# Presentation: 174929

##  Langley Research Center

**	****	****	**

- Financial Status to Contractor Steering Council

## Outline

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

## 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

## The Space Exploration Vision

**The Space Exploration Vision**

**January 14, 2004**

## Strategy Based on Long-Term Affordability

- $ in millions

**Pres. FY05 Five-Year Budget Plan**

- 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

- NOTE:

- Budget Status

## NASA LaRC Current State (2005)

**Space Flight**
**$16m**

**Aeronautics**
**$387m**

**Earth **
**Science**
**$92m**

**Space **
**Science**
**$24m**

**Exploration**
**Systems**
**$84m**

**Education**
**    ****$7m**

_**Founded in 1917**_
-  • 1st civil aeronautical research laboratory

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

_**$707 M Total Budget**_
-  •   $668M Mission budget
-       $39M External business

_**Workforce**_
- ~2,100 Civil Servants
- ~1,500 Contractors

**Engineering**
**& Safety**
**$58m**

**External**
**Business**
**    ****$39m**

- Budget Status

## Langley Expertise Critical to Vision

- Business Base

## Historical LaRC Budget Trend

**Real Year Dollars ($M)**

**Adjusted for Inflation ($M)**

- Business Base

## Challenges

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

## Overhead

- Burden (Technical)	$110M
- Center G&A 	_$132M_ (~$110M excluding CofF)
- Total Overhead	$242M
- Burden (Technical)
- 	S&E		$74M
- 	Other indirects	$36M
- Burden for S&E inc. estimated procurements
- $19M for indirect salaries
- $22M for procurements
- $31M for F&RS/IT
- _$  2M_ for travel
- $74M
- Other indirects = salary/benefits, IT, F&RS of indirect personnel working non-S&E service pools

- =

- +

- Overhead    =     Burden (Technical) + Center G&A

- Challenges

## Facilities

- 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

- Challenges

## 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

## 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