NOAA’s National Environmental Satellite Data and  Information Service (NESDIS) is responsible for managing the  existing civilian geostationary and polar-orbiting satellite systems as  two separate programs, called the Geostationary Operational  Environmental Satellites and the Polar Operational Environmental  Satellites (POES), respectively. Polar-orbiting environmental satellites obtain environmental data  that are processed to provide graphical weather images and  specialized weather products. NPOESS is a major system acquisition that was originally estimated  to cost about $6.5 billion over the 24-year life of the program from  its inception in 1995 through 2018. The program was to provide  satellite development, satellite launch and operation, and ground- based satellite data processing. NPOESS Experienced Cost Increases, Schedule Delays, and Technical Problems over Several Years  Over the last few years, NPOESS experienced continued cost  increases and schedule delays, requiring difficult decisions to be  made about the program’s direction and capabilities. NPOESS Acquisition Restructuring Is Well Under Way, but Key Steps Remain To Be Completed

Since the June 2006 decision to revise the scope, cost, and schedule  of the NPOESS program, the program office has made progress in  restructuring the satellite acquisition; however, important tasks  remain to be done. Although the NPOESS program has made progress in establishing an  effective management structure, this progress is currently at risk. Four  sensors are of critical importance—VIIRS, CrIS, OMPS, and ATMS— because they are to be launched on the NPP satellite in September  2009. The GOES-R Series Procurement Activities Are Under Way, but System Requirements and Cost Estimates May Change

NOAA is nearing the end of the preliminary design phase of its  GOES-R system, which was initially estimated to cost $6.2 billion  and scheduled to have the first satellite ready for launch in 2012. At  the time of our most recent review in September 2006, NOAA had  issued contracts for the preliminary design of the overall GOES-R  system to three vendors and expected to award a contract to one of  these vendors in August 2007 to develop the satellites. However, analyses of the GOES-R program cost—which in May 2006  the program office estimated could reach $11.4 billion—led the  agency to consider reducing the scope of requirements for the  satellite series. In September 2006, NOAA officials reported that the  agency had made a decision to reduce the scope and complexity of  the GOES-R program by reducing the number of satellites from 4 to  2 and canceling a technically complex instrument—called the  Hyperspectral Environmental Suite. We  have work under way to evaluate these changes. Steps Taken to Reduce GOES-R Risk, More Work Remains

NOAA has taken steps to implement lessons learned from past  satellite programs, but more remains to be done. In summary, both the NPOESS and GOES-R programs are critical to  developing weather forecasts, issuing severe weather warnings for  events such as hurricanes, and maintaining continuity in  environmental and climate monitoring.
Why GAO Did This Study

Environmental satellites provide data and imagery that are used by weather forecasters, climatologists, and the military to map and monitor changes in weather (including severe weather such as hurricanes), climate, the oceans, and the environment. Two current acquisitions are the $12.5 billion National Polar-orbiting Operational Environmental Satellite System (NPOESS) program--which is to replace two existing polar-orbiting environmental satellite systems--and the planned $7 billion Geostationary Operational Environmental Satellites-R (GOES-R) program, which is to replace the current series of satellites due to reach end of their useful lives in approximately 2012. GAO was asked to summarize its past work on the progress and challenges facing these key environmental satellite acquisitions.

What GAO Found

Both the NPOESS and GOES-R satellite acquisitions are costly, technically complex, and critically important to weather forecasting and climate monitoring. NPOESS was originally estimated to cost about $6.5 billion over the 24-year life of the program, with its first satellite launch planned for April 2009. Over the last few years, NPOESS experienced escalating costs, schedule delays, and technical difficulties. These factors led to a June 2006 decision to restructure the program thereby decreasing the program's complexity by reducing the number of sensors and satellites, increasing its estimated cost to $12.5 billion, and delaying the launches of the first two satellites to 2013 and 2016. Since that time, the program office has made progress in restructuring the satellite acquisition and establishing an effective management structure; however, important tasks remain to be done and significant risks remain. The GOES-R acquisition, originally estimated to cost $6.2 billion and scheduled to have the first satellite ready for launch in 2012, is at a much earlier stage in its life cycle than NPOESS. In September 2006, GAO reported that the National Oceanic and Atmospheric Administration (NOAA) had issued contracts for the preliminary design of the overall GOES-R system to three vendors and expected to award a contract to one of these vendors in August 2007 to develop the satellites. However, analyses of GOES-R cost--which in May 2006 was estimated to reach $11.4 billion--led the agency, in September 2006, to reduce the program's scope from four to two satellites and to discontinue one of the critical sensors. Program officials now report that they are reevaluating that decision and may further revise the scope and requirements of the program in coming months. GAO also reported that NOAA had taken steps to implement lessons learned from past satellite programs, but more remained to be done to ensure sound cost estimates and adequate system engineering capabilities. GAO currently has work under way to evaluate GOES-R risks and challenges.