Building the second-generation vehicle will be a considerably complex and challenging endeavor for NASA—from both a technical and business standpoint. Important Decisions to Be Made Before Requirements Can Be Defined

According to a NASA official, NASA plans to define the basic requirements for its second-generation space transportation—that is, what the crew size will be, what the payload capacity will be, and what designs or architectures are worth pursuing—by November 2002. First, NASA must complete its ongoing reassessment of its overall space transportation plan. This evaluation is being done as part of NASA’s development of a budget proposal for fiscal year 2004. Second, NASA is currently reassessing the future of the International Space Station. Key Management Controls Are Not Yet Implemented

NASA cannot implement key management controls for the SLI program until it defines its basic requirements. It is important that NASA develop such measures as soon as possible. NASA must first decide whether developing a second-generation vehicle to be deployed in 2014 to 2015 is still a worthwhile endeavor, given plans to extend the life of the space shuttle and cut back on the space station’s capabilities, and if so, what specific direction the program should take and how it will fit in with DOD efforts. Until it does so, NASA will not be able to assure its managers and the Congress that the initial investment is being spent wisely and that risks are being reduced, and it will not be able to predict what the total costs of the program will be. Reassess the schedule for defining the requirements for the Space Launch Initiative in order to ensure that the agency takes the following actions before making final decisions on basic requirements and selecting three architectures to pursue: (1) complete the reassessment of NASA’s integrated space transportation plan, (2) reach consensus with its international partners on the future of the space station, and (3) reach consensus with the Department of Defense on its role in the SLI effort. 4.
What GAO Found

In 2001, the National Aeronautics and Space Administration (NASA) began undertaking a new effort--the Space Launch Initiative (SLI)--to develop a new generation of space transportation vehicles. SLI is expected to result in development of the second generation of reusable launch vehicles, the space shuttle being the first generation. NASA plans to define basic requirements for its second-generation reusable launch vehicle--that is, what the crew size will be, what the payload capacity will be, and what designs or architectures are worth pursuing--by November 2002. However, considerable challenges must be addressed before NASA can accomplish this. First, NASA has to complete a reassessment of its overall space transportation plans. Second, NASA is currently reassessing the future of the International Space Station. The decisions it will make as part of this evaluation, such as how many crew will operate the station, will have a dramatic impact on NASA's requirements for a second-generation vehicle. Third, NASA needs to decide whether the SLI program will be developed jointly with the Department of Defense (DOD) and, if so, how can it accommodate DOD's requirements for a reusable launch vehicle. Until NASA finalizes its basic requirements for SLI, it cannot implement management controls that are essential to predicting what the total costs of the program will be and to minimizing the risks with NASA's planned initial investment of $4.8 billion. It is important for NASA to implement management controls for SLI as soon as possible, so that it can provide its managers and Congress with the information needed to ensure that the program is on track and able to meet expectations.