NASA FY 2003 Budget Background: Office of Space Flight (Code M)

Office of Space Flight (Code M)

(Acting) Associate Administrator: Frederick D. Gregory

Public Affairs Contact: Dwayne Brown, 202/358-1726

The total Fiscal Year 2003 budget request for the Human Exploration and
Development of Space Enterprise is $6,130.9 million; this is comprised of $5,058.8
million in direct program funding and $1,072.1 million for institutional support.
This represents a decrease of 11.2 percent from FY 2002. There are an estimated
4,864 direct Full Time Equivalent employees included within the Human
Exploration and Development of Space Enterprise in Fiscal Year 2003.

I. The International Space Station Program — $1,492.1 million

The International Space Station (ISS) Program enables or enhances each of the
specific goals identified for the U.S. space program as stated in the National Space
Policy. The successful operation of this world-class orbiting laboratory, along with the
research, technological and commercial advances that it enables will support future
decisions on the feasibility and desirability of conducting further human exploration
activities beyond low-earth orbit.

In 1993, the ISS was established as a less costly alternative to its predecessor, the
Space Station Freedom. Since that time the ISS Program has achieved many of the
financial goals to lower annual development and operations costs and to achieve early
deployment of a three-person on-orbit crew. However, the ISS Program has also seen
significant schedule slippage and cost growth. The Administration, through the
President’s fiscal year 2002 Budget Blueprint, initiated actions to set the ISS back on a
course of fiscal accountability; the President’s fiscal 2003 budget maintains this course.
The ISS is funded at $1,492 million in the fiscal 2003 budget, about $230 million less
than provided in the fiscal 2002 appropriation.

The Program is in the third and final phase of deployment, having completed an initial
preparatory phase utilizing the Shuttle and the Russian Space Station Mir (Phase 1),
and enabling permanent human presence and early research capability in orbit (Phase
2). With key contributions of Canada, Russia and the United States currently in orbit, the
ISS is already the most capable spacecraft ever deployed and it is still growing.
The U.S. elements will continue to be regularly deployed through early 2004, at which
time the on-orbit assembly will transition primarily to that of the partner nations’
contributions. With elements already in orbit exceeding operational expectations and
with most of the remaining U.S. hardware already in final preparation at the launch site,
vehicle-design and development risk has largely been retired.

While last year brought actions designed to contain cost growth and to gain better
understanding of its source and nature, this year will be one of action. Last year, an
independent task force of research, management and financial experts, led by
Thomas Young, provided NASA with a number of recommendations to restore and
maintain fiscal responsibility and ensure the fundamental soundness of the overall
NASA ISS Program. NASA is acting upon these recommendations and others, to put in
place the right processes, tools and management controls, as well as measures to
evaluate the program’s progress along the way.

In the fiscal 2002 budget projections for fiscal 2004 and subsequent years, there was a
mismatch between the AdministrationÕs budget targets for ISS and the programÕs cost
projections. This “cost challenge” amounted to approximately half a billion dollars.
Based on forward actions, NASA expects to eliminate this unresolved management
challenge. By this spring the program will have a clearly defined set of cost
requirements so that by fall, a true understanding of total program costs can be
achieved. An initiative that will clearly redefine research priorities is also underway. The
outcomes of these actions will largely determine the end-state requirements and
necessary steps to realizing the great opportunities ISS provides.

The fiscal 2003 budget proposal represents a restrained fiscal approach that provides
adequate support to address currently identified requirements. The program is pushing
ahead to address the total complement of technical, cost and schedule challenges
facing completion of the U.S. Core station, and to reaffirm NASA’s strong commitment
to its international partnerships.

Program Status and the Year Ahead

The past year has seen sustained ISS assembly. The program was performing in all
phases of development, test, assembly, operations and research as the ISS completed
its Phase II objectives. The Joint Airlock was attached to the station in July 2001,
moving the program into the third and final phase of development. Once installed and
activated, the airlock became the primary path for ISS spacewalk entry and departure
for U.S. spacesuits.

Other fiscal 2001 ISS highlights in orbit include the arrival of the first permanent crew,
Expedition 1, via a Soyuz spacecraft in November 2000. Over its four-month stay the
crew had an extremely productive on-orbit tour, marked by the buildup of ISS capability
and early research. The heart of the U.S. research and operational control system was
deployed in February 2001, with the launch of the U.S. Laboratory Destiny, the first
long-term U.S. orbiting lab in over 20 years. With Destiny, day-to-day command and
control of the ISS transitioned to the United States. Leonardo, the Italian-built logistics
module, ferried the first three payload racks to ISS in March 2001, allowing the second
ISS expeditionary crew, also launched in March, to increase research activities while
continuing ISS outfitting.

The Expedition 2 crew employed the Human Research Facility and other equipment to
perform 18 NASA experimental investigations primarily focused on Biomedical
Research during their stay. In April 2001, the primary contribution of Canada was
deployed, a state-of-the-art robotic arm; Rafaello, a second Italian-built logistics module,
also carried two payload Express Racks to orbit.

In August 2001, the Expedition 3 crew arrived and Leonardo was used to carry two
additional EXPRESS research experiment racks to ISS, bringing the total number of
racks to five. During the Expedition 3 crew’s stay, 19 experiments were performed in the
biomedical and microgravity area, as well as Earth observations and educational
payloads. Closing out the year, the Russian Docking Compartment (DC-1) was berthed
with the Service Module in September 2001, providing ISS crew a second airlock for
spacewalks.

For much of fiscal 2002 the station will be supplied with experiment and logistics racks.
The major framework of the station will begin to take shape and the arrival of the next
three rotating Expedition crews is planned.

Beginning with Flight 8A in April 2002, the crew will install the Integrated Truss Structure
(ITS) SO and the Mobile Transporter. The SO ITS is the center of the 91-meter (300-
foot) station truss and attaches to the U.S. Lab. The Mobile Transporter will create a
movable base for the stationÕs Canadian Mechanical arm, allowing it to travel along the
station trusses after delivery of the Mobile Base System (MBS) on UF2. The second
utilization flight, UF2, in May 2002, will transport the Expedition 5 crew to the ISS in
addition to providing experiment racks and three stowage and re-supply racks. The
MBS delivery will complete the Canadian Mobile Servicing System once installed on the
Mobile Transporter.

The first starboard truss segment, S1, arrives on Flight 9A in August 2002. The S1 truss
will provide among other things external cooling systems. The first port truss segment,
P1, is scheduled to be launched in September 2002. P1 is a mirror image of S1 in
appearance and capability. P1 is launched without its S-Band system, which is installed
on P1 on a spacewalk when moved from P6 (currently on orbit).

The Utilization and Logistics Flight (ULF1) is scheduled to launch in January 2003 and
will mark the first flight of a deployable cargo carrier known as the External Stowage
Platform (ESP2). The ESP2 will be deployed from the Space Shuttle by the Space
Station Remote Manipulator System (robotic arm) and will attach to the ISS air lock as a
permanent spare-parts stowage facility. It will include a cargo pallet, specially outfitted
with release mechanisms, to permit Orbital Replacement Unit change-out, and cable
systems to provide power directly from the ISS to individual payloads. The Expedition 6
crew will also arrive on ULF1.

II. Space Shuttle Program — $3,208.0 million

The primary , s of the Space Shuttle Program (SSP) are to: (1) fly safely; (2) meet
the flight manifest; (3) improve supportability; and (4) improve the systemÕs safety. The
Space Shuttle continues to be the most versatile reusable launch vehicle ever built,
having completed 107 missions. Seven shuttle missions were flown last year with five of
those missions launched during a six-month period.

The Space Shuttle has delivered to the ISS the U.S. Laboratory module, solar arrays for
power generation, the ISS robotic arm — Canadarm2, the Joint Airlock that was used to
perform the first ISS spacewalk, several tons of logistical materials in three logistics
flights, and four Expedition crews. A maximum of seven flights are planned for fiscal
2002 including a servicing mission to the Hubble Space Telescope and a Spacehab
mission. Four flights are planned for fiscal 2003. The budget supports five flights in
fiscal 2004 (four for ISS and one for Hubble Space Telescope servicing) and an
average of four flights per year thereafter (all for ISS). This represents a reduction of
two flights per year from the previous plan of six flights per year. However, there is a
change in budgeting approach, to the effect that any additional flights above the four per
year minimum requirement for Station will be budgeted for by NASAÕs Enterprises.

The Space Shuttle budget structure consists of four major components: Flight
Hardware, Ground Operations, Flight Operations and Program Integration. Included in
the four categories are supportability upgrades to counteract possible vehicle and
ground-system obsolescence. Vendor loss and high failure rates of aging components,
high repair costs of Shuttle-specific devices, and negative environmental impacts of
some outdated technologies are also addressed by these categories.

In addition, this fiscal 2003 budget request continues funding for selected safety
upgrades that will improve reliability and ensure safe operations of the Space Shuttle.
Examples include the Cockpit Avionics Upgrade, which will reduce crew workload, and
the Advanced Health Management System of the Space Shuttle Main Engines, which
will improve real-time monitoring of engine performance. Ongoing Space Shuttle studies
may yield additional safety improvements that could be implemented into the Shuttle
fleet. Completion of upgrades installation is currently planned for 2007.

An effort is underway to assess competitive sourcing/privatization of Space Shuttle
operations. NASA has established a Space Shuttle Privatization Business Review Team
(with membership from the banking, financial and academic fields), and a Space Shuttle
Privatization Policy Team to evaluate two families of options (Government and private
industry). As always, a critical discriminator among options for competitive sourcing is
the mandatory requirement that safety is not compromised.

III. Payload and ELV Support — $87.5 million

The Payload and ELV Support budget consists of two major Programs — Payload
Carriers and Support, and Expendable Launch Vehicles (ELV) Mission Support.

The Payload Carriers and Support budget supports the processing and flight of Space
Shuttle payloads, including processing of unpressurized carriers, Get-Away Special
(GAS), Hitchhiker and Flight Support System carriers. Funding supports the required
technical expertise and facilities to perform the payload buildup, test and checkout,
integration, servicing, transportation and installation of payloads into the Shuttle launch
vehicle.

In fiscal 2001, launch and landing payload support activities were provided for seven
Space Shuttle missions, all of which were ISS assembly and utilization flights. In fiscal
2002, launch and landing payload support activities will be provided for seven Space
Shuttle missions, including five ISS assembly and utilization flights, one servicing visit to
the Hubble Space Telescope (HST-03B), and one research mission (STS-107). In fiscal
2003, launch and landing payload support activities will be provided for four planned
Space Shuttle missions for ISS assembly and utilization.

The Expendable Launch Vehicle Mission Support budget provides funding for technical
expertise and NASA-unique facilities to perform technical oversight and management
for all NASA missions requiring flight on NASA-acquired launch services. Advanced
mission design/analysis and leading-edge integration services are provided for the full
range of NASA missions under consideration for launch on ELVs. In FY 2001, NASA
supported seven primary payload launches including (1) HETE-11, (2) EO-1/SAC-C, (3)
Mars Odyssey, (4) MAP, (5) GOES-M, (6) Genesis and (7) Kodiak Star, and one
secondary payload (Quiktoms), which was not successfully deployed. In fiscal 2002, 10
primary payload missions and one secondary payload are planned to be launched. In
fiscal 2003, nine primary payload missions and one secondary payload are planned to
be launched.

Investments and Support — $1,178,2 million

A new Budget Line Item (BLI) was established in fiscal 2001 to ensure NASA’s rocket-propulsion
test capabilities are properly managed and maintained in world-class
condition. The Rocket Propulsion Test Support Program is a consolidation of ongoing
activities to achieve a more effective test program.

The Human Exploration and Development of Space Enterprise (HEDS) institutional
support budget address two primary goals of this enterprise. The first goal is to recruit,
train and maintain a civil service workforce that reflects the cultural diversity of the
Nation. This workforce and related infrastructure are sized and skilled consistently with
accomplishing NASA’s research, development and operational missions for the
Enterprise with innovation, excellence and efficiency. The second goal is to ensure that
the facilities critical to achieving HEDS Enterprise goals are constructed and maintained
to function effectively, efficiently and safely, and that NASA installations conform to
requirements and initiatives for the protection of the environment and human health.

The HEDS institutional support budget funds requirements for civil service salaries,
other personnel and related costs, travel and the necessary support for all
administrative functions, and other basic services in support of research and
development activities at NASA installations.

In addition, the HEDS institutional-support budget line funds construction-of-facility
requirements for discrete projects required for components of the basic infrastructure
and institutional facilities, and almost all are for capital repair. NASA facilities are critical
for the HEDS Enterprise, to sustaining the future of aeronautics and advanced space
transportation, which both support military and private industry users. NASA has
conducted a thorough review of its facilities infrastructure, and has found that the
deteriorating plant condition warrants an increased repair and renovation rate to avoid
hazards to personnel, facilities and mission, and that some dilapidated facilities need to
be replaced. Increased investment in facility revitalization is needed to maintain a facility
infrastructure that is safe and capa‚„ŠRof supporting NASA’s missions.

The engineering and technical base (ETB) budget will continue to support the
institutional capability in the operation of space flight laboratories, technical facilities and
test-beds; to conduct independent safety and reliability assessments; and to stimulate
science and technical competence in the United States. Also, funding to support
additional academic program activities is provided in this budget.

IV. Space Communications and Data Systems Program — $117.5 million

The program goal is to provide space communications and data services responsive to
customer missions at the lowest cost to the Agency. This is done by providing
integrated solutions to operational communications and information-management needs
of all NASA strategic enterprises. Space communications and data services are
provided by NASA’s Space Network, Deep Space Network, Ground Network, Wide Area
Network and Western Aeronautical Test Range.

Communication services are conducted in the facilities provided by NASA at multiple
locations both in the United States and at overseas sites. These services provide
command, tracking and telemetry data services between the ground facilities and flight
mission vehicles. This capability includes all the interconnecting telecommunications
services to link tracking-and-data-acquisition network facilities, mission control facilities,
data capture and processing facilities, industry and university facilities, and the
investigating scientists.

The program performs infrastructure upgrades and replenishment efforts necessary to
maintain the service capability that satisfy the approved mission model. The program
conducts technology and standards infusion efforts to provide more efficient and
effective services.

In line with the National Space Policy, the program is committed to seeking and
encouraging commercialization of NASA communications services and to participate
with NASA enterprises in collaborative inter-agency, international and commercial
initiatives. The Space Communications and Data Systems Program budget structure
consists of four components: