441 G St. N.W.

Washington, DC 20548

September 9, 2013

The Honorable Carl Levin

Chairman

The Honorable John McCain

Ranking Member

Permanent Subcommittee on Investigations

Committee on Homeland Security and Governmental Affairs

United States Senate

Space: Defense and Civilian Agencies Request Significant Funding for Launch-Related 

Activities

The Department of Defense (DOD) and National Aeronautics and Space Administration (NASA) 

rely on launch service providers to place payloads into orbit on a recurring basis. DOD and 

NASA are the nation’s two “launch agents” as identified in the U.S. Space Transportation Policy. 

The agencies involved in space launch activities request funding each year to develop, procure, 

and support these activities. This funding represents a significant investment on the part of the 

government. However, because the agencies involved budget and account for their respective 

space launch efforts differently, the total governmentwide funding to support these activities is 

difficult to determine.

This report formally transmits the enclosed briefing with information on the launch-related 

funding that government agencies expect to require from fiscal years 2014 through 2018. We 

prepared this report as an initial step in addressing your broader request that we provide shortand long-term assessments examining impediments to economical procurement of government 

launch vehicles and launch services. Specifically, with this report, we address your interest in 

gaining more detailed knowledge about the amount and types of funding government agencies 

expect to allocate to launch-related activities and infrastructure for fiscal years 2014 through 

2018. This information should help to inform plans to lower launch costs, increase competition, 

and invest in new programs.

To conduct this work, we obtained and analyzed DOD and NASA top-level budget 

documentation (along with relevant funding from other government agencies such as the 

National Oceanic and Atmospheric Administration that use either DOD or NASA as the launch 

agent for their satellites) and aggregated the total amount of funding the agencies expect to 

require for launch-related activities from fiscal years 2014 through 2018. For purposes of 

comparison between defense and civilian budget account types, we grouped DOD as well as 

civilian launch-related funding requests into three budget categories: Procurement; Research, 

Development, Test, and Evaluation (RDT&E); and Other. The budget category designated as 

“Other” includes DOD operations and maintenance, military construction, and military personnel, 

as well as NASA operations and support, construction of facilities, and civilian personnel. We 

discussed this methodology with DOD and NASA officials, who found it reasonable. 

We conducted our work from June 2013 to September 2013 in accordance with generally 

accepted government auditing standards. Those standards require that we plan and perform the 
Page 2 GAO-13-802R Space Launch Funding

audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings 

and conclusions based on our audit objectives. We believe that the evidence obtained provides 

a reasonable basis for our findings and conclusions based on our audit objectives.

In summary, defense and civilian government agencies together expect to require significant 

funding, nearly $44 billion in “then-year” dollars that factor in anticipated future inflation, for 

launch-related activities from fiscal years 2014 through 2018. Procurement funding represents 

about $28 billion—some 65 percent—of this total, while RDT&E constitutes approximately $11 

billion, or about 26 percent. Both DOD and NASA anticipate that procurement funding needs will 

increase over the 5-year period, with DOD planning for costs associated with its Evolved 

Expendable Launch Vehicle Program—which acquires launch vehicles for U.S. military and 

intelligence satellites—and NASA for the transport of crew and cargo to the International Space 

Station. Overall, DOD’s launch procurement needs exceed NASA’s—about $16 billion total to 

NASA’s $12 billion. In contrast to procurement, the agencies indicate that together their need for 

RDT&E funding will decrease during the same period. NASA’s expected RDT&E launch funding 

requirements outpace DOD’s, with the agency planning to spend about $10.5 billion for launchrelated development from fiscal years 2014 through 2018. Of that amount, NASA anticipates the 

need for approximately $7 billion for the development of its own deep space launch vehicle 

known as the Space Launch System, and the associated ground systems, to support human 

deep space exploration. NASA’s RDT&E funding needs drop off beginning in fiscal year 2016 

due to decreased investment in the commercial crew program, which funds commercial 

development of human spaceflight systems to support the International Space Station in low 

Earth orbit. DOD is not investing heavily in RDT&E from fiscal year 2014 through 2018 and has 

budgeted about $719 million total for launch development efforts during those years. 

For additional information on the results of our work, see the briefing included as enclosure I. 

Agency Comments

We are not making recommendations in this report. We provided a draft of this report to DOD, 

NASA and the National Oceanic and Atmospheric Administration for comment. These agencies 

provided technical comments that were incorporated as appropriate in the final report.

- - - - 

We are sending copies of this report to the appropriate congressional committees; the Secretary 

of Defense; and the NASA Administrator. This report will also be available at no charge on our 

website at http://www.gao.gov. 

Contact points for our Offices of Congressional Relations and Public Affairs may be found on 

the last page of this report. Key contributors to this report were Art Gallegos, Assistant Director; 

John Warren; Tana Davis; Pete Anderson; and Marie Ahearn.

Should you or your staff have questions concerning this report, contact Cristina T. Chaplain at 

(202) 512-4841 or at chaplainc@gao.gov. 

Cristina T. Chaplain

Director, Acquisition and Sourcing Management

Enclosure
Enclosure I

Page 3 GAO-13-802R Space Launch Funding

Space: Defense and Civilian Agencies 

Request Significant Funding for 

Launch-Related Activities 

Briefing for the Permanent Subcommittee on 

Investigations, 

Committee on Homeland Security and 

Governmental Affairs, United States Senate

Page 1
Enclosure I

Page 4 GAO-13-802R Space Launch Funding

Introduction

• The Department of Defense (DOD) and the National Aeronautics and Space 

Administration (NASA) are the nation’s two “launch agents” as identified in the U.S. 

Space Transportation Policy. 

• The Secretary of Defense is the launch agent for the National Security Sector.

• The NASA Administrator is the launch agent for the nation’s civil sector, which 

supports customers such as the National Oceanic and Atmospheric Administration 

(NOAA). 

• DOD and NASA request funding each year to develop, procure, and support space 

launch activities. This funding represents a significant investment on the part of the 

government. However, because the agencies involved budget and account for their 

respective space launch efforts differently, the total governmentwide funding to support 

these activities is difficult to determine.

• For the launch of U.S. government satellites, both the DoD and NASA primarily rely on 

U.S. commercial launch service providers to place their payloads into orbit.

• NASA is also developing the new deep space launch vehicle, known as the Space 

Launch System, to support human exploration, and to continue to support the research 

on board the International Space Station through crew transport and cargo resupply.

Page 2
Enclosure I

Page 5 GAO-13-802R Space Launch Funding

Objective

• The Senate Homeland Security and Governmental Affairs 

Permanent Subcommittee on Investigations requested that we 

provide short- and long-term assessments examining 

impediments to economical procurement of government 

launch vehicles and launch services across government. In 

this initial assessment, we reviewed the Fiscal Year (FY) 2014 

President’s Budget request and identified, quantified, and 

analyzed the amount of funding requested for space launch–

related activities across the government. This briefing contains 

the results of our analysis.

Page 3
Enclosure I

Page 6 GAO-13-802R Space Launch Funding

Scope and Methodology

• This briefing was prepared based on defense and civilian funding requests as presented in the FY 

2014 President’s Budget. Specifically, we reviewed FY 2014 through FY 2018 space launch- related funding requests by NASA, NOAA, and DOD, including the military services and other 

offices. Dollar amounts presented in this briefing are derived from the President’s Budget request; 

therefore, all dollars presented are then-year dollars; that is, they factor in anticipated future 

inflation. Then-year dollars are sometimes called ‘current dollars,’ ‘nominal dollars,’ ‘budget 

dollars,’ or ‘fully inflated dollars.’

• We first obtained both defense and civilian launch-related funding requests from FY 2014 through 

FY 2018 in the budget categories of procurement; research and development; operations and 

maintenance/support; construction; and personnel. We then asked the respective agencies to 

identify launch-related funding within these same fiscal years and budget categories. We 

assessed the reliability of the requested funding data, and found them to be sufficiently reliable 

for reporting on expected future requests. 

• For purposes of comparison between civilian and defense budget account types, we grouped 

DOD as well as civilian launch-related funding requests for NASA and NOAA into three budget 

categories: Procurement; Research, Development, Test and Evaluation (RDT&E); and Other. The 

budget category designated as Other includes DOD operations and maintenance, military 

construction, and military personnel, as well as NASA operations and support, construction of 

facilities, and civilian personnel. We discussed this methodology with DOD, NASA, and NOAA 

officials, who found it reasonable.

Page 4
Enclosure I

Page 7 GAO-13-802R Space Launch Funding

Scope and Methodology

• In some instances, we could not separate launch costs from certain non-launch-related 

activities. Specifically, NASA was unable to separate launch costs from International 

Space Station cargo and crew transportation costs. In these instances, all cargo and 

crew transportation costs are included in launch costs. Further, the funding for NASA’s 

Science Mission Directorate is based on a per-year estimate of launch costs provided 

by NASA. 

• NOAA was unable to provide new estimates of launch-related funding requested in the 

FY 2014 President’s Budget in time to be included in this briefing. Therefore, we used 

numbers NOAA had previously provided based on the FY 2013 President’s Budget 

request as representative of NOAA’s investment. The impact of including the FY 2013 

President’s Budget numbers for NOAA was minor because they represent a relatively 

small portion of the total NASA request. Because NASA acts as the launch agent for 

NOAA, we did not break out NOAA funding from NASA funding in our presentation of 

governmentwide procurement funding. 

• We conducted this performance audit from June 2013 to September 2013 in 

accordance with generally accepted government auditing standards. Those standards 

require that we plan and perform the audit to obtain sufficient, appropriate evidence to 

provide a reasonable basis for our findings and conclusions based on our audit 

objectives. We believe that the evidence obtained provides a reasonable basis for our 

findings and conclusions based on our audit objectives.

Page 5
Enclosure I

Page 8 GAO-13-802R Space Launch Funding

Governmentwide Launch Funding By Category,

FY14-18

$0.0

$1,000.0

$2,000.0

$3,000.0

$4,000.0

$5,000.0

$6,000.0

$7,000.0

FY14 FY15 FY16 FY17 FY18

Then-Year Dollars in Millions

Total Procurement Total RDT&E Total Other

28,447.20

65%

$11,264.50 

26%

$4,151.00 

9%

Then-Year 

Dollars in Millions

Total Procurement Total RDT&E Total Other

6

Source: GAO analysis of agency data. Source: GAO analysis of agency data.
Enclosure I

Page 9 GAO-13-802R Space Launch Funding

Governmentwide Launch Funding

Totals by Fiscal Year

Page 7

FY14 FY15 FY16 FY17 FY18 Total

Procurement $4,981.4 $5,819.7 $5,816.2 $5,914.4 $5,915.5 $28,447.2

RDT&E $2,469.0 $2,473.0 $2,414.6 $2,073.9 $1,834.0 $11,264.5

Other $1,053.5 $774.3 $770.7 $790.0 $762.5 $4,151.0

Total $8,503.9 $9,067.0 $9,001.5 $8,778.3 $8,512.0 $43,862.7

Then-Year Dollars in Millions

Source: GAO analysis of agency data.
Enclosure I

Page 10 GAO-13-802R Space Launch Funding

Details on Governmentwide Launch

Funding FY 14-18 

• Governmentwide launch funding totals nearly $44 billion for FY 14-18.

• Procurement is about 65 percent of this funding.

• Annual procurement funding requests trend upward at DOD and NASA, increasing by nearly $1 billion total ($4.98 billion in FY 14 to $5.92 billion 

in FY 18).

• Procurement funding is more than double Research, Development, Test, 

and Evaluation (RDT&E) funding.

• RDT&E is about 26 percent of this funding.

• Total requested RDT&E for launch-related activities is relatively flat at about $2.4 billion from FY 14 through FY 16, but decreases in FY 17 and 

FY 18.

• DOD is not currently investing in RDT&E for new launch vehicles; NASA 

is investing heavily in RDT&E for the Space Launch System (SLS).

• Funding for “Other” activities is about 9 percent of this funding. 

• After FY 14, “Other” funding, such as personnel and facilities remains 

essentially flat from FY 15-FY 18.

• Both DOD and NASA are acquiring launch vehicles via launch services 

contracts.

Page 8
Enclosure I

Page 11 GAO-13-802R Space Launch Funding

Governmentwide Launch Procurement:

NASA & DOD Portions FY 14-18

$0.0 

$500.0 

$1,000.0 

$1,500.0 

$2,000.0 

$2,500.0 

$3,000.0 

$3,500.0 

$4,000.0 

FY14 FY15 FY16 FY17 FY18

Then-Year Dollars in Millions

DOD Procurement

NASA Procurement

$16,198.20 

57%

12,249.00

43%

Then-Year 

Dollars in Millions

DOD Procurement

NASA Procurement

9

Note: NASA procurement includes NOAA funds to procure launch vehicles for weather satellites.

Source: GAO analysis of agency data. Source: GAO analysis of agency data.
Enclosure I

Page 12 GAO-13-802R Space Launch Funding

Governmentwide Launch Procurement

Totals FY 14-18

FY14 FY15 FY16 FY17 FY18 Total 

DOD 

Procurement $2,799.3 $3,373.3 $3,338.5 $3,319.8 $3,367.3 $16,198.2 

NASA 

Procurement $2,182.1 $2,446.4 $2,477.7 $2,594.6 $2,548.2 $12,249.0

Total 

Procurement $4,981.4 $5,819.7 $5,816.2 $5,914.4 $5,915.5 $28,447.2

Then-Year Dollars in Millions

Note: Totals may not match due to rounding. NASA procurement includes International Space Station crew and 

cargo transportation costs which are broader than only launch vehicle costs. It also includes NOAA funds to 

procure launch vehicles for weather satellites.

Page 10

Source: GAO analysis of agency data.
Enclosure I

Page 13 GAO-13-802R Space Launch Funding

Details on Governmentwide Launch 

Procurement Funding FY14-18

• Governmentwide launch-related procurement funding totals about 

$28 billion FY 14-18.

• Procurement funding for launch-related activities, including 

procurement of launch services, is trending upward with annual 

funding increasing nearly 19 percent from FY 14 to FY 18.

• DOD procurement funding for the Evolved Expendable Launch 

Vehicle increases from FY 2014 to FY 2015 but remains relatively 

steady after 2015 and reflects savings achieved through a new 

multi-year block buy acquisition strategy.

• NASA anticipates increased procurement funding needs largely due 

to increased purchases of launch services for transport of crew and 

cargo to the International Space Station.

Page 11
Enclosure I

Page 14 GAO-13-802R Space Launch Funding

Governmentwide Launch RDT&E:

NASA & DOD Portions FY14-18

$0.0 

$500.0 

$1,000.0 

$1,500.0 

$2,000.0 

$2,500.0 

FY14FY15FY16FY17FY18

Then 

–Year Dollars in Millions

DOD RDT&E NASA RDT&E

$718.7 

6%

$10,545.8 

94%

Then-Year 

Dollars in Millions

DOD RDT&E NASA RDT&E

12

Source: GAO analysis of agency data. Source: GAO analysis of agency data.
Enclosure I

Page 15 GAO-13-802R Space Launch Funding

Governmentwide Launch RDT&E

Totals FY 14-18

FY 14 FY 15 FY 16 FY 17 FY 18 Total

DOD RDT&E $179.1 $165.0 $145.6 $113.3 $115.7 $718.7

NASA RDT&E $2,289.9 $2,308.0 $2,269.0 $1,960.6 $1,718.3 $10,545.8

Total RDT&E $2,469.0 $2,473.0 $2,414.6 $2,073.9 $1,834.0 $11,264.5

Note: Totals may not match due to rounding. NASA RDT&E funds for construction of facilities in FY15 through FY18 will be 

transferred to the “other” category as part of NASA’s annual budget cycle.

Then-Year Dollars in Millions

Page 13

Source: GAO analysis of agency data.
Enclosure I

Page 16 GAO-13-802R Space Launch Funding

Details on Governmentwide Launch RDT&E 

Funding FY 14-18

• Governmentwide launch-related RDT&E funding totals about $11 billion FY 14-18.

• From FY 14-18, NASA is requesting much more launch-related RDT&E funding 

than DOD due to SLS development:

• NASA accounts for nearly 94 percent of governmentwide launch-related 

RDT&E funding.

• NASA anticipates spending about $10.5 billion in RDT&E funds from FY 14- 18, while DOD expects to spend about $719 million total.

• NASA plans to spend the bulk of its FY 14-18 RDT&E funding, about $7 billion, for development of the SLS and its associated ground systems.

• NASA’s planned annual RDT&E investment drops steeply, over $300 million 

from FY 16 to FY 17, largely due to decreased funding for the Commercial 

Crew Program which funds commercial development of human spaceflight 

systems to support the International Space Station in low Earth orbit.

• Relative to NASA, DOD is not investing heavily in RDT&E from FY 14-18.

• As we previously reported in 2011, there have been concerns about the lack of 

concerted development and a strategic plan for science and technology efforts 

within the launch community.1

Page 14 1 See GAO, Space Research: Content and Coordination of Space Science and Technology Strategy Need to Be More Robust, GAO11-722 (Washington, D.C.: Jul 19, 2011).
Enclosure I

Page 17 GAO-13-802R Space Launch Funding

Governmentwide Launch Other:

NASA & DOD Portions FY 14-18

$0.00 

$100.00 

$200.00 

$300.00 

$400.00 

$500.00 

$600.00 

$700.00 

FY14 FY15 FY16 FY17 FY18

Then-Year Dollars in Millions

Total DOD Total NASA

$2,327.0 

56%

$1,824.0 

44%

Then-Year 

Dollars in Millions

Total DOD Total NASA

15

Source: GAO analysis of agency data.

Source: GAO analysis of agency data.
Enclosure I

Page 18 GAO-13-802R Space Launch Funding

Governmentwide Launch Other

Totals FY 14-18

FY14 FY15 FY16 FY17 FY18 Total 

DOD Other $445.3 $453.7 $469.7 $485.7 $472.6 $2,327.0

NASA Other $608.2 $320.6 $301.0 $304.3 $289.9 $1,824.0

Total Other $1,053.5 $774.3 $770.7 $790.0 $762.5 $4,151.0

Note: Totals may not match due to rounding. NASA RDT&E funds for construction of facilities in FY15 – FY18 will be transferred to 

the “other” category as part of NASA’s annual budget cycle.

Then-Year Dollars in Millions

Page 16

Source: GAO analysis of agency data.
Enclosure I

Page 19 GAO-13-802R Space Launch Funding

Details on Governmentwide Launch Other 

Funding FY 14-18

• Governmentwide launch-related “Other” funding totals about 

$4 billion FY 14-18.

• “Other” includes several types of launch-related funding:

• DOD

• Operations and Maintenance, Military Personnel, and 

Military Construction

• NASA

• Civil Service Personnel, Operations and Support, and 

Construction of Facilities

• DOD and NASA FY14-18 funding for “Other” remains 

relatively flat by fiscal year after FY 14. 

Page 17
Enclosure I

Page 20 GAO-13-802R Space Launch Funding

Page 18

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