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ANNUAL REPORT F Y 1998 PAGE 1

TABLE OF CONTENTS

Message from the Director ..............................3

KSC’s Mission .................................................. 4

Strategic Goals ................................................6

Goal 1: Assure sound, safe and efficient

practices are in place for private/

commercial processing ........................7

Goal 2: Increase the use of operational

knowledge in the design/development

of payloads and new vehicles ............ 13

Goal 3: Partner to develop new technologies

for future space initiatives ................ 15

Goal 4: Continually enhance core capabilities

to meet customer needs .................... 19

Looking Toward the Future ........................... 27

Statement from the Chief Financial Officer .. 29

ON THE COVER:

Front: KSC workers processed the Unity node in preparation for its mating in

space with the Zarya module, the first two pieces of the International Space

Station. An artist’s rendering shows the Station as it will appear in its

completed form.

Back: Discover launches on STS-91, the final docking mission to the Russian

space station Mir. ... An employee in the Payload Hazardous Servicing Facility

sews thermal insulation material on the back cover and heat shield of the Huygens

probe in preparation for the Cassini mission. ... A Titan IVB/Centaur carrying

the Cassini spacecraft and its attached Huygens probe is ready to launch on a

six-year flight to Saturn.
NASA / KENNEDY SPACE CENTER

PAGE 2 ANNUAL REPORT F Y 1998
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ANNUAL REPORT F Y 1998 PAGE 3

MESSAGE TO THE STAKEHOLDERS TAKEHOLDERS

Center Director

Roy D. Bridges, Jr.

Kennedy Space

Center Director

During each of its 40 years of existence, Kennedy Space Center has unfailingly

generated significant achievements. The period of Fiscal Year 1998 produced

notable accomplishments in a wide range of areas — operations, research and

development, partnership with business, academia and government, and

relationships with the community. Among the year’s highlights:

• Demonstration of our top priority with the first Center-wide Super Safety Day,

in which all activities at the Center focused on promoting safe and healthy habits.

• The successful launch of four Space Shuttle missions, including the final docking

with the Russian space station Mir.

• The successful launch of five Expendable Launch Vehicle (ELV) missions, including

the flawless preparation and launch of the Cassini space probe, a cooperative

effort among the National Aeronautics and Space Administration (NASA), two

foreign space agencies, the U.S. Air Force, industry and academia.

• Substantive progress on the International Space Station, with the processing

and preparation for flight of Unity, the first U.S. made component.

• The seamless consolidation of the Agency’s $500 million ELV Launch

Services Program.

• The revolutionary merger between NASA and the Air Force to consolidate and

streamline base operations at KSC, Cape Canaveral Air Station and Patrick Air

Force Base.

• Agency assignment as lead or co-lead center for the Office of Space Flight

desktop and communications services for the Outsourcing Desktop Initiative for

NASA contract, drug testing, pollution prevention and recycling.

• Certification for International Organization Standardization for 9001, an

international quality management standard.

We also have made substantial progress in many other areas. Through partnerships

with business, government and academia, KSC is exerting leadership in the pursuit of

spaceport technologies. The Center works to improve its current vehicle fleet with

the development of Space Shuttle health monitoring technology. At the same time,

the Center readies itself to assist in the creation of and to accommodate the next

generation of space flight vehicles by participating in the design, development and

testing of the X-33 and X-34, as well as other new technology vehicles.

KSC also has increased its prominence in technology development for commercial

applications, such as state-of-the-art cryogenic testing.

During FY 98, the Center’s leaders improved strategies for making full use of our

technological, human and physical resources for the exploration and development

of space.

I am extremely proud of the accomplishments we made during FY 98. They represent

a few of the early but significant steps in our evolution from an operations-oriented

organization to an agile, customer-driven, spaceport technology development team.
NASA / KENNEDY SPACE CENTER

PAGE 4 ANNUAL REPORT F Y 1998

Mission

The activities of FY 98 reflected the mission

of NASA; the Core Business, Guiding Principles, and

Strategic Goals of the Kennedy Space Center; the

Implementation Plan for NASA’s Strategic Plan; and the

Road Map for the Center’s future through 2025.

Core Business: Kennedy Space Center’s Core Business

is to provide space systems processes and test and

launch techniques and to develop associated technologies.

Guiding Principles:

KSC’s Guiding Principles provide the foundation for all of

our actions and assure that the means we use to reach

our goals are most supportive of our customers and in

harmony with the needs of our stakeholders.

Safety and Health First

During FY 98, the Center reinforced safety

as its highest priority, a principle that was continuously

on display.

The center held its first Super Safety Day on July 16,

with the theme, “Safety on the Line.” All normal work

activities, with the exception of mandatory services, were

suspended as about 14,000 employees — both NASA

civil service and contractors — trained on safety-related

issues and participated in a panel discussion that was

broadcast throughout the center. The goal, as Center

Director Bridges reminded employees, is zero mishaps

and zero injuries. The day produced tangible results in

the form of the “Safety on the Line” newsletter, which

began monthly distribution.

In the months preceding that event, senior NASA and

contractor managers took part in safety training

presented at KSC by DuPont, regarded as one of the

world’s safest companies. That training led to the

establishment of the University of Safety and Mission

Assurance, a team of employees that acts as an

information clearinghouse and consulting group for the

Center.

The summer presented employees with formidable safety

challenges as wildfires ravaged Central Florida, eventually

burning 71,000 acres in Brevard County. A brush fire

started by lightning on June 21 engaged the Center’s

Fire Department, but that was only the beginning of their

work, as the department contributed personnel and

equipment to Florida’s Division of Forestry and local

authorities in combating other Central Florida fires. KSC

also provided the use of a helicopter, an infrared camera,

a global positioning system, a fire engine, a rail car tanker,

five sludge tankers and two aircraft rescue trucks.

When the threat of fires had passed, the Center braced

in September for the possible arrival of Hurricane

Georges from the Atlantic Ocean. While workers

protected ground equipment from the threat of heavy

winds, KSC prepared for the return of the orbiter Atlantis

aboard a Boeing 747 carrier aircraft following an Orbiter

Maintenance Down Period.

Concern with safety was not limited to ground operations.

KSC initiated a comprehensive long-term program to

develop fire protection options for advanced space flight

vehicles and orbiting bases. This program will involve new

technology research and development.

Two projects begun in FY 98 explore the hazards of the

Martian environment. One set of experiments involves

flammability and safety concerns when dealing with

inflatable planetary habitats using an oxygen atmosphere, while another will simulate electrostatic conditions

on Mars.

Finally, a cardiovascular health screening program was

instituted for employees who require medical evaluation

for job certification. An intervention program was also

0.0 developed to target those assessed to be at higher risk.

.20

.40

1.0

1.20

.60

.80

Lost Time Frequency Rate

Lost Time Cases Rate: The number of lost time injury/illness 

cases incurred by 100 people over a one year period (200,000 hours).

FY 96

0.49

FY 97

0.56

FY 98

0.38

KSC Lost Time 

Frequency Rate

KSC Fiscal Year 

Lost Time 

Frequency Rate
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ANNUAL REPORT F Y 1998 PAGE 5

Build Reliance and Teamwork

Everywhere

At the Kennedy Space Center, teaming

activities and partnerships are of paramount importance

as we lay the foundation for our Spaceport Technology

Center. By using the various strengths of each partner,

the entire space industry reaps the greatest benefit

through improved technology for future pioneering

endeavors, the sharing of expertise and the building of

better tools and capabilities.

We are targeting partnerships in three major areas:

industry, academia and other state and federal agencies.

We are heavily involved in the Space Commerce

Partnership, which was established to expand and

diversify Florida’s space industry and which encompasses

over 25 industry, government and academic

organizations. Through KSC’s innovation in management

development programs, we are collaborating with various

companies on quick payback projects for mutual benefit.

We team with our local universities to bring creativity

and the latest research to the Center, while providing an

avenue for their application of knowledge and theory.

We have three established liaison offices at other NASA

centers to enhance the design process with KSC’s

operational knowledge and expertise. The Center has been

intimately involved with our Space Station hardware

manufacturing team members to ensure smooth

integration at the launch site. We are also working in

concert with the state and the Air Force as a single

Florida launch site to attract new business and enhance

our current operations and capabilities.

Satisfy Our Customers’ Needs

Anytime, Anywhere

The Center as a whole has made a

concerted effort to better understand and address the

needs of our customers. With the objective of creating

satisfied and loyal customers, we have established a

customer advocacy group to bring the voice of the

customer into our strategic planning as well as to all

employees at KSC. By developing a customer-focused

organization through customer knowledge, feedback,

leadership, relationship management and, ultimately,

results, we will be better prepared to anticipate and fulfill

the needs of our current, long-time customers, as well

as our new Spaceport Technology Center customers.

Environmental Leadership

KSC sponsored and managed the NASA

Environmental Conference for NASA Headquarters.

Environment and Energy Awareness Week exhibits at

the Visitor Complex and major facilities encouraged

thousands of employees and visitors to improve energy

efficiency and reduce environmental waste.

Emphasis on energy conservation has been intensive

as well as innovative. KSC began upgrading the LC-39

Emergency

Power Plant

using privatesector capital

for the initial

costs. Because

Florida Power

and Light will

use the expanded

plant for generating

electricity during peak

loads, the Center will

enjoy a reduced rate

and estimated annual

savings of $770,000

to repay project costs.

Another initiative will

lower natural gas bills

beginning FY 99 by

converting to a new

supplier. The Defense

Energy Support

Center contract is

expected to bring annual savings of 30 percent — or

$660,000 — to the Center’s programs.

In other environmental areas, KSC is working in concert

with industry and academia to pursue research and

technology to remove pollutants emitted by stationary

combustion sources. A patent is pending, and a major

power plant plans to use the technology in 1999.

The Center also has developed techniques that are

being used in contamination cleanup programs and

that have potential for wide-scale commercial use.

KSC has submitted applications for two patents for

this technology.
NASA / KENNEDY SPACE CENTER

PAGE 6 ANNUAL REPORT F Y 1998

Strategic Goals

The Center’s goals help implement

the NASA Strategic Plan and its four strategic

enterprises: Human Exploration and Development

of Space, Aeronautics and Space Transportation

Technology, Space Science and Earth Science.

The Center’s Strategic Goals:

• Assure that safe, sound and efficient

practices and processes are in place

for private/commercialized launch

site processing.

• Increase the use of operational

expertise to contribute to the

design and development of new

payloads and launch vehicles.

• Utilize operational expertise in

partnership with other entities

(NASA centers, industry, academia)

to develop new technologies for

future space initiatives.

• Continually enhance core capabilities

(people, facilities, equipment and

systems) to meet NASA objectives

and customer needs for safer,

better, faster, cheaper development

and operation of space systems.

KSC is well on its way to developing a

“dashboard” of measures by which

we can gauge our progress

against our stated goals.
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ANNUAL REPORT F Y 1998 PAGE 7

Strategic Goal 1: Assure that safe, sound

and efficient practices and processes are in place

for private/commercialized launch site processing.

The Center’s reputation rests on its record as the world leader in the space

launch industry. Even as KSC becomes more diversified in anticipation of new

needs and demands, success hinges upon our expertise and experience as

NASA’s Center of Excellence in Launch and Payload Processing Systems.

Space Shuttle

During FY 98, four Space Shuttles lifted off, carrying 26 crew

members into space, traveling more than 20.3 million miles and taking several

crucial payloads into orbit. The Space Shuttle orbiters on all four missions

returned home safely to KSC’s Shuttle Landing Facility, the preferred Shuttle

landing site.

Columbia, the oldest member of the four-vehicle fleet, made two of those

flights and surpassed 86 million miles traveled in space.

The orbiter Endeavour in January made its first flight since returning from a

10-month Orbiter Maintenance Down Period (OMDP) in Palmdale, Calif. During

that scheduled servicing, an external air lock was installed on the orbiter,

making Endeavour capable of docking with the International Space Station.

STS-87 carried the United States Microgravity Payload (USMP-4), one in a

series of Spacelab projects. Free from the restrictions of the earth’s gravity,

the scientific specialists conducted important research that yielded new

understanding of the composition of different kinds of matter. STS-87 also

deployed the Spartan 201-04, a craft designed to study the outer layers of

the sun.

STS-89 continued NASA’s involvement with the Russian Mir space station.

The orbiter Endeavour delivered Mission Specialist Andrew S.W. Thomas to

the Russian craft in relief of astronaut David A. Wolf, who had been aboard

Mir for approximately four months. The flight also carried a wide array of

scientific experiments.

The program made further contributions to science with STS-90, which carried

the Neurolab payload. The 42nd and final flight involving Spacelab hardware,

Neurolab studied the effects of microgravity on the nervous system. Its

subjects included rodents, fish, crickets and snails.

STS-91 marked the final Shuttle-Mir docking mission. The mission also included

the Alpha Magnetic Spectrometer Investigation, an astrophysics payload.

Space Shuttle

Highlights

• The Neurolab mission on

STS-90 was a joint venture

of six space agencies and

seven U.S. research

agencies, and it involved

investigator teams from

nine countries.

• The Neurolab experiments

involved 9,000 rodents,

68,000 freshwater swordtail fish, 5,000 freshwater

snails, 2,000 goldfish,

1,000 crickets and 125

saltwater toadfish.

• Andrew Thomas’s return

from Mir on STS-91

culminated 977 total days

spent in orbit by seven

U.S. astronauts aboard

the station and ended an

812-day continuous U.S.

presence in space.
NASA / KENNEDY SPACE CENTER

PAGE 8 ANNUAL REPORT F Y 1998

In March, NASA announced the selection of Eileen M. Collins as the first

female commander of a Space Shuttle mission. Collins, who had become the

first female pilot in 1995, will lead the crew of STS-93, scheduled for launch

in 1999.

Payload Customers

In support of our Space Shuttle customers, the KSC payloads

team processed and integrated six primary payloads and 21 secondary

payloads to fly in the Shuttle cargo bay, as well as 17 middeck payloads

during FY 98. The team conducted three Hitchhiker missions with 14 Get

Away Special payloads and two Space Experiment Module payloads in support

of the Shuttle Small Payloads Project.

The KSC processing teams successfully completed the closing of all Spacelab

activities following STS-90. All Spacelab assets were distributed, and

concluding activities were handled on schedule and within budget. This phaseout resulted in the transfer of more than 2 million items, worth more than

$450 million, to other NASA programs for support of Hubble Space Telescope,

Space Station logistics and assembly flights and other uses. The modules

and requested hardware have been shipped to the National Air and Space

Museum in Washington, D.C., to the European Space Agency and to other

NASA centers.

Processing and Integration

In addition to the missions that were launched in FY 98, the

Shuttle processing team prepared for back-to-back missions of great

significance to NASA and the world: Discovery returning pioneering astronaut

John Glenn to space on STS-95, and Endeavour transporting the first

U.S.-built elements to the International Space Station on STS-88. As always,

safety remained the number one priority for Space Shuttle processing teams,

and product quality was stronger than ever.

A significant indicator of operational performance at Kennedy Space Center

is the cost of the Space Shuttle program, as indicated in the chart on

page 7. The Center has contributed to a substantial reduction in costs over

the past seven years through a variety of processing improvements.

At the beginning of FY 98, the Orbiter Atlantis was ferried to California for

its second scheduled OMDP. Atlantis returned to the Center 10 months

later as the first member of the four-vehicle Space Shuttle fleet to

receive a new state-of-the

art cockpit display system.

The Multifunction Electronic

Display Subsystem, built by

Honeywell Space Systems/

Satellite Systems Operation,

is patterned after liquid-crystal

Mission: STS-87

Payloads: United States

Microgravity Payload (USMP-4),

a Spacelab project; and Spartan

201-04, a spacecraft designed

to perform remote sensing of

the sun’s outer atmosphere

Orbiter: Columbia (24th flight)

Launch Date: Nov. 19, 1997

Duration: 15 days, 16 hours,

35 minutes, 01 seconds

Landing site: KSC

Mission: STS-89

Payloads: Crew member and

more than 7,000 pounds of

experiments, supplies and

hardware exchanged with Mir

Orbiter: Endeavor (12th flight)

Launch Date: Jan. 22, 1998

Duration: 8 days, 19 hours,

48 minutes, 4 seconds

Landing site: KSC

Mission: STS-90

Payloads: Neurolab, the final

Spacelab mission, containing

biological experiments

Orbiter: Columbia (25th flight)

Launch Date: April 17, 1998

Duration: 15 days, 21 hours,

50 minutes, 58 seconds

Landing site: KSC

Mission: STS-91

Payloads: Final docking to Mir,

downloading astronaut Andrew

Thomas; also, Alpha Magnetic

Spectrometer Investigation

(AMS)

Orbiter: Discovery (24th flight)

Landing site: KSC
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ANNUAL REPORT F Y 1998 PAGE 9

display technology on the Boeing 777. The new displays, which replaced models

designed for the Shuttle in the 1970s, offer enhanced color and clarity,

weigh less and use less energy.

Discovery’s 24th flight on STS-91 saw the first use of the Super

Light Weight Tank, which added 7,000 pounds to the orbiter’s

cargo capacity. Processing efforts included the addition of a highly

specialized “tanking test” to the launch pad flow in order to verify

the structural integrity of the new tank composition in the presence

of cryogenic (super-cold) fuels.

Space Shuttle Upgrades

Though not yet fully operational, the Checkout and

Launch Control System (CLCS) began making real contributions to

the Space Shuttle program in FY 98. The CLCS, which replaces

the 1970s-era Launch Processing System, will offer such

advancements as the capacity to monitor more than one orbiter

from the same firing room.

In March 1998, the first installation and use of the newly selected production

hardware took place in the new CLCS Hypergolic Maintenance Facility (HMF).

Contributing factors

in decreasing the

cost of the Shuttle

Program are:

• External Tank weld

improvements and cycle

time reduction

• consolidated and/or

restructured prime

contracts

• payload safety process

• Shuttle Logistics Depot

repair certifications

• Main Engine sensor

improvements (cost

avoidance)

• workforce reduction:

civil service down 50%

contractor down 31%

• environmental

compliance

• recycle of Solid Rocket

Booster hardware

The orbiter Columbia, shown in

preparation for mating to its solid

rocket boosters and external

tank, flew twice during FY 98.

FY92FY93FY94FY95FY96FY97FY98

FY92$

in 

Millions 

SSP Total Program

3500

3000

4000

2500

2000

37% Decrease

(FY92$)
NASA / KENNEDY SPACE CENTER

PAGE 1 0 ANNUAL REPORT F Y 1998

This testing of the system software marked a significant milestone in

preparations for the December 1999 HMF operational date. In addition, a

new control room was built in the HMF to house the development of the new

system. The modification of Launch Control Center Firing Room 4 into the

first Operations Control Room (OCR-1) was completed late in FY 98.

KSC teamed with Goddard Space Flight Center to develop the Fiber Optic

Flight Experiment (FOFE), which was prepared to fly on the STS-95 mission.

The experiment was designed to test the durability and on-orbit performance

of fiber optics in the Shuttle environment. The development team worked

toward its long-term objective of using fiber optics to standardize connections

in the payload bay, thus reducing orbiter processing time.

KSC also concluded a study on the viability of using uniform mechanical

connections to reduce payload launch site processing time. The team,

comprising members from Johnson Space Center and from contractors

Boeing and United Space Alliance (USA), analyzed future payloads – some

destined for the International Space Station and some for commercial activities.

The final report offered a preliminary design for a standard interface that is

being evaluated by USA for potential use.

During FY 98, the KSC team prepared the orbiter Discovery to use the first

Space Shuttle flight system developed on site: the Integrated Vehicle Health

Management (IVHM) Human Exploration and Development of Space (HEDS)

Technology Demonstration. A total of 30 sensors were installed on Discovery,

including Center-developed smart sensor technology for hydrogen and oxygen

detection. The system performance during launch was superb.

Expendable Launch Vehicles

Program Consolidation

In late 1997, Kennedy Space Center was assigned lead center

responsibility for NASA’s acquisition and management of Expendable Launch

Vehicle (ELV) launch services, building upon the previous experience of Goddard

Space Flight Center (GSFC) and Lewis Research Center. KSC worked

throughout FY 98 to prepare for the transition of multi-million dollar launch

service contracts.

As a result of the transition, KSC sustains a new budget of approximately

$500 million. The Center coordinates requirements for all of the Agency’s

ELV customers, a task that encompasses multiple projects from the offices

of Space Science, Earth Science and Space Flight, as well as requirements

for National Oceanic and Atmospheric Administration (NOAA) programs. KSC

now offers the technical expertise to match spacecraft with the Agency’s

mixed fleet of ELV launch services, providing launch vehicle insight, mission

design and analysis, and mating of spacecraft to launch vehicle.

ELV Highlights

Payloads: Cassini

A NASA-JPL spacecraft with

international partners, on a

four-year exploratory mission

to Saturn

Vehicle: Titan IV/Centaur

Launch Date: Oct. 15, 1997

Payloads: Lunar Prospector

Lunar Prospector, a NASAAmes Research Center spacecraft, on a mapping mission of

the Earth’s moon

Vehicle: Athena

Launch Date: Jan. 6, 1998

Payloads: SNOE

Student Nitric Oxide Explorer,

NASA-sponsored and built by

students, designed to measure

effects of the sun’s X-ray

radiation and magnetic field for

possible links to climate change

on Earth

Vehicle: Pegasus XL

Launch Date: Feb. 15, 1998

Payloads: TRACE

Transition Region and Coronal

Explorer, a NASA payload to

improve understanding of events

in the sun’s atmosphere

Vehicle: Pegasus XL

Launch Date: April 1, 1998

Payloads: NOAA-K

National Oceanic and Atmospheric Administration-K, a

weather satellite to provide high

resolution pictures together

with land and sea temperatures

and other data

Vehicle: Titan II

Launch Date: May 13, 1998
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ANNUAL REPORT F Y 1998 PAGE 1 1

As part of the effort to consolidate management of the ELV program, a

source evaluation board conducted a careful review in preparation for

the eventual awarding of the Small Expendable Launch Vehicle Services II

(SELVS-II) Contract. It was KSC’s first major procurement under its lead

center designation, and the process established new Agency policy. Since

that time, KSC has begun procurement activity for classes of launch services

larger than those covered under SELVS-II.

Customers

The KSC team supported five Agency ELV missions during FY

98, including the launch of the Cassini mission to Saturn on a Titan IV launch

vehicle. Cassini, a joint NASA-European Space Agency (ESA) mission, is

scheduled to arrive at the ringed planet in 2004 after more than six years of

interplanetary travel. It was among the most scrutinized unmanned launches

ever accomplished at KSC. The Center also supported preparations for such

highly visible missions as Deep Space 1, Submillimeter Wave Astronomy

Satellite (SWAS) and Mars Observer 98, scheduled for early in FY 99.

KSC also supported the first launch of a Lockheed Martin Athena rocket

from the commercialized Launch Complex 46, following an extensive risk

review of the launch vehicle. Three Pegasus missions (SNOE, TRACE and

SEASTAR) were completed, along with the launch of the NOAA-K satellite on

a Titan II launch vehicle. Six additional commercial Delta launches were

supported from NASA’s launch pad at Vandenberg AFB in California.

International Space Station

KSC team members were involved, both on site and at the

primary manufacturing locations, in the ongoing preparations for the

International Space Station. Significant hardware was delivered to the Center’s

Space Station Processing Facility (SSPF) for final assembly, test and launch

preparation.

The most notable of these elements is the Unity Node, the first Shuttlelaunched hardware destined for use in the International Space Station. Unity

will serve as a passageway to the U.S. laboratory module, the U.S. habitation

module and an airlock. It has six hatches that serve as docking ports for the

other modules and contains more than 50,000 mechanical items, 216 lines

to carry fluids and gases and 121 internal and external electrical cables using

six miles of wire.

Meanwhile, KSC teams continued to monitor the manufacturing of the Lab

Module “Destiny” and the Flight 7A Airlock in Huntsville, Ala., and the

manufacturing and testing of the Integrated Truss Structure S0 for Flight

8A in Huntington Beach, Calif. Other team members traveled to Canada and

Italy to participate in the manufacture and test of the station mechanical arm

and the Multi-Purpose Logistics Module, respectively.

The successful processing of the

Cassini mission took place amid

KSC’s transition to lead

responsibility for NASA Expendable

Launch Vehicle launch services.

Space Station

Processing Facility

(SSPF) Achievements

• Unity Node and its

Pressurized Mating Adapters

(PMA1 and PMA2)

• Z1 truss and PMA3 for

STS-92

• P6 truss for STS-97

• Multi-Purpose Logistics

Module (MPLM) for STS-100
NASA / KENNEDY SPACE CENTER

PAGE 1 2 ANNUAL REPORT F Y 1998

Notable efforts continued in

preparation for the Multi-Element

Integrated Test (MEIT), which will

provide unique compatibility testing

between actual flight elements

here on the ground before they

meet on orbit. Another notable

accomplishment was the establishment of the first KSC Engineering

Support Room, which will provide

on-orbit ISS technical support to the JSC Mission Control Center. This project

required the expedited procurement and installation of computer,

communication and video data resources.

Unity has six

hatches that serve

as docking ports

for the other

modules and

contains more

than 50,000

mechanical items,

216 lines to carry

fluids and gases

and 121 internal and

external electrical

cables using six

miles of wire.
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ANNUAL REPORT F Y 1998 PAGE 1 3

Strategic Goal 2: Increase the use of operational expertise to contribute to the design and

development of new payloads and launch vehicles.

The concept of Kennedy Space Center as a mere handler of pre-packaged

technology no longer applies. Our 40 years of intense involvement with space

flight equips the Center to play a crucial part in all stages of the creation of

future flight equipment.

Next Generation

Vehicles

X-34

Global Positioning System Base Stations were designed

and built for use as flight support equipment for landings of the X-34 vehicle.

KSC and the 45th Space Wing prepared a joint Statement of Capabilities to

support X-34 flights on the East coast beginning in 2000.

KSC is also supporting X-34 flight hardware development through MSFC in the

areas of main propulsion system, Fastrac engine, mission planning, experiment

development, thermal protection systems and guidance and navigation.

X-33

KSC also provided hardware, testing and engineering expertise

to the X-33 program, while working to prepare the Center as a home for the

reusable launch vehicle (RLV). Lockheed Martin Skunk Works hopes to

develop VentureStarTM in the next century as a full-scale, commercial,

single-stage-to-orbit vehicle.

Under the leadership of the

Spaceport Florida Authority, NASA

and KSC formed a team with state

officials to develop and submit to

Lockheed Martin Corporation a site

qualification proposal to compete with other

states and NASA centers for the right to

host the VentureStarTM program.

KSC led the way as the next-generation crewed launch vehicle

program continued its transition from concept to reality. KSC teams worked in

partnership with Spaceport Florida Authority to develop a multi-use flight vehicle

hangar and support facilities at the Shuttle Landing Facility tow-way. Also, in a

spur toward further technological pursuits, KSC was awarded $1.4 million for

development and demonstration of Integrated Vehicle Health Management

technologies for the Future-X advanced technology vehicle, scheduled to fly as

either an expendable vehicle or a Space Shuttle payload in 2002.

KSC Project Teams will:

• perform East coast X-34

environment assessment;

• ensure the capability of

maintaining facilities, ground

support equipment and

propellant requirements;

• provide a study of mobile

tracking and flight control

functions as well as work

agreements with various

landing sites along the nation’s

East coast;

• provide range flight and

ground safety approval for

X-34 East coast operations

and flights;

• develop a joint NASA/Air

Force communications plan.

KSC contributions to

the VentureStarTM

• designed significant portions

of X-33 ground support

equipment, including

Umbilical Subsystems, a

Vehicle Positioning System

and a Weight and Center of

Gravity Simulator;

• fabricated various portions

of the X-33 Umbilical

System;

• tested the X-33 Holddown

Posts at the Launch

Equipment Test Facility;

• furnished instruments and

analytical support in the

testing of the linear

aerospike engine (LASRE) at

White Sands, N.M., and

Dryden Flight Research

Center, Calif.;

• provided cost estimates,

operational planning and

facility comparisons for the

Reusable First Stage

Program.
NASA / KENNEDY SPACE CENTER

PAGE 1 4 ANNUAL REPORT F Y 1998

Payload Capability Development

The Multi-Payload Logistics Module Access Certification Equipment

(MACE) was developed to test ground support equipment and to train

personnel on mock-ups prior to their performing work on Space Station flight

hardware. The MACE, which offers a simulation of Space Station elements, will

enhance safety, improve efficiency and reduce costs in the processing of Space

Station hardware.

A Payload Carrier Utilization Agreement was developed to define the engineering

analysis that must be performed in preparation for the use of a Spacehab pallet

on the Ranger Telerobotic Shuttle Experiment. KSC also undertook supervision

of a design study for converting an Engineering Model pallet into a flight-worthy

half pallet for transporting Space Station equipment.

Top: As is the case

with all missions, the

astronaut crew

members of STS-87

participated in

integration testing of

the Spartan-201

payload during its

processing at KSC.

Above: The Neurolab

payload on STS-90

included 125 oyster

toadfish, with

experiments targeting

the effect of

microgravity on the

fish’s nervous system.

Above: MACE, shown in an artist’s rendering, improves the

Center’s efficiency by giving processing teams a simulation of

International Space Station elements.

Left: KSC workers processed the Unity

node for its flight on STS-88.
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 1 5

Strategic Goal 3: Utilize operational expertise

in partnership with other entities (NASA centers,

agencies, industry, academia) to develop new

technologies for future space initiatives.

Kennedy Space Center continues to expand its involvement with outside

companies and agencies in making full use of its highly trained workforce and

world-class facilities to focus on mission-enabling research and technology.

The Center laid the foundation for its future in NASA’s exploration planning

efforts during FY 98.

Exploration Initiatives

KSC, recognized for its invaluable space systems knowledge and

expertise, has been tapped to fulfill an increasing role in NASA’s Human

Exploration and Development of Space Enterprise (HEDS). The goals of HEDS

include the development of space and the expansion of human experiences into

the far reaches of space.

The HEDS Enterprise has requested that the Center, along with the Jet

Propulsion Laboratory, lead the efforts for Advanced Sensors and Instruments

in support of human exploration. This task, anticipated to be an international

collaboration, includes defining what sensors and instruments would be required

for human exploration, preparing technology plans, determining technology gaps

and developing solutions to fill those gaps.

KSC, in partnership with Ames Research Center and Johnson Space Center, is

developing an independent control system for In-Situ Propellant Production (ISPP).

Through the application of artificial intelligence, ISPP will allow for the production

of propellants on the surface of Mars using the resources of the planet.

Research is under way to analyze the electrostatic makeup of Mars dust and

common space materials, giving the Center the opportunity to work with JPL

on the Mars Environmental Compatibility Assessment Experiment.

This experiment will fly on the Mars 2001 Surveyor Lander.

A rocket concept, which uses In-Situ derived propellants, has been under study

with numerous motor firings taking place to validate hybrid rocket motor

designs. This concept could be used in a demonstration of ISPP on a future

robotic mission.

KSC has completed a major ground operations assessment of the Mars Design

Reference Mission (DRM) 3.0 including the processing of a new heavy launch

vehicle and the cargo and the transportation stages to place humans on Mars.

The Center also finished a framework of a logistics strategy for Mars surface

operations and participated in the Agency-wide Logistics Use Study for the

Mars DRM, as well as co-authored the Mars Surface Reference Mission.

A Mars Environmental chamber is

well into production at KSC to

allow the demonstration and

assessment of technology in a

simulated Mars environment.
NASA / KENNEDY SPACE CENTER

PAGE 1 6 ANNUAL REPORT F Y 1998

Above and Below: The world-class

equipment of KSC’s cryogenics

testbed facility allows the Center to

form cooperative endeavors with

businesses, universities and

government agencies.

Technology Development

KSC accounted for one-fourth of the total NASA licenses

issued during FY 98 and ranked second among the centers

in the number of Space Act Awards, with $96,850

awarded to individual employees and partners. Additionally,

two chemists were honored as recipients of the 1998

Distinguished Patent Award for work in the development

of electrically conducting polymers.

As a further acknowledgment of the Center’s expertise,

the Associate Administrator for the Office of Space Flight

named KSC as the focal point for operational development

and engineering testbeds for the HEDS Enterprise. A “best

practices” study conducted by the Research Triangle Institute prior to this

designation not only brought strong endorsements for KSC from other

centers, other government agencies and industry, but also led to specific

partnership projects.

The Center, through a collaborative effort with the University of

Florida, Dynacs Engineering Co., Inc., and Air Products and Chemicals

Inc., won funding from Florida’s Technological Research and

Development Authority (TRDA) to develop a state-of-the-art

Cryogenics Testbed facility. Through this innovative partnership

with government, academia, and industry, KSC will use this Cryogenics Testbed to provide leading-edge development services,

thereby advancing applications for this technology and spurring local

economic growth.

Langley Research Center (LaRC) sought KSC to perform

testing of mechanical and physical properties on various

types of advanced materials that are developed by LaRC.

Through this agreement, KSC will conduct tests to help

determine whether or not a new material is suitable for its

intended application.

Further good news came with the allocation of $432,000

over the next two years to augment the existing Florida/

NASA Business Incubation Center through the TRDA. The

money is part of a $5 million line item in NASA’s 1998

budget for support of technology-based, small business

incubators.

In support of long-duration space flight, KSC completed a

series of integrated studies involving plant, microbial,

chemistry and engineering processes, in which it successfully

demonstrated the feasibility of recycling “gray water” for
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 1 7

human use. The Center also has continued research in two related areas:

systems that would allow for the ongoing production of food and oxygen and

the purification of water in space through biological rather than chemical

processes; and the effect of microgravity on plant processes.

The Center, in partnership with the

University of Virginia, researched

monitoring in real time of plant

processes at the microbial level.

These technologies will assist longduration space travel by lowering the

energy and mass of the overall

transportation system.

Research in the ecological systems

that surround the Center culminated

in more than 29 peer-reviewed

technical publications.

Work on the Electronic Portable

Information Collection system, a

Small Business Innovative Research

project, completed its third phase

of activities. KSC, in conjunction with

a small business, Sentel, Inc.,

developed and implemented a system

for using paperless work documents in a space flight hardware environment.

The concept, which uses an encoded electronic stamping system in computer

KSC performed

research geared

toward the

production of plant

growth chambers

for life support,

targeting such

areas as highefficiency

microwave lamps,

solar collectors, LED

lamps, light pipes,

fiber optics and light

delivery systems.

The development of paperless work

documents not only will benefit the

Center’s employees but also has

potential for many commercial

applications.
NASA / KENNEDY SPACE CENTER

PAGE 1 8 ANNUAL REPORT F Y 1998

applications, has been extended to wearable computers as well. The end

result is a product being marketed and sold by Sentel, Inc. to customers in

the space, aircraft, utilities and garment industries.

Other recent technological innovations and

technology transfer activities at the Center include:

• the development of computer programs

to improve the analysis of stresses in

straight pipes;

• the development by AZ Technology, Inc., in

partnership with NASA and the Center, of a

portable instrument for surface optical

measurement;

• in another partnership with AZ Technology, the

development of a more manageable and reliable

device for measuring the properties of MultiLayer Insulation on spacecraft;

• the development of a portable system for

extremely precise voltage measurements;

• the licensing and use of NASA software by

Command and Control Technologies, a NASA/

Florida Business Incubation Center tenant that

received a $1 million contract from the Alaskan

Aerospace Development Corp. and the State

of Florida;

• the development of an improved ultrasonic leak

detector, now being used commercially by UE

Systems, Inc.;

• the contribution of four international standards

involving fluid purity and testing, surface

cleanliness and vehicle connections.
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 1 9

Strategic Goal 4: Continually enhance core

capabilities (people, facilities, equipment and

systems) to meet NASA objectives and customer

needs for better, faster, cheaper development and

operation of space systems.

At Kennedy Space Center, self-improvement is a never-ending quest.

The Center pursued the strategic imperative for ongoing improvement in

many ways during FY 98.

Maximize Customer

Satisfaction

Center Director Roy Bridges and

45th Space Wing Commander Brigadier General

F. Randall Starbuck unveiled a revolutionary

merger in August that establishes a

partnership between NASA and the Air

Force. A complete restructuring of the base

support operations between KSC and the 45th

Space Wing resulted in a $2 billion Joint Base

Operations and Support Contract (J-BOSC) which services

KSC, Cape Canaveral Air Station and Patrick Air Force Base. The contract

was awarded to Space Gateway Support, a joint venture among Northrop

Grumman, ICF Kaiser and Wackenhut, and took effect on October 1, 1998.

The overall objective is to provide safe access

to space into the 21st century through

premier base support for the entire space

launch community.

Not only does this contract streamline 18 base

services contracts into one, it also consolidates

approximately 85 government contract

administration personnel into a streamlined joint

management team of 40 Air Force and NASA

personnel. KSC also collaborated with the Air

Force on the use of Launch Complex 41 for the

Experimental Expendable Launch Vehicle Program,

with final permit execution expected in FY 99.

Lunar Prospector &

Launch Complex 46

The successful launch of

Lunar Prospector aboard an

Athena II rocket marked the

inaugural use of Launch

Complex 46, operated by

Spaceport Florida Authority.

Lunar Prospector will provide

NASA with the first global

maps of the moon’s surface

and its gravitational

magnetic fields. It also will

look for the possible

presence of ice near the

lunar poles.
NASA / KENNEDY SPACE CENTER

PAGE 2 0 ANNUAL REPORT F Y 1998

Facilities

The 34,600-squarefoot Space Shuttle Main Engine

Processing Facility was completed,

contributing to improved efficiency of engine operations. By

streamlining this process, KSC adds

a greater degree of flexibility to

accommodate future flight vehicle

manifests. In addition, the moving

of main engine processing out of

the Vehicle Assembly Building

significantly reduces the safety risk.

The hardware installation and setup

of three Test, Control and Monitor

System (TCMS) checkout systems

greatly enhanced the capabilities of the Space Station processing team. TCMS

is used as the primary Space Station checkout system for supporting prelaunch

testing at the launch site and post-landing support at the landing sites for

resupply and return missions. In addition, TCMS supports compatibility testing

for International Space Station experiment equipment.

In an innovative example of facility recycling, an altitude chamber in the

Operations and Checkout Building Highbay — previously used by the Apollo

program — was refurbished and reactivated to perform leak testing of ISS

pressurized modules.

The Vehicle Assembly Building (VAB), the Center’s largest

and most visible icon, sustained a makeover. KSC workers

used 700 gallons of paint to refurbish one of the world’s

largest structures in preparation for the center’s 40th

anniversary, replacing a bicentennial symbol with the round,

blue NASA insignia affectionately known as the “meatball.”

Inside the VAB, new 325-ton bridge cranes were activated,

giving the Shuttle Processing team improved tools for future

Shuttle stacking operations. The remaining 250-ton cranes

will be kept ready in case they are needed.

ISS Leak Test Chamber

• Use of two altitude chambers

in the Operations and Checkout

Building began in 1965 to test

the Apollo command service

modules and lunar service

modules.

• The chambers were last used

in 1975 in support of the

Apollo-Soyuz Test Project

missions.

• In 1985 the pumping

equipment and control room

were removed and scrapped

and the chambers went into

disuse.

• In 1997, NASA decided to

perform leak tests on

International Space Station

pressurized modules at KSC.

Reactivation of the “west”

altitude chamber in the

Operations and Checkout

Building high bay was deemed

the best option.

• The chamber is 33 feet in

diameter and 50 feet tall and is

constructed of stainless steel.
THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 2 1

At the Shuttle Landing Facility, an improved Visual Landing Aid

System was added to complement the centerline lights installed

in FY 97.

KSC continued to implement projects designed to meet energy

efficiency requirements. In buildings subject to Executive Order

12759, the Center surpassed the FY 2000 goal.

In order to speed the beginning of work on infrastructure projects,

the Center has implemented “indefinite delivery task order”

contracts. These flexible and efficient contract vehicles provide

KSC with a proven pool of contractors who compete to meet

construction and modification requirements within the scope of

the contracts.

As a result of the shutdown of the Bureau of Mines, (which had

been responsible for the production and distribution of helium),

KSC designed and completed the Liquid Helium Conversion

System at the Converter Compressor Facility. KSC now procures

commercial bulk liquid helium in trailers, a change from the

government high-pressure gas rail cars.

To address the “Y2K” computer challenge, the Center has compiled

comprehensive hardware and software inventory lists, has begun assessing

those items for compliance and has certified critical systems.

The effort to provide access to people with disabilities continued with seven

facilities receiving such modifications as accessible bathrooms, parking spaces

and automatic doors.

KSC took several steps to support the guiding principle of “Safety and Health

First.” Foremost among them, the Center completed the design, fabrication

and installation of a new Medevac Helicopter Communications System that

substantially improves communication among the flight crew, onboard medical

personnel and destination medical facilities. KSC also began expansion of the

Exercise Facility in the Operations and Checkout Building. The result will be a

much-improved facility providing larger exercise areas and new equipment

for employees.

Projects earned

nearly $75,000 in

utility rebates from

Florida Power and

Light Company,

bringing the total

amount to more

than $960,000

since the Center’s

first rebate in

FY 1994.
NASA / KENNEDY SPACE CENTER

PAGE 2 2 ANNUAL REPORT F Y 1998

Enabling Processes

KSC is working diligently to refocus its resources for maximum

productivity and to provide the most effective business solutions for

our customers.

Teams of employees worked during FY 98 to lay the groundwork for

deployment of the Integrated Financial Management Project (IFMP), a software

system scheduled to take effect on March 1, 2000. In preparation for the

IFMP, the Center supported Agency Process Team activities that included

revising business processes, eliminating unnecessary work steps and writing

test scenarios and scripts for validation testing. KSC also identified potential

risks to the implementation of the system, and prepared mitigation strategies

for these risks. The IFMP results from a contract awarded late in FY 97

to KPMG Peat Marwick LLP to implement an Agency-wide business

management system.

As part of NASA’s Outsourcing Desktop Initiative (ODIN), the Agency chose

OAO Corporation of Greenbelt, Md., to provide information technology services

for the four Office of Space Flight centers. Six other firms are part of the

pool of information technology contractors, which are available for selection

under the ODIN master contract. KSC was selected as the lead service

center for the Office of Space Flight ODIN delivery orders, a contract that

also covers Johnson Space Center, Marshall Space Flight Center and Stennis

Space Center. The services under this contract include comprehensive desktop

computer, server, local area network, telephone, local video, administrative

radio, remote communication and public address services.

Along with the continuation of an undergraduate studies program, two newly

created programs — the Kennedy Graduate Fellowships Program and the

Leadership Excellence Achievement Program — provide support for individual

employees to further their education in areas considered critical to the Center’s

mission. The programs enable KSC’s leaders to create an environment that

supports and nurtures a transition to the future.

FY 98 Achievements

• KSC has met all requirements

for ISO 9001 certification by

the international organization

Det Norske Veritas, Inc.

Other NASA centers and the

Jet Propulsion Laboratory

have consulted with KSC for

our knowledge and lessons

learned during the

certification efforts.

• KSC implemented the

“TechDoc” system to make

more than 50,000 electronic

technical documents available

to any NASA or contractor

user. “TechDoc” provides

almost instantaneous access

to documentation, resulting

in significant savings of cost

and time.

• The Center established the

Business Management

System on-line at KSC

Business World, including the

Implementation Plan,

Performance Indicators and

Continual Improvement

listings. The on-line system,

initiated with more than 700

document procedures, was

enhanced to include Center

agreements with our

customers.

• KSC initiated development

of a Project and Resource

Management System to

consolidate data for online

project and mission reviews

and to aid in the planning of

future projects.

• The Center developed and

implemented the Goal

Performance Evaluation

System (GPES). GPES links

individual efforts to KSC’s

Implementation Plan as well as

to Agency strategic plans.

This novel system is being

implemented at other NASA

centers and has received

attention from industry as an

innovative tool to link

employees’ efforts to

strategic initiatives.

• KSC performed an automated

skills and competencies

assessment to establish

baseline core competencies

and assess gaps with

future needs.
THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 2 3

Outreach To The World

The Visitor Complex welcomed an estimated 2.75 million guests

from around the world in FY 98, making it the fifth best-attended tourist

attraction among the many in Florida. A newly finished observation gantry at

the center of Launch Complex 39 (LC 39) and an International Space Station

exhibit facility brought public visitors into closer contact with the actual workings

of the space program.

To give visitors sufficient access to the

new attractions, the

Visitor Complex began

a program of individualized tours.

The Center received a

high volume of mail from

the nation’s school

system and the general public, including those outside the United States. The

“Fanmail” office handled the majority of the written and electronic inquiries

and requests, responding by mail with informational packets whenever possible.

KSC projected high visibility in other ways as well. As always, the Center’s

activities drew the attention of the media, with approximately 1,600 accredited

press members from 33 countries providing coverage to millions of readers,

viewers and listeners. Anticipation over John Glenn’s return to space resulted

in a record of approximately 3,750 requests for press accreditation.

Exposure also flourished through entertainment outlets. “From the Earth

to the Moon,” a historical television series with Tom Hanks as executive

producer, aired on Home Box Office in April after a debut screening at

KSC. The Center also played a prominent role in “Armageddon,” the topgrossing movie of 1998. The film’s director and several of its actors,

including Bruce Willis, attended a world premiere showing in June at

the Apollo/Saturn V facility.

Outreach To

Businesses

Kennedy Space Center’s eighth

annual Business Opportunities Expo

took place at Port Canaveral in

November 1997, drawing more than

100 exhibitors. Sponsored by KSC,

the 45th Space Wing, and the

Canaveral Port Authority, the Expo has

become one of the premier business

opportunity events in the Southeast.

The Fanmail and

Education Offices

together answered

a total of 34,128

inquiries during

FY 98 and mailed

out 1,517,889

separate items.

Original Mercury astronaut John Glenn,

left, toured KSC during FY 98 in

preparation for his return to space as

a mission specialist on STS-95.

“Armageddon,” the

top-grossing movie of 1998,

made its world premiere at the

Center’s Saturn V Facility.
NASA / KENNEDY SPACE CENTER

PAGE 2 4 ANNUAL REPORT F Y 1998

The Central Industry Assistance Office made it easier for small firms to do

business with KSC. The office coordinated joint counseling by NASA and

prime contractors to 184 small businesses during FY 98. The Center spent

17.2 percent of its contract dollars with small business during 1998, with

small, disadvantaged businesses making up 8.4 percent and women-owned

businesses 4 percent of the 17.2 percent total. Those percentages exceeded

the Center’s small business goals for the year.

Outreach To The Community

KSC provided a direct economic impact of $966 million to

Florida’s economy during FY 98, and approximately 83 percent of that money

was expended within Brevard County. Of the total figure, $762 million went

to contractors operating at the Center and $49 million went to off-site

businesses in the county.

The Center’s employees established a new standard by giving $225,817

during the Combined Federal Campaign, a program that gives federal

employees the chance to contribute to charitable organizations through direct

payments or payroll deductions. The figure marked a 5 percent increase per

employee over the previous year.

A total of 170 employees also took

part in the annual Days of Caring

project, fulfilling “wish lists” from

disadvantaged Brevard County

residents by performing such

tasks as cleaning, painting, waxing

floors, vacuuming and cooking.

Another 68 NASA and contractor

employees lent support to various

other United Way projects, including

Meals on Wheels and the Central

Brevard Sharing Center.

The Community Relations Council, in

its first full year of existence, grew in

strength. The CRC organized the

Center’s response to the summer’s

wildfires, as employees donated about

2,500 pounds of snack foods, sports drinks, water and coolers to weary

firefighters.

KSC held an employee open house in November 1997, with more than 33,000

workers and their family members taking advantage of the opportunity to

explore the Center. The Launch Control Center proved to be among the

most popular sites, drawing more than 17,000 visitors.

KSC’s Open House put family

members of employees in touch

with the wonders of space.

The Combined

Federal Campaign

With more than 80

percent of employees

involved, KSC donated

$225,817. That total

greatly surpassed the

goal of $210,000 and

reflected a 5 percent

increase per employee

over the previous

year’s contributions.
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 2 5

Outreach To Students and Teachers

The University Services and K-12 Education Services offices

supported multiple programs during FY 98. Among the most notable:

• KSC hosted the first annual “Partners in Education and Research

Conference.” This conference brought more than 200 university

faculty and industry representatives together to discuss technical

areas of interest to the Kennedy Space Center and partnership

ideas involving government, industry and academia.

• The Space Life Sciences Training Program provided an opportunity

for 40 college students from across the United States to work

and study at the Center during the summer with KSC researchers

serving as mentors. The Program has been conducted each

summer at KSC since 1984 in conjunction with Florida A&M

University, which provides five college credits upon completion.

The students spent six weeks working in KSC’s life sciences

laboratory and field research, attended lectures by experts from

government, industry, and academia, and participated in several

field trips.

• For the fifth consecutive year, the Center donated and loaned

excess computer hardware and software to schools for educational

purposes. The hardware alone was worth more than $7 million.

• NASA’s Unique Resident Tutoring for Up-and-Coming Replacement

Engineers (NURTURE) introduced high school students to

mathematics, science and engineering. The program, sponsored

jointly by KSC and the Brevard and Orange County School Districts,

is available to selected ninth-grade students, who remain in

NURTURE until their graduation.

• The Virtual Science Mentor Program gave middle school science

students from southwest Florida access to the expertise of KSC’s

scientists and engineers. The program, a cooperative effort among

NASA, the state of Florida, the Technological Research and

Development Authority and Florida Gulf Coast University, matched

approximately 60 teachers with mentors from the Center. Using

a desktop video system, the mentors provided the classes with

mission-related material and other relevant information.

The Center expanded its summer outreach efforts with the addition of ACCESS

(Achieving Competence in Computing, Engineering, and Space Science). This

internship program benefits students with disabilities who have a strong

background in science and a desire to pursue technical careers.

In addition, nine students were employed with the Space Coast Center for

Independent Living in a high school/high tech program co-sponsored by NASA.

The program, based in Cocoa Beach, involves students, parents and employers

and is intended to encourage students with physical, sensory or learning

disabilities to pursue interests in science, engineering and technology.

Educational Support

• The Center’s “Spacemobile”

lecturers, each driving a

van filled with NASA and

space-oriented equipment

and materials, made 221

presentations to students,

teachers and the general

public totaling 20,904

people in Florida and

elsewhere. In addition, the

two lecturers conducted

or supported 110 teacher

workshops.

• The Educators Resource

Center (ERC) maintained

its function of encouraging

teachers to add science

and aerospace-oriented

subjects to their curricula

and providing materials to

bolster that curricula.

Now in its 17th year, the

ERC served 10,347

professional educators and

helped distribute a total of

543,210 printed

publications to teachers.

• The Summer High School

Apprenticeship Research

Program (SHARP) offered

eight weeks of employment

and study at KSC in

particular fields of interest

for 26 students selected

from Brevard, Orange,

Volusia and Osceola

counties.
NASA / KENNEDY SPACE CENTER

PAGE 2 6 ANNUAL REPORT F Y 1998

People

While KSC benefited from stability in its upper management during

FY 98, some notable personnel changes did occur.

Jim Harrington, who had overseen 22 launches during his tenure as Space

Shuttle Launch Director, announced his retirement from that position in

December. He was succeeded by David King, the Shuttle Processing Deputy

Director.

Harrington was not alone in the timing of his retirement. He was joined during

FY 98 by Jimmy J. Akin, Chief Information Officer; J. Albert Diggs Jr., Equal

Opportunity Program Office Director; Hugh W. Harris, Public Affairs Director;

A. David Flowers, Chief Financial Officer; Sal Cristofano, Payload Carriers

Program Manager; and Floyd Curington, acting director of Expendable Launch

Vehicles.

Napoleon A. Carroll was named to succeed Flowers as Chief Financial Officer,

and Barbara Brown took the helm as Chief Information Officer. In other

changes, Bruce Anderson was named Chief Counsel and Kenneth Payne was

named director of Logistics Operations at KSC.

As a result of increased center responsibilities, the Payload Processing

Directorate was reorganized into two directorates. Bobby Bruckner, director

of the original office, was given the role of leading the newly established

Expendable Launch Vehicle and Payload Carriers Program office. Steve Francois

was named to lead the Space Station and Shuttle Payloads Directorate.

Meanwhile, employees were saddened by the passing of Alan Shepard Jr.,

one of the seven original Mercury astronauts and the first American in space.

Mr. Shepard died in July at the age of 74. Shepard, who became the fifth

human to walk on the moon as commander of Apollo 14, served for many

years as the chairman of the Mercury 7 Foundation, now the Astronaut

Scholarship Foundation.

David King

Space Shuttle

Launch Director

Napoleon

Carroll

Chief Financial

Officer

Barbara

Brown

Chief Information

Officer

Kenneth

Payne

Director of

Logistics

Operations

Bruce

Anderson

Chief Counsel

Steve

Francois

Director of Space

Station and

Shuttle Payloads

Bobby

Bruckner

Manager of

ELV and Payload

Carriers Program
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 2 7

Roy D. Bridges, Jr., Center Director

James Jennings, Deputy Director for Business Operations

Loren J. Shriver, Deputy Director for Launch & Payload Processing

JoAnn H. Morgan, Associate Director for Advanced Development & Shuttle Upgrades

Looking Toward The Future...

KSC continues to move its focus from its traditional role as

a launch service provider to one incorporating space launch technology

research and development in support of the Center’s customers.

We embrace a leadership position in anticipation of the changing forms of

space flight, taking early steps toward a transition to a national spaceport

and eventually to many spaceports on Earth and other solar system bodies.

In collaboration with NASA, industry and academia, we have joined forces

to create the tools needed for developing advanced spaceport architecture

and space launch operations capabilities. In support of our Spaceport

Technology Center concept, KSC identified technology growth areas and

future technology opportunities.

With a structured foundation already in place and the experience gained

from the ISO 9001 implementation, KSC is enhancing its management

system. The Center’s Integrated Management System will be based upon

a customer-focused strategy and continual improvement. The assessment

of processes certified to ISO 9001 standards will rely on a set of measures

tied to customer needs and organizational performance. This performance

review will align all activities with the Center’s long-term objectives for

systematic, prevention-based and continually improved processes.

This management framework will enable KSC to focus on the activities

most critical for our missions and to meet customer needs so that we

play a major role in achieving the NASA vision and goals for the future.
NASA / KENNEDY SPACE CENTER

PAGE 2 8 ANNUAL REPORT F Y 1998
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 2 9

Statement of the Chief Financial Officer

The FIscal Year (FY) 1998 financial statements (unaudited) have been prepared to report the financial

position and results of NASA’s Kennedy Space Center operation, pursuant to the requirements of the

Chief Financial Officers (CFOs) Act of 1990 and the Government Management Reform Act of 1994

(GMRA). The statements include the Statement of Financial Position and the Statement of Operations

and Changes in Net Position.

The statements have been prepared from the books and records of NASA, in accordance with the

comprehensive basis of accounting prescribed by the Office of Management and Budget (OMB) Bulletin

94-01, “Form and Content of Agency Financial Statements.” The statements are different from financial reports used to monitor and control budgetary resources, which are prepared from the same

books and records.

The statements should be read with the realization that they are for an agency of the U.S. Government,

a sovereign entity. Liabilities not covered by budgetary resources cannot be liquidated without the

enactment of an appropriation, and payment of all liabilities, other than for contracts, can be abrogated

by the sovereign entity.

These financial statements were prepared in accordance with Federal accounting standards. These

standards are evolving through the efforts of the Federal Accounting Standards Advisory Board (FASAB).

This board includes members from the Office of Management and Budget (OMB), the General Accounting Office (GAO), and the Department of Treasury (Treasury). Currently, NASA observes the following

heirarchy of accounting standards as required by OMB;

• Individual FASAB standards published by OMB, GAO, and Treasury;

• OMB guidance on the form and content of financial statements;

• Agency accounting guidance, which represents prevalent practice; and

• Accounting principles published by other authoritative sources.

NASA Headquarters, which receives its funding through annual Congressional appropriations, authorizes and funds KSC operations. KSC’s total operational expenses for FY 1998 by appropriation were:

Amount

Appropriation (in thousands)

Mission Support 259,353

Human Space Flight 104,531

Science, Aeronautics, and Technology 34,108

Construction of Facilities 12,387

Research and Development 196

Research and Program Management 2

Space Flight Control and Data Communications (82)

_____________________

Total Expenses $ 410,495

The 1998 Annual Report and Financial Statements were the result of the work of a dedicated team of

professionals at KSC.

N.A. Carroll

Chief Financial Officer

N ATIONAL A ERONAUTICS AND S PACE A DMINISTRATION

J OHN F. K ENNEDY S PACE C ENTER

K ENNEDY S PACE C ENTER , FL 32899
NASA / KENNEDY SPACE CENTER

PAGE 3 0 ANNUAL REPORT F Y 1998

FINANCIAL STATEMENTS

N ATIONAL A ERONAUTICS AND S PACE A DMINISTRATION

J OHN F. K ENNEDY S PACE C ENTER

ANNUAL REPORT F Y 1998

FINANCIAL STATEMENTS

Statement of Financial Position

As of September 30, 1998 (In Thousands)

See Financial Notes 1 through 8 on the following pages

Assets: 1998 1997

Intragovernmental Assets:

 Fund Balance With Treasury (See Note 2) $ 257,696 $ 257,903

 Accounts Receivable, Net (See Note 3) 7,168 6,238

Governmental Assets:

 Accounts Receivable, Net (See Note 3) 1,423 703

 Advances and Prepayments 477 0

Property, Plant and Equipment (See Note 4) 1,806,073 2,314,963

Other Assets (See Note 5) 120,359 166,959

_______________ _______________

Total Assets $ 2,193,196 $ 2,746,766 _______________ _______________

Liabilities:

Liabilities Covered by Budgetary Resources:

 Intragovernmental Liabilities:

 Accounts Payable $ 20,922 $ 19,918

 Other Liabilities (See Note 6) 425 364

 Governmental Liabilities:

 Accounts Payable 89,109 95,448

 Other Liabilities (See Note 6) 12,732 7,149

_______________ _______________

 Total 123,188 122,879 _______________ _______________

Liabilities not Covered by Budgetary Resources:

 Intragovernmental Liabilities:

 Other Liabilities (See Note 6) 57 57

 Governmental Liabilities:

 Other Liabilities (See Note 6) 16,853 16,468

_______________ _______________

 Total 16,910 16,525 _______________ _______________

Total Liabilities $ 140,098 $ 139,404 _______________ _______________

Net Position (Note 7):

 Unexpended Appropriations $ 143,576 $ 141,965

 Invested Capital 1,926,432 2,481,923

 Cumulative Results of Operations 0 0

 Future Funding Requirements (16,910) (16,526) _______________ _______________

Total Net Position $ 2,053,098 $ 2,607,362 _______________ _______________

Total Liabilities & Net Position $ 2,193,196 $ 2,746,766 _______________ _______________

The accompanying notes are an integral part of these statements.
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 3 1

FINANCIAL STATEMENTS

N ATIONAL A ERONAUTICS AND S PACE A DMINISTRATION

J OHN F. K ENNEDY S PACE C ENTER

ANNUAL REPORT F Y 1998

FINANCIAL STATEMENTS

Statement of Operations and Changes in Net Position

For the Year Ended September 30, 1998 (In Thousands)

See Financial Notes 1 through 8 on the following pages

1998 1997

Revenues and Financing Sources:

 Appropriated Capital Used $ 389,196 $ 622,162

Revenues from Sales of Goods and Services:

To the Public 4,255 4,414

Intragovernmental 17,044 16,639

Other Revenues and Financing Sources (See Note 8) 491 302

Less: Receipts Transferred to Treasury (491) (302)

_______________ _______________

Total Revenues and $ 410,495 $ 643,215 _______________ _______________ Financing Sources

Expenses:

Program or Operating Expenses by Appropriation:

 Mission Support 256,223 250,838

Human Space Flight 89,089 326,109

Science, Aeronautics and Technology 31,392 41,632

Construction of Facilities 12,387 3,718

Research and Development 196 (27)

Research and Program Management 2 (16)

Space Flight Control and Data Communications (93) (92)

Reimbursable Expenses 21,299 21,053

_______________ _______________

Total Expenses $ 410,495 $ 643,215 _______________ _______________

Total Expenses in Excess of

Revenues and Financing Sources: 0 0

Nonoperating Changes:

 Unexpended Appropriations (See Note 7) 1,611 (100,056)

 Invested Capital (See Note 7) (555,491) (5,900,447)

 Future Funding Requirements (See Note 7) (384) 830

_______________ _______________

Total Nonoperating Changes $ (554,264) $ 5,999,673 _______________ _______________

Change in Net Position (554,264) 5,999,673

Net Position, Beginning Balance $ 2,607,362 $ 8,607,035

_______________ _______________

Net Position, Ending Balance $ 2,053,098 $ 2,607,362 _______________ _______________

The accompanying notes are an integral part of these statements.
NASA / KENNEDY SPACE CENTER

PAGE 3 2 ANNUAL REPORT F Y 1998

FINANCIAL STATEMENTS

N ATIONAL A ERONAUTICS AND S PACE A DMINISTRATION

J OHN F. K ENNEDY S PACE C ENTER

ANNUAL REPORT F Y 1998

FINANCIAL STATEMENTS

Notes to the Financial Statements

For the Year Ended September 30, 1998

1. Summary of Accounting Policies and Operations

Basis of Presentation

These financial statements were prepared to report the financial position and results of operations of John F. Kennedy

Space Center (KSC) , pursuant to the requirements of the Chief Financial Officers Act of 1990. The statements were

prepared from the books and records of KSC, in accordance with the comprehensive basis of accounting specified in

OMB Bulletin 94-01.

Reporting Entity

KSC is one of nine NASA field centers established to aide NASA in its mission to provide for aeronautical and space

activities. Financial management of its operations is the responsibility of Center officials at all organizational levels.

KSC’s accounting system is one of ten distinct operations located at nine NASA Centers and Headquarters. Although

KSC, like the other Centers, is independent and has its own deputy chief financial officer for finance, it operates under

Agencywide financial management regulations. KSC provides payroll accounting for approximately 1,732 civilian employees

and processes approximately 6,497 non-payroll related accounting transactions monthly. This data provides the basic

information necessary to meet internal and external financial reporting requirements and provides both funds control

and accountability.

Seven appropriations require individual treatment in the KSC accounting and control system.

(1) The Human Space Flight (HSF) appropriation supports human space flight research and development activities for

space flight, spacecraft control, and communications actions. This includes research, development, operations,

services, maintenance, and construction of facilities, which encompasses the repair, rehabilitation, and modification

of real and personal property.

(2) The Science Aeronautics and Technology (SAT) appropriation provides for the conduct and support of science,

aeronautics, and technology. This includes research, development, operations, services, maintenance, and

construction of facilities, which encompasses the repair, rehabilitation, and modification of real and personal

property.

(3) The Mission Support (MS) appropriation provides for safety, reliability, and quality assurance activities supporting

Agency programs, space communication services for NASA programs, salaries and related expenses in support

of research in NASA Field Centers, and construction of facilities, which encompasses the repair, rehabilitation,

and modification of real and personal property.
THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 3 3

(4) The Research and Development (R&D) appropriation, which was restructured and replaced in the 1995 budget,

includes research and development of aeronautics and space, space vehicles, space systems effort, related

institutional activities, minor construction repair, maintenance, rehabilitation, and modifications.

(5) The Space Flight, Control, and Data Communications (SFCDC) appropriation, which was restructured and replaced

in the 1995 budget, includes production, operations and support activities for the Space Transportation System,

which includes the Space Shuttle and expendable launch vehicles. The appropriation also provides for tracking,

telemetry, command and data acquisition support of all flight projects.

(6) The Construction of Facilities (CofF) appropriation, which was restructured and replaced in the 1995 budget,

includes the construction of new facilities and the repair, rehabilitation, and modification of facilities.

(7) The Research and Program Management (R&PM) appropriation which was restructured and replaced in the 1995

budget, includes salaries, travel, and related expenses for the civil servants in support of NASA programs.

In addition to the basic operating programs described above, KSC expenditures in FY 1998 included $21 million of

reimbursable activity.

Basis of Accounting

KSC accounts are maintained on an accrual basis (i.e., expense and revenue are recorded in the accounts in the period

in which they are incurred or earned). Expenses are classified in the accounts according to the appropriation that

financed the activity. These expenses are coded in accordance with the Agencywide coding structure, which sets forth

a uniform classification of financial activity that is used for planning, budgeting, accounting, and reporting. The expenses

are further categorized in the General Ledger as operating expenses or capitalized expenses.

Funds with the U.S. Treasury and Cash

KSC’s cash receipts and disbursements are processed by the U.S. Treasury. The funds with the U.S. Treasury include

appropriated funds and deposit funds for advances received for reimbursable services. Balances are not held outside

the U.S. Treasury.

Advances

KSC funds its University Contracts and Grants program through the use of predetermined payment schedules where

letters of credit are not used; recipients are required to schedule drawdowns to coincide with actual, immediate cash

requirements, in accordance with OMB Circular A-125 and Department of Treasury regulations. Quarterly financial

reporting of cash transactions is provided on Federal Cash Transactions Reports (SF 272’s). Detailed monitoring and

accountability records are maintained; monitoring includes audits by the Defense Contract Audit Agency and NASA’s

Office of the Inspector General.

Accounts Receivable

The largest portion of accounts receivable is due from other Federal agencies and includes research and development

of satellites as well as launch services. Nongovernment customers are required to provide advance payments which

are placed on deposit with the U.S. Treasury until services are performed. In unusual cases, exceptions and waivers

to this general rule have been granted under the Space Act, allowing customers to postpone advance payments.
NASA / KENNEDY SPACE CENTER

PAGE 3 4 ANNUAL REPORT F Y 1998

Property, Plant and Equipment

KSC-owned Property, Plant and Equipment may be held by the Center or its contractors. Under the provisions of the

Federal Acquisition Regulation (FAR), contractors are responsible for control over and accountability for such property

in their possession.

Under the User Charge Act and OMB Circular A-25, Property, Plant and Equipment may be depreciated while in prior

years a “use” charge was applied to commercial reimbursable customers, which included a factor for depreciation of

facilities and equipment. KSC is permitted to charge depreciation under the “full cost” concept to non-government

reimbursable customers.

Automated data processing software is costed as an operating expense when acquired rather than capitalized in

accordance with GAO Title II guidelines.

Equipment with a unit cost of $100,000 or more and a useful life of 2 years or more, that will not be consumed in an

experiment, is capitalized. Capitalized cost includes unit cost, transportation, installation, and handling and storage

costs.

Real property such as land, buildings, and other structures and facilities, is capitalized when the asset value is $100,000

or more. The capitalized value represents the total cost to NASA, including both acquisition and preparation costs.

Land values are recorded at original acquisition cost and do not reflect current value or include the cost of improvements.

Buildings are also valued at acquisition cost, including the cost of capital improvements and fixed equipment required

for functional use of the facility. Other structures include the acquisition cost of capital improvements.

Government-owned/contractor-held property includes KSC materials, plant equipment, space hardware, special tooling,

and special test equipment. Contractors are directed to annually report plant equipment costing $100,000 or more

and having a useful life of 2 years and which will not be consumed in an experiment. Reporting is also required for

special test equipment, special tooling, materials, and space hardware which, for the most part, includes items that

are in excess of $100,000; however, reporting on all such items is required and their total value is included in the

statement of financial position. Contractors report, as of September 30, on a NASA Form 1018, Report of Governmentowned/Contractor-held Property, is certified by the contractor’s representative and reviewed by a Government property

administrator.

Contractor-held space hardware includes flight pallets, mission peculiar experiment support structures, spacelab,

transfer tunnel, igloo assembly and similar components unique to NASA space programs and held by NASA prime

contractors or their first-tier subcontractors who are responsible for building, refurbishing and launching the hardware.

Contractor reporting is required for cost-type contracts exceeding $500,000 where space hardware costs exceed

$75,000. These items are priced in accordance with guidance set forth in a NASA supplement to the FAR. The

valuation policy allows for use of actual or estimated costs, which may be abstracts of data from contractors’ records,

computations based upon engineering estimates, estimates from NASA contractor financial management reports,

formula procedures, latest acquisition/pricing estimates or other approved methods.

Notes to the Financial Statements (cont’d.) For the Year Ended September 30, 1998
THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 3 5

Notes to the Financial Statements (cont’d.) For the Year Ended September 30, 1998

Other Assets

Other assets include Government-owned/Contractor-held materials.

Liabilities

Accounts payable includes amounts recorded for receipt of goods or services furnished to the Center, based on

receiving reports and billings rendered. Additionally, KSC accrues cost and recognizes liability based on information

that is provided monthly by contractors on cost and performance reports (NASA Form 533, Contractor Financial

Management Report). KSC relies on independent audits by the DCAA to ensure the reliability of reported costs and

estimates. To provide further assurance, financial managers are required to test the accuracy of cost accruals

generated from the NF 533’s, and NASA Headquarters independently analyzes the validity of KSC’s data.

Revenues and Other Financing Sources

KSC receives the majority of its funding through multi-year appropriations. These include 3-year appropriations for

construction activities, 2-year appropriations for operational and space flight activities, and a single year appropriation

for civil service payroll and travel. In addition to appropriated funds, the Center performs services for other Federal

agencies and the public and receives reimbursable funding authority.
NASA / KENNEDY SPACE CENTER

PAGE 3 6 ANNUAL REPORT F Y 1998

2. Fund Balance with Treasury:

 (In Thousands)

Unobligated Unobligated Fund

Fund Balances: Obligated Available Restricted Balance

 Appropriated Funds $ 196,141 $ 48,869 $ 12,602 $ 257,612 _________ _________ _________ _________

Deposit Funds 0

Suspense/Clearing Accounts 84

_________

Total Fund Balance with Treasury $ 257,696 ____________

3. Accounts Receivable, Net:

 (In Thousands)

 Entity Non-Entity Allowance for

 Accounts Accounts Uncollectible Net

Receivable Receivable Receivables Amount Due

Intragovernmental $ 7,168 $ 0 $ 0 $ 7,168

Governmental 994 1,168 (739) 1,422 _________ _________ _________ _________

Total $ 8,162 $ 1,168 ($739) $ 8,590 ____________ ____________ ____________ ____________

Nonentity accounts receivable represent amounts that will be deposited to

miscellaneous receipts when collected.

4. Property, Plant and Equipment:

 (In Thousands)

1998 1997 Change

Government-owned/Government-held:

Land $ 73,672 $ 73,672 $ 0

Structures, Facilities and Leasehold 1,399,861 1,363,460 36,401

Improvements

Equipment 29,386 101,603 (72,218)

Work in Progress 38,508 81,785 (43,277)

___________ ___________ ___________

Total $ 1,541,427 $ 1,620,520 $ (79,092) _______________ _______________ ______________ Government-owned/Contract-held:

Equipment 50,130 134,669 (84,538)

Special Tooling 1,239 21,958 (20,719)

Special Test Equipment 58,227 76,613 (18,386)

Space Hardware 154,215 459,920 (305,705)

Work in Process 835 1,283 (448)

___________ ___________ ___________

Total $ 264,646 $ 694,443 $ (429,797) _______________ _______________ ______________

Total Property, Plant and Equipment $ 1,806,073 $ 2,314,963 $ (508,889) _______________ _______________ ______________

See Note 1 for further discussion on property, plant and equipment.

Notes to the Financial Statements (cont’d.) For the Year Ended September 30, 1998
• THE MOON

• MARS

• AND BEYOND

THE MOON / MARS / AND BEYOND

ANNUAL REPORT F Y 1998 PAGE 3 7

5. Other Assets:

 (In Thousands)

1998 1997 Change

Contractor-held Materials: $ 120,359 $ 166,959 $ (46,600)

____________ ___________ ___________

Total $ 120,359 $ 166,959 $ (46,600) ________________ _______________ _______________

6. Other Liabilities:

 (In Thousands)

Liabilities Covered by Budgetary Resources:

Current Non-Current Total

Intragovernmental Liabilities:

Liability for Deposit and Suspense Funds: $ 425 $ 0 $ 425

___________ ___________ ___________

Total $ 425 $ 0 $ 425 ________________ _______________ _______________

Governmental Liabilities:

Liability for Deposit and Suspense Funds: $ 1,691 $ 0 $ 1,691

Accrued Funded Payroll and Benefits 11,041 0 11,041

___________ ___________ ___________

Total $ 12,732 $ 0 $ 12,732 ________________ _______________ _______________

The liability for deposit and suspense funds includes cash advances received from other Government

agencies and public reimbursable customers. Also included are funds on deposit with the U.S. Treasury

for employees’ savings bonds and state tax withholdings.

Liabilities Not Covered by Budgetary Resources:

Intragovernmental Liabilities:

Current Non-Current Total

Accounts Payable for Closed Appropriations $ 57 $ 0 $ 57

___________ ___________ ___________

Total $ 57 $ 0 $ 57 ________________ _______________ _______________

Governmental Liabilities:

Accounts Payable for Closed Appropriations $ 2,898 $ 0 $ 2,898

Contingent Liabilities 1,119 0 1,119

Unfunded Annual Leave 0 12,835 12,835

___________ ___________ ___________

Total $ 4,017 $ 12,835 $ 16,853 ________________ _______________ _______________

See Note 1 for further discussion of liabilities not covered by budgetary resources.

Notes to the Financial Statements (cont’d.) For the Year Ended September 30, 1998
NASA / KENNEDY SPACE CENTER

PAGE 3 8 ANNUAL REPORT F Y 1998

7. Net Position:

 (In Thousands)

Appropriated

 Funds

Unexpended Appropriations:

Undelivered $ 82,105

Unobligated:

Available 48,869

Unavailable 12,602

Invested Capital 1,926,432

Cumulative Results

Future Funding Requirements:

Annual Leave (12,835)

Closed appropriations (2,956)

Other (1,119)

_____________

Total $ 2,053,098 _____________

8. Other Revenues and Financing Resources:

 (In Thousands)

1998 1997

General Fund Proprietary Receipts $ 491 $ 302 ___________ ___________

Total $ 491 $ 302 _______ _______

General Fund Proprietary Receipts represent user fees, gifts, fines or interest penalties.

Notes to the Financial Statements (cont’d.) For the Year Ended September 30, 1998