Langley Research Center

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Langley Research Center
Financial Status to Contractor Steering Council

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Outline
Outline

• Synopsis
• Budget Status
• Business Base
• Challenges
• Opportunities
• Summary

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Synopsis
Synopsis

• NASA Budget evolving toward Exploration
• Additional Near-term financial challenges to
  ensure Shuttle Return to Flight and Hubble
  Servicing Mission
• Center Financial Challenges
• Evolving business base
• Business Base/Institution Imbalance
• High Overhead
• Aging Facilities
• New team opportunity for change
• Increase business base
• More flexible workforce
• Reduce Overhead
• Consolidate eliminate unused facilities

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The Space Exploration Vision
January 14, 2004
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Strategy Based on Long-Term Affordability
Budget Status
in millions
Pres. FY05 Five-Year Budget Plan
NOTE
Exploration missions Robotic and eventual human
missions to Moon, Mars, and beyond Human/Robotic
Technology Technologies to enable development
of exploration space systems Crew Exploration
Vehicle Transportation vehicle for human
explorers ISS Transport US and foreign launch
systems to support Space Station needs especially
after Shuttle retirement
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Budget Status
NASA LaRC Current State (2005)
Founded in 1917 1st civil aeronautical
research laboratory

• 707 M Total Budget
• 668M Mission budget
• 39M External business

• Infrastructure/Facilities
• 788 acres, 255 Buildings
• 2-4 B replacement value (1B book)

• Workforce
• 2,100 Civil Servants
• 1,500 Contractors

Space Science 24m
Exploration Systems 84m
Earth Science 92m
Engineering Safety 58m
External Business 39m
Aeronautics 387m
Education 7m
Space Flight 16m
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Langley Expertise Critical to Vision
Business Base
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Business Base
Historical LaRC Budget Trend
Real Year Dollars (M)
Adjusted for Inflation (M)
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Challenges
Challenges

• Business Base Imbalance
• Evolving business base
• Workforce inflexibility
• High percentage of permanent civil service staff
• High Overhead
• Technical Burden and GA
• Aging/costly facilities
• High Backlog of Maintenance Repair (BMAR)

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Overhead
Challenges


Overhead Burden (Technical) Center GA

• Burden (Technical) 110M
• Center GA 132M (110M excluding CofF)
• Total Overhead 242M
• Burden (Technical)
• SE 74M
• Other indirects 36M
• Burden for SE inc. estimated procurements
• 19M for indirect salaries
• 22M for procurements
• 31M for FRS/IT
• 2M for travel
• 74M
• Other indirects salary/benefits, IT, FRS of
  indirect personnel working non-SE service pools

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Facilities
Challenges

• Aging facilities are costly
• Increasing maintenance related costs
• Increasing BMAR
• Overcapacity unaffordable
• Requires disciplined approach on building/ space
  consolidation and usage

• FY 2003 Maint. Utilities 40M
• FY 2003 BMAR 32M

BMAR -- Backlog of Maintenance Repair
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Opportunities
Opportunities

• Business Base
• Obtain new business via Exploration and Science
• Seek innovative business opportunities
• 14x22 facility using an alternative pricing model
  to help attract new customers for cost sharing
  and enable a smooth transition to ROME
• Workforce
• Planned 2005 buyout to help achieve reshaping of
  workforce
• More term workforce
• More flexible contractual arrangements
• Overhead
• Conducting rigorous cost reviews of all services
  and overhead
• Seeking reductions to services and overhead of
  25
• Facilities
• Complete planned space consolidations associated
  with re-organization
• Seeking cost sharing partnerships and/or other
  plant innovations

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Summary
Summary

• NASA Budget evolving toward Exploration
• Near-term financial challenges for Shuttle and
  Hubble
• Center Financial Challenges
• Evolving business base
• Business Base/Institution Imbalance
• High Overhead
• Aging Facilities
• New team opportunity for change
• Increase business base
• More flexible workforce
• Reduce Overhead
• Consolidate eliminate unused facilities