NASA IG Praises TDRSS Program Management, Clears Boeing

NASA’s Office of Inspector General (OIG) audited the Tracking and Data Relay Satellite System (TDRSS) program to determine if it was being effectively managed and came away primarily with praise. Its few qualifications had to do with how NASA charges non-NASA customers for using the system, but in terms of procuring the next two satellites in the series, K and L, the agency got a tip of the hat.

“Development of TDRS K and L is on schedule and meeting its planned budget. We found that NASA has managed the Project within cost, schedule, and performance requirements and Project managers implemented risk and earned value management (EVM) processes to monitor and mitigate programmatic risks associated with TDRSS development efforts. NASA also effectively administered the TDRSS development and support service contracts. However, we found that NASA has not revised the reimbursable rates it charges TDRSS customers since 2006 and that NASA officials did not know what factors were used to formulate the 2006 rates. Accordingly, NASA does not know whether the rates it has been charging customers during the past 4 years reflected current operating costs. We also found that internal controls for continuity of operations were not established, which led to the possible loss to NASA of reimbursable dollars.”

The report noted that it had received a complaint that Boeing low-balled its bid to build the TDRSS satellites and later raised the price through contract modifications. The OIG determined that although Boeing received 13 waivers after the contract was awarded, they “did not alleviate Boeing from performing any of the technical requirements and did not affect the price of the contract.” The cost of the contract did, indeed, increase, the OIG found, but only because of changes sought by NASA. “Accordingly, we found no evidence to support the allegation that Boeing ‘low bid’ the contract in order to win the award and subsequently increased the cost through contract modifications.”