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Space Station: Status of Financial Reserves

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Report Type Reports and Testimonies
Report Date July 20, 1992
Report No. NSIAD-92-279
Subject
Summary:

By March 1992, NASA's financial reserves for developing and operating the redesigned Space Station Freedom had dropped to $3.2 billion, or about 20 percent of the baseline program of $16.6 billion. A month later, NASA committed more than $1.1 billion in station reserves to fund additional program requirements, decreasing reserves to $2.1 billion. All but $166 million of this amount is now devoted to the last five years covered by the $20 billion program estimate--fiscal years 1995 through 1999. Space station program officials are concerned about the limited reserves but believe that with careful management and stringent cost controls they will be able to complete the program on time and within the current $20-billion estimate. In GAO's view, space station program officials face an extremely difficult challenge, especially during the next couple of years. If the reserves prove inadequate, program officials will be forced to reduce content, delay schedules, or increase costs.

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