Polar-orbiting Operational Environmental Satellite System (NPOESS) is a triagency acquisition--managed by the Department of Commerce's National Oceanic and Atmospheric Administration (NOAA), the Department of Defense (DOD), and the National Aeronautics and Space Administration (NASA)--that has experienced escalating costs, schedule delays, and technical difficulties. These factors led to a June 2006 decision to restructure the program by reducing the number of satellites and sensors, increasing estimated costs to $12.5 billion, and delaying the first two satellites by 3 to 5 years. Among other objectives, GAO was asked to evaluate progress in restructuring the acquisition, assess the status of key program components and risks, and assess NASA's, NOAA's, and DOD's plans for obtaining the data originally planned to be collected by NPOESS sensors, but eliminated by the restructuring. To do so, GAO analyzed program and contractor data, attended program reviews, and interviewed agency officials.

What GAO Found

The program office has completed most of the major activities associated with restructuring the NPOESS acquisition, but key activities remain to be completed. In the past year, the program redefined the program's deliverables, costs, and schedules, and renegotiated the NPOESS contract. However, agency executives have not yet finalized selected acquisition documents (including the tri-agency memorandum of agreement). Without the executive approval of key acquisition documents, the program lacks the underlying commitment needed to effectively manage a tri-agency program. Over the past year, the NPOESS program has continued to make progress in completing development activities, but key milestones have been delayed and multiple risks remain. Specifically, poor workmanship and testing delays caused an 8-month slip in the expected delivery of a technologically complex imaging sensor that is critical to weather and climate observations. This later delivery caused a corresponding 8-month delay in the expected launch date of a demonstration satellite, called the NPOESS Preparatory Project (NPP). This demonstration satellite is intended to provide on-orbit experiences that can be used to reduce risks on NPOESS satellites and to provide interim weather and climate observations should predecessor weather and climate satellites begin to degrade or fail. Moving forward, risks remain in completing the testing of key sensors, integrating them on the NPP spacecraft, and ensuring sufficient system security. The program office is aware of these risks and is working to mitigate them, but continued problems could affect the program's overall schedule and cost. When the NPOESS restructuring decision removed four climate and space environment sensors from the program and reduced the functionality of four others, the program was directed to restore a limited version of one sensor and to restore the seven others if funded by entities outside the program office. NOAA, NASA, and DOD have taken preliminary steps to restore the capabilities of selected sensors by prioritizing the sensors, assessing options for restoring them, and making decisions to mitigate near-term data gaps by adding two sensors to the NPP satellite. However, the agencies have not yet developed plans to mitigate the loss of these and other sensors on a long-term basis. Until such a plan is developed, the agencies may lose windows of opportunity for selecting cost effective options or they may resort to an ad hoc approach to restoring these sensors. Almost 2 years have passed since key sensors were removed from the NPOESS program; further delays in establishing a plan could result in gaps in the continuity of climate and space environment data.