NASA incorporated these recommendations into the Constellation  Program along with exploration activities called for in the President’s  vision. In addition to the plans mentioned above, NASA has developed a  communications strategy to keep the Shuttle workforce informed about  the activities, intentions, and goals related to retirement of the Shuttle and  transition to new exploration activities. NASA Has Developed New Decision-Making Process to Manage Supplier Base

NASA has developed a new decision-making process to manage supplier  decisions related to the retirement of the Shuttle and transition to the  Constellation Program. NASA considers a supplier to be  a critical single source supplier if it is the only known or only certified  source of particular hardware or services and has received hardware or  services from them in the past 5 years or expects to do business with them  again in the future. Effectiveness of NASA’s Transition Plans and Processes Not Known until Constellation’s Supplier Base Needs Become Clearer and More Decisions Have Been Processed

Whether NASA’s transition plans and processes will be effective is unclear  because NASA has not set requirements for Constellation’s supplier base  needs and few decisions about suppliers have worked their way through  the new processes. As a result of Constellation’s lack of detailed requirements,  there are cases where NASA has provided funding for certain Shuttle  suppliers’ work through its prime contractor’s subcontracts because of a  possible future need for the suppliers with the Constellation Program and  the need to maintain the critical skills. NASA officials  acknowledge that the increasing number of SMRT documents scheduled  for upcoming years has the potential to overwhelm the transition decision- making process. Transition Cost Estimates

Developing cost estimates is a complex task for a transition of this  magnitude. According to NASA officials, such efforts could last through 2020. Without cost estimates, NASA does not have the information needed to  support the budget preparation process or assess the costs of addressing  its supplier challenges. Recommendation

Given the fact that many of NASA’s transition and retirement activities will  continue to occur following the Shuttle retirement in 2010, it is important  that NASA identify and estimate the costs associated with these activities  in an accountable and transparent manner. We would expect these  estimates to be adjusted every year and have more fidelity as NASA gains  more knowledge and makes more decisions. Appendix I: Scope and Methodology

(1) To determine what plans and processes the National Aeronautics and  Space Administration (NASA) has established to effectively manage its  supplier base to ensure both sustainment of the Shuttle Program and  successful transition to planned exploration activities, we performed the  following:    Obtained and reviewed documents from NASA describing plans and  processes for managing retirement and transition activities, including  the Human Space Flight Transition Plan, Space Shuttle Program  Transition Management Plan, Space Shuttle Program Transition and  Retirement Requirements, and the Space Shuttle Program Risk  Management Plan. (2) To describe factors that could impact the effectiveness of such plans  and processes for managing NASA’s supplier base and to (3) identify any  other issues that NASA will likely encounter as the agency transitions to  and implements its planned exploration activities, we performed the  following:    Reviewed NASA’s 2008 Budget Request along with Planning,  Programming, Budgeting and Execution Guidance for 2008 and 2009.
Why GAO Did This Study

The Space Shuttle Program is currently supported by over 1,500 active suppliers, some of whom are the only known or certified source of a particular material, part or service. The retirement of the Shuttle and transition to planned exploration activities, as called for in the President's Vision for Space Exploration, creates the need for NASA to begin making decisions today about its supplier base needs for the future. GAO was asked to (1) describe NASA's plans and processes for managing its supplier base through the Shuttle's retirement and the transition to the Constellation's exploration activities; (2) address factors that could impact the effectiveness of those plans and processes; and (3) identify any other issues that NASA will likely encounter as the agency transitions to and implements the Constellation Program.

What GAO Found

NASA is developing and implementing transition plans and processes to manage its supplier base through the retirement of the Shuttle and transition to the next generation of human space flight systems. Such efforts include: various transition plans; a decision-making structure that should enable the agency to make necessary supplier decisions; and a communications strategy and metrics to gauge the progress of transition activities. In addition, NASA has identified risks associated with the shuttle's retirement and has begun identifying capabilities and suppliers needed for future exploration activities. While NASA has developed plans and processes aimed at effectively managing the supplier base, several factors could impact their effectiveness. NASA may have to continue funding suppliers for work that would maintain the supplier's skills and capabilities, even when they are no longer working on Shuttle operations, until Constellation officials make a decision on whether or not they will be needed for future exploration activities due to a lack of detailed program requirements. In addition, relatively few supplier-related decisions have made it through the newly created decision-making process and NASA officials acknowledge the increasing number of decisions scheduled for upcoming years have the potential to overwhelm the transition decision-making process. Other issues have been identified that NASA will have to face in order to successfully transition from the shuttle program to its next generation human space flight systems. Challenges exist in the continued use of obsolescent materials, maintaining the overall viability of the supplier base, managing the overall workforce, disposing of property and equipment, and completing environmental cleanup. NASA has not developed cost estimates for transition and retirement activities past fiscal year 2010. Without cost estimates, NASA does not have the information needed to support the budget preparation process, assess the costs of addressing its supplier challenges, or account for how NASA will fund transition and retirement activities once the Space Shuttle Program comes to an end in 2010. Such knowledge is important because NASA and Congress will need to allocate funds among many competing priorities. In addition, it will be important for NASA to adjust its cost estimates every year as NASA gains more knowledge about its transition costs.