Space Shuttle: Human Capital Challenges Require Management Attention
(Testimony, 03/22/2000, GAO/T-NSIAD-00-133).
Pursuant to a congressional request, GAO discussed the human capital
challenges facing the National Aeronautics and Space Administration's
(NASA) space shuttle program, focusing on: (1) the results of studies on
the impact of workforce reductions; (2) NASA's actions following these
workforce assessments; (3) challenges NASA faces in the anticipated
heavy workload imposed by the International Space Station; and (4) a
structured approach NASA can take to analyze human capital challenges.
GAO noted that: (1) several studies, one as recent as March 2000, have
reported that the shuttle program's workforce has been affected
negatively by the downsizing; (2) the studies concluded that the
existing workforce is stretched thin to the point where there is just
one qualified person in many critical areas; (3) NASA has identified 30
critical areas at Kennedy Space Center that do not have sufficient
backup coverage; (4) these areas include shuttle range safety systems
and solid rocket booster and external tank electrical systems; (5) the
studies found that the workforce is showing signs of overwork and
fatigue; (6) the program's workforce age distribution and skill mix now
limit opportunities for mentoring newer staff; (7) this jeopardizes the
program's ability to hand off leadership roles to the next generation;
(8) NASA has responded to the workforce problems in a number of ways;
(9) it has terminated its downsizing program and is increasing its
budget to provide an additional 95 full time equivalent employees for
the shuttle program in fiscal year (FY) 2000; (10) NASA has also
increased its FY 2001 budget request to provide an additional 278 full
time equivalent employees for the shuttle program; (11) the
administrator has directed the agency's managers to consider ways to
reduce workforce stress; (12) NASA faces a number of challenges in
addressing the shuttle workforce imbalance--especially given the
anticipated increased workload; (13) this includes accommodating
increased training needs, ensuring adequate staffing levels for its
safety upgrade program, attracting and retaining technical skills,
dealing with uncertainties related to the future of shuttle
privatization and commercialization plans, and achieving a higher
projected flight rate; (14) the challenge of ensuring NASA has the
proper mix and number of staff to meet shuttle objectives safely will
require a structured approach; (15) GAO's internal control standards for
the federal government discuss the importance of human capital
management in achieving program results; (16) GAO recently issued a
checklist for agency leaders to use, in order to help them develop human
capital strategies; (17) the checklist helps to establish linkage
between human capital programs and the agency's mission, goals, and
strategies; (18) GAO has provided copies of the checklist to NASA; and
(19) GAO believes NASA's attention to human capital issues will be
essential to ensuring the agency's ability to achieve the goals of the
shuttle program.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: T-NSIAD-00-133
TITLE: Space Shuttle: Human Capital Challenges Require Management
Attention
DATE: 03/22/2000
SUBJECT: Space exploration
Human resources utilization
Human resources training
Personnel management
Federal employees
Federal downsizing
Reductions in force
IDENTIFIER: Space Shuttle
NASA International Space Station Alpha Program
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GAO/T-NSIAD-00-133
Testimony
Before the Subcommittee on Science, Technology, and Space, Committee on
Commerce, Science, and Transportation, U.S. Senate
For Release on Delivery
Expected at 2:30 p.m., EST
Wednesday,
March 22, 2000
SPACE SHUTTLE
Human Capital Challenges Require Management Attention
Statement of Allen Li, Associate Director, Defense Acquisition Issues,
National Security and International Affairs Division
GAO/T-NSIAD-00-133Mr. Chairman and Members of the Subcommittee:
We are pleased to be here today to discuss our ongoing work on the National
Aeronautics and Space Administration's (NASA) space shuttle program. We are
currently responding to the Committee's request to review NASA's plans for
meeting current and future human capital needs. We plan to finalize our work
and report on this issue in the coming months. As a result, my statement
today presents our preliminary observations.
NASA budget data shows that, since 1995, shuttle workforce levels have
decreased from about 3,000 to about 1,800 full time equivalent employees.
NASA based its downsizing efforts on optimistic programmatic assumptions.
For example, NASA believed it could reduce its workforce by consolidating
contracts for flight, ground, and mission operations under a single private
sector contract. In October 1996, NASA awarded this contract. Under the
contract, NASA was to provide incentives to eliminate unnecessary work and
would no longer be involved in day-to-day shuttle operations. However,
because NASA was implementing a number of workforce reduction initiatives,
NASA could not directly attribute specific reductions to the contract
consolidation. Also, in 1994 NASA froze the shuttle design in the
expectation that it would be replaced. NASA now expects to operate the
shuttle for at least the next decade. As a consequence, it initiated an
upgrade program. In addition, NASA's downsizing coincided with a decreased
number of shuttle flights: eight flights in fiscal year 1997, but only four
each in fiscal years 1998 and 1999. However, the number of flights is
projected to increase substantially as the International Space Station
assembly schedule accelerates. NASA plans nine flights in fiscal year 2001.
NASA believes this will require more staff.
Today we will focus on the shuttle program's civil service workforce.
Specifically, we will (1) summarize the results of studies on the impact of
workforce reductions, (2) describe NASA's actions following these workforce
assessments, (3) identify challenges NASA faces in the anticipated heavy
workload imposed by the International Space Station, and (4) suggest a
structured approach NASA can take to analyze human capital challenges.
RESULTS IN BRIEF
Several studies, one as recent as March 2000, have reported that the shuttle
program's workforce has been affected negatively by the downsizing, much of
which has occurred since 1995. The studies concluded that the existing
workforce is stretched thin to the point where there is just one qualified
person in many critical areas. NASA has identified 30 critical areas at
Kennedy Space Center that do not have sufficient backup coverage. These
areas include shuttle range safety systems and solid rocket booster and
external tank electrical systems. In addition, the studies found that the
workforce is showing signs of overwork and fatigue. For example, indicators
including forfeited leave, absences from training courses, and
stress-related employee assistance visits are all on the rise. Moreover, the
program's workforce age distribution and skill mix now limit opportunities
for mentoring newer staff. For example, throughout the Office of Space
Flight, which includes the shuttle program, there are more than twice the
number of workers over 60 years of age than under 30 years of age. This
jeopardizes the program's ability to "hand off" leadership roles to the next
generation.
NASA has responded to the workforce problems in a number of ways. It has
terminated its downsizing program and is increasing its budget to provide an
additional 95 full time equivalent employees for the shuttle program in
fiscal year 2000. NASA has also increased its fiscal year 2001 budget
request to provide an additional 278 full time equivalent employees for the
shuttle program. In addition, the administrator has directed the agency's
managers to consider ways to reduce workforce stress.
NASA faces a number of challenges in addressing the current shuttle
workforce imbalance -- especially given the anticipated increased workload.
This includes accommodating increased training needs, ensuring adequate
staffing levels for its safety upgrade program, attracting and retaining
technical skills, dealing with uncertainties related to the future of
shuttle privatization and commercialization plans, and achieving a higher
projected flight rate.
The challenge of ensuring NASA has the proper mix and number of staff to
meet shuttle objectives safely will require a structured approach. GAO's
internal control standards for the federal government discuss the importance
of human capital management in achieving program results. The Comptroller
General has brought additional attention to human capital issues and the
importance of long-term planning. In this regard, we recently issued a
checklist for agency leaders to use, in order to help them develop human
capital strategies. This checklist will allow agency managers "to quickly
determine whether their approach to human capital supports their vision of
who they are and what they want to accomplish, and to identify
those...policies that are in particular need of attention." The checklist
follows a five-part framework, including strategic planning, organizational
alignment, leadership, talent, and performance culture. The checklist helps
to establish linkage between human capital programs and the agency's
mission, goals, and strategies. We have provided copies of the checklist to
NASA. We believe NASA's attention to human capital issues will be essential
to ensuring the agency's ability to achieve the goals of the shuttle
program.
RECENT STUDIES HIGHLIGHT
SHUTTLE WORKFORCE PROBLEMS
Over the past several years, NASA and its Aerospace Safety Advisory Panel
have studied the shuttle program civil service workforce. The studies
concluded that the shuttle program workforce has suffered significantly from
the downsizing, much of which has occurred since 1995. For example, the
studies conclude that the workforce may not be sufficient to support the
planned shuttle flight rate and many key positions are not sufficiently
staffed by qualified workers. In addition, the studies found that stress
levels have reached the point of creating an unhealthy workforce. The
results of these studies are highlighted below.
*** End of document. ***
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