ES, IG-99-023, Commercial Remote Sensing Program Office

COMMERCIAL REMOTE SENSING PROGRAM OFFICE
IG-99-023

Executive Summary

Background
NASA officials designated the John C. Stennis Space Center (Stennis) as the Lead Center for commercial remote sensing. The Commercial Remote Sensing Program Office (CRSPO) at Stennis is responsible for developing commercial initiatives to meet Stennis' charter. In addition to internally developed initiatives, the CRSPO administered a congressionally directed program to purchase commercial Earth science data. Congress and the Office of Management and Budget directed NASA to initiate a commercial data buy program that would acquire Earth science data products. NASA's fiscal year 1997 appropriation contained $50 million to accomplish those purchases. During Phase I of the program, the CRSPO awarded 10 contracts totaling about $4.3 million. During Phase II, the CRSPO awarded five contracts totaling about $42.8 million. The program office will expend the data buy funds by September 2001.

Objectives
The specific audit objectives were to determine whether:

the Commercial Data Buy Program will help achieve Earth Science Enterprise (ESE) goals;
future congressionally directed data buy programs are warranted; and
the CRSPO initiatives have resulted in commercial entities that can contribute products to help achieve ESE goals.
Details on the objectives, scope, and methodology are in Appendix A.

Results of Audit
The congressionally directed Commercial Data Buy Program has helped achieve ESE goals. However, additional congressionally directed data buy programs are not warranted. The CRSPO awarded five contracts for commercial remote sensing products. Those five contracts will result in commercial products relating to two Earth science themes: land cover/land use change research and natural hazards research. For example, one of the five awards was for the compilation of two decades of Landsat observations. This product will be valuable to Earth scientists because it will provide a single source of Landsat data. However, the CRSPO should design more specific initiatives to promote the use of commercial remote sensing products. Although initiatives have been successful at developing the commercial remote sensing industry, the program office has not leveraged⁽¹⁾ this industry to ensure products are provided that meet baseline scientific requirements. As a result, the CRSPO has been unable to fulfill its goal to reduce NASA's costs of remote sensing science and technology programs through competition within the commercial remote sensing industry.

Other Matters of Interest
During the audit, we expressed concern about Agency compliance with the Government Performance and Results Act of 1993 and the need for CRSPO performance measures. Program office officials hired a consulting firm to develop performance measures. Once the program office establishes performance measures, the ESE should be able to comply with the Act's March 2000 reporting requirements. Therefore, we are making no recommendations at this time. Details on this issue are in Appendix B.

Recommendations
We recommend that the ESE publish a baseline of scientific requirements that will foster competition within the commercial remote sensing industry. The program office should use this baseline in initiatives to fulfill ESE scientific requirements at the lowest cost.

Management's Response
Management concurred with the report recommendations. The response is summarized in the body of the report and is included in Appendix C.

Evaluation of Management's Response
We considered management's comments responsive; however, both recommendations will remain open until additional comments that describe the planned, ongoing, and completed corrective actions are received.

FOOTNOTE

1. The CRSPO has not made effective use of NASA's investment in the commercial remote sensing industry.

Background	NASA officials designated the John C. Stennis Space Center (Stennis) as the Lead Center for commercial remote sensing. The Commercial Remote Sensing Program Office (CRSPO) at Stennis is responsible for developing commercial initiatives to meet Stennis' charter. In addition to internally developed initiatives, the CRSPO administered a congressionally directed program to purchase commercial Earth science data. Congress and the Office of Management and Budget directed NASA to initiate a commercial data buy program that would acquire Earth science data products. NASA's fiscal year 1997 appropriation contained $50 million to accomplish those purchases. During Phase I of the program, the CRSPO awarded 10 contracts totaling about $4.3 million. During Phase II, the CRSPO awarded five contracts totaling about $42.8 million. The program office will expend the data buy funds by September 2001.
Objectives	The specific audit objectives were to determine whether: the Commercial Data Buy Program will help achieve Earth Science Enterprise (ESE) goals; future congressionally directed data buy programs are warranted; and the CRSPO initiatives have resulted in commercial entities that can contribute products to help achieve ESE goals. Details on the objectives, scope, and methodology are in Appendix A.
Results of Audit	The congressionally directed Commercial Data Buy Program has helped achieve ESE goals. However, additional congressionally directed data buy programs are not warranted. The CRSPO awarded five contracts for commercial remote sensing products. Those five contracts will result in commercial products relating to two Earth science themes: land cover/land use change research and natural hazards research. For example, one of the five awards was for the compilation of two decades of Landsat observations. This product will be valuable to Earth scientists because it will provide a single source of Landsat data. However, the CRSPO should design more specific initiatives to promote the use of commercial remote sensing products. Although initiatives have been successful at developing the commercial remote sensing industry, the program office has not leveraged⁽¹⁾ this industry to ensure products are provided that meet baseline scientific requirements. As a result, the CRSPO has been unable to fulfill its goal to reduce NASA's costs of remote sensing science and technology programs through competition within the commercial remote sensing industry.
Other Matters of Interest	During the audit, we expressed concern about Agency compliance with the Government Performance and Results Act of 1993 and the need for CRSPO performance measures. Program office officials hired a consulting firm to develop performance measures. Once the program office establishes performance measures, the ESE should be able to comply with the Act's March 2000 reporting requirements. Therefore, we are making no recommendations at this time. Details on this issue are in Appendix B.
Recommendations	We recommend that the ESE publish a baseline of scientific requirements that will foster competition within the commercial remote sensing industry. The program office should use this baseline in initiatives to fulfill ESE scientific requirements at the lowest cost.
Management's Response	Management concurred with the report recommendations. The response is summarized in the body of the report and is included in Appendix C.
Evaluation of Management's Response	We considered management's comments responsive; however, both recommendations will remain open until additional comments that describe the planned, ongoing, and completed corrective actions are received.