[sci.space] Freedom Cost

matthews@ecfa.jesnet.jsc.nasa.gov (Michael C. Matthews) (06/19/91)

In article <YAMAUCHI.91Jun12175113@heron.cs.rochester.edu> yamauchi@cs.rochester.edu (Brian Yamauchi) writes:
>
>But if the the shuttle launches are a separate ($54.4B) item here, and
>so are personnel costs ($25B), what does the $50B under Operations
>Cost pay for?
>

Contractor personnel, mostly.  The $25B only covers NASA employees.
Most of the people working on NASA programs are employed by the major
NASA contractor companies (Rockwell, McDonnell Douglas, Lockheed,
Grumman, Boeing, Martin Marietta, Northrop, TRW, IBM and dozens of
other computer companies, Link, Bendix, Krug, Mitre, etc., etc., etc.)
I'd guess there's at least a 2:1 ratio of contractor to NASA personnel.

This is, incidentally, something the Augustine Commission complained
about.  Civil service salary schedules make it impossible for NASA to
pay competitive salaries for engineers and scientists, so they all get
hired by contractors.  These companies put them to work on NASA
contracts doing the exact same thing they would have been doing if
they were NASA employees, only making a lot more.  Then the companies
charge NASA for all that salary plus benefits and overhead, plus a
profit.  So, NASA ends up paying $20-50K more per year per head than
they would have had to if they had been able to hire the engineers at
their contractor-paid salaries in the first place -- and those
engineers that NASA does get wind up spending an exasperating amount
of their time managing contracts.  Pretty depressing, isn't it?

About the only advantage for NASA that I can see in this scheme is
that they don't have to provide office space, etc. for all those
personnel, and they're a whole lot easier to get rid of than civil
servants when the budget crunch comes...

--
DISCLAIMER:  I probably don't know what I'm talking about.
             My perspective may be warped by working for a contractor.
--
Mike Matthews                   |        matthews%ecfa@jesnic.jsc.nasa.gov
Tethered Vehicle Analysis Group | (backup) -->  matthews@asd2.jsc.nasa.gov
Advanced Projects Section; Navigation, Control, and Aeronautics Department
Lockheed Engineering & Sciences Company,  Houston, Texas,   (713) 333-7079