National Aeronautics and Space Administration
Office of Inspector General
Washington, D.C. 20546

October 31, 2002

RELEASE 2003-006: EXPENDABLE LAUNCH VEHICLE PERFORMANCE MEASURES

 The audit report "Expendable Launch Vehicle Performance Measures" 
(IG-03-002) has been posted to the NASA Office of Inspector General Web 
site at: http://www.hq.nasa.gov/office/oig/hq/ig-03-002.pdf

Performance measurement involves a process of planning a goal, 
establishing an objective measure of actual performance, recording 
performance, evaluating actual performance against the planned goal, 
and reporting results.  The Government Performance and Results Act of 
1993 (GPRA) and Office of Management and Budget (OMB) define a 
performance measure as a performance goal or performance indicator.  
GPRA states that a performance goal means a target level of performance 
expressed as a tangible, measurable objective against which actual 
achievement can be compared.  We reviewed two of NASA's performance 
measures associated with the Expendable Launch Vehicle (ELV) Program to 
determine whether, in accordance with the GPRA and the President's 
Management Agenda, these measures will give the Congress and the public 
insight on management decisions and confidence in the results achieved.

NASA's fiscal year (FY) 2003 budget for ELV services is $338 million, 
including $36 million for technical management and acquisition 
services.  The Agency's FY 2003 Annual Performance Plan includes two 
performance goals related to the ELV Program and one performance 
indicator for each goal.

Results of Audit

Generally, NASA's performance measurement system complied with Federal 
requirements.  NASA should however clarify one of two ELV performance 
goals and indicators in the Performance Plan to better meet GPRA and 
OMB requirements.  Specifically, NASA's Office of Space Flight had not 
fully defined two key terms or provided the basis for the prescribed 
95-percent launch success rate in the Plan.  Fully defining the terms 
and explaining the basis for the 95-percent rate will provide improved 
performance information.  Improved performance information will allow 
external stakeholders, such as the Congress and the public, to better 
determine the relative effectiveness of the ELV Program and to have 
confidence that the program's results justify the $36 million budgeted 
for technical management and acquisition services.

Recommendation

We recommended that NASA clarify the meaning of the two key terms and 
the basis for the prescribed 95-percent launch success rate in the ELV 
Program performance indicator in the FY 2003 NASA Performance Plan or 
Performance Report.


Management's Response

NASA concurred with the recommendation and will take corrective action 
starting with the FY 2002 NASA Performance Report, which NASA expects 
to release in late January 2003.

To comment on this report, please send e-mail to igrelease@hq.nasa.gov 

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