	Background

The X-33 and X-34 programs were part of an effort that began in 1994— known as the Reusable Launch Vehicle Technology/Demonstrator Program (Reusable Launch Vehicle Program)—to pave the way to full- scale, commercially-developed, reusable launch vehicles reaching orbit in one stage. NASA subsequently started a new X-34 program with a smaller vehicle design. Without realistically estimating costs and risks, and providing the reserves needed to mitigate those risks, management may not be in a position to effectively deal with the technical problems that cutting-edge projects invariably face. Specifically:   NASA did not develop realistic cost estimates in the early stages of the X- 33 program. For example, we reported in August 1999 that NASA’s Fiscal Year 2000 Performance Plan did not include performance targets that established a clear path leading to a reusable launch vehicle and recommended such targets be established. Also, NASA is still in the process of developing the documentation required for the program, including a risk mitigation plan.
Why GAO Did This Study

This testimony discusses the National Aeronautics and Space Administration's (NASA) X-33 and X-34 reusable launch vehicle programs.

What GAO Found

The two programs experienced difficulties achieving their goals primarily because NASA did not develop realistic cost estimates, timely acquisition and risk management plans, and adequate and realistic performance goals. In particular, neither program fully (1) assessed the costs associated with developing new, unproven technologies, (2) provided for the financial reserves needed to deal with technical risks and accommodate normal development delays, (3) developed plans to quantify and mitigate the risks to NASA, or (4) established performance targets showing a clear path leading to an operational reusable launch vehicle. As a result, both programs were terminated. Currently, NASA is in the process of taking steps in the Second Generation Reusable Launch Vehicle Program to help avoid problems like those encountered in the X-33 and X-34 programs.