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National Aeronautics and Space Administration

Marshall Space Flight CenterFiscal Year 1998 Annual Report

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Statementof the Director

The 1998 Annual Report for the Marshall Space Flight Center covers the activi-ties from October 1, 1997, through September 30, 1998, and includes the CenterFinancial Statements. FY98 proved to be another excellent year for the Center. Asevidenced in the roles of Center of Excellence for Space Propulsion and keymission roles in Space Transportation Systems Development, MicrogravityResearch, and Space Optics Manufacturing Technology, Marshall plays a pivotalrole in the future of the Agency.

Space transportation systems made great strides in meeting the technologicalchallenges required to enable the next generation of reusable launch vehicles(RLV’s). The year marked the beginning of hardware delivery for the X–33.Another technology demonstrator, the X–34 with the Marshall-developed Fastracengine, also met key programmatic milestones. These efforts provide significanttechnology information to aid U.S. industry in building a full-scale RLV to meetthe goal of substantially lowering the cost of space access. The Shuttle programpropulsion elements continued to perform safely with increased reliability andreduced costs. We witnessed the first flight of the Super Lightweight Tank and theShuttle Main Engine Block IIA configuration.

The Microgravity Research program continued broad, productive Earth-based andspace-based research. A new treatment for influenza, developed with the aid ofinformation from space-grown crystals, continues to advance through the drugdevelopment and approval process. Improvements in plant growth Light EmittingDiodes (LED’s) by Quantum Devices have helped advance photodynamic cancertherapy, and improved and extended the lives of children with brain cancer.

Over the past year our optical manufacturing technology team has designed,developed, and tested numerous optical systems and technologies to help us betterview and understand our universe. The Chandra optical system was tested at theMarshall Center in a new test facility. The launch of Chandra in the summer of1999 promises untold discoveries.

Along with Unity, the U.S. Laboratory and the Airlock module were built by theBoeing Company in Marshall facilities in support of the International SpaceStation (ISS) effort. Additional Marshall responsibilities include the developmentand delivery of ISS integration hardware, the EXPRESS Rack, and integrationand operation of ISS science experiments. Knowledge gained on the ISS willprovide the fundamental building blocks for space commerce, and Marshallemployees will help make it happen.

FY98 proved again the outstanding dedication and commitment of the Marshallemployees. The accomplishments illustrate the scope of research and technologyactivities at the Center. It is through that dedication and effort that we willaccomplish our mission of “bringing people to space—bringing space to people.”

Arthur G. StephensonMSFC Center Director

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NASA is committed to missionfirst—safety always. MSFC’ssafety goal is to be number onein safety within the Agency. In1998 MSFC continued itsunique and innovativemanagement techniques toimprove safety performance.Current safety processes includethe collocation of key Safetyand Mission Assurancepersonnel in the major projectoffices and at contractor plants;maintaining safety of flightwhile transitioning fromoversight to insight and

Our goal: Establish MSFC as number one in safetywithin NASA.

Marshall’s safety philosophy: Senior managementcommitment to flight crew, employees, facilities, andprogram hardware safety.

reducing GovernmentMandatory Inspection Points onShuttle projects; seniormanagement safety reviews ofall MSFC payloads; Internetweb pages with payloadassurance information; theCenter employee SafetyConcern Reporting System; theuse of state-of-art system safetytools for hazard identificationand control; risk assessments toprioritize management decisionson corrective actions; andMSFC Safety Day Stand-Downs.

Commitmentto Safetyand MissionSuccess

Some of the Safety Dayactivities included vendor

safety booths.

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Tableof Contents

■ Introduction 1

■ Strategic Implementation 2

■ Science and Technology Highlights 4

■ Institutional Highlights 21

■ Public Outreach 24

■ Overview of Financial Statements 30

■ Financial Statements 32

■ MSFC Notes to Financial Statements 34

■ Supplemental Financial Information 43

■ Acronym List 47

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The Marshall Space Flight Center (MSFC), a field center of theNational Aeronautics and Space Administration (NASA), wasestablished on July 1, 1960, with the transfer of land, buildings,property, space projects, and personnel from the United StatesArmy.

Introduction

The Marshall-developed Mercury-Redstone vehicle boosted America’sfirst astronaut on a suborbital flight in1961. Marshall’s first major programwas the development of the Saturnrockets, the largest of which sent manto the Moon in 1969 and Skylab intoorbit in 1973. Other successfulprojects in Marshall’s history includethe Lunar Roving Vehicle (1971), thethree High Energy AstronomyObservatories (1977, 1978, and1979), the Hubble Space Telescope(1990), and the Marshall-developedpropulsion systems which launchedAmerica’s first Space Shuttle.

Marshall remains one of NASA’slargest field centers, occupying over1,800 acres in Huntsville, Alabama,and employing over 2,800 civilservants. This number includesemployees in resident offices at primecontractor’s facilities and at theMichoud Assembly Facility inLouisiana. In 1998, Marshall’s budgetallocation was $2.33 billion, resulting

FacilitiesArea 1,841 AcresBuildings 162Structures 68Square Feet 4.1MReplacement Cost $1.1BOne-of-a-Kind Facilities 75

MSFC Employment (FY98)Civil Servants 2,822

• 1,609 With B.A./B.S. Degrees• 468 With M.S. Degress• 147 With Ph.D. Dregrees

Contractors 25,106

Contracts (FY98)MSFC manages 934 active contracts,

Foreign 255Mississippi 233New Jersey 201Minnesota 198Maryland 180New York 157Ohio 147Arizona 132Wisconsin 111Kansas 110Other States 951Total 27,928

* Civil servants, contractors,subcontractors, and vendors

valued at $16.6 billion, awarded tocontractors in 50 states and the Districtof Columbia.

MSFC Workforce by State*Alabama 9,152California 6,205Louisiana 2,899Utah 2,776Florida 1,445Massachusetts 648Illinois 454Tennessee 375Texas 339Virginia 331Colorado 326Connecticut 302

MarshallSpace

Flight CenterFY 1998

Annual Reportin a direct impact of $722 million onthe Alabama economy.

During the past fiscal year,approximately 25,106 contractorpersonnel were engaged in work forthe Center. An additional1,606 contractors were associated withInternational Space Station workbeing done by the Boeing company inHuntsville, and other Agencycontracts.

Marshall’s vision is to be the world’sleader in space transportation systems,microgravity research, and spaceoptics manufacturing technology, andto be a vital resource for thedevelopment and utilization of keyscientific missions that will advancethe frontiers of knowledge and humanexploration. The employees of MSFCremain committed to this vision whichis evidenced by their accomplishmentsover the past year, and their dedicationto mission success in the future.

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MSFC FY 1998 Annual Report

The NASA Strategic Plan defines the Agency’s vision andmission and provides a basis for the Agency to manage itsaffairs effectively and efficiently. It enables critical decisions tobe made regarding resource allocation and implementationactivities, and establishes a process that ensures decisionsare consistent with the goals, objectives, and strategiesoutlined in NASA’s Strategic Plan and Performance Plan.

StrategicImplementation

Microgravity Research, and as theCenter of Excellence for SpacePropulsion. MSFC engineers areworking to lower the cost of access tospace by studying methods to loweroperations, development, andmanufacturing costs while increasingperformance and enabling aircraft-like operability. Through Marshall’sresponsibility for implementing theAgency’s microgravity initiatives,scientific and commercial researchersare able to generate new knowledge,products, and services that improvethe quality of life on Earth. In supportof the HEDS goal of safe andaffordable access to space, Marshall ischarged with developing andmanaging upgrades to the SpaceShuttle Propulsion Systems whichimprove safety margins and increaselift capacity. Marshall is leading thedevelopment of advanced Earth-to-orbit and in-space propulsion systemsand technologies required to expandthe human presence in space.

The mission of the Aero-SpaceEnterprise is to enable the commercialexpansion and exploration of space,provide world-class research anddevelopment services to supportindustry and government, andrevolutionize air travel and aircraftmanufacturing which in turn enablescontinued U.S. leadership in globalcivil aviation. As NASA’s LeadCenter for Space TransportationSystems Development and as theCenter of Excellence for SpacePropulsion, Marshall hasimplemented the Advanced SpaceTransportation Program (ASTP) andthe RLV Technology Program. TheASTP and RLV programs arecomplementary space transportationtechnology development efforts. The

The Space Shuttle docked with Mir.

Solar X-Ray Imager testing in theX-Ray Calibration Facility.

NASA has established four StrategicEnterprises as a business frameworkfor making management decisionsnecessary to implement NASA’smission. They include the HumanExploration and Development ofSpace (HEDS) Enterprise, the Aero-Space (AS) Enterprise, the SpaceScience (SS) Enterprise, and the EarthScience (ES) Enterprise. EachEnterprise has a unique set of goals,objectives, and strategies that definehow programs will be developed anddelivered to external and internalcustomers.

Since the first MSFC ImplementationPlan was issued in November 1996,Marshall employees have continuallystrived to achieve the goals andobjectives defined in NASA’sStrategic Plan. The ImplementationPlan is the means by which strategiesare established which enable Centersto carry out the requirements of theEnterprises through the programs andprojects assigned. Included areassigned support activities andcrosscutting functions necessary toassure the success of NASA’smission.

The Human Exploration andDevelopment of Space Enterprise isdedicated to providing safe andaffordable access to space, using thespace environment to expandscientific knowledge, enabling thecommercial development of space,sharing knowledge and technologieswhich enhance the quality of life onEarth, and preparing for humanmissions of exploration to the farreaches of the solar system. Marshallsupports this Enterprise through itsmission area assignment for SpaceTransportation Systems Development,

Marshall’s mission—bringingpeople to space, bringingspace to people.

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RLV program addresses near-termtechnology required for a next-generation reusable launch vehiclewhile the ASTP generates advancedspace transportation technologies forfuture needs which are not addressedby the RLV program and required tomeet the ambitious goals of costreduction. Under the RLV program,Marshall is managing thedevelopment and testing of the X–33and X–34 flight demonstrators.

The Space Science Enterprise aspiresto probe deeper into the mysteries ofthe Universe, develop revolutionarytechnologies to support space scienceprograms enabling future humanexploration beyond low-Earth orbit,and contribute to the education goalsof our Nation by sharing theexcitement and inspiration of ourmissions and discoveries. Marshall’swork in selected areas of astrophysicsand space physics include high-resolution x-ray imaging andpolarimetry, high-sensitivity gamma-ray astronomy, high-energy cosmicrays, solar magnetic fields, and low-energy space plasma physics.Marshall’s mission area assignment inspace optics manufacturingtechnology is vital in fosteringresearch and development to advancethe state of the art in opticalmanufacturing and testing. MSFC’sresponsibilities for managingscientific payloads and researchinclude the Chandra X-RayObservatory (CXO)—formerlyknown as the Advanced X-RayAstrophysics Facility (AXAF), theGravity Probe-B, the Solar X-RayImager, and the Solar B. Chandra,NASA’s next major orbitingobservatory, assures as many newastronomical discoveries regardingthe violent x-ray universe as theHubble Space Telescope provided invisible ultraviolet and infrared light.

The mission of the Earth ScienceEnterprise is to expand scientificknowledge of Earth systems usingNASA’s unique capabilities. Sharingthis knowledge with the public andprivate sectors will enable thetechnology to be used to better

understand the total Earth system andthe effects of natural and human-induced changes on the globalenvironment. Marshall supports thisEnterprise primarily through theGlobal Hydrology and Climate Center(GHCC), a joint venture with theState of Alabama Space Science andTechnology Alliance and theUniversities Space ResearchAssociation. The GHCC focuses onusing advanced technology to observeand understand the global climatesystem and apply this knowledge toareas such as agriculture, urbanplanning, water resourcemanagement, and operationalmeteorology. Ground, air, satellite,and Space Shuttle-based experimentshave provided invaluable knowledgeconcerning the global water cycle, thephysics of lightning, global

temperature data, and the impact ofhuman activity as it relates to globaland regional climate.

Strategic implementation at NASA isnecessary to ensure that limitedresources are used wisely in themission for which we are responsible.Marshall Space Flight Center can beproud of the tradition we have forgedin the Nation’s space program.Further, we can be excited about therole we will play in the future throughsupport of all NASA StrategicEnterprises and maintaining NASA’sreputation as the world leader inaccess to space. The Marshall team iswell prepared for this challenge andlooks forward to meeting the mission—bringing people to space, bringingspace to people.

Artist’s concept of theCXO in orbit. TheCXO, NASA’s mostpowerful x-raytelescope, was fullyassembled in FY98with the integration ofthe spacecraft, thetelescope, and theintegrated sciencemodule (ISM).

GHCC scientists usedremote sensing to studyancient Mayan ruins.

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Science andTechnologyHighlights

Advanced Space Transportation and Technology

As NASA’s Center of Excellence for Space Propulsion and asthe Lead Center for Space Transportation Systems, Marshallis responsible for various efforts committed to research,develop, verify, and transfer space and related technologies.This work mainly supports the Aero-Space Technology Enter-prise. These activities are supported by partnerships withother NASA centers, the Department of Defense, and othergovernment agencies. In addition, the Human Exploration andDevelopment of Space Enterprise Mission is supported viathe accomplishment of goals aimed at providing safe andaffordable human access to space and enabling the commer-cial development of space. Significant progress in developingthe technology required to enable the next generation launchvehicle and future transportation systems was achieved infiscal year 1998.

X–33

Marshall’s Space TransportationPrograms Office manages the X–33Advanced Technology Demonstrator,which is being built in partnershipwith Lockheed Martin Skunk Works.As part of NASA’s RLV Program, theX–33 is the largest X plane, demon-strating technologies for single stageto orbit. The demonstrator is a273,000-pound, wedge-shapedprototype launch vehicle which willlaunch vertically like a rocket, fly upto 260,000 feet at speeds approachingMach 15, and land like an airplane.Fiscal year 1998 saw accomplishmentof critical design review allowing thefabrication and assembly of the X–33technology demonstrator to proceed.The official groundbreaking for thelaunch site at Haystack Butte onEdwards Air Force Base was held inNovember of 1997. Vehicle assemblythen began with the delivery of theupper and lower and thrust structurecaps and the composite thruststructure web. The placement of theliquid oxygen tank in the vehicleassembly tooling, and successfulflight testing of Thermal ProtectionSystem material in July of 1998

signaled major milestones for theflagship of NASA’s technologydemonstrators. Before completion, theprogram will test and integrate newtechnologies including aerospikepropulsion, lifting body aerodynam-ics, the world’s largest compositeliquid hydrogen tanks, and aircraft-like ground operations which enable a2-day turnaround instead of months.Testing of the subscale prototype willprovide the data necessary forindustry to build a full-scale RLV thatis expected to dramatically increasereliability and meet the goal oflowering the cost of putting a poundof payload into low-Earth orbit from$10,000 to $1,000.

X–34/Fastrac Engine

The X–34, launched from beneath anL–1011 airplane, will reach analtitude of 250,000 feet at speedsapproaching Mach 8 before it touchesdown on a runway. This smalldemonstrator will help reduce the riskassociated with developing a full-scale operational RLV early in thenext decade and enable technologiesto reduce the cost of future spacetransportation systems. Several major

Reusable Launch Vehicle—X–33

Reusable Launch Vehicle—X–34

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milestones accomplished in fiscal year1998 included critical design reviewon the main propulsion system, arrivalof the turbopump for the X–34 Fastracengine at Marshall, and completion ofqualification tests on the first wingassembly before delivery to OrbitalSciences Corporation. Key technolo-gies needed to develop a reusablelaunch vehicle will be demonstratedthrough ground development andflight test on the X–34. These includethe low cost Fastrac engine, a graphitecomposite airframe, advanced thermalprotection on leading edges, andautomated flight operations usingGPS. In January of 1998 NASAmodified the X–34 contract withOrbital Sciences Corporation toproduce a second flight vehicle for theprogram, which will bridge the gapbetween the earlier Clipper-Graham(DC–XA) and the larger and higherperformance X–33.

Advanced SpaceTransportation Program

The Advanced Space TransportationProgram is a focused technologyprogram tailored to meet the futureneeds of the NASA Enterprises andthe commercial space industry. TheASTP will pursue the development ofrevolutionary advancements in spaceaccess with the goal to realize a10-fold reduction in the cost of spacetransportation in the next 10 years,and another 10-fold reduction within25 years. The program will providethe propulsion and airframe systemknowledge required to support flightdemonstration projects while focusingon future breakthrough technologiesbeyond the next generation.

The ASTP includes five major thrusts:Small Payload Focused Technologies,Reusable Launch Vehicle FocusedTechnologies, Core Technologies, In-Space Technologies, and SpaceTransportation Research/InterstellarTransportation. A brief discussion ofeach project follows.

■ Small Payload Focused Tech-nologies—Small PayloadFocused (Bantam) activities aredeveloping advanced reusabletechnologies applicable tosystems capable of launchingsmall science and technologypayloads. The highlight of FY98was the delivery of the Fastracengine to the Stennis SpaceCenter for testing in support ofthe X–34. In addition, severallow-cost component technologieswere successfully demonstrated.A low-cost turbopump wasdesigned, fabricated and as-sembled that has reduced theFastrac engine turbopump cost bya factor of 3. Bench verificationtesting of a rocket enginecontroller based on a Chryslerautomotive computer wascompleted. A modular propulsionavionics suite was delivered andis ready for bench testing. A PC-based launch control and missionplanning system was demon-strated in bench tests. Engineinjector testing was initiated andcompatibility tests are beingconducted for hydrogen peroxidecomposite tanks.

■ Reusable Launch VehicleFocused Technologies—RLVFocused activities are developingairframe systems and propulsiontechnologies to reduce the cost ofaccess to space to $1,000/lb in10 years. Tasks are complemen-

tary to, but do not duplicate, thework funded by X–33. In FY98,technology development hasbeen initiated for durable thermalprotection systems, lightweightconformal structures, increasedcomponent life capability, low-cost manufacturing, lightweightairframe and propulsion compo-nents and advanced powersystems.

■ Core Technologies—Theemphasis of the Core Technolo-gies area is development anddemonstration of reusableairframe and propulsion tech-nologies that will reduce the costof access to space to $100/lb in25 years. Crucial technologyadvancement is required toincrease performance marginswhich in turn lead to longer lifeand reduced maintenance costs infuture reusable space transporta-tion systems. The focus of coreactivities in FY98 was advancedpropulsion, specifically, thedevelopment of rocket-basedcombined cycle (RBCC) tech-nologies. In 1998, 2 integratedRBCC flowpaths, one by Aerojetand one by Boeing-Rocketdyne,were built and tested. The testingwas conducted from sea-levelstatic (Mach 0) to Mach 8. Thetest program included bothdirect-connect and free-jet tests.Several “first-time” tests wereconducted. The first was adynamic test that varied both the

750K injector test for the Marshall-developed Fastrac engine in theCenter’s East Test Area.

RBCC test engine.

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MSFC FY 1998 Annual Reportair enthalpy and the Machnumber as the flowpathtransitioned from the air-augmented rocket (AAR) toramjet operating mode. Thesecond was the performance of aMach 8 scramjet at high dynamicpressures of 1,000 lbs/ft2.Combustion wave ignition wasutilized to ignite the multiplerockets integrated within theflowpath. Integrated flowpathtesting is being conducted atGeneral Applied SciencesLaboratory (GASL) located inRonkonkoma, NY. Results todate indicate that the flowpathsare performing as anticipated.Future testing will continue onboth flowpaths to improveperformance and operabilityissues.

■ In-Space Technologies—TheIn-Space Technologies project isstudying technologies intended toincrease performance overtoday’s chemical space transfersystems. Technologies beingpursued include tethers fortransportation systems, solarthermal propulsion and solarelectric propulsion systems. DeepSpace 1, launched in November1998 and powered by NASASolar Electric PropulsionTechnology Application Readi-ness (NSTAR), marked the firsttime that nonchemical propulsionwas used as the primary means ofpropelling a spacecraft. Thisproject has helped demonstratethe solar electric engine’ssuitability for long term missions.

■ Space TransportationResearch—The Space Transpor-tation Research project providesthe basic research function of theASTP program. The activityfocuses on advanced concepts forenabling breakthroughs in spacetransportation and maturing theserevolutionary ideas via small,critical technology experiments

and breadboard validations.Research areas include advancedconcepts for launch augmenta-tion, pulse detonation engines,high-energy propellants, andhigh-energy concepts andmaterials which hold promise forenabling exciting new missionsthat are beyond the realm ofpresent technological capability.In FY98 the antimatter-triggeredfusion research continued toshow progress towards theeventual objective of trapping,cooling and transporting antipro-tons from Fermi Labs to the AirForce Shiva-Star Facility formicro fusion experiments. Twopulse detonation engine testarticles have been constructedand have begun initial tests todemonstrate the engineeringfeasibility of rocket enginesbased on this promising technol-ogy. Short track tests of amagnetic levitation breadboardwere conducted to investigate itspotential application for launchassist. Free-flight tests of a laser-powered launch vehicle wereconducted using a ground-basedlaser on a small test article.

■ Other Accomplishments—Marshall’s Space TransportationPrograms Office supported otherefforts focused on enabling a nextgeneration reusable launchvehicle. The Space Transporta-tion Architecture Study wasinitiated in September with fiveindustry teams and an internalNASA team. The Marshall teamalso accepted the transfer of theX–38 Deorbit Propulsion StageProject from Johnson SpaceCenter. At Marshall, FY98 sawsubstantial progress in develop-ment of the technology requiredfor future reusable launchvehicles and space transportationsystems to support NASA’s longterm goals.

The use of fusion for propulsionhas the potential to open the entire

solar system for exploration.

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Advanced Concepts and Studies

Marshall is pursuing a number of initiatives committed to long-range technological advancement. In FY98, a number ofconcepts and studies were undertaken in addition to providingsupport to the Advanced Space Transportation andTechnology initiative. Highlights of some of the more intriguingconcepts are detailed below.

Development of Space

In 1998, the MSFC ProgramDevelopment Directorate began newinitiatives focused on “…enabling thedevelopment of space for humanenterprise” as stated in the NASAAgency Mission. Precursor work wasinitiated in 1997, with NASA/MSFCstudies on the feasibility of spacebusiness parks and public spacetravel. In 1998 these studiescontinued, and included a “new spaceindustries” workshop and funding fordetermining the feasibility of spacesolar power for terrestrial use. In thespring, a Development of SpacePlanning Team was appointed by theCenter Director to further define theconcept and explore Marshall’s role inspace development. The teamconcluded that the Center’s expertisein both transportation andmicrogravity could significantlycontribute to the implementation ofthe Development of Space initiative.This effort is continuing to grow andwill provide insight into thetransportation and microgravitytechnology development activitiesrequired for future commercialenterprises in space.

Virtual Research Center

In 1998, the Virtual Research Center(VRC) supported over 1,500 users onmore than 90 project teams. The VRCprovides a suite of web accessibletools that facilitate work amonggeographically distributed teammembers. These tools include adocument management system, a

topic discussion forum, a calendar, anaction item tracker, an electronic maillist, and a team directory. Projectinformation is password protected anda firewall was added in 1998 toprovide additional security. Plans for1999 include incorporatingencryption, an object-orientedarchitecture, and a hierarchical datamanagement structure. Members ofthe VRC team are actively supportingthe Intelligent Synthesis Environment(ISE) initiative.

Space Solar Power

In 1998, the Marshall Center led aninter-Center and external team in theSpace Solar Power (SSP) ConceptDefinition Study, which identifiedcommercially viable SSP conceptsalong with technical andprogrammatic risks. Products fromthis study included innovativeconcepts for generating electricity ingeosynchronous-Earth orbit andtransmitting power to the ground viamicrowaves to support science,exploration and commercialapplications. Associated with theseconcepts were technology roadmapsfocused on commercially viableconcepts that could be implementedin the 2020 to 2030 time frame. In1999, MSFC will lead the NASA SSPExploratory Research and Technologyeffort to conduct preliminary strategictechnology research and developmentto enable large, multi-megawatt SSPsystems and wireless powertransmission for government missionsand commercial markets (in-spaceand terrestrial).

NASA’s Advanced SpaceTransportation Program at MSFC is

developing cutting edge technologiesto dramatically reduce the cost of

space transportation.

Space Solar Power: A powergeneration system in space for

transfer to Earth or to other spaceplatforms.

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Space Shuttle

The Space Shuttle, America’s first reusable launch vehicle,still remains the workhorse of the space program. With thelaunch of the first International Space Station components,and in supporting the remaining assembly schedule, theShuttle will continue in this role into the next millennium.Space Shuttle propulsion was originally developed byMarshall and continues to improve through an infusion of newtechnology in all the propulsion elements.

The super lightweightexternal fuel tank.

increased reliability and reducedcosts. A few of these enhancementsare detailed below.

External Tank

The External Tank (ET) Projectreached an important milestone whenthe first Super Lightweight Tank(SLWT) achieved flight with thelaunch of STS–91. This was asignificant step in successful

Space Shuttle

In fiscal year 1998, Marshall’s SpaceShuttle Projects Office supported foursafe and successful Space Shuttlelaunches including the conclusion ofthe U.S. and Russian Mir SpaceStation missions. Paramount in theoperation of the Shuttle is safety.Today we continue to fly safely withover 60 successful launches sincereturn to flight. Another major thrustin the operation of the Shuttle islowering the costs associated withflight. Daily operations aretransitioning to United Space Alliance(USA), a commercial companyresponsible for lowering costsassociated with flying the Shuttle inorder to free up resources for otherNASA projects including a series ofnew reusable launch vehicles. In 1998the Solid Rocket Booster Projectsuccessfully consolidated the primecontract with United Space Boosters,Incorporated, into USA’s Space FlightOperations Contract. This is the firstof four Marshall-managed Shuttlecontracts planned for USAconsolidation. Marshall’s Shuttleworkforce continues to downsizeexperiencing a cumulative 50 percentreduction in civil servants along witha 40 percent reduction in contractorpersonnel since 1992. This hasresulted in a 40 percent cost savingsfor the Marshall related elements. Inthis environment, Shuttle projectsoffice personnel were still able topursue key enhancements which

The Space Shuttle being matedwith the ET and the Solid Rocket

Boosters (SRB’s).

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SSME during a test fire.

deployment of the InternationalSpace Station because the new tank isthe same size as the old one but over7,000 pounds lighter. For each poundremoved from the external tank, apound of payload can be added. In theexternal tank this performance gain iscritical to ISS payload requirements.The tank, which weighs 1.7 millionpounds at liftoff, is taller than a 15-story building and has a diameter of27 feet, making it the largest singlecomponent of the Shuttle. It holds theliquid hydrogen and liquid oxygenpropellants in two separate tanks forthe Shuttle’s three main engines. TheSLWT is manufactured by LockheedMartin at NASA’s Michoud AssemblyFacility.

Space Shuttle Main Engine

The redesigned Space Shuttle mainengine (SSME), referred to as theBlock IIA configuration, achievedfirst flight with the new large throatmain combustion chamber onSTS–89. The new design reducespeak pressure and temperature, andhas more than doubled the reliabilityof the engine. The SSME, originallydeveloped by Marshall in the 1970’s,still remains the world’s mostsophisticated reusable rocket engine.In a little over 8 minutes the threemain engines provide liftoff thrust,throttling, control, and insertion. Thefuel turbopump, which weighs aboutthe same as one automobile engine,produces as much horsepower as28 diesel locomotives. Each engine is14 feet long, weighs about7,000 pounds, and is 7.5 feet indiameter at the end of its nozzle.

Solid Rocket Motor

The solid rocket motors, which onlyburn for 2 minutes, produce about80 percent of the thrust for eachShuttle launch. These motorsrepresent the largest operational solidrocket motors in the world andgenerate 5.3 million pounds of thrustat liftoff. In fiscal year 1998, theReusable Solid Rocket Motor Projectconducted a successful full-scalestatic test firing which incorporated67 test objectives. These tests areessential to provide verification ofcritical design and manufacturingprocesses in light of the inherentinability to accept test flight motors.

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International Space Station

The International Space Station (ISS) is a cooperative effortinvolving much of the world community. Once operational, itwill allow a continuous human presence in space for manyyears to come. Marshall plays a major role in thedevelopment and operation of the ISS, from manufacturingand testing hardware to ISS research and science operations.

The International SpaceStation depicted with the

Space Shuttle docked.Sixteen nations are involved in thedevelopment of the ISS. They includethe United States, Russia, Japan,Canada, Belgium, Denmark, Brazil,France, Germany, Italy, TheNetherlands, Norway, Spain, Sweden,Switzerland, and the UnitedKingdom. The ISS will weigh about950,000 pounds when completed andsupport a crew of up to seven. It willinclude five pressurized laboratoriesand attached external sites forresearch. Construction of the ISS isscheduled for completion in the year2003.

MSFC’s ISS responsibilities include:development of the regenerative lifesupport systems for crew and researchanimals; management oversight oftwo node elements, the MultipurposeLogistics Module and the InterimControl Module; development ofresearch facilities including theEXPRESS Rack; integration ofSpacelab pallets and supportequipment for ISS assembly;environmental qualification testing ofmajor ISS elements and systems; andmanagement of the payloadoperations and utilization activitiesfor research activities onboard theISS. Marshall performs all preflightdynamic and structural testing of U.S.ISS elements in addition to providingqualification testing of some ISScomponents.

The first component of the ISS,known as Node1 or “Unity,” wasmanufactured by the BoeingCompany at MSFC. The node is madeof aluminum and has six hatcheswhich serve as docking ports for otherISS modules. Along with Unity, theU.S. Laboratory and the airlockmodule were also built by Boeing infacilities provided by Marshall. Unitywas shipped to the Kennedy SpaceCenter and accepted in September forflight on STS–88.

Nodes 2 and 3 are being developed bythe Italian Space Agency (ASI), withMarshall providing projectmanagement and technical oversight.In fiscal year 1998 Node 2 completed

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Node 2 Aft Cylinder at the ISSproduction facility in MSFC building4708.

Unity is loaded into the back of aC–5 Galaxy aircraft for shipment toKennedy Space Center to undergoprelaunch tests.

Preliminary Design Review and Node3 completed requirements review. Inthis past year Marshall also developeda water recycling and oxygengeneration system and establishedcontracts for development of thesetechnologies. This will eliminate theneed to resupply thousands of poundsof water and oxygen to the ISS creweach year.

Marshall also provides the facilitiesfor structural and environmentaltesting of the Common BerthingMechanism (CBM), the mechanismthat physically joins two ISS elementstogether and creates an airtightinterface between them. Unity CBMLatch and Meteoroid Debris Mecha-nisms Acceptance and QualificationTests were successfully completed inthe past year along with the TrussStructural Strength/Static Test and theAirlock Modal Test.

Marshall responsibilities in the ISSpayloads arena encompass bothspecific development tasks andbroader integration tasks. Thedevelopment tasks include the design,development, and testing of theMicrogravity Science Glovebox,which will allow astronauts to safelyconduct experiments in an enclosedlaboratory with the use of gloves.Combustion, fluid physics, biotech-nology, and materials scienceexperiments can be undertaken in anenvironment that would otherwise beconsidered hazardous without the useof the Glovebox.

The MSFC broader integration task isthat of payload operations. NASA hasthe role of leading the InternationalPartners in the integration of SpaceStation operations, and the MSFCoperations team in the PayloadOperations Integration Center (POIC)at the Huntsville Operations SupportCenter (HOSC) has been delegatedcognizance over payload operations.At the international level, the teamperforms the planning and real-timecontrol functions of the POIC. For

U.S. payloads, there is a moredetailed role of integration to conductspecific operation of NASA’s onboardscience assets. To implement thesecapabilities, the mission operationsdevelopment team is providing newground system capabilities within thehistoric HOSC facility and the POIC,which provide innovative datasystems solutions that take advantageof new technologies for data process-ing and connectivity.

An important feature is theteleoperations concept which distrib-utes monitoring and the control ofscience payloads to the experimenterin a remote center. To that end, thedevelopment team has produced theTelescience resource Kit (TreK)solution which bundles command andtelemetry functions with voice andvideo connectivity into a PC-basedplatform. This innovation will begin anew era of commercial avenues forlow-cost telescience operations forNASA’s ISS science customers.

Looking to the future, the ISS willprovide the fundamental buildingblocks for space commerce such asspace solar power and commercialspace parks.

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Microgravity Research Program

As the Lead Center for NASA’s Microgravity ResearchProgram, MSFC manages microgravity research projects atMarshall and other NASA Centers. In accordance withNASA’s Strategic Plan, the Microgravity Research Programseeks to use the microgravity environment of space as alaboratory to advance knowledge, to explore the nature ofphysical phenomena contributing to progress in science andtechnology on Earth, and to study the role of gravity intechnological processes, building a scientific foundation forunderstanding the consequences of gravitationalenvironments beyond Earth’s boundaries.

The Significance ofMicrogravity

Gravity is such an accepted part ofour lives that we rarely think about it,even though it affects everything wedo. Any time we drop or throwsomething and watch it fall to theground, we see gravity in action.Although gravity is a universal force,there are times when it is notdesirable to conduct scientificresearch under its full influence. Inthese cases, scientists perform their

Onboard STS–73, USML–2: MissionSpecialist, Payload Commander,

Kathryn Thornton with Crystal GrowthFurnace (CGF).

experiments in microgravity, acondition in which the effects ofgravity are greatly reduced. This issometimes described as“weightlessness.”

A microgravity environment providesa unique laboratory in whichscientists can investigate the threefundamental states of matter: solid,liquid, and gas. Microgravityconditions allow scientists to observeand explore phenomena and processesthat are normally masked by theeffects of Earth’s gravity.

The challenge facing NASA’smicrogravity research program is touse space flight time wisely and toconduct the most scientificallypromising research possible. TheMicrogravity Research Program(MRP) is responsible for managing acomprehensive research programwhich is currently made up of fivemajor science research areas. Theseinclude biotechnology, combustionscience, fluid physics, fundamentalphysics, and materials science. TheMRP supports and coordinatesresearchers with a wide range ofbackgrounds, forming aninterdisciplinary microgravity sciencecommunity that conducts researchand disseminates the results of theprogram. The MRP also assists thescience community’s research throughthe development of suitable

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The Wake Shield Facility (WSF) is afree-flying research and development

facility that is designed to use the purevacuum of space to conduct scientific

research in the development of newmaterials. The thin film materials

technology developed by the WSFcould some day lead to applications

such as faster electronics componentsfor computers.

Biomedical research offers hopefor a variety of medical problems.

experiment instruments for selectedprojects and the selection of the mostsuitable vehicle for each experiment.

Microgravity ResearchAreas

Marshall is assigned authority andresponsibility to manage and executethe science diciplines of biotechnol-ogy and materials science. GlennResearch Center is assigned lead inareas of combustion science and fluidphysics, and the Jet PropulsionLaboratory is responsible for funda-mental physics.

■ Biotechnology—The NASAMRP’s Biotechnology disciplinefocuses on the development ofnew technologies to enhancecurrent biological research and toopen up new avenues of relatedresearch. As one of the mostdynamic segments of our hightechnology economy,biotechnology is playing anincreasingly important role inmedical research and thedevelopment of pharmaceuticaldrugs, agricultural research andproducts, and environmentalprotection. NASA’s microgravitybiotechnology programcontributes to three major areasof research which includefundamental biotechnologyscience, protein crystal growth,and cell and tissue culturing.

■ Combustion Science—Combustion has been a subject ofvigorous scientific research for

over a century. Studies ofcombustion are motivated byimportant public health andeconomic problems. Combustionprocesses directly cost in excessof $200 billion each year in theUnited States. Air pollution,produced in large part bycombustion-generatedparticulates, contributes toapproximately 60,000 U.S.deaths each year. Unwanted firescause approximately5,000 deaths, 26,000 injuries andcosts $26 billion in propertylosses yearly. The effects ofglobal warming and changes inthe ozone layer pose publichealth and economic problemsthat are potentially enormous. Wenow know that space offersunprecedented opportunities forcritical measurements needed tounderstand and resolve practicalcombustion problems.

■ Fluid Physics—Fluid physics isthe study of the motion of fluidsand the effects of such motion.Since three of the four states ofmatter (gas, liquid and plasma)are fluid and even the fourth(solid) behaves like a fluid undermany conditions, fluid physics isvital to understanding,controlling, and improving all ofour industrial as well as naturalprocesses. The engines used topropel a car or an airplane, theshape of the wings of an airplanethat allow it to fly, the operationof boilers that generate steamused to produce over 90 percentof the world’s electric power, andunderstanding how pollutants aretransported and dispersed in airand water are just a few examplesof how fluid physics affects oureveryday life.

A low-gravity environmentnearly eliminates buoyancy andsedimentation and providesscientists near ideal conditions toprobe into flow phenomena

otherwise too complex to studyon Earth. It also allows the studyof flows (such as surface tensiondriven flows) that are nearlycompletely masked in Earth’sgravity.

■ Fundamental Physics—Thefundamental physics researchprogram sponsors research whichexplores the physics governingmatter, space, and time. It seeksto discover and understand theorganizing principles of nature,including the emergence ofcomplex structures. Pursuit ofthis research will expand ourunderstanding of the world andthe universe and lay thefoundation for scientificbreakthroughs of the future.

The fundamental physicsresearch program currentlysupports research in three areas.These include gravitational andrelativistic physics, laser coolingand atomic physics, and low-temperature and condensed-matter physics. A fourth researcharea, high-energy physics, isbeing considered for support inthe future.

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A lysozyme crystal grown onSTS–81. It serves as a protein

model for documentation of theeffects of microgravity on crystal

growth.

(PCG) Protein Crystal Growth HorseSerum Albumin grown aboardSTS–50, USML–1. The most

abundant blood serum proteinregulates blood pressure and

transports ions, metabolites, andtherapeutic drugs.

■ Materials Science—Microgravity materials scientistsseek to use microgravity to studythe processes by which materialsare produced and therelationships between theformation of a material and itsproperties. To this end, theprogram attempts to advance thefundamental understanding of thephysics and chemistry associatedwith phase changes—when amaterial changes from one phase(liquid, solid, or gas) to another.The materials science programsupports both fundamentalresearch and applications-oriented investigations ofelectronic and photonic materials,glasses and ceramics, metals andalloys, and polymers.

A fundamental objective ofmicrogravity materials scienceresearch is to gain a betterunderstanding of how buoyancydriven convection andsedimentation affect theprocessing of materials. Inmicrogravity, these gravity drivenphenomena are suppressed,allowing researchers to study thephenomena that are obscured bythe effects of gravity and difficultor impossible to studyquantitatively on Earth. Forexample, in microgravity, thesignificant reduction of buoyancy

driven convection makes itpossible for scientists to studysegregation, a phenomenon thatinfluences the distribution of amaterial’s components as it formsfrom a liquid or gas.

Microgravity ResearchHighlights

Significant research activitiesoccurred in fiscal year 1998,primarily in two Space Shuttlemissions that saw the completion oftwo major activities. The following isa sample of these activities.

During FY 1998, the MRP conductedbroad, productive Earth-based andspace-based research. The fourthUnited States Microgravity Payload(USMP–4) mission was successfullycompleted in the final flight of thissuccessful series. Two studies focusedon the process of crystal growth ofadvanced, “solid-solution”semiconductor materials that serve asinfrared detectors. The growth speedand crystal size of a material thatserves as a model for industriallyuseful metals was measured for thefirst time, without the effects ofgravity. Joint American-Frenchresearch provided the first evidence ofcertain important crystal growthdriving forces in engineeringmaterials whose properties dependstrongly on crystallographic direction.Research using NASA’s bioreactorwas also carried out on the Neurolabmission (STS–90) providing the firstinformation on how microgravityaffects the functions of genes. Anexperiment carried out on STS–89provided a basic understanding of thephenomena that contribute toearthquakes and grain silo explosions.

Microgravity researchers measuredthe viscosity of the gas xenon towithin 0.6 micro-Kelvin of its criticaltemperature, 30 times closer than hasbeen achieved on Earth. This allowstesting of fundamental physical

principles of viscosity and fluidbehavior and allows extrapolation to alarger phenomena such as theweather, underground oil extractions,fluid transportation in a pipe,cryogenic fluids, andsuperconductors.

MRP’s activities in the NASA/MirScience Program were completed.Research operations in protein crystalgrowth using the Gaseous NitrogenDewar demonstrated the ability of thenew technique to screen a largenumber of crystal growth conditionsat a lower cost than prior Shuttlemissions. Crystals grown on Mir ofHuman Immunodeficiency Virus(HIV) protease inhibitors had betterresolution and quality than thosegrown on Earth, and may assistground-based researchers in definingthe structure of the protein which mayprove important in fighting the Auto

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Biotechnology research in ProteinCrystal Growth is leading to thedevelopment of new vaccines forfighting diseases.

The Light Emitting Diode CancerResearch Project is being nominatedfor one of Discovery magazine’s topstories of 1998.

Immune Deficiency Syndrome(AIDS) virus. Perhaps even moresignificant is the large number oftrials conducted growing “model”proteins. These efforts are helping touncover nature’s laws that governcrystal growth both on Earth and inspace. Analysis of this data willrequire 2 years and may lead toimproved crystal growth techniqueson Earth as well as successful growthon the ISS of important proteinsrelated to major diseases.

NASA and National Institutes ofHealth (NIH) cooperative activities totransfer the results of microgravityresearch to the biomedical communityis a major focus. Researchers at theNASA/NIH Center for Three-Dimensional Tissue Culture havealready produced the first in vitrotissue system which permits the studyof HIV pathogeneses inside humanlymphoid tissue. In addition, there arecurrently 15 ongoing projects at thecenter addressing a spectrum ofbiomedical research issues that theNIH identified as having the potentialto benefit from the NASA tissueculture technology. To furtheraccelerate NASA bioreactor researchon the culturing of human tissues,NASA has renewed this importantinitiative with the NIH for4 additional years.

Microgravity crystal growth providedthe ultra-high resolution of proteinstructure, Respiratory SyncyticalVirus (RSV). RSV infects nearly

CSC’s follow business leads andcommitments to pursue product-oriented research in three majordisciplines: materials research anddevelopment, biotechnology, andagriculture. NASA’s role in thispartnership is to provide leadershipand direction for the integratedprogram and to provide flightopportunities that are essential to thesuccess of these efforts.

The CSC’s have a unique role inassisting private business’ conduct ofspace research. They demonstrate toindustry the values of space research,and provide the expertise essential tosuccessful research in space. CSC’sfurnish an infrastructure that providesa cost effective and efficient way forindustries to conduct research inspace. The CSC’s initiate industryinvolvement by identifying andinvestigating research areas ofindustry-led commercial promise, andby assessing markets for thesepotential research opportunities. The

4 million children ages 1 to 5 eachyear. Approximately 100,000 of themrequire hospitalization and 4,000 dieannually. The virus is considered byphysicians to be the most seriousinfectious disease affecting infants inthe United States. The principleinvestigator (PI) is working with adrug manufacturer to allow them tomake the drug more effective.

Microgravity SpaceProduct Development

The Space Product Development(SPD) Program is charged withmeeting the goals in NASA’s charterand the strategic plan, to enable thecommercialization of space. This isaccomplished through facilitating thedevelopment of commercial productsand services derived from the uniqueproperties of space, encouragingNASA-industry technology dual useprojects, promoting industry’s use ofthe ISS for engineering research, andin supporting commercially fundeddevelopment of space researchinfrastructure elements and services.NASA is encouraging industry toseize this opportunity to ensure thecontinued economic growth of theUnited States and enableopportunities for new advances,technological understanding,products, and jobs to the public.

The goals of SPD are to facilitate theuse of space for commercial productsand services, and to use the uniqueattributes of space to conduct industrydriven research in which materials orknowledge developed in space can beused on Earth for the development orimprovement of a commercialproduct or service.

The SPD program is managed forNASA by the Microgravity ResearchProgram Office at Marshall. The SPDprogram is primarily implementedthrough Commercial Space Centers(CSC’s). Each CSC is a nonprofitconsortium of commercial, academic,and/or government entities. The

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Ford and other manufacturers haveimproved their casting products

through commercial microgravityresearch.

The USML–1 Glovebox is a multiuserfacility supporting 16 experiments influid dynamics, combustion science,

crystal growth, and technologydemonstration.

businesses support the research effortwith resources including funding,technical expertise, researchmaterials, personnel, ground facilities,and research hardware.

Microgravity SpaceProduct DevelopmentHighlights

During FY 1998, many productsenabled by SPD have successfullyprogressed through various stages ofdevelopment. A new treatment forinfluenza, developed with the aid ofinformation from space-growncrystals, continues to advance throughthe drug development and approvalprocess. BioCryst Incorporated, acommercial partner of the Center forMacromolecular Crystallography, hasteamed with Johnson and Johnson todevelop and market this drugworldwide. Preliminary testing showsthe drug to be effective againstinfluenza A and B viruses, withhuman clinical trials progressing.

Proleukin, developed by ChironCorporation through partnership withBioServe Space Technologies, hasbeen approved by the FDA for use intreatment of bladder cancer andmetastatic melanoma. It is now beingused in human clinical trials to test itseffectiveness as an adjunct treatmentfor AIDS. Myotrophin has beensubmitted by Chiron as a New DrugApplication to the FDA for use as atreatment of a neural degenerativedisease. The company is alsoevaluating it as a potential treatmentfor skeletal disorders, since flightresearch has demonstrated itseffectiveness in preventing the bonereduction that results from spaceflight.

Chagas disease, a parasite-borndisease that affects muscles like theheart, is receiving heightened interestthrough work done by the Center for

Macromolecular Crystallography.New studies made possible by thehigh quality protein crystals grown onthe Shuttle have resulted in significantadvances and possible treatments.

Improvements in plant growth LightEmitting Diodes by Quantum Deviceshas helped advance photodynamiccancer therapy, and improved andextended the lives of children withbrain cancer. The Center forCommercial Applications ofCombustion in Space has successfullysynthesized ceramic metalliccomposites that may provide asubstitute for human bone inreplacement surgery.

Ford Motor Company used materialsdata supplied by the SolidificationDesign Center (a CSC) to design new,high quality sand molding processesfor creating precision automotiveparts. This type of work is also beingdone for ALCOA and HowmetCorporation to help cast parts that aremore reliable and have lowerproduction costs. Brush WellmanIncorporated has successfullyproduced the world’s largestaluminum-beryllium casting with theassistance of ground-based castingdata and computational modelsdeveloped by the SolidificationDesign Center.

A special optical detector developedby the Space Vacuum Epitaxy Center(a CSC) may offer the hope of sightto people with a variety of eyeproblems. The detector is designed tobe implanted on the back wall of theeye to replace natural sensorsdamaged by disease or accident. Itconverts light into electrical signals inmuch the same way as rods and conesdo in a healthy eye. The impulses arethen picked up by the optical nerve.Preliminary testing has beensuccessful and efforts at commercialdevelopment are underway.

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Space Observatories and Space Science

Marshall’s involvement with space observatories began in thelate 1960’s with the development of the Apollo Telescope Mountfor Skylab and proceeded through the development of the threeHigh Energy Astrophysics Observatories in the 1970’s, theHubble Space Telescope in the 1980’s and the Chandra X-RayObservatory in the 1990’s. During this time they also developedthe Burst and Transient Source Experiment on the ComptonGamma-Ray Observatory.

Chandra X-Ray Observatory

The Chandra X-Ray Observatory(CXO) will scrutinize objects in theinvisible energy range of x-ray radia-tion. It will allow us to study the x-ray-producing births and deaths of stars andother, more exotic objects, such asblack holes.

MSFC is managing the developmentand operations of the CXO, formerlyreferred to as the Advanced X-RayAstrophysics Facility. The observatoryhas been renamed in honor of the lateIndian-American Nobel LaureateSubrahmanyan Chandrasekhar, whomade fundamental contributions to thetheory of black holes and otherphenomena that the CXO will study.

The CXO is a space-based observatorythat will provide a 10-fold gain inresolving power over previous x-raytelescopes. In May 1997 the HighResolution Mirror Assembly (HRMA)completed testing at the MSFC X-RayCalibration Facility and performedbeyond expectations. The HRMA wasthen delivered to the TRW Space andElectronics Group in Redondo Beach,CA, where the HRMA and the OpticalBench Assembly were integrated intothe telescope system.

During fiscal year 1998 at TRW, thetelescope was integrated with thespacecraft and the Integrated ScienceInstrument Module, resulting in acompletely assembled and integratedCXO. After integration, electrical andsystem-level testing was initiatedwhich included environmental testing

such as acoustic and thermal vacuumtests. The CXO successfully completedthese tests which assess performancein the simulated environment to whichit will be subjected during the ascentand on-orbit operational phase. Duringthe remainder of the year, activitiesfocused on completing the post-environmental electrical and system-level testing.

Marshall designed, built, and deliveredthe Operations Control Center (OCC)in FY98. The major focus at the OCC,which is under contract to theSmithsonian Astrophysical Observa-tory in Cambridge, MA, has been thepreparation of the flight operationsteam and the final preparations of theground command and control system.It is from the OCC that flight engineerswill control the spacecraft, transmitinstructions, and receive and processdata that are sent back to Earth.

The CXO is scheduled to be deliveredfrom TRW to Kennedy Space Centerearly in the next calendar year andlaunched in the summer of 1999. Thismission of discovery is planned to lastat least 5 years. Once in orbit, the CXOwill take its place among NASA’sother great observatories.

Space Science

During 1998, Marshall led a team toconfirm the magnetar theory. Underthis theory, the collapse of a star withan exceptionally strong magnetic fieldwould leave a rapidly rotating neutronstar with a magnetic field about1,000 times greater than that of normal

neutron stars. Using satellite instru-ments, research teams confirmed theexistence of the first 2 magnetars,opening a new branch of investigationsfor the CXO and other instruments.

Solar activity was a focus of Marshallscientists in FY98. Research concern-ing sunspot activity has helped in theunderstanding of geomagnetic storms,which can disrupt communications andpower systems on Earth and affectspacecraft operations. Solar activityalso drives the aurora borealis, thecurtains of green and red light concen-trated in the polar regions. The MSFCFar Ultraviolet Imager on the Polarspacecraft has helped answer questionssuch as the source and intensity ofenergy deposited in the auroral zones.Discoveries include a new auroralfeature near midnight, the indepen-dence of dayside and nightside auroralfeatures, and the auroral response tothe Sun’s coronal mass ejections.

In 1998, Marshall supported twoinvestigations under NASA’s new andinnovative Astrobiology Institute.Scientist will look for biomarkers,signs of life in soil and rocks, anddevelop methods to examine samplesso that indications of life or nonlife canbe obtained. Researchers use advancedtools such as the Scanning ElectronMicroscope and atomic-force micro-scope which are normally used tosupport engineering.

The Chandra X-Ray Observatorybeing installed on transporter.

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Space Optics Manufacturing Technology

In 1998, Marshall’s mission was expanded to include SpaceOptics Manufacturing Technology. The focus of the mission isthe development of the optics technology required to enablethe NASA missions of the 21st century. It involves the areas offabrication, metrology and testing, and although it supports abroad variety of programs throughout the Agency, it’s prima-rily aimed at supporting the science mission areas of theGoddard Space Flight Center (GSFC) and the Jet PropulsionLaboratory. The mission area leverages an extensive capabil-ity at Marshall which includes approximately $100 million inequipment and facilities and 100,000 square feet in facilitiesdevoted to the fabrication and testing of optics.

MSFC has a long history of develop-ing technology for the manufacture ofoptics for space-based systems goingback to the late 1960’s when theywere developing fabrication tech-niques for the manufacture of x-rayoptics. This led first to theSO–56 X-ray telescope in the Skylabprogram, then on to the High EnergyAstrophysics Observatory Series, andfinally to the most recent ChandraX-Ray Observatory. Also developedwere techniques for the polishing andfiguring of large optics as part of theLarge Space Telescope study pro-gram, which eventually evolved tobecome the Hubble Space Telescope.

FY98 activities included supportingthe Next Generation Space Telescope

magnitude lighter than the primarymirror for Hubble (2.4-meter diam-eter). The mirrors are being developedby the University of Arizona (2-meterdiameter) and Composite Optics Inc.(1.6-meter diameter). The AdvancedMirror System Demonstrator programwas also initiated. This is a historicprogram involving collaborationbetween NASA, the Air Force and theNational Reconaissance Office. Thepurpose of this effort is to demon-strate even more advanced light-weight optics than those of theNMSD program. In addition, anumber of systems studies wereundertaken including the examinationof micrometeoroid effects. Technol-ogy investigations were also under-taken in different mirror materialsincluding composites, silicon car-bides, and metals, particularly electro-formed nickel mirrors. Preparationswere also started for the modificationof the X-Ray Calibration Facility(XRCF) to accommodate the testingof the NMSD mirrors at cryogenictemperatures (30 degrees Kelvin).

Constellation X-RayMission

The NASA Strategic Plan for theSpace Science Enterprise identifiesthe Constellation X-Ray Mission as acandidate new start for the period2003–2009. With the completion ofthe mission-concept study, the projecthas entered the prephase-A period.Vital to the success of Constellation Xis the development of technologies for

(NGST) and Constellation X-RayMission (CXM) for the GSFC, andthe development of Fresnel anddiffractive optics for a number ofprograms. Optics were also fabricatedat Marshall for Cassini’s CompositeInfrared Spectrometer, the UltravioletImager (UVI), and the Solar X-RayImager (SXI). Cassini and UVI wererecently launched, and SXI iscurrently awaiting launch.

Next Generation SpaceTelescope

The NGST is envisioned as an8-meter diameter telescope operatingin the infrared. It will be capable oflooking back to a time when theuniverse was still young, bringing usimages of the formation of the firstgalaxies. Marshall has the responsibil-ity for the development of the opticstechnologies that will enable thismission. A number of efforts wereundertaken during 1998. The NGSTMirror System Demonstrator(NMSD) program involved thedevelopment of two technologydemonstrations of ultra-lightweightmirrors that, when completed earlynext year, will result in the largest,lightest mirrors ever to be developed,having areal densities of 15 kilogramsper square meter. This is an order of

Advanced lightweight electro-formednickel mirror for the Constellation X.

Advanced lightweight electro-formednickel mirror for the NGST.

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The X-RayCalibrationFacility locatedat Marshall.

achieving lightweight (factor-of-sixreduction in mass), high-resolutionx-ray optics.

MSFC’s full-shell replicated-opticstechnology program made significantprogress toward this objective. Thedevelopment of an electroplatednickel alloy of exceptional microyieldstrength, at least an order of magni-tude higher than conventionalelectroplated nickel, and a process forachieving low, uniform shell-to-mandrel interface adhesion contrib-uted to this effort. These twotechnological advances will allow therequired six-fold reduction in weight,while maintaining angular resolution.

To demonstrate the suitability of thistechnology for Constellation Xrequires the fabrication and x-raytesting of large (50- to 160-centimeterdiameter) optics. To this end, MSFChas put in place much of the requisiteinfrastructure including a 4.5-meterdiameter e-beam coating chamber, amodified AXAF automatic grinderand polisher to support figuring andpolishing of large mandrels, a verticallong trace profilometer for metrologyof large mandrels and shells, anupgraded diamond turning machinefor large mandrels, and a large platingfacility (to be completed in January of2000) for electroless plating largemandrels and electroforming largeshells.

Optical Systems Testing

Marshall’s X-Ray CalibrationFacility, the largest and most sophisti-cated laboratory for testing x-rayoptics, has the capability to send asingle x-ray into a test chamber inorder to measure the sensitivity of thecameras or instruments. In 1998 thefacility was inducted into the Ala-bama Engineering Hall of Fame.

A number of x-ray optical perfor-mance tests were conducted at theXRCF in FY98. The AXAF/Chandratest series was completed with the

final post-test characterization of thex-ray point source. Analysis of SolarX-Ray Imager–M (SXI–M) calibra-tion data indicated large differenceswith the predicted telescope perfor-mance. The SXI–M was recalibratedin February using the XRCF. Test datacollected at the XRCF was used tocharacterize the telescope with thehigh degree of confidence required tofly the instrument. In the June-Julytimeframe the XRCF engineeringstaff, in concert with the TechnologyTransfer office, worked with studentsfrom Brigham Young University todemonstrate the functional perfor-mance of their low-cost, student-developed GoldHelox solar x-raytelescope. The instrument wasassembled and x-ray optical perfor-mance data were successfullycollected. The test was a milestone forthe GoldHelox project. The first of aseries of x-ray characterization testsof replicated optics for the CXM wasconducted in September. A gold-coated graphite epoxy mirror built byDornier Satellite Systems was tested,and preparations for cryogenic optical

testing of large space optics wereinitiated for the NGST. Severalfacility concepts were studied,specifications developed, and acontract was initiated to procure ahelium refrigerator and thermalshroud to provide a 30 degree Kelvinoptical test environment.

Diffractive Optics

MSFC has recently completedparticipation in a cooperativeDiffractive Optics Technology projectsponsored by the Defense AdvancedResearch Projects Agency. Theproject was a cooperative effortbetween five industrial participants,the U.S. Army Aviation & MissileCommand (AMCOM), and MSFC.MSFC and AMCOM worked jointlyon a contributing task with objectivesto search for and identify existing andpotential candidate military and spacescience systems well suited fordiffractive optics technology inser-tion, and to develop a precisiondiffractive optical “mastering”technique, via direct write electronbeam lithography. The team deliveredmicrolens array masters to membersfor replication and test-bed insertion.

Testing of advanced graphite epoxyx-ray mirror manufactured by Dornier.

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Global Hydrology and Climate Center

The Global Hydrology and Climate Center’s (GHCC’s) manyareas of study are closely related to each other. Like theclimate and environment, no one aspect stands alone, allconnect in a complex, interactive Earth-atmosphere system.This is what makes our work both challenging and intriguing.GHCC researchers are working together toward a future ofimproved hurricane and severe storm prediction, more reli-able day-to-day weather forecasts, and better urban planning.

GHRC producesglobal summaries

of lightning strikes.

Researchers at the GHCC havecreated several important climaticdatasets. The longest of these is a20-year dataset of global temperaturechange from the Microwave Sound-ing Unit. Also created were 1 year oftropical lightning data measured bythe Lightning Imaging Sensor onboard the Tropical Rain MeasuringMission satellite, and 3 years ofglobal lightning data compiled fromthe Optical Transient Detector aboardthe Micro-Lab 1 satellite. Thelightning detectors are helping to pavethe way for a future space-basedlightning mapper. The future mappercould deliver day and night lightninginformation to a forecaster’s worksta-tion within 30 seconds of occur-rence—providing an invaluable toolfor storm “nowcasting” and givingpeople more advance warning ofsevere storms.

As part of an Atlantic hurricane andtropical storm study, CAMEX–3, aNASA crew flew a DC–9 aircraft intothe eye of Hurricane Bonnie forpurposes of weather research. TheGHCC provided the science lead aswell as several instruments to thestudy. Preliminary design wascompleted for SPAce ReadinessCoherent Lidar Experiment(SPARCLE), a Space Shuttledemonstration of Doppler wind lidartechnology. GHCC researches arestudying some of the country’s“hottest” cities. They are usingthermal images to pinpoint a city’shot spots. The images are being usedto improve urban planning and treeplanting plans. The researchersbelieve strategically placed “urbanforests” and reflective surfaces mayhelp cool cities, reduce pollution andlower energy bills. The efforts ofGHCC personnel resulted in aMemorandum of Understandingbetween NASA and Central AmericanCommission on the Environment andDevelopment (CCAD) which wassigned by Dan Goldin to conductcooperative remote sensing researchfor a biological corridor throughoutCentral America.

Preliminary design was completed forSPAce Readiness Coherent Lidar

Experiment (SPARCLE).

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InstitutionalHighlights

In 1998, MSFC implemented several institutional initiativeswhich supported the NASA Strategic Plan and the MSFCpolicy to provide quality products and services to ourcustomers. MSFC’s commitment to safety, to the organizationof policies and standards, implementation of a “process”approach for management of all programs, acceptance ofaccountability for all resources, and MSFC compliance withvarious Federal requirements are highlighted in the followingexamples.

Safety

In September 1998, Marshall markeda work stand-down to dedicate theentire day to safety awareness. Withthe exception of mandatory servicessuch as fire, security, and cafeterias,all work was suspended to allowpersonnel to attend Safety Dayactivities. During the day employeesviewed local safety vendor productsat a Safety and Health Fair. Visitingastronauts and Center Managersparticipated in informal tours of theCenter. Employees attended plannedorganizational activities where theywere challenged to consider how theirjobs affect the safety of flighthardware, how their workenvironment could be safer, and howto improve their personal safety.Center Management is committed tototal involvement of the MSFCworkforce in eliminating mishaps atwork and away from work.

In FY98 Marshall initiated theNeighborhood Watch program. Thisprogram assigned managementaccountability for every space atMSFC and established an area

committee for oversight of safety,environmental health, andenvironmental management.

To assure continued improvementMarshall contracted with DuPont, theworld leader in safety management, toassess and benchmark the MSFCsafety program against the DuPontsystem. Resulting initiatives include anew safety organizational committeestructure chaired by the CenterDirector, augmented training toimplement safety focus which ensuresline management and employeeresponsibility and accountability, anda line management safety auditingprogram.

International Organizationof Standards (ISO 9001)

In February of 1998, MSFC wascertified to the ISO 9001 Standard ofthe International Organization ofStandards. This certification appliesto all on-site processes for procure-ment, design, development, and onsiteproduction of flight hardware, flightsoftware, and associated groundsupport equipment interfacing with

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flight hardware and software.Marshall has received one RegistrarSurveillance since the Februaryregistration with no major problemsidentified. With the success ofimplementing ISO at MSFC and as aresult of the benefits received, MSFCManagement has decided to expandthe scope of the ISO managementsystem to include all activities here aswell as off-site locations. MSFC’sincreased registration goal is May2000.

NASA Program andProject Management

The April 1998 implementation ofNASA Program and Project Manage-ment Processes and Requirements(NPG 7120.5A) was a milestonerevision to an existing NASAHandbook (NHB 7120.5) whichdescribed how to manage majorprograms and projects within NASA.The revision of this documentdescribes a “process” approach,which defined what must be accom-plished to manage our programs andprojects. The revision definedguidelines and requirements thatcould be applied to any NASAprogram or project that provideaerospace products or capabilities(i.e., space and aeronautics, flight andground systems, technologies, andoperations) consistent with size,complexity, criticality, and risk and beutilized within the operating frame-work of any NASA Center. MSFCmade significant contributions to thewriting, review, and finalization ofNPG 7120.5A through MSFC’sassignment to chair the ProgramManagement Council Working Group(PMCWG) which reports to

Jack Dailey, Chairman of the NASAProgram Management Council andNASA Deputy Administrator. ThePMCWG included members fromseveral NASA Headquarters Officesand Centers. The implementation ofNPG 7120.5A across the Agencysince its approval has been extensive.Every NASA Center has been given apresentation by a team of SeniorNASA Managers lead by the NASADeputy Administrator. In addition, aone and one-half day training courseis currently being presented at everyNASA Center.

The Marshall Space Flight Centermade major contributions to thesuccess of this Agencywide activitythrough the leadership of its seniormanagement, contributions ofnumerous program and projectmanagers within the Center, and ourrole as a leader in developing pro-gram/project training initiatives.

Earned ValueManagement (EVM)

The Government Performance andResults Act (GPRA) requires greateraccountability for expenditures of theFederal Budget. EVM has beenrecognized by the Office of Manage-ment and Budget (OMB) as theprimary means for Project Managersto establish baseline goals andmeasure cost, schedule, and technicalvariances against them. In August1996, MSFC was awarded theAgency Lead Center Responsibilityfor EVM. MSFC conducted asuccessful Agencywide EVMWorkshop in 1998 to discuss EVMpolicy, procedures, and traininginitiatives. The EVM Focal Point

Council, consisting of representativesfrom all NASA Centers, will continueits efforts to implement EVM in aconsistent manner across the Agencyin FY99.

Integrated FinancialManagement Program

During 1998 MSFC continued towork toward the implementation ofNASA’s Agencywide IntegratedFinancial Management (IFM) System.The IFM System will provide Agencyfinancial and procurement standard-ization currently required by FederalRegulations and Policies.

NASA Acquisition InternetService

The NASA Acquisition InternetService (NAIS) continued to “pushthe envelope” in pioneering theInternet for the Federal acquisitionprocess in 1998. After a long anddemanding audit, NASA’s electroniccommerce model gained a strongendorsement by the General Account-ing Office (GAO) and the Administra-tor of the Office of Federal Procure-ment Policy (OFPP) within the Officeof Management and Budget (OMB).Consequently, a major Federal-widedeployment of this model, to adver-tise business opportunities and solicitcontract offers over the Internet, isnow underway. Moreover, the OFPPis pursuing legislative relief fromcurrent mandatory waiting periods inthe solicitation phase, which werewritten around the old, paper-basedprocess. This relief should serve asthe incentive encouraging otherFederal agencies into thenewlychartered territory with NASA.

The Agencywide service, under theleadership and technical expertise ofMSFC, continued to achieve suc-cesses in 1998. The NAIS teamdeployed its second pilot enablingindustry responses to solicitations.The Agency is now testing two

The NAIS continued to “pushthe envelope” in pioneering

the internet for the federalacquisition process in 1998.

23

approaches for receiving industryresponses, including a web-basedforms process allowing vendors toquote on-line for agency requirementsof commercial products, and asecured, on-line process allowingprospective offerors to submitbusiness-sensitive proposals withdigital signatures. In addition, theMSFC technical team developed andimplemented an on-line tool enablingthe procurement staff throughout theAgency to share contract servicesamong the Centers under the Consoli-dated Contracting Initiative (CCI).For example, a Center can use theCCI application to identify andcoordinate the use of a planned orexisting contract for paper-copyingservices administered at anotherCenter, thereby avoiding a time-consuming procurement cycle.

Year 2000

Year 2000 (Y2k) has been a majorfocus of MSFC during the year.Significant progress was made inmaking Marshall Y2k compliant.Many of the administrative and thescience and engineering applicationswere renovated, validated andimplemented. The Agencywidelegacy applications, for which MSFChas sustaining engineering responsi-bility, were also renovated, validatedand implemented. All of the datareduction systems were included.Significant progress was also accom-plished in making the desktopcomputers Y2k compliant. MSFC isthe lead center for IBM Mainframecomputing and Principle Center forCommunications Architecture(PCCA). Many commercial off-the-shelf software products were vali-dated for these areas.

Outsourcing DesktopInitiative in NASA (ODIN)

In 1997 the Agency committed to aconsolidated outsourcing initiative forInformation Technology (IT) services.

In 1998 these services were competedand on October 30, 1998, OAOCorporation of Greenbelt, MD, wasselected to provide IT services for thefour Office of Space Flight Centersunder ODIN. This is a firm fixedprice delivery order contract and theperiod of performance for theMarshall Center is May 1, 1999,through November 30, 2001. Thetotal value of MSFC’s delivery orderis $41.7 million. The services forMSFC include comprehensivedesktop computer, server, and localarea networks.

Digital Television (DTV)

The Federal CommunicationsCommission (FCC) adopted a DTVtransmission standard in December1996. In April 1997, the FCC issued atransition schedule which calls forDTV transmission to begin in 1999with analog transmission ending in2006. MSFC has the lead responsibil-ity for the Agency’s transition toDTV. In 1998 MSFC led the estab-lishment of a NASA-wide DTVworking group with representationfrom each Center, Headquarters, andthe Space Shuttle and Space Station

Programs. The working group collectsand reviews technical requirements,budget estimates, industry standards,and architecture recommendations. Inaddition, the working group coordi-nates activities between programs andCenters, and advises senior Agencymanagement. A Program Commit-ment Agreement (PCA) and ProgramPlan have been prepared and arepending approval. Once approved, itrequires implementation of DTV ateach Center by 2004, with emphasison a capability for acquiring, editing,and distributing DTV to the media,and implementation of DTV from onorbit. The PCA calls for each Enter-prise and Center to establish an initialDTV production capability at eachCenter, Headquarters, and the JetPropulsion Laboratory as early as2000 and to complete the effort nolater than 2004. In 1998 an initialschedule was established and fundingrequirements identified. Individualimplementation plans have beensubmitted for initial DTV capabilitywhich will in turn refine the DTVschedule and funding sources.

In 1998 MSFC led theestablishment of aNASA-wide DTVworking group withrepresentation fromeach Center, Head-quarters, and theSpace Shuttle andSpace StationPrograms.

24


PublicOutreach

Marshall is one of NASA’s premier Centers. Our employeesand world-class facilities make Marshall a true, nationalresource. With our roots linked to Wernher von Braun’s rocketteam of the past, the people of Marshall are continuing toreach for the stars to better understand the universe and theworld we live in.

Marshall is the world leader inproviding access to space and in theuse of space for research anddevelopment to benefit humanity.Through the everyday efforts of adedicated workforce, the Center isstriving to keep America the world’sleader in space transportation andspace sciences making life better forall of us here on Earth.

The following information isprovided to inform readers aboutsome of the many benefits currentlycoming from the United States spaceprogram and about the contributionsthe Center is making for America’sfuture. Technologies that take us tothe stars today are the engines thatdrive America’s future.

Understanding Earth’sClimate-GoldHeloxTelescope

Brigham Young University students inProvo, UT, understand what it is liketo see something through frombeginning to end. More than a decadeof effort by over 200 studentsculminated this summer as studentsworked with MSFC engineers toprove their solar telescope worked.The telescope is called GoldHelox—a name that comes from the Sun’sgolden color and its ability to makeheliocentric observations in x-rays. Itis designed to be flown aboard afuture Space Shuttle mission. Aboardthe Shuttle, the telescope can detectsolar x-rays obscured by the Earth’satmosphere. The tests at Marshallshowed GoldHelox optics will detectx-rays and image them on film. TheGoldHelox science objective is to

detect x-rays emitted during solarflares and observe other solaractivities that affect Earth. Variationsin solar activity influence Earth’sclimate and weather patterns and candamage both space-and ground-basedcommunications and power systems.

Digital Data Matrix—NextGeneration Bar Codes

Today, when a defect in a particularbatch of auto parts is discovered, itbecomes necessary to recall thou-sands of vehicles for inspections.With digital data matrix identifica-tion, the vendor has all the informa-tion needed to determine accuratelyand automatically the extent of therecall. Digital data matrix technologyused to identify the millions of SpaceShuttle parts is being commercializedto make barcoding tamper resistantand invisible to the naked eye. Thistechnology can fill a growingcommercial industry need as anidentification system that can beapplied directly to a product, regard-less of shape, size, or color. Themarkings can range from as small as4 microns to as large as 2 square feet.The invisible and virtually indestruc-tible laser-etched markings are seenas the next generation of the productbar codes.

Technology to Clean UpOil Spills

An Alabama hairdresser’s flash ofinspiration may hold the key to futureoil spill clean-ups. The inspiration ledto the idea of using human hair toclean up major oil spills. The hair-

25

dresser, also the President of BEPS,Inc., first tested the technique using asmall swimming pool, used motor oil,and a pair of pantyhose stuffed withhuman hair. Under terms of a SpaceAct Agreement, MSFC collaboratedwith BEPS, Inc. of Madison, AL, toofficially test the novel technique.Initial testing was done by Marshallcontractor BAMSI, Inc., using a 55-gallon drum containing 40 gallons ofwater and 15 gallons of oil. In a singlepass of the hair, the water containedno more than 17 parts per million ofoil. The U.S. Environmental Protec-tion Agency allows discharge of waterthat has 15 parts per million of oil.There is also a potential cost savingsin the new method. Present tech-niques cost approximately $10 torecover a gallon of oil. This systemmay cost as little as $2 per gallon andoffers the additional benefit of beingable to use the recovered oil for fuel.

VISAR—Clear VideoImagery

Law enforcement officials around thecountry may soon have help whensolving crimes. Video Image Stabili-zation and Registration (VISAR), aMSFC technology, is a new conceptin clear video imagery. The VISARtechnology improves the clarity ofvideo footage by correcting distortioncaused by adverse conditions. Thistechnology stabilizes camera rotationand zoom effects, produces clearerimages of moving objects, smoothesjagged edges, enhances still imagesand reduces video noise or snow.After the footage has been cleaned upit can be further enhanced throughsharpening and de-blurring tech-niques. In a demonstration, VISARwas able to accurately clarify alicense plate of a car involved in a carchase. Marshall’s Chief Council hasfiled a provisional patent for VISARand the Technology Transfer Office isnow seeking to commercialize thetechnology via licenses to U.S.companies.

Fastrac—American-MadeEngine—Better, Faster,Cheaper

Fastrac is only the second American-made rocket engine developed in thelast 25 years. It is a true reflection ofNASA’s new philosophy of better,faster, cheaper. It is designed to costapproximately one-fifth of the cost ofother engines of similar size andperformance. NASA envisions use ofthe Marshall designed engine for bothNASA mission needs and commercialmarkets.

Technology Transfer

Through the Technology TransferProgram, NASA employs a variety ofmechanisms to transfer aerospacetechnology to other sectors of theeconomy. The benefits of technologytransfer touch each of us every day.Whether it be advances in medicalresearch, improvements in environ-mental protection, or gains in energyconservation, our alliances with theprivate sector have a profound effecton our quality of life.

BizTec—BusinessTechnologyDevelopmentCenter

It is tough to get a business up andrunning, but with a little help even thesmallest company may survive.Marshall Space Flight Center haspartnered with Business TechnologyDevelopment Center, Inc. (BizTech)to nurture small, high-technologyoriented businesses through theirvulnerable years. BizTech is a not-for-profit business incubator and issupported by an alliance that providesmatching funds to construct andoperate the incubator. In addition toMarshall, other members of thealliance include the Tennessee ValleyAuthority (TVA), the State ofAlabama Department of Economicand Community Development

(ADECA), and the City of Huntsville.The incubator provides an affiliateprogram for nonresident clients and amentoring program. Marshall ishelping to nourish and encourage thegrowth of new, high technology firmsin Huntsville and Madison Countythrough its partnership and financialsupport of BizTech.

Socioeconomic Programs

The Socioeconomic Program is afunction within the MSFC Procure-ment Office. This office plans,implements, and administers thesocioeconomic programs to advocatecontracting diversity. During FY98,MSFC achieved all of its socioeco-nomic goals. Its performance againstthe goals are small business direct(141.1 percent of goal), smalldisadvantaged business direct(136.9 percent of goal), woman-owned business direct (132 percent ofgoal), small business subcontracting(100.2 percent of goal), smalldisadvantaged business subcontract-ing (115.5 percent of goal), and,woman-owned subcontracting(131.3 percent of goal). The Agency’scongressional goal is 8 percent.MSFC reached the 10 percent levelduring FY98 and this is the first timeto reach the double digit level.

Special initiatives implemented in1998 included the Suppliers StreetMarket, a marketing method wherebysmall suppliers display their products/services at the Center and gainexposure to the internal purchasingmarket, especially the growing creditcard purchasers. Also initiated was aSmall Business Introduction ReviewForum for developing businesses.New businesses are introduced to theCenter at the MSFC Small andMinority Business Council meetings.The Council membership is the seniormanagement and directorates of thecenter. Five small businesses wereprofiled and reviewed in this forum.

26


Open Houseguests pushbuttons thatmake things

happen atMarshall.

Significant increases in the level ofsubcontracting goals were included innew subcontracting plans this year. Akey to improved subcontractingopportunities for targeted businessgroups was the factoring of goals oncontract value.

Significant outreach activity for theyear was the Southeastern Area SmallBusiness Council Sunshine SmallBusiness Fair, the National ContractManagement Association WorldCongress Expo, and support of theMinority Enterprise Developmentweek.

Open House

On May 16, 1998, more than26,000 people took a special lookinside the Marshall Center, wheredreams leap from drawing boards androcket into space. Guests journeyed

deep inside the labyrinth of Marshalllaboratories and test facilities for arare glimpse of where Marshallscientists and engineers turn theirdreams into reality, using spaceexploration to improve the health andquality of life for people on Earth.Memorabilia, photos, and commemo-rative items were on display incelebration of the 25th anniversary ofSkylab, America’s first space station.Astronauts were available throughoutthe day for autograph signing and toanswer questions asked by our guests.A one-of-a-kind space ride called“Morphis” took riders to Mars andbeyond. Live test firings shook theground under guests’ feet routinelyduring the day. There were miniaturerocket launches and a robot whoroamed about striking up a conversa-tion with anyone who would talk withhim.

Educational Programs

In its more than 38-year history, theMarshall Center has always placed ahigh priority on education, both withstudents in the community, through-out the country and with our employ-ees. Our support of the educationalcommunity is looked upon as aninvestment in America’s future.

In its educational programs, theMarshall Center endeavors to supportand facilitate the educational commu-nity by providing content and serviceswhich furnish access to and meaning-ful involvement in NASA missionsand consequently its achievements.We involve the educational commu-nity in our endeavors to inspireAmerica’s students, create learningopportunities, and enlighten inquisi-tive minds. These efforts are directedtoward ensuring the continuedavailability of scientists and engineersrequired to preserve our leadership inaerospace science and technology.

In FY98, the Marshall Centerinvolved academia through its formaleducational programs and services.MSFC’s educational programs coverthe spectrum from elementary schoolto graduate school and beyond. InFY98, we directly touched more than416,774 students, 42,685 educators,and 663 institutions in 50 statesthrough the operation of our pro-grams. Also $6.73 million of researchequipment was donated and $125million was awarded through grants,contracts and cooperative agreements.One hundred-fourteen research grantstotaling $24 million were awarded toAlabama institutions. We now have inplace program objectives that ensurewe maximize our limited resourcesand expand the delivery of programsand materials to the broadest possibleaudience through appropriate use ofeducational technologies.

NASA Spacelink, NASA’s electronicresource for educators, is operatedfrom MSFC. The system, designed

The MorphisMovie Ride wasa hit, attracting

long waitinglines at the

MSFC OpenHouse.

27

A 1998 teacher workshop in theERC located at the U.S. Spaceand Rocket Center in Hunts-ville, AL.

1998 spaceweekactivities with astronautRoger Crouch at EastClinton ElementarySchool.

primarily for educators, is availablethrough the World Wide Web. Duringany given month, Spacelink receivesover 4 million “hits” and routinelydelivers over 21 gigabytes (GB) ofdocuments, images or other electronicfiles. Users of Spacelink rangeworldwide.

Educator Resource Centers(ERC’s) are located near or on NASAField Centers, and offer a variety ofNASA-related educational materialsin several formats. The MSFC ERC islocated at the Space and RocketCenter. During FY98, 8,282 educatorsbenefited from the ERC resources,and 144,749 educational publicationswere mailed to educators.

■ PreCollege Programs—TheProject LASER (LearningAbout Science, Engineeringand Research) program recorded352 instances of MSFC volun-teers making presentations,holding workshops, serving asscience fair judges, conductingtours of MSFC facilities, andbeing study buddies and mentorsfor students with special needsand/or interests. Through thesevolunteers 15,834 students,1,266 educators from 14 institu-tions in 2 states were effected.The Project LASER program isavailable for preschool throughhigh school students and teach-ers, including a special class forhigh school hearing impairedstudents.

The Aerospace EducationServices Program (AESP)provides the services of aspecialist in aerospace educationto schools and educationalorganizations. The specialisttypically spends a day at a schoolconducting educational presenta-tions and space-related demon-strations to students. Specialistsare also available to participate inteacher workshops and in-serviceprograms. During FY98, educa-

tion specialists from the MarshallCenter conducted programs to29,347 students, and 2,153 teach-ers at 200 institutions in10 states. In March, AESPsupported Alabama AerospaceWeek, a week-long emphasis onaerospace education sponsoredby the Alabama EducationAssociation. NASA educationspecialists visited 39 schools inthe state.

The Summer High SchoolApprenticeship ResearchProgram (SHARP) is a NASA-wide, research-based, mentoredprogram, specifically designed toincrease qualifiedunderrepresented high schoolstudents an opportunity toparticipate in an intensive scienceand engineering apprenticeshipprogram. Students selected musthave shown an aptitude for andan interest in science andengineering careers. The 9-weekprogram offers the students anopportunity to learn and earn.During fiscal year 1998, 32 stu-dents representing 13 institutions

in Madison County, AL, partici-pated in the apprenticeshipprogram.

NASA Educational Workshopfor Mathematics, Science, andTechnology Teachers(NEWMAST) is conducted eachsummer. In FY98 25 teachersrepresenting 13 states partici-pated in this 2-week on-siteprogram. Program participantsvisited MSFC research anddevelopment laboratories wherethey gained insight to helpdevelop and enhance science andmathematics instructional skills.

■ University Programs—TheAnnual Moon Buggy Competi-tion gives undergraduate andhigh schools students fromaround the nation an opportunityto apply engineering skills, and itenhances awareness about humanexploration and development ofspace. Each team builds a moonbuggy from their own design,recreating the lunar experience ofthe Apollo astronauts and lookingahead to further human explora-

28

MSFC FY 1998 Annual Report1998 Moon

Buggy Race atthe U.S. Space

and RocketCenter in

Huntsville, AL.

tion of the solar system. DuringFY98 there were 16 competingteams, consisting of 80 students(3 high schools, 8 undergradu-ate), and 23 educators (3 highschool, 8 undergraduate) repre-senting 11 institutions in 10states.

The Graduate Student Re-searchers Program (GSRP)awards fellowships each year topromising U.S. graduate studentswhose research interests coincidewith NASA’s mission. MSFCawarded 39 GSRP fellowshipsinvolving 15 institutions in 11states during FY98; 11 of thoseawards went to students enrolledin Alabama institutes of highereducation.

The Summer Faculty Fellow-ship Program (SFFP) awardsresearch fellowships to universityfaculty through the NASA/American Society for Engineer-ing Education SFFP. The 1998MSFC program had a total of72 participants from 40 institu-tions and 21 states. Six facultyfrom Alabama universities wereparticipants.

Space Grant Colleges/Consor-tia have been designated toprovide leadership and formpartnerships with other universi-ties, government and industry tobetter understand, develop, anduse space resources through

research, education, and publicservice functions. Alabama SpaceGrant Consortium funding wasapproximately $248,500 with41 students and 6 Alabamauniversities participating.

The National Research Councilconducts a national competitionto identify outstanding recentpostdoctoral scientists andengineers and experienced seniorscientists and engineers fortenure as guest researchers atNASA Centers. In 1998, theMSFC had 11 Resident ResearchAssociates working at the Center.

The NASA/University JointVenture (JOVE) Program is apartnership between NASA andinstitutions of higher education.It is designed to include liberalarts colleges, and public andprivate universities throughoutthe U.S. In 1998 there were 100educators, and 183 studentsrepresenting 67 institutions in 36states. Four Alabama collegeswere involved in the JOVEProgram.

■ Education Alliances—Educa-tional alliances are responsiblefor using NASA’s unique assetsto support all types of learning bycollaborating with nonprofiteducational organizations andbusiness partners. We provideeducational programs andexhibits at the Center for Bio-

spheric and Educational Research(CeBER), located at the Hunts-ville and Madison CountyBotanical Garden. A number ofMarshall employees serve asvolunteer guides and instructorsat the North Alabama ScienceCenter, a hands-on educationalmuseum that opened its doors inearly 1997. We support exhibits,tours, and Space Camp programsat the U.S. Space and RocketCenter; we provide specialinstruction programs for theHuntsville City Schools’ NewCentury Technology Demonstra-tion High School; we helpdevelop and distribute sciencelearning materials through theHands-on Alliance for ScienceProject (HASP); we conductworkshops throughout Alabamafor NASA’s Global Learning andObservations to Benefit theEnvironment (GLOBE) program;and we are active participants inthe Huntsville-Madison CountyChamber of Commerce efforts toinvolve local businesses in theeffort to improve our educationalsystem and celebrate AmericanEducation Week. All of ourpartnership efforts are driven bythe Marshall Center’s commit-ment to serve the community.

Marshall’s EconomicContributions

Marshall in Huntsville contributed$722 million to Alabama’s economyduring FY98 that ended last Septem-ber. This figure includes $223 millionin salaries for civil service personneland related costs, and travel. It alsoincludes $499 million spent on locallyprocured services, prime and subcon-tractor support, local construction andreimbursable activities performed forother Federal agencies, privateindustry, and foreign governments. Inaddition, approximately $66 millionin retirement annuities were paid to2,511 Marshall retirees residing in

29

Alabama, with some $39 million ofthat going to 1,487 retirees living inHuntsville. Additional NASA funding(approximately $220 million) wasspent locally for ISS hardwaredevelopment by Boeing-Huntsville.During fiscal year 1998 the MarshallCenter received approximately17 percent of NASA’s total budget of$13.6 billion. Of Marshall’s $2.3 bil-lion allocation, $1.26 billion wasspent for Human Space Flightactivities, $687 million went forScience Aeronautics and Technology,and the balance—$380 million—wasspent on mission support at Marshalland other sites across the country. The$722 million spent in Alabama by theMSFC was more than its expendituresin any other state. California receivedapproximately $568 million,$313 million was spent in Utah,$287 million was spent in Louisianaand $132 million in Florida. Smallersums were distributed among otherstates. Since it was established in1960, the Marshall Center has hadbudget responsibility for a total of$62.6 billion. When year-by-yearfigures are adjusted for inflation, thistotal is equivalent to more than $161billion in 1998 dollars.

The Marshall Center has paid$4.6 billion in Federal salaries duringthe past 38 years. During FY98 therewere 2,822 civil service employeesworking to support Center work.During the past fiscal year, approxi-mately 25,106 contractor personnelwere engaged in work for the Center,including 2,753 in mission support;9,539 on prime contract work; and12,814 as subcontractors and vendors.Of the total, 6,404 work in Alabama.An additional 1,606 contractors wereassociated with International SpaceStation work being done by Boeing inHuntsville, and other Agency con-tracts not previously mentioned.

In FY98, 203,493 individuals touredMSFC including educators, civic,conference and symposia visitors, andnews media. Of these visitors,

170,557 toured the Center as part ofthe Space and Rocket Center’s bustour program. An additional26,000 visitors toured the Center onMay 16, 1998, as Marshall opened itsdoors to the public. Marshall’semployees pledged $442,004 to theCombined Federal Campaign in 1998,with $253,501 designated for agen-cies in Alabama. These figures do notinclude contributions from Marshallretirees or contractor employees whocontributed directly to the UnitedWay Campaign.

Marshall employees paid approxi-mately $6.1 million in Alabama stateincome taxes and $30 million inFederal income taxes in fiscal year1998.

Other Facts About MSFCin FY98:

In December 1997, the MarshallContractor Excellence Awards for1997 were presented to Boeing/Rocketdyne, Distributed InformationSystem, Boeing/McDonnell Douglas,Sverdurp and Summa Technology.

In January 1998, Marshall joined withthe NASA in observing the Agency’s40th anniversary. Officially NASAwas formed on October 1,1958, anddesignated to manage the U.S. spaceprogram.

MSFC’s X-Ray Calibration Facilitywas inducted into the State ofAlabama Engineering Hall of Fame inFebruary 1998.

Marshall was selected as the firstNational Society of Black EngineersGolden Torch Award winner in March1998. The award was based onGovernment Diversity Leadership.

And in September 1998, Dr. Wernhervon Braun, who served as the firstdirector of the Marshall Center from1960 to 1970, was inducted into the

Alabama Men’s Hall of Fame at aceremony in Birmingham, AL.

WWW

Visit the following web sites foradditional information. Other sitelistings can be found through theNASA/MSFC homepages.

The NASA Homepage:http://www.nasa.gov/

The MSFC Homepage:http://www1.msfc.nasa.gov/

The NASA CFO Homepage:http://ifmp.nasa.gov/codeb/

The MSFC CFO Homepage:http://www.msfc.nasa.gov:80/online/cfo/cfo.html

MSFC Education ProgramsHomepage:http://www.msfc.nasa.gov/education/

NASA Spacelink:http://spacelink.msfc.nasa.gov/.index.html

NASA Solutions—TechnologyTransfer:http://techtran.msfc.nasa.gov/

Liftoff to Space Exploration:http://liftoff.msfc.nasa.gov/

30


Overviewof FinancialStatements

MSFC’s financial statements were prepared in accordancewith Federal accounting standards. At present, MSFCobserves the following hierarchy of accounting standards asrequired by the Office of Management and Budget (OMB):

a. Individual Federal Accounting Standards Advisory Board(FASAB) standards published by OMB, GAO, and Treasury

b. OMB financial statement form and content guidance

c. Agency accounting guidance which represents prevalentpractice

d. Accounting principles published by other authoritativesources.

The financial statements include theStatement of Financial Position andthe Statement of Operations andChanges in Net Position. Thesestatements include all MSFC activi-ties and 100 percent of the Center’sbudget authority. While the state-ments have been prepared from thebooks and records of MSFC, inaccordance with formats prescribedby OMB Bulletin 94-01, the state-ments are different from the financialreports used to monitor and controlbudgetary resources which areprepared from the same books andrecords.

The statements should be read withthe realization that they are for acomponent of a sovereign entity, thatliabilities not covered by budgetaryresources cannot be liquidatedwithout the enactment of an appro-priation, and that payment of allliabilities, other than for contracts,can be abrogated by the sovereignentity.

NASA’s budget was funded by threeappropriations. The Human SpaceFlight (HSF) appropriation providesfunding for the International SpaceStation and Space Shuttle programs,

including flight support for coopera-tive programs with Russia. TheScience, Aeronautics and Technology(SAT) appropriation provides fundingfor NASA’s research and develop-ment activities, including all scienceactivities, global monitoring, aeronau-tics, technology investments, educa-tion programs, missioncommunication services, and directprogram support. Funding forNASA’s civil service workforce,space communication services, safetyand quality assurance activities, andfacilities construction activities, topreserve the Agency’s core infrastruc-ture, is provided by the MissionSupport (MS) appropriation.

Beginning with the fiscal year 1995budget, the HSF, SAT, and MSappropriations replaced the fourappropriations that were previouslyused to fund NASA’s activities. Thoseappropriations were Space FlightControl and Data Communications(SFCDC), Research and Development(R&D), Research and ProgramManagement (R&PM), and Construc-tion of Facilities (CoF). The fiscalyear 1998 Center budget is presentedat right.

31

■ MSFC FY98 Budget ($M)

Program $M % of Total

■ Human Space Flight 1,340 58%

■ Aeronautics & Space Transportation Technology 413 18%

■ Space Sciences 264 11%

■ Institution 125 5%

■ Microgravity 64 3%

■ NASA Communication 76 3%

■ Other 15 1%

■ Earth Sciences 35 1%

■ Grand Total 2,330 100%

Note: Civil Service salaries (by rate) included with programs.

Source: FY98 Data—FY00 Budget to Congress, February 1999.

Human Space Flight—58%

Aeronautics & SpaceTransportation Technology—

18%

Space Sciences—11%

Institution—5%Microgravity—3%

NASA Communication—3%Other—1%

Earth Sciences—1%

Source: FY98 (FY00 Budget to Congress)

Total Budget—$2,330M

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■ Marshall Space Flight Center Statement of Financial Position As of September 30, 1998 (In Thousands)

1998 1997 1996AssetsIntragovernmental Assets:Fund Balance with U.S. Treasury (Note 2) $997,599 $1,177,434 $1,215,524

Accounts Receivable, Net (Note 3) 7,413 5,043 2,835Advances and Prepayments 572 326 666

Governmental Assets:Accounts Receivable, Net (Note 3) 38 15 15,933Advances and Prepayments 0 0 0

Cash, Imprest Fund 0 0 0Operating Materials and Supplies (Note 4) 2,437 2,627 2,970Property, Plant and Equipment (Note 5) 3,982,835 5,104,235 4,591,308Other Assets (Note 6) 1,079,390 1,086,267 907,913

Total Assets $6,070,284 $7,375,947 $6,737,149

LiabilitiesLiabilities Covered by Budgetary Resources:

Intragovernmental Liabilities:Accounts Payable $13,370 $21,886 $75,135Other Liabilities (Note 7) 2,328 510 309

Governmental Liabilities:Accounts Payable 613,968 711,280 567,466Other Liabilities (Note 7) 12,375 11,561 12,412Total 642,041 745,237 655,322

Liabilities Not Covered by Budgetary Resources:Intragovernmental Liabilities:

Other Liabilities (Note 7) 432 20 23Governmental Liabilities:

Other Liabilities (Note 7) 20,738 23,988 25,152Total 21,170 24,008 25,175

Total Liabilities 663,211 769,245 680,497

Net PositionUnexpended Appropriations 363,574 437,575 579,620Invested Capital 5,064,661 6,193,129 5,502,191Cumulative Results of Operations 0 0 0Future Funding Requirements (21,162) (24,002) (25,159)

Total Net Position (Note 8) 5,407,073 6,606,702 6,056,652

Total Liabilities and Net Position $6,070,284 $7,375,947 $6,737,149The accompanying notes are an integral part of these statements.These statements are for internal use and have not been audited.

33

■ Statement of Operations and Changes in Net Position for the Year Ended September 30, 1998 (In Thousands)

1998 1997 1996Revenues and Financing SourcesAppropriated Capital Used $2,178,816 $1,882,853 $1,794,240Revenues from Sales of Goods and Services

To the Public 13,750 13,772 16,829Intragovernmental 8,596 14,431 19,666

Other Revenues and Financing Sources (Note 9) 2,554 233 1,225Less: Receipts Transferred to Treasury (2,554) (233) (1,225)

Total Revenues and Financing Sources 2,201,162 1,911,056 1,830,735

ExpensesProgram or Operating Expenses

Science, Aeronautics and Technology $504,403 $651,442 $591,913Human Space Flight 1,258,506 852,739 824,237Mission Support 413,048 370,285 336,154Research and Development 1,217 1,850 18,748Space Flight Control & Data Communication (811) 263 10,188Research and Program Management 0 (41) (195)Construction of Facilities 2,453 6,315 13,195

Reimbursable Expenses 22,346 28,203 36,495

Total Expenses 2,201,162 1,911,056 1,830,735

Excess (Shortage) of revenues and FinancingSources Over Total Expenses 0 0 0

Nonoperating ChangesUnexpended Appropriations (74,001) (142,045) 22,932Invested Capital (1,128,468) 690,938 20,050Future Funding Requirements 2,840 1,157 (2,735)

Total Nonoperating Changes (1,199,629) 550,050 40,247

Excess (Shortage) of Revenues and FinancingSources Over Total Expensesand Nonoperating Changes (1,199,629) 550,050 40,247

Net Position, Beginning Balance 6,606,702 6,056,652 6,016,405

Net Position, Ending Balance $5,407,073 $6,606,702 $6,056,652

The accompanying notes are an integral part of these statements.

These statements are for internal use and have not been audited.

34


MSFC Notesto FinancialStatementsfor the Year EndedSeptember 30, 1998

1 SummaryAccountingPoliciesand Operations

Basis of Presentation

These financial statements wereprepared to report the financialposition and results of operations ofMSFC, pursuant to the requirementsof the Chief Financial Officer’s Act of1990. The statements were preparedfrom the books and records of MSFC,in accordance with the comprehensivebasis of accounting specified in OMBBulletin 94–01, Formats and Instruc-tions for the Form and Content ofAgency Financial Statements.

Reporting Entity

MSFC is one of nine NASA Centersand Headquarters established to aidNASA in its mission to provide foraeronautical and space activities.Financial management of its opera-tions is the responsibility of Centerofficials at all organizational levels.MSFC’s accounting system is one of10 distinct operations located at9 NASA Centers and Headquarters.Although MSFC, like the otherCenters, is independent and has itsown Chief Financial Officer, itoperates under Agencywide financialmanagement regulations. MSFCprovides payroll accountingAgencywide for approximately19,000 civilian employees andprocesses approximately50,000 nonpayroll-related accountingtransactions monthly. This dataprovides the basic informationnecessary to meet internal andexternal financial reporting require-ments and provides both funds controland accountability.

Budgets and BudgetaryAccounting

Seven appropriations require indi-vidual treatment in the MSFCaccounting and control system.

1. The HSF appropriation supportshuman space flight research anddevelopment activities for spaceflight, spacecraft control, andcommunications actions. Thisincludes research, development,operations, services, mainte-nance, and construction offacilities which encompasses therepair, rehabilitation, andmodification of real and personalproperty.

2. The SAT appropriation providesfor the conduct and support ofscience, aeronautics, and technol-ogy. This includes research,development, operations,services, maintenance, andconstruction of facilities whichencompasses the repair, rehabili-tation, and modification of realand personal property.

3. The MS appropriation providesfor safety, reliability, and qualityassurance activities supportingAgency programs, space commu-nication services for NASAprograms, salaries and relatedexpenses in support of researchin NASA Field Centers, andconstruction of facilities whichencompasses the repair, rehabili-tation, and modification of realand personal property.

4. The R&D appropriation, whichwas restructured and replaced inthe 1995 budget, includesresearch and development ofaeronautics and space, spacevehicles, space systems effort,related institutional activities,minor construction repair,maintenance, rehabilitation, andmodifications.

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5. The SFCDC appropriation, whichwas restructured and replaced inthe 1995 budget, includesproduction, operations, andsupport activities for the SpaceTransportation System whichincludes the Space Shuttle andexpendable launch vehicles andfor tracking, telemetry, commandand data acquisition support ofall flight projects.

6. The CoF appropriation, whichwas restructured and replaced inthe 1995 budget, includes theconstruction of new facilities andthe repair, rehabilitation, andmodification of facilities.

7. The R&PM appropriation, whichwas restructured and replaced inthe 1995 budget, includes salaries,travel, and related expenses for thecivil servants in support of NASAprograms.

In addition to the basic operatingprograms described above, MSFCexpenditures for FY98 included $22million of reimbursable activity.

Basis of Accounting

MSFC accounts are maintained on anaccrual basis, where expenses andrevenues are recorded in the accountsin the period in which they areincurred or earned. Expenses areclassified in the accounts according tothe appropriation that financed theactivity. These expenses are coded inaccordance with the Agencywidecoding structure, which sets forth auniform classification of financialactivity that is used for planning,budgeting, accounting, and reporting.The expenses are further categorizedin the general ledger as operatingexpenses or capitalized expenses. Inaddition, appropriated capital useddoes not include amounts capitalized.

Funds with the U.S.Treasury and Cash

MSFC’s cash receipts and disburse-ments are processed by the U.S.Treasury. The funds with the U.S.Treasury include appropriated fundsand deposit funds for advancesreceived for reimbursable services.

Advances

MSFC funds its University Contractsand Grants program by recipientdrawdowns on letters of credit orthrough the use of predeterminedpayment schedules where letters ofcredit are not used; recipients arerequired to schedule drawdowns tocoincide with actual, immediate cashrequirements, in accordance withOMB Circular A–125 and Depart-ment of Treasury regulations.Quarterly financial reporting of cashtransactions is provided on FederalCash Transactions Reports (SF 272’s).Detailed monitoring and accountabil-ity records are maintained; monitor-ing includes audits by the DefenseContract Audit Agency (DCAA) andthe NASA Office of InspectorGeneral.

Accounts Receivable

The largest portion of accountsreceivable is due from other Federalagencies and includes research anddevelopment of satellites as well aslaunch services. Nongovernmentcustomers are required to provideadvance payments which are placedon deposit with the U.S. Treasuryuntil services are performed. Inunusual cases, exceptions and waiversto this general rule have been grantedunder the Space Act, allowingcustomers to postpone advancepayments.

Prepaid Expenses

Payments in advance of the receipt ofgoods and services are recorded asprepaid charges at the time ofprepayment and recognized asexpenses when related goods andservices are received.

Operating Materials andSupplies

In accordance with with Statement ofFederal Financial AccountingStandards (SFFAS) Number 3,Accounting for Inventory and RelatedProperty, materials held by MSFCwhich are repetitively procured,stored, and issued on the basis ofrecurring demand are consideredOperating Materials and Supplies.

Property, Plant andEquipment

MSFC-owned property, plant andequipment may be held by the Centeror its contractors. Under the provi-sions of the Federal AcquisitionRegulation (FAR), contractors areresponsible for control over andaccountability for such property intheir possession.

Equipment with a unit cost of$100,000 or more and a useful life of2 years or more, that will not beconsumed in an experiment, iscapitalized. Capitalized cost includesunit cost, transportation, installation,handling, and storage costs.

Real property such as buildings, otherstructures, and facilities is capitalizedwhen the asset value is $100,000 ormore. The capitalized value repre-sents the total cost to NASA, includ-ing both acquisition and preparationcosts. Buildings are valued at acquisi-tion cost, including the cost of capitalimprovements and fixed equipment

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MSFC FY 1998 Annual Reportrequired for functional use of thefacility. Other structures include theacquisition cost of capital improve-ments. MSFC has use of its landunder a no cost, 99-year lease withthe Department of the Army.

Government-owned/contractor-heldproperty includes land, buildings,structures, materials, plant equipment,space hardware, special tooling, andspecial test equipment. Contractorsreport each September 30 on a NASAForm 1018, Report of Government-owned/Contractor-held property. Thisform is certified by the contractor’srepresentative and reviewed by agovernment property administrator.

Space hardware represents the largestdollar value of assets owned byMSFC. Contractor-held spacehardware includes configurations ofspacecraft, engines, satellites, rockets,and similar components unique toNASA space programs and held byNASA prime contractors or theirsubcontractors who are responsiblefor building, refurbishing, andlaunching the hardware. Contractorreporting is required for cost-typecontracts exceeding $500,000 wherespace hardware costs exceed $75,000.These items are priced in accordancewith guidance set forth in a NASAsupplement to the FAR. The valuationpolicy allows for use of actual orestimated costs which may beabstracts of data from contractors’records, computations based uponengineering estimates, estimates fromNASA contractor financial manage-ment reports, formula procedures, andlatest acquisition/pricing estimates orother approved methods.

In FY96, NASA made a number ofchanges in its accounting policies forgovernment-owned/contractor-heldproperty. These new policies werealso followed in FY97.

• Contractors reported onlyproperty costing $5,000 or more,having a useful life of 2 or more

years and not to be consumed inan experiment. In prior years, allequipment was reported, regard-less of value.

• Construction in process wasreported for all property catego-ries. In prior years, it was onlyreported for space hardware.

• Prime contractors were requiredto report on property in thepossession of all subcontractors.In prior years, prime contractorswere only required to extend thereporting requirement to first-tiersubcontractors.

• Property values included profit orfee. In prior years, fees earned bycontractors were generally notincluded in the valuation basis.

In FY98, NASA again made signifi-cant changes in its property, plant andequipment accounting and reportingpolicies and practices. These changeswere made in order to implement therequirements of SFFAS Number 6,Accounting for Property Plant andEquipment, and Number 8, Supple-mentary Stewardship Reporting.These changes applied to NASA’sgovernment-held property as well asits contractor-held property. Themajor changes included recognizingdepreciation, capitalizing assets inspace and reporting heritage assetsonly as supplementary stewardshipinformation accompanying thefinancial statements.

Prior to FY98, NASA did notrecognize depreciation of its assets. Inaccordance with SFFAS Number 6,NASA’s FY98 financial statementsreport depreciation expense, calcu-lated on a composite basis, using thestraight-line method. To determinedepreciation expense, a variety ofuseful lives were established. Usefullives were set at 40 years for build-ings, 15 years for other structures andfacilities, 15 years for space hard-ware, 7 years for special test equip-

ment and special tooling, and 5, 7, 10,15, and 20 years for equipment,dependent upon its nature. In addi-tion, a useful life of 25 years wasestablished for the Space Shuttleorbiters. As part of its implementationof the new accounting standards,NASA increased the threshold valuefor property to be capitalized from$5,000 to $100,000. Property of lesservalue is expensed when purchased.However, NASA continues tomaintain physical accountability forproperty, plant and equipment atlower values.

MSFC’s FY98 financial statementsreflect the valuation of its property,plant, and equipment based onNASA’s revised capitalizationthreshold and the elimination ofheritage assets. However, in accor-dance with NASA guidance, thevalues do not reflect depreciation.

Other Assets

Other assets are comprised entirely ofgovernment-owned/contractor-heldmaterials.

Liabilities Covered byBudgetary Resources

Accounts payable include amountsrecorded for receipt of goods orservices furnished to the Center,based on receiving reports andbillings rendered. Additionally, MSFCaccrues cost and recognizes liabilitybased on information that is providedmonthly by contractors on cost andperformance reports [NASA Form(NF) 533, Contractor FinancialManagement Report]. MSFC relies onindependent audits by the DCAA toensure the reliability of reported costsand estimates. To provide furtherassurance, financial managers arerequired to test the accuracy of costaccruals generated from the NF 533’s,and NASA Headquarters indepen-dently analyzes the validity ofMSFC’s data.

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Liabilities not Covered byBudgetary Resources

Liabilities not covered by budgetaryresources include unused annual leaveand compensatory time and unliqui-dated obligations against closedappropriations.

In addition, MSFC had $269 millionin contingent liabilities as of Septem-ber 30, 1998. These contingenciesinclude legal actions as well ascontract termination liability. How-ever, the probability is remote thatany payments related to thesecontingencies will be due in thefuture. Accordingly, no balances havebeen recorded in the financialstatements as contingent liabilities.

Revenues and OtherFinancing Sources

MSFC receives the majority of itsfunding through multiyear appropria-tions. These include 3-year appropria-tions for construction activities,2-year appropriations for operationaland space flight activities, and asingle year appropriation for civilservice payroll and travel. In additionto appropriated funds, the Centerperforms services for other Federalagencies and the public and receivesreimbursable funding authority.

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2 Fund BalancesWith Treasury(In Thousands)

Obligated Unobligated Total

Available Restricted

Appropriated Funds $868,595 $119,581 $5,922 $994,098Deposit Funds for Reimbursable

Advances 3,515Suspense/Clearing Accounts (14)

Total Fund Balance with Treasury $997,599

Unobligated Restricted represents amounts from appropriations that have expired for obligational purposes.

3 AccountsReceivable, Net(In Thousands)

Entity NonentityAccounts Accounts Net Amount

Receivable Receivable Due

Intragovernmental $7,413 $0 $7,413

Governmental 30 8 38

Total Accounts Receivable $7,443 $8 $7,451

Nonentity accounts receivable represent amounts that will be deposited to miscellaneous receipts when collected andsubsequently returned to the U.S. Treasury.

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4 OperatingMaterials andSupplies(In Thousands)

Valuation

1998 1997 Method

Stores Stock $2,122 $2,306 Weighted Avg.

Standby Stock 315 321 Weighted Avg.

Total Operating Materials and Supplies $2,437 $2,627

Stores stock represents material being held in inventory which is repetitively procured, stored, and issued on the basisof recurring demand.

Standby stock represents material held for emergencies.

5 Property, Plant,and Equipment(In Thousands)

1998 1997 Change

■ Government-owned/Government-held

Land $0 $0 $0

Structures, Facilities, and Leasehold Improvements 320,591 334,812 (14,221)

Equipment 187,489 425,020 (237,531)

Construction in Progress 8,867 24,602 (15,735)

Total 516,947 784,434 (267,487)

NASA is a party to an agreement with the Department of the Army for use and occupancy of the land on which theMarshall Space Flight Center is located. The agreement is irrevocable and can be renewed on June 30, 2059, atNASA’s option. There is no cost to MSFC associated with this agreement.

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1998 1997 Change

■ Government-owned/Contractor-held

Land $7,162 $7,162 $0

Structures, Facilities, and Leasehold Improvements 247,170 287,933 (40,763)

Equipment 193,646 347,484 (153,838)

Special Tooling 278,335 455,389 (177,054)

Special Test Equipment 98,826 149,469 (50,643)

Space Hardware 570,178 1,253,849 (683,671)

Construction in Progress 2,070,571 1,818,515 252,056

Total 3,465,888 4,319,801 (853,913)

Total Property, Plant and Equipment $3,982,835 $5,104,235 $(1,121,400)

The decrease in values from 1997 to 1998 is due to NASA’s implementation of new Federal accounting standardsfor property, plant, and equipment. Specifically, the 1998 values reflect MSFC’s implementation of NASA’s increasein its capitalization threshold from $5,000 to $100,000 and the elimination of heritage assets. See Note 1 for furtherdiscussion on property, plant and equipment.

6 Other Assets(In Thousands)

1998 1997 Change

Contractor-held Materials $1,079,390 $1,086,267 $(6,877)

Total $1,079,390 $1,086,267 $(6,877)

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7 OtherLiabilities(In Thousands)

Liabilities Covered by Budgetary Resources Current Noncurrent Total

■ Intragovernmental Liabilities:

*Liability for Deposit and Suspense Funds $2,328 $0 $2,328

Liability for Statistical Reimbursable Costs 0 0 0

Total $2,328 $0 $2,328

■ Governmental Liabilities:

Accrued Funded Payroll and Benefits $11,175 $0 $11,175

*Liability for Deposit and Suspense Funds 1,174 0 1,174

Liability for Statistical Reimbursable Costs 26 0 26

Total $12,375 $0 $12,375

*Liabilities include cash advances received from other Government agencies and public reimbursable customers. Alsoincluded are funds on deposit with the U.S. Treasury for employee’s savings bonds and state tax withholdings.

Liabilities Not Covered by Budgetary Resources Current Noncurrent Total

■ Intragovernmental Liabilities:

Accounts Payable for Closed Appropriations $0 $20 $20

Liability for Receipt Accounts 412 0 412

Total $412 $20 $432

■ Governmental Liabilities:

Accounts Payable for Closed Appropriations $0 $618 $618

Liability for Receipt Accounts (404) 0 (404)

Unfunded Annual Leave and Comp Time 0 20,524 20,524

Total $(404) $21,142 $20,738

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8 Net Positions(In Thousands)

Appropriated Funds

Unexpended Appropriations

Undelivered Orders $238,071

Unobligated:

Available 119,581

Unavailable 5,922

Invested Capital 5,064,661

Future Funding Requirements:

Closed Appropriations (638)

Annual Leave and Compensatory Time (20,524)

Total $5,407,073

9 Other Revenuesand FinancingSources(In Thousands)

1998 1997 Change

General Fund Proprietary Receipts $2,554 $233 $2,321

Total $2,554 $233 $2,321

General fund proprietary receipts represent user fees, gifts, fines, interest penalties, or refunds related to closedappropriations.

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■ Assets

MSFC’s assets have decreased over the last 3 years from $6.7 billion in

1996 to $6.1 billion in 1998.

(In Thousands) 1998 1997 1996Fund Balance, AccountsReceivable, Advancesand Prepayments $1,005,622 $1,182,818 $1,234,958Operating Materials, Supplies,and Other Assets 1,081,827 1,088,894 910,883Government-held Property,Plant and Equipment 516,947 784,434 774,227Contractor-held Property,Plant and Equipment 3,465,888 4,319,801 3,817,081

Total Assets $6,070,284 $7,375,947 $6,737,149

SupplementalFinancial

Information

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY98

FY97

FY96

0Fund Balance,

AccountsReceivable,

Advances, andPrepayments

OperatingMaterials,

Supplies andOther Assets

Government-Held Property,

Plant, andEquipment

Contractor-Held Property,

Plant, andEquipment

$Mill

ion

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FY98

FY97

FY96

0

100

200

300

400

500

600

700

800

IntragovernmentalLiabilities

GovernmentalLiabilities

Liabilities NotCovered by

Budgetary Resources

$Mill

ion

■ Liabilities

MSFC’s liabilities have remained constant over the last 3 years at approxi-mately $.7 billion.

(In Thousands) 1998 1997 1996

Intragovernmental Liabilities $15,697 $22,396 $75,444

Governmental Liabilities 626,343 722,841 579,878

Liabilities Not Covered by

Budgetary Resources 21,170 24,008 25,175

Total Liabilities $663,210 $769,245 $680,497

% of Total Assets 11% 10% 10%

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FY98

FY97

FY96

0

500

–500

1000

2000

3000

4000

5000

6000

7000

UnexpendedAppropriations

InvestedCapital

FutureFunding

Requirements

$Mill

ion

■ Net Position

MSFC’s net position has decreased over the last 3 years from $6.0 billion

in 1996 to $5.4 billion in 1998.

(In Thousands) 1998 1997 1996

Unexpended Appropriations $363,574 $437,575 $579,620

Invested Capital 5,064,661 6,193,130 5,502,191

Cumulative Results of Operations 0 0 0

Future Funding Requirements (21,162) (24,002) (25,159)

Total Net Position $5,407,073 $6,606,703 $6,056,652



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■ Unexpended Appropriations includes the following:

(In Thousands) 1998 1997 1996

Unobligated $125,503 $95,439 $126,920

Undelivered Orders 238,071 342,136 452,700

Total Unexpended Appropriations $363,574 $437,575 $579,620

■ Invested Capital includes the following:

(In Thousands) 1998 1997 1996

Operating Materials and Supplies $2,437 $2,627 $2,970

Contractor-held Materials 1,079,389 1,086,267 892,312

Personal Property Held by Disposal Officer 0 0 15,601

Fixed Assets (Government-held) 508,080 759,832 753,641

Construction in Progress 2,079,438 1,843,118 1,489,664

Contractor-held Property 1,395,317 2,501,286 2,348,003

Total Invested Capital $5,064,661 $6,193,130 $5,502,191

■ Future Funding Requirements includes the following:

(In Thousands) 1998 1997 1996

Accounts Payable for Closed Appropriations $(638) $(1,948) $(1,989)

Unfunded Annual Leave and Comp Time (20,524) (22,054) (23,170)

Total Future Funding Requirements $(21,162) $(24,002) $(25,159)

■ Prompt Payment Act Compliance

MSFC processed payments of over $2 billion that weresubject to the Prompt Payment Act, with 99.26 percent ofits 23,927 payments being on time. Interest totaling$10,168.32 was paid on 160 late payments. In addition,

discounts of $167,560.33 were taken on 609 paymentswhich were made early to take advantage of discountsoffered by vendors.

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Science andTechnologyHighlights

AcronymList

AAR Air Augmented RocketADECA State of Alabama Department of Economic and Community

DevelopmentAESP Aerospace Education Services ProgramAIDS Auto Immune Deficiency SyndromeAMCOM Army Aviation and Missle CommandART Advanced Reusable TechnologiesAS Aero-SpaceASI Italian Space AgencyASTP Advanced Space Transportation ProgramAXAF Advanced X-Ray Atmospherics FacilityBizTech Business Technology Development Center, Inc.CBM Common Berthing MechanismCCAD Central American Commision on the Environment and

DevelopmentCCI Consolidated Contracting InitiativeCeBER Center for Biospheric and Educational ResearchCGF Crystal Growth FurnaceCoF Construction of FacilitiesCSC Commercial Space CenterCXM Constellation X-Ray MissionCXO Chandra X-Ray ObservatoryDCAA Defense Contract Audit AgencyDTV Digital TelevisionERC Educator Resource CenterES Earth ScienceET External TankEVM Earned Value ManagementFAR Federal Acquisition RegulationFASAB Federal Accounting Standards Advisory BoardFCC Federal Trade CommissionFY Fiscal YearGAO Government Accounting OfficeGB GigabytesGBX GloveboxGHCC Global Hydrology and Climatic CenterGLOBE Global Learning and Observations to Benefit the EnvironmentGPRA Government Performance & Results ActGSFC Goddard Space Flight CenterGSRP Graduate Student Research ProgramHASP Hands-on Alliance for Science ProjectHEDS Human Exploration and Development of SpaceHIV Human Immunodeficiency VirusHOSC Huntsville Operations Support CenterHRMA High-Resolution Mirror AssemblyHSF Human Space FlightIFM Integrated Financial ManagementISE Intelligent Synthesis EnvironmentISM Integrated Science ModuleISS International Space StationIT Information TechnologyJOVE NASA/University Joint Venture ProgramLED Light Emitting Diode

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MSFC FY 1998 Annual ReportMRP Microgravity Research ProgramMS Mission SupportMSFC Marshall Space Flight CenterNAIS NASA Acquisition Internet ServiceNASA National Aeronautics and Space AdministrationNEWMAST NASA Educational Workshop for Mathematics, Science, and Technology TeachersNF NASA FormNGST Next Generation Space TelescopeNIH National Institute of HealthNMSD NGST Mirror System DemonstratorNSTAR NASA Solar Electric Propulsion Technology Application ReadinessOCC Operations Control CenterODIN Outsourcing Desktop Initiative in NASAOFPP Office of Federal Procurement PolicyOMB Office of Management and BudgetPCA Program Commitment AgreementPCCA Principle Center for Communications ArchitecturePI Principle InvestigatorPMCWG Program Management Council Working GroupPOIC Payloads Operations Integration CenterProject LASER Learning About Science, Engineering and ResearchR&D Research and DevelopmentR&PM Research and Program ManagementRBCC Rocket Based Combined CycleRLV Reusable Launch VehicleRSV Respiratory Symcytical VirusSAT Science, Aeronautics and TechnologySFCDC Space Flight Control and Data CommunicationsSFFAS Statement of Federal Financial Accounting StandardsSFFP Summer Faculty Fellowship ProgramSHARP Summer High School Apprenticeship ProgramSLWT Super Lightweight TankSPARCLE Space Readiness Coherent Lidar ExperimentSPD Space Product DevelopmentSRB Solid Rocket BoosterSS Space ScienceSSME Space Shuttle Main EngineSSP Space Solar PowerSTR Space Transportation ResearchSXI Solar X-Ray ImagerTreK Telescience Resource KitTVA Tennessee Valley AuthorityUSA United Space AllianceUSMP–4 Fourth United States Microgravity PayloadUVI Ultraviolet ImagerVISAR Video Image Stability and RegistrationVRC Virtual Research CenterWSF Wake Shield FacilityXRCF X-Ray Calibration FacilityY2k Year 2000

Pub 8-1049 NP-1999-03-033-MSFC

National Aeronautics andSpace Administration

George C. Marshall Space Flight CenterMarshall Space Flight Center, Alabama 35812

fiscal year 1998 annual report - nasa · the space science enterprise aspires to probe deeper into...

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