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• THETABLE
MOON OF CONTENTS
• MARS
•
MessageAND BEYOND
from the Director .............................. 3

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

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

Goal 1: Assure sound, safe and efficient

practices are in place for private/
commercial processing ........................ 7

Goal 2: Increase the use of operational

knowledge in the design/development
of payloads and new vehicles ............ 13

Goal 3: Partner to develop new technologies

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

Goal 4: Continually enhance core capabilities

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

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

Statement from the Chief Financial Officer .. 29

ON THE COVER:

Front: KSC workers processed the Unity node in preparation for its mating in
space with the Zarya module, the first two pieces of the International Space
Station. An artist’s rendering shows the Station as it will appear in its
completed form.

Back: Discover launches on STS-91, the final docking mission to the Russian
space station Mir. … An employee in the Payload Hazardous Servicing Facility
sews thermal insulation material on the back cover and heat shield of the Huygens
probe in preparation for the Cassini mission. … A Titan IVB/Centaur carrying
the Cassini spacecraft and its attached Huygens probe is ready to launch on a
six-year flight to Saturn.

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MESSAGE TO THE STAKEHOLDERS

During each of its 40 years of existence, Kennedy Space Center has unfailingly
•
THE MOON
generated significant achievements. The period of Fiscal Year 1998 produced
notable accomplishments in a wide range of areas — operations, research and
•
MARS
development, partnership with business, academia and government, and

•
relationships with the community. Among the year’s highlights:
AND BEYOND
• Demonstration of our top priority with the first Center-wide Super Safety Day,
in which all activities at the Center focused on promoting safe and healthy habits.
• The successful launch of four Space Shuttle missions, including the final docking
with the Russian space station Mir.
Roy D. Bridges, Jr.
• The successful launch of five Expendable Launch Vehicle (ELV) missions, including
Kennedy Space
the flawless preparation and launch of the Cassini space probe, a cooperative Center Director
effort among the National Aeronautics and Space Administration (NASA), two
foreign space agencies, the U.S. Air Force, industry and academia.
• Substantive progress on the International Space Station, with the processing
and preparation for flight of Unity, the first U.S. made component.
• The seamless consolidation of the Agency’s $500 million ELV Launch
Services Program.
• The revolutionary merger between NASA and the Air Force to consolidate and
streamline base operations at KSC, Cape Canaveral Air Station and Patrick Air
Force Base.
• Agency assignment as lead or co-lead center for the Office of Space Flight
desktop and communications services for the Outsourcing Desktop Initiative for
NASA contract, drug testing, pollution prevention and recycling.
• Certification for International Organization Standardization for 9001, an
international quality management standard.

We also have made substantial progress in many other areas. Through partnerships
with business, government and academia, KSC is exerting leadership in the pursuit of
spaceport technologies. The Center works to improve its current vehicle fleet with
the development of Space Shuttle health monitoring technology. At the same time,
the Center readies itself to assist in the creation of and to accommodate the next
generation of space flight vehicles by participating in the design, development and
testing of the X-33 and X-34, as well as other new technology vehicles.

KSC also has increased its prominence in technology development for commercial
applications, such as state-of-the-art cryogenic testing.

During FY 98, the Center’s leaders improved strategies for making full use of our
technological, human and physical resources for the exploration and development
of space.

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

a few of the early but significant steps in our evolution from an operations-oriented
organization to an agile, customer-driven, spaceport technology development team.

Center Director

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

began monthly distribution.
The activities of FY 98 reflected the mission
of NASA; the Core Business, Guiding Principles, and In the months preceding that event, senior NASA and
Strategic Goals of the Kennedy Space Center; the contractor managers took part in safety training
Implementation Plan for NASA’s Strategic Plan; and the presented at KSC by DuPont, regarded as one of the
Road Map for the Center’s future through 2025. world’s safest companies. That training led to the
establishment of the University of Safety and Mission
Core Business: Kennedy Space Center’s Core Business Assurance, a team of employees that acts as an
is to provide space systems processes and test and information clearinghouse and consulting group for the
launch techniques and to develop associated technologies. Center.

Guiding Principles: The summer presented employees with formidable safety

KSC’s Guiding Principles provide the foundation for all of challenges as wildfires ravaged Central Florida, eventually
our actions and assure that the means we use to reach burning 71,000 acres in Brevard County. A brush fire
our goals are most supportive of our customers and in started by lightning on June 21 engaged the Center’s
harmony with the needs of our stakeholders. Fire Department, but that was only the beginning of their
work, as the department contributed personnel and
Safety and Health First equipment to Florida’s Division of Forestry and local
authorities in combating other Central Florida fires. KSC
During FY 98, the Center reinforced safety
also provided the use of a helicopter, an infrared camera,
as its highest priority, a principle that was continuously
a global positioning system, a fire engine, a rail car tanker,
on display.
five sludge tankers and two aircraft rescue trucks.

The center held its first Super Safety Day on July 16,
When the threat of fires had passed, the Center braced
with the theme, “Safety on the Line.” All normal work
in September for the possible arrival of Hurricane
activities, with the exception of mandatory services, were
Georges from the Atlantic Ocean. While workers
suspended as about 14,000 employees — both NASA
protected ground equipment from the threat of heavy
civil service and contractors — trained on safety-related
winds, KSC prepared for the return of the orbiter Atlantis
issues and participated in a panel discussion that was
aboard a Boeing 747 carrier aircraft following an Orbiter
broadcast throughout the center. The goal, as Center
Maintenance Down Period.
Director Bridges reminded employees, is zero mishaps
and zero injuries. The day produced tangible results in
Concern with safety was not limited to ground operations.
KSC initiated a comprehensive long-term program to
Lost Time Frequency Rate develop fire protection options for advanced space flight
1.20 Lost Time Cases Rate: The number of lost time injury/illness
vehicles and orbiting bases. This program will involve new
cases incurred by 100 people over a one year period (200,000 hours).
technology research and development.
1.0 KSC Lost Time
Frequency Rate
Two projects begun in FY 98 explore the hazards of the
KSC Fiscal Year
.80 Lost Time
Martian environment. One set of experiments involves
Frequency Rate flammability and safety concerns when dealing with
.60 inflatable planetary habitats using an oxygen atmos-
phere, while another will simulate electrostatic conditions
on Mars.
.40 FY 97
FY 96 0.56
0.49 Finally, a cardiovascular health screening program was
.20 FY 98
instituted for employees who require medical evaluation
0.38
for job certification. An intervention program was also
0.0 developed to target those assessed to be at higher risk.

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Build Reliance and Teamwork Environmental Leadership

Everywhere
• THE MOON
At the Kennedy Space Center, teaming Environmental
KSC sponsored and managed the NASA
Conference for NASA Headquarters.

• importance
activities and partnerships are of paramount MARSEnvironment and Energy Awareness Week exhibits at
as we lay the foundation for our Spaceport Technology the Visitor Complex and major facilities encouraged
Center. By using the various strengths of•each partner, thousands of employees and visitors to improve energy
AND BEYOND
the entire space industry reaps the greatest benefit efficiency and reduce environmental waste.
through improved technology for future pioneering
endeavors, the sharing of expertise and the building of Emphasis on energy conservation has been intensive
better tools and capabilities. as well as innovative. KSC began upgrading the LC-39
Emergency
We are targeting partnerships in three major areas: Power Plant
industry, academia and other state and federal agencies. using private-
We are heavily involved in the Space Commerce sector capital
Partnership, which was established to expand and for the initial
diversify Florida’s space industry and which encompasses costs. Because
over 25 industry, government and academic Florida Power
organizations. Through KSC’s innovation in management and Light will
development programs, we are collaborating with various use the expanded
companies on quick payback projects for mutual benefit. plant for generating
We team with our local universities to bring creativity electricity during peak
and the latest research to the Center, while providing an loads, the Center will
avenue for their application of knowledge and theory. enjoy a reduced rate
and estimated annual
We have three established liaison offices at other NASA savings of $770,000
centers to enhance the design process with KSC’s to repay project costs.
operational knowledge and expertise. The Center has been Another initiative will
intimately involved with our Space Station hardware lower natural gas bills
manufacturing team members to ensure smooth beginning FY 99 by
integration at the launch site. We are also working in converting to a new
concert with the state and the Air Force as a single supplier. The Defense
Florida launch site to attract new business and enhance Energy Support
our current operations and capabilities. Center contract is
expected to bring annual savings of 30 percent — or
Satisfy Our Customers’ Needs $660,000 — to the Center’s programs.
Anytime, Anywhere
In other environmental areas, KSC is working in concert
The Center as a whole has made a
with industry and academia to pursue research and
concerted effort to better understand and address the
technology to remove pollutants emitted by stationary
needs of our customers. With the objective of creating
combustion sources. A patent is pending, and a major
satisfied and loyal customers, we have established a
power plant plans to use the technology in 1999.
customer advocacy group to bring the voice of the
customer into our strategic planning as well as to all
The Center also has developed techniques that are
employees at KSC. By developing a customer-focused
being used in contamination cleanup programs and
organization through customer knowledge, feedback,
that have potential for wide-scale commercial use.
leadership, relationship management and, ultimately,
KSC has submitted applications for two patents for
results, we will be better prepared to anticipate and fulfill
this technology.
the needs of our current, long-time customers, as well
as our new Spaceport Technology Center customers.

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Strategic Goals
The Center’s goals help implement
the NASA Strategic Plan and its four strategic
enterprises: Human Exploration and Development
of Space, Aeronautics and Space Transportation
Technology, Space Science and Earth Science.

The Center’s Strategic Goals:

• Assure that safe, sound and efficient

practices and processes are in place
for private/commercialized launch
site processing.
• Increase the use of operational
expertise to contribute to the
design and development of new
payloads and launch vehicles.
• Utilize operational expertise in
partnership with other entities
(NASA centers, industry, academia)
to develop new technologies for
future space initiatives.
• Continually enhance core capabilities
(people, facilities, equipment and
systems) to meet NASA objectives
and customer needs for safer,
better, faster, cheaper development
and operation of space systems.

KSC is well on its way to developing a

“dashboard” of measures by which
we can gauge our progress
against our stated goals.

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Strategic Goal 1: Assure that safe, sound

and efficient practices and•processes
THE are
MOON
in place
for private/commercialized launch site processing.
• MARS
• as theAND
The Center’s reputation rests on its record BEYOND
world leader in the space
launch industry. Even as KSC becomes more diversified in anticipation of new
needs and demands, success hinges upon our expertise and experience as
NASA’s Center of Excellence in Launch and Payload Processing Systems.

Space Shuttle
During FY 98, four Space Shuttles lifted off, carrying 26 crew
members into space, traveling more than 20.3 million miles and taking several Space Shuttle
crucial payloads into orbit. The Space Shuttle orbiters on all four missions Highlights
returned home safely to KSC’s Shuttle Landing Facility, the preferred Shuttle
landing site. • The Neurolab mission on
STS-90 was a joint venture
Columbia, the oldest member of the four-vehicle fleet, made two of those of six space agencies and
flights and surpassed 86 million miles traveled in space. seven U.S. research
agencies, and it involved
The orbiter Endeavour in January made its first flight since returning from a investigator teams from
nine countries.
10-month Orbiter Maintenance Down Period (OMDP) in Palmdale, Calif. During
that scheduled servicing, an external air lock was installed on the orbiter,
• The Neurolab experiments
making Endeavour capable of docking with the International Space Station.
involved 9,000 rodents,
68,000 freshwater sword-
STS-87 carried the United States Microgravity Payload (USMP-4), one in a
tail fish, 5,000 freshwater
series of Spacelab projects. Free from the restrictions of the earth’s gravity, snails, 2,000 goldfish,
the scientific specialists conducted important research that yielded new 1,000 crickets and 125
understanding of the composition of different kinds of matter. STS-87 also saltwater toadfish.
deployed the Spartan 201-04, a craft designed to study the outer layers of
the sun. • Andrew Thomas’s return
from Mir on STS-91
STS-89 continued NASA’s involvement with the Russian Mir space station. culminated 977 total days
The orbiter Endeavour delivered Mission Specialist Andrew S.W. Thomas to spent in orbit by seven
the Russian craft in relief of astronaut David A. Wolf, who had been aboard U.S. astronauts aboard
Mir for approximately four months. The flight also carried a wide array of the station and ended an
scientific experiments. 812-day continuous U.S.
presence in space.
The program made further contributions to science with STS-90, which carried
the Neurolab payload. The 42nd and final flight involving Spacelab hardware,
Neurolab studied the effects of microgravity on the nervous system. Its
subjects included rodents, fish, crickets and snails.

STS-91 marked the final Shuttle-Mir docking mission. The mission also included
the Alpha Magnetic Spectrometer Investigation, an astrophysics payload.

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

female commander of a Space Shuttle mission. Collins, who had become the
first female pilot in 1995, will lead the crew of STS-93, scheduled for launch
in 1999.

Payload Customers
In support of our Space Shuttle customers, the KSC payloads
team processed and integrated six primary payloads and 21 secondary
payloads to fly in the Shuttle cargo bay, as well as 17 middeck payloads
during FY 98. The team conducted three Hitchhiker missions with 14 Get
Away Special payloads and two Space Experiment Module payloads in support
of the Shuttle Small Payloads Project.

The KSC processing teams successfully completed the closing of all Spacelab
Mission: STS-87 activities following STS-90. All Spacelab assets were distributed, and
Payloads: United States concluding activities were handled on schedule and within budget. This phase-
Microgravity Payload (USMP-4), out resulted in the transfer of more than 2 million items, worth more than
a Spacelab project; and Spartan $450 million, to other NASA programs for support of Hubble Space Telescope,
201-04, a spacecraft designed
Space Station logistics and assembly flights and other uses. The modules
to perform remote sensing of
the sun’s outer atmosphere and requested hardware have been shipped to the National Air and Space
Orbiter: Columbia (24th flight) Museum in Washington, D.C., to the European Space Agency and to other
Launch Date: Nov. 19, 1997 NASA centers.
Duration: 15 days, 16 hours,
35 minutes, 01 seconds Processing and Integration
Landing site: KSC
In addition to the missions that were launched in FY 98, the
Mission: STS-89 Shuttle processing team prepared for back-to-back missions of great
Payloads: Crew member and significance to NASA and the world: Discovery returning pioneering astronaut
more than 7,000 pounds of John Glenn to space on STS-95, and Endeavour transporting the first
experiments, supplies and
U.S.-built elements to the International Space Station on STS-88. As always,
hardware exchanged with Mir
Orbiter: Endeavor (12th flight) safety remained the number one priority for Space Shuttle processing teams,
Launch Date: Jan. 22, 1998 and product quality was stronger than ever.
Duration: 8 days, 19 hours,
48 minutes, 4 seconds A significant indicator of operational performance at Kennedy Space Center
Landing site: KSC is the cost of the Space Shuttle program, as indicated in the chart on
page 7. The Center has contributed to a substantial reduction in costs over
Mission: STS-90
Payloads: Neurolab, the final the past seven years through a variety of processing improvements.
Spacelab mission, containing
biological experiments At the beginning of FY 98, the Orbiter Atlantis was ferried to California for
Orbiter: Columbia (25th flight) its second scheduled OMDP. Atlantis returned to the Center 10 months
Launch Date: April 17, 1998 later as the first member of the four-vehicle Space Shuttle fleet to
Duration: 15 days, 21 hours,
receive a new state-of-the
50 minutes, 58 seconds
Landing site: KSC art cockpit display system.
The Multifunction Electronic
Mission: STS-91 Display Subsystem, built by
Payloads: Final docking to Mir, Honeywell Space Systems/
downloading astronaut Andrew Satellite Systems Operation,
Thomas; also, Alpha Magnetic
is patterned after liquid-crystal
Spectrometer Investigation
(AMS)
Orbiter: Discovery (24th flight)
Landing site: KSC
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SSP Total Program Contributing factors

FY92$
• THE MOON in decreasing the
cost of the Shuttle
in • MARS37% Decrease
Program are:
Millions
(FY92$) • External Tank weld
• AND BEYOND improvements and cycle
4000 time reduction
• consolidated and/or
restructured prime
contracts
3500 • payload safety process
• Shuttle Logistics Depot
repair certifications
• Main Engine sensor
3000 improvements (cost
avoidance)
• workforce reduction:
2500 civil service down 50%
contractor down 31%
• environmental
compliance
2000 • recycle of Solid Rocket
Booster hardware
92

93

94

95

96

97

98
FY

FY

FY

FY

FY

FY

FY

display technology on the Boeing 777. The new displays, which replaced models
designed for the Shuttle in the 1970s, offer enhanced color and clarity,
weigh less and use less energy.

Discovery’s 24th flight on STS-91 saw the first use of the Super
Light Weight Tank, which added 7,000 pounds to the orbiter’s
cargo capacity. Processing efforts included the addition of a highly
specialized “tanking test” to the launch pad flow in order to verify
the structural integrity of the new tank composition in the presence
of cryogenic (super-cold) fuels.

Space Shuttle Upgrades

Though not yet fully operational, the Checkout and
Launch Control System (CLCS) began making real contributions to
the Space Shuttle program in FY 98. The CLCS, which replaces
the 1970s-era Launch Processing System, will offer such
advancements as the capacity to monitor more than one orbiter
from the same firing room. The orbiter Columbia, shown in
preparation for mating to its solid
In March 1998, the first installation and use of the newly selected production rocket boosters and external
tank, flew twice during FY 98.
hardware took place in the new CLCS Hypergolic Maintenance Facility (HMF).

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This testing of the system software marked a significant milestone in

preparations for the December 1999 HMF operational date. In addition, a
new control room was built in the HMF to house the development of the new
system. The modification of Launch Control Center Firing Room 4 into the
first Operations Control Room (OCR-1) was completed late in FY 98.

KSC teamed with Goddard Space Flight Center to develop the Fiber Optic
Flight Experiment (FOFE), which was prepared to fly on the STS-95 mission.
The experiment was designed to test the durability and on-orbit performance
of fiber optics in the Shuttle environment. The development team worked
toward its long-term objective of using fiber optics to standardize connections
in the payload bay, thus reducing orbiter processing time.

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

connections to reduce payload launch site processing time. The team,
ELV Highlights
comprising members from Johnson Space Center and from contractors
Payloads: Cassini
A NASA-JPL spacecraft with Boeing and United Space Alliance (USA), analyzed future payloads – some
international partners, on a destined for the International Space Station and some for commercial activities.
four-year exploratory mission The final report offered a preliminary design for a standard interface that is
to Saturn being evaluated by USA for potential use.
Vehicle: Titan IV/Centaur
Launch Date: Oct. 15, 1997
During FY 98, the KSC team prepared the orbiter Discovery to use the first
Payloads: Lunar Prospector Space Shuttle flight system developed on site: the Integrated Vehicle Health
Lunar Prospector, a NASA- Management (IVHM) Human Exploration and Development of Space (HEDS)
Ames Research Center space-
Technology Demonstration. A total of 30 sensors were installed on Discovery,
craft, on a mapping mission of
the Earth’s moon including Center-developed smart sensor technology for hydrogen and oxygen
Vehicle: Athena detection. The system performance during launch was superb.
Launch Date: Jan. 6, 1998

Payloads: SNOE
Student Nitric Oxide Explorer, Expendable Launch Vehicles
NASA-sponsored and built by
students, designed to measure Program Consolidation
effects of the sun’s X-ray In late 1997, Kennedy Space Center was assigned lead center
radiation and magnetic field for responsibility for NASA’s acquisition and management of Expendable Launch
possible links to climate change
on Earth Vehicle (ELV) launch services, building upon the previous experience of Goddard
Vehicle: Pegasus XL Space Flight Center (GSFC) and Lewis Research Center. KSC worked
Launch Date: Feb. 15, 1998 throughout FY 98 to prepare for the transition of multi-million dollar launch
service contracts.
Payloads: TRACE
Transition Region and Coronal
Explorer, a NASA payload to As a result of the transition, KSC sustains a new budget of approximately
improve understanding of events $500 million. The Center coordinates requirements for all of the Agency’s
in the sun’s atmosphere ELV customers, a task that encompasses multiple projects from the offices
Vehicle: Pegasus XL of Space Science, Earth Science and Space Flight, as well as requirements
Launch Date: April 1, 1998
for National Oceanic and Atmospheric Administration (NOAA) programs. KSC
Payloads: NOAA-K now offers the technical expertise to match spacecraft with the Agency’s
National Oceanic and Atmo- mixed fleet of ELV launch services, providing launch vehicle insight, mission
spheric Administration-K, a design and analysis, and mating of spacecraft to launch vehicle.
weather satellite to provide high
resolution pictures together
with land and sea temperatures
and other data
Vehicle: Titan II
Launch Date: May 13, 1998
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As part of the effort to consolidate management of the ELV program, a

source evaluation board conducted a careful review in preparation for
•
the eventual awarding of the Small Expendable THE MOON
Launch Vehicle Services II
(SELVS-II) Contract. It was KSC’s first major procurement under its lead
•
center designation, and the process establishedMARS
new Agency policy. Since
that time, KSC has begun procurement activity for classes of launch services
larger than those covered under SELVS-II.
•
AND BEYOND

Customers
The KSC team supported five Agency ELV missions during FY
98, including the launch of the Cassini mission to Saturn on a Titan IV launch
vehicle. Cassini, a joint NASA-European Space Agency (ESA) mission, is
scheduled to arrive at the ringed planet in 2004 after more than six years of
interplanetary travel. It was among the most scrutinized unmanned launches
ever accomplished at KSC. The Center also supported preparations for such
highly visible missions as Deep Space 1, Submillimeter Wave Astronomy
Satellite (SWAS) and Mars Observer 98, scheduled for early in FY 99.

KSC also supported the first launch of a Lockheed Martin Athena rocket
from the commercialized Launch Complex 46, following an extensive risk
review of the launch vehicle. Three Pegasus missions (SNOE, TRACE and
SEASTAR) were completed, along with the launch of the NOAA-K satellite on
a Titan II launch vehicle. Six additional commercial Delta launches were
supported from NASA’s launch pad at Vandenberg AFB in California.

International Space Station The successful processing of the

Cassini mission took place amid
KSC team members were involved, both on site and at the KSC’s transition to lead
primary manufacturing locations, in the ongoing preparations for the responsibility for NASA Expendable
International Space Station. Significant hardware was delivered to the Center’s Launch Vehicle launch services.
Space Station Processing Facility (SSPF) for final assembly, test and launch
preparation.

The most notable of these elements is the Unity Node, the first Shuttle-
launched hardware destined for use in the International Space Station. Unity
will serve as a passageway to the U.S. laboratory module, the U.S. habitation
module and an airlock. It has six hatches that serve as docking ports for the
other modules and contains more than 50,000 mechanical items, 216 lines
to carry fluids and gases and 121 internal and external electrical cables using
six miles of wire. Space Station
Processing Facility
(SSPF) Achievements
Meanwhile, KSC teams continued to monitor the manufacturing of the Lab • Unity Node and its
Module “Destiny” and the Flight 7A Airlock in Huntsville, Ala., and the Pressurized Mating Adapters
manufacturing and testing of the Integrated Truss Structure S0 for Flight (PMA1 and PMA2)
8A in Huntington Beach, Calif. Other team members traveled to Canada and • Z1 truss and PMA3 for
Italy to participate in the manufacture and test of the station mechanical arm STS-92
and the Multi-Purpose Logistics Module, respectively. • P6 truss for STS-97
• Multi-Purpose Logistics
Module (MPLM) for STS-100

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Notable efforts continued in

Unity has six preparation for the Multi-Element
hatches that serve Integrated Test (MEIT), which will
provide unique compatibility testing
as docking ports
between actual flight elements
for the other
here on the ground before they
modules and meet on orbit. Another notable
contains more accomplishment was the establish-
than 50,000 ment of the first KSC Engineering
mechanical items, Support Room, which will provide
on-orbit ISS technical support to the JSC Mission Control Center. This project
216 lines to carry
required the expedited procurement and installation of computer,
fluids and gases communication and video data resources.
and 121 internal and
external electrical
cables using six
miles of wire.

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Strategic Goal 2: Increase the use of oper-

THE
ational expertise to contribute to • MOON
the design and
development of new payloads and launch vehicles.
• MARS
• AND BEYOND
The concept of Kennedy Space Center as a mere handler of pre-packaged
KSC Project Teams will:
technology no longer applies. Our 40 years of intense involvement with space
• perform East coast X-34
flight equips the Center to play a crucial part in all stages of the creation of environment assessment;
future flight equipment. • ensure the capability of
maintaining facilities, ground
support equipment and
Next Generation propellant requirements;
• provide a study of mobile
Vehicles tracking and flight control
X-34 functions as well as work
agreements with various
Global Positioning System Base Stations were designed landing sites along the nation’s
and built for use as flight support equipment for landings of the X-34 vehicle. East coast;
KSC and the 45th Space Wing prepared a joint Statement of Capabilities to • provide range flight and
support X-34 flights on the East coast beginning in 2000. ground safety approval for
X-34 East coast operations
and flights;
KSC is also supporting X-34 flight hardware development through MSFC in the
• develop a joint NASA/Air
areas of main propulsion system, Fastrac engine, mission planning, experiment Force communications plan.
development, thermal protection systems and guidance and navigation.

X-33
KSC also provided hardware, testing and engineering expertise KSC contributions to
to the X-33 program, while working to prepare the Center as a home for the the VentureStar™
reusable launch vehicle (RLV). Lockheed Martin Skunk Works hopes to • designed significant portions
develop VentureStar™ in the next century as a full-scale, commercial, of X-33 ground support
single-stage-to-orbit vehicle. equipment, including
Under the leadership of the Umbilical Subsystems, a
Vehicle Positioning System
Spaceport Florida Authority, NASA
and a Weight and Center of
and KSC formed a team with state Gravity Simulator;
officials to develop and submit to • fabricated various portions
Lockheed Martin Corporation a site of the X-33 Umbilical
qualification proposal to compete with other System;
states and NASA centers for the right to • tested the X-33 Holddown
host the VentureStar™ program. Posts at the Launch
Equipment Test Facility;
• furnished instruments and
KSC led the way as the next-generation crewed launch vehicle analytical support in the
program continued its transition from concept to reality. KSC teams worked in testing of the linear
partnership with Spaceport Florida Authority to develop a multi-use flight vehicle aerospike engine (LASRE) at
hangar and support facilities at the Shuttle Landing Facility tow-way. Also, in a White Sands, N.M., and
spur toward further technological pursuits, KSC was awarded $1.4 million for Dryden Flight Research
development and demonstration of Integrated Vehicle Health Management Center, Calif.;
• provided cost estimates,
technologies for the Future-X advanced technology vehicle, scheduled to fly as
operational planning and
either an expendable vehicle or a Space Shuttle payload in 2002. facility comparisons for the
Reusable First Stage
Program.

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Payload Capability Development

The Multi-Payload Logistics Module Access Certification Equipment
(MACE) was developed to test ground support equipment and to train
personnel on mock-ups prior to their performing work on Space Station flight
hardware. The MACE, which offers a simulation of Space Station elements, will
enhance safety, improve efficiency and reduce costs in the processing of Space
Station hardware.

A Payload Carrier Utilization Agreement was developed to define the engineering

analysis that must be performed in preparation for the use of a Spacehab pallet
on the Ranger Telerobotic Shuttle Experiment. KSC also undertook supervision
of a design study for converting an Engineering Model pallet into a flight-worthy
half pallet for transporting Space Station equipment.

Top: As is the case

with all missions, the
astronaut crew
members of STS-87
participated in
integration testing of
the Spartan-201
payload during its
processing at KSC.

Above: The Neurolab

payload on STS-90
included 125 oyster
toadfish, with
experiments targeting
the effect of
microgravity on the
fish’s nervous system.

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

Center’s efficiency by giving processing teams a simulation of
International Space Station elements.

Left: KSC workers processed the Unity

node for its flight on STS-88.

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Strategic Goal 3: Utilize operational expertise

• THE
in partnership with other entities MOON
(NASA centers,
agencies, industry, academia) to develop new
MARS
technologies for future space initiatives. •
• AND BEYOND
Kennedy Space Center continues to expand its involvement with outside
companies and agencies in making full use of its highly trained workforce and
world-class facilities to focus on mission-enabling research and technology.
The Center laid the foundation for its future in NASA’s exploration planning
efforts during FY 98.

Exploration Initiatives
KSC, recognized for its invaluable space systems knowledge and
expertise, has been tapped to fulfill an increasing role in NASA’s Human
Exploration and Development of Space Enterprise (HEDS). The goals of HEDS
include the development of space and the expansion of human experiences into
the far reaches of space.

The HEDS Enterprise has requested that the Center, along with the Jet
Propulsion Laboratory, lead the efforts for Advanced Sensors and Instruments
in support of human exploration. This task, anticipated to be an international
collaboration, includes defining what sensors and instruments would be required
A Mars Environmental chamber is
for human exploration, preparing technology plans, determining technology gaps well into production at KSC to
and developing solutions to fill those gaps. allow the demonstration and
assessment of technology in a
KSC, in partnership with Ames Research Center and Johnson Space Center, is simulated Mars environment.
developing an independent control system for In-Situ Propellant Production (ISPP).
Through the application of artificial intelligence, ISPP will allow for the production
of propellants on the surface of Mars using the resources of the planet.

Research is under way to analyze the electrostatic makeup of Mars dust and
common space materials, giving the Center the opportunity to work with JPL
on the Mars Environmental Compatibility Assessment Experiment.
This experiment will fly on the Mars 2001 Surveyor Lander.

A rocket concept, which uses In-Situ derived propellants, has been under study
with numerous motor firings taking place to validate hybrid rocket motor
designs. This concept could be used in a demonstration of ISPP on a future
robotic mission.

KSC has completed a major ground operations assessment of the Mars Design
Reference Mission (DRM) 3.0 including the processing of a new heavy launch
vehicle and the cargo and the transportation stages to place humans on Mars.
The Center also finished a framework of a logistics strategy for Mars surface
operations and participated in the Agency-wide Logistics Use Study for the
Mars DRM, as well as co-authored the Mars Surface Reference Mission.

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Technology Development

KSC accounted for one-fourth of the total NASA licenses

issued during FY 98 and ranked second among the centers
in the number of Space Act Awards, with $96,850
awarded to individual employees and partners. Additionally,
two chemists were honored as recipients of the 1998
Distinguished Patent Award for work in the development
of electrically conducting polymers.

As a further acknowledgment of the Center’s expertise,

the Associate Administrator for the Office of Space Flight
named KSC as the focal point for operational development
Above and Below: The world-class and engineering testbeds for the HEDS Enterprise. A “best
equipment of KSC’s cryogenics practices” study conducted by the Research Triangle Institute prior to this
testbed facility allows the Center to designation not only brought strong endorsements for KSC from other
form cooperative endeavors with centers, other government agencies and industry, but also led to specific
businesses, universities and partnership projects.
government agencies.
The Center, through a collaborative effort with the University of
Florida, Dynacs Engineering Co., Inc., and Air Products and Chemicals
Inc., won funding from Florida’s Technological Research and
Development Authority (TRDA) to develop a state-of-the-art
Cryogenics Testbed facility. Through this innovative partnership
with government, academia, and industry, KSC will use this Cryo-
genics Testbed to provide leading-edge development services,
thereby advancing applications for this technology and spurring local
economic growth.

Langley Research Center (LaRC) sought KSC to perform

testing of mechanical and physical properties on various
types of advanced materials that are developed by LaRC.
Through this agreement, KSC will conduct tests to help
determine whether or not a new material is suitable for its
intended application.

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

over the next two years to augment the existing Florida/
NASA Business Incubation Center through the TRDA. The
money is part of a $5 million line item in NASA’s 1998
budget for support of technology-based, small business
incubators.

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

series of integrated studies involving plant, microbial,
chemistry and engineering processes, in which it successfully
demonstrated the feasibility of recycling “gray water” for

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• THE MOON KSC performed

research geared
• MARS toward the
production of plant
• AND BEYOND
growth chambers
for life support,
targeting such
areas as high-
efficiency
microwave lamps,
solar collectors, LED
lamps, light pipes,
fiber optics and light
delivery systems.

human use. The Center also has continued research in two related areas:
systems that would allow for the ongoing production of food and oxygen and
the purification of water in space through biological rather than chemical
processes; and the effect of microgravity on plant processes.

The Center, in partnership with the

University of Virginia, researched
monitoring in real time of plant
processes at the microbial level.
These technologies will assist long-
duration space travel by lowering the
energy and mass of the overall
transportation system.

Research in the ecological systems

that surround the Center culminated
in more than 29 peer-reviewed
technical publications.

Work on the Electronic Portable

Information Collection system, a
Small Business Innovative Research
project, completed its third phase
of activities. KSC, in conjunction with
a small business, Sentel, Inc.,
developed and implemented a system The development of paperless work
for using paperless work documents in a space flight hardware environment. documents not only will benefit the
The concept, which uses an encoded electronic stamping system in computer Center’s employees but also has
potential for many commercial
applications.

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

result is a product being marketed and sold by Sentel, Inc. to customers in
the space, aircraft, utilities and garment industries.

Other recent technological innovations and

technology transfer activities at the Center include:

• the development of computer programs

to improve the analysis of stresses in
straight pipes;
• the development by AZ Technology, Inc., in
partnership with NASA and the Center, of a
portable instrument for surface optical
measurement;
• in another partnership with AZ Technology, the
development of a more manageable and reliable
device for measuring the properties of Multi-
Layer Insulation on spacecraft;
• the development of a portable system for
extremely precise voltage measurements;
• the licensing and use of NASA software by
Command and Control Technologies, a NASA/
Florida Business Incubation Center tenant that
received a $1 million contract from the Alaskan
Aerospace Development Corp. and the State
of Florida;
• the development of an improved ultrasonic leak
detector, now being used commercially by UE
Systems, Inc.;
• the contribution of four international standards
involving fluid purity and testing, surface
cleanliness and vehicle connections.

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Strategic Goal 4: Continually enhance core

capabilities (people, facilities,THE MOON
equipment and•
systems) to meet NASA objectives and customer
needs for better, faster, cheaperMARS
development and•
operation of space systems.
• AND BEYOND
At Kennedy Space Center, self-improvement is a never-ending quest.
The Center pursued the strategic imperative for ongoing improvement in
many ways during FY 98.

Maximize Customer
Satisfaction
Center Director Roy Bridges and
45th Space Wing Commander Brigadier General
F. Randall Starbuck unveiled a revolutionary
merger in August that establishes a
partnership between NASA and the Air
Force. A complete restructuring of the base
support operations between KSC and the 45th
Space Wing resulted in a $2 billion Joint Base
Operations and Support Contract (J-BOSC) which services
KSC, Cape Canaveral Air Station and Patrick Air Force Base. The contract
was awarded to Space Gateway Support, a joint venture among Northrop
Grumman, ICF Kaiser and Wackenhut, and took effect on October 1, 1998.
The overall objective is to provide safe access Lunar Prospector &
to space into the 21st century through Launch Complex 46
premier base support for the entire space
launch community. The successful launch of
Lunar Prospector aboard an
Not only does this contract streamline 18 base Athena II rocket marked the
inaugural use of Launch
services contracts into one, it also consolidates
Complex 46, operated by
approximately 85 government contract Spaceport Florida Authority.
administration personnel into a streamlined joint
management team of 40 Air Force and NASA Lunar Prospector will provide
personnel. KSC also collaborated with the Air NASA with the first global
Force on the use of Launch Complex 41 for the maps of the moon’s surface
Experimental Expendable Launch Vehicle Program, and its gravitational
magnetic fields. It also will
with final permit execution expected in FY 99.
look for the possible
presence of ice near the
lunar poles.

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Facilities
ISS Leak Test Chamber
The 34,600-square-
• Use of two altitude chambers foot Space Shuttle Main Engine
in the Operations and Checkout Processing Facility was completed,
Building began in 1965 to test
contributing to improved effici-
the Apollo command service
ency of engine operations. By
modules and lunar service
modules. streamlining this process, KSC adds
• The chambers were last used a greater degree of flexibility to
in 1975 in support of the accommodate future flight vehicle
Apollo-Soyuz Test Project manifests. In addition, the moving
missions. of main engine processing out of
• In 1985 the pumping
the Vehicle Assembly Building
equipment and control room
significantly reduces the safety risk.
were removed and scrapped
and the chambers went into
disuse. The hardware installation and setup
• In 1997, NASA decided to of three Test, Control and Monitor
perform leak tests on System (TCMS) checkout systems
International Space Station greatly enhanced the capabilities of the Space Station processing team. TCMS
pressurized modules at KSC.
is used as the primary Space Station checkout system for supporting prelaunch
Reactivation of the “west”
testing at the launch site and post-landing support at the landing sites for
altitude chamber in the
Operations and Checkout resupply and return missions. In addition, TCMS supports compatibility testing
Building high bay was deemed for International Space Station experiment equipment.
the best option.
• The chamber is 33 feet in In an innovative example of facility recycling, an altitude chamber in the
diameter and 50 feet tall and is Operations and Checkout Building Highbay — previously used by the Apollo
constructed of stainless steel.
program — was refurbished and reactivated to perform leak testing of ISS
pressurized modules.

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

and most visible icon, sustained a makeover. KSC workers
used 700 gallons of paint to refurbish one of the world’s
largest structures in preparation for the center’s 40th
anniversary, replacing a bicentennial symbol with the round,
blue NASA insignia affectionately known as the “meatball.”

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

giving the Shuttle Processing team improved tools for future
Shuttle stacking operations. The remaining 250-ton cranes
will be kept ready in case they are needed.

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At the Shuttle Landing Facility, an improved Visual Landing Aid

System was added to complement the centerline lights installed
in FY 97.

KSC continued to implement projects designed to meet energy

efficiency requirements. In buildings subject to Executive Order
12759, the Center surpassed the FY 2000 goal.

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

the Center has implemented “indefinite delivery task order”
contracts. These flexible and efficient contract vehicles provide
KSC with a proven pool of contractors who compete to meet
construction and modification requirements within the scope of
the contracts.

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

been responsible for the production and distribution of helium),
KSC designed and completed the Liquid Helium Conversion
System at the Converter Compressor Facility. KSC now procures
commercial bulk liquid helium in trailers, a change from the
government high-pressure gas rail cars.

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

comprehensive hardware and software inventory lists, has begun assessing
those items for compliance and has certified critical systems.

Projects earned
The effort to provide access to people with disabilities continued with seven
facilities receiving such modifications as accessible bathrooms, parking spaces nearly $75,000 in
and automatic doors. utility rebates from
Florida Power and
KSC took several steps to support the guiding principle of “Safety and Health Light Company,
First.” Foremost among them, the Center completed the design, fabrication
bringing the total
and installation of a new Medevac Helicopter Communications System that
amount to more
substantially improves communication among the flight crew, onboard medical
personnel and destination medical facilities. KSC also began expansion of the than $960,000
Exercise Facility in the Operations and Checkout Building. The result will be a since the Center’s
much-improved facility providing larger exercise areas and new equipment first rebate in
for employees.
FY 1994.

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Enabling Processes
FY 98 Achievements
KSC is working diligently to refocus its resources for maximum
• KSC has met all requirements
for ISO 9001 certification by productivity and to provide the most effective business solutions for
the international organization our customers.
Det Norske Veritas, Inc.
Other NASA centers and the
Jet Propulsion Laboratory
have consulted with KSC for
our knowledge and lessons
learned during the
certification efforts.
• KSC implemented the
“TechDoc” system to make
more than 50,000 electronic
technical documents available
to any NASA or contractor
user. “TechDoc” provides
almost instantaneous access
to documentation, resulting
in significant savings of cost
and time.
• The Center established the
Teams of employees worked during FY 98 to lay the groundwork for
Business Management
System on-line at KSC deployment of the Integrated Financial Management Project (IFMP), a software
Business World, including the system scheduled to take effect on March 1, 2000. In preparation for the
Implementation Plan, IFMP, the Center supported Agency Process Team activities that included
Performance Indicators and
Continual Improvement revising business processes, eliminating unnecessary work steps and writing
listings. The on-line system, test scenarios and scripts for validation testing. KSC also identified potential
initiated with more than 700 risks to the implementation of the system, and prepared mitigation strategies
document procedures, was
for these risks. The IFMP results from a contract awarded late in FY 97
enhanced to include Center
agreements with our to KPMG Peat Marwick LLP to implement an Agency-wide business
customers. management system.
• KSC initiated development
of a Project and Resource As part of NASA’s Outsourcing Desktop Initiative (ODIN), the Agency chose
Management System to
consolidate data for online OAO Corporation of Greenbelt, Md., to provide information technology services
project and mission reviews for the four Office of Space Flight centers. Six other firms are part of the
and to aid in the planning of pool of information technology contractors, which are available for selection
future projects.
under the ODIN master contract. KSC was selected as the lead service
• The Center developed and center for the Office of Space Flight ODIN delivery orders, a contract that
implemented the Goal
Performance Evaluation also covers Johnson Space Center, Marshall Space Flight Center and Stennis
System (GPES). GPES links Space Center. The services under this contract include comprehensive desktop
individual efforts to KSC’s computer, server, local area network, telephone, local video, administrative
Implementation Plan as well as
to Agency strategic plans. radio, remote communication and public address services.
This novel system is being
implemented at other NASA Along with the continuation of an undergraduate studies program, two newly
centers and has received created programs — the Kennedy Graduate Fellowships Program and the
attention from industry as an
innovative tool to link Leadership Excellence Achievement Program — provide support for individual
employees’ efforts to employees to further their education in areas considered critical to the Center’s
strategic initiatives. mission. The programs enable KSC’s leaders to create an environment that
• KSC performed an automated supports and nurtures a transition to the future.
skills and competencies
assessment to establish
baseline core competencies
and assess gaps with
future needs.

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Outreach To The World

The Fanmail and
The Visitor Complex welcomed an estimated 2.75 million guests
from around the world in FY 98, making it the fifth best-attended tourist Education Offices
attraction among the many in Florida. A newly finished observation gantry at together answered
the center of Launch Complex 39 (LC 39) and an International Space Station a total of 34,128
exhibit facility brought public visitors into closer contact with the actual workings inquiries during
of the space program.
FY 98 and mailed
To give visitors suffici-
out 1,517,889
ent access to the separate items.
new attractions, the
Visitor Complex began
a program of individ-
ualized tours.

The Center received a

high volume of mail from
the nation’s school
system and the general public, including those outside the United States. The
“Fanmail” office handled the majority of the written and electronic inquiries
and requests, responding by mail with informational packets whenever possible.

KSC projected high visibility in other ways as well. As always, the Center’s
activities drew the attention of the media, with approximately 1,600 accredited
Original Mercury astronaut John Glenn,
press members from 33 countries providing coverage to millions of readers, left, toured KSC during FY 98 in
viewers and listeners. Anticipation over John Glenn’s return to space resulted preparation for his return to space as
in a record of approximately 3,750 requests for press accreditation. a mission specialist on STS-95.

Exposure also flourished through entertainment outlets. “From the Earth

to the Moon,” a historical television series with Tom Hanks as executive
producer, aired on Home Box Office in April after a debut screening at
KSC. The Center also played a prominent role in “Armageddon,” the top-
grossing movie of 1998. The film’s director and several of its actors,
including Bruce Willis, attended a world premiere showing in June at
the Apollo/Saturn V facility.

Outreach To
Businesses
Kennedy Space Center’s eighth
annual Business Opportunities Expo
took place at Port Canaveral in
November 1997, drawing more than
100 exhibitors. Sponsored by KSC,
the 45th Space Wing, and the
Canaveral Port Authority, the Expo has
become one of the premier business “Armageddon,” the
top-grossing movie of 1998,
opportunity events in the Southeast.
made its world premiere at the
Center’s Saturn V Facility.

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The Central Industry Assistance Office made it easier for small firms to do
business with KSC. The office coordinated joint counseling by NASA and
prime contractors to 184 small businesses during FY 98. The Center spent
The Combined 17.2 percent of its contract dollars with small business during 1998, with
Federal Campaign small, disadvantaged businesses making up 8.4 percent and women-owned
With more than 80 businesses 4 percent of the 17.2 percent total. Those percentages exceeded
percent of employees the Center’s small business goals for the year.
involved, KSC donated
$225,817. That total
Outreach To The Community
greatly surpassed the KSC provided a direct economic impact of $966 million to
goal of $210,000 and Florida’s economy during FY 98, and approximately 83 percent of that money
was expended within Brevard County. Of the total figure, $762 million went
reflected a 5 percent
to contractors operating at the Center and $49 million went to off-site
increase per employee businesses in the county.
over the previous
year’s contributions. The Center’s employees established a new standard by giving $225,817
during the Combined Federal Campaign, a program that gives federal
employees the chance to contribute to charitable organizations through direct
payments or payroll deductions. The figure marked a 5 percent increase per
employee over the previous year.

A total of 170 employees also took

part in the annual Days of Caring
project, fulfilling “wish lists” from
disadvantaged Brevard County
residents by performing such
tasks as cleaning, painting, waxing
floors, vacuuming and cooking.
Another 68 NASA and contractor
employees lent support to various
other United Way projects, including
Meals on Wheels and the Central
Brevard Sharing Center.

The Community Relations Council, in

its first full year of existence, grew in
strength. The CRC organized the
Center’s response to the summer’s
wildfires, as employees donated about
2,500 pounds of snack foods, sports drinks, water and coolers to weary
firefighters.
KSC’s Open House put family
members of employees in touch KSC held an employee open house in November 1997, with more than 33,000
with the wonders of space. workers and their family members taking advantage of the opportunity to
explore the Center. The Launch Control Center proved to be among the
most popular sites, drawing more than 17,000 visitors.

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Outreach To Students and Teachers

•
The University Services and K-12 Education
THE MOON Services offices
supported multiple programs during FY 98. Among the most notable:
• MARS
• KSC hosted the first annual “Partners in Education and Research
Conference.” This conference•broughtANDmore thanBEYOND
200 university
faculty and industry representatives together to discuss technical
areas of interest to the Kennedy Space Center and partnership
ideas involving government, industry and academia.
• The Space Life Sciences Training Program provided an opportunity
for 40 college students from across the United States to work
and study at the Center during the summer with KSC researchers
Educational Support
serving as mentors. The Program has been conducted each
summer at KSC since 1984 in conjunction with Florida A&M • The Center’s “Spacemobile”
University, which provides five college credits upon completion. lecturers, each driving a
The students spent six weeks working in KSC’s life sciences van filled with NASA and
laboratory and field research, attended lectures by experts from space-oriented equipment
government, industry, and academia, and participated in several and materials, made 221
field trips. presentations to students,
teachers and the general
• For the fifth consecutive year, the Center donated and loaned
public totaling 20,904
excess computer hardware and software to schools for educational people in Florida and
purposes. The hardware alone was worth more than $7 million. elsewhere. In addition, the
• NASA’s Unique Resident Tutoring for Up-and-Coming Replacement two lecturers conducted
Engineers (NURTURE) introduced high school students to or supported 110 teacher
mathematics, science and engineering. The program, sponsored workshops.
jointly by KSC and the Brevard and Orange County School Districts,
• The Educators Resource
is available to selected ninth-grade students, who remain in
Center (ERC) maintained
NURTURE until their graduation. its function of encouraging
• The Virtual Science Mentor Program gave middle school science teachers to add science
students from southwest Florida access to the expertise of KSC’s and aerospace-oriented
scientists and engineers. The program, a cooperative effort among subjects to their curricula
NASA, the state of Florida, the Technological Research and and providing materials to
Development Authority and Florida Gulf Coast University, matched bolster that curricula.
Now in its 17th year, the
approximately 60 teachers with mentors from the Center. Using
ERC served 10,347
a desktop video system, the mentors provided the classes with professional educators and
mission-related material and other relevant information. helped distribute a total of
543,210 printed
The Center expanded its summer outreach efforts with the addition of ACCESS publications to teachers.
(Achieving Competence in Computing, Engineering, and Space Science). This
• The Summer High School
internship program benefits students with disabilities who have a strong
Apprenticeship Research
background in science and a desire to pursue technical careers.
Program (SHARP) offered
eight weeks of employment
In addition, nine students were employed with the Space Coast Center for and study at KSC in
Independent Living in a high school/high tech program co-sponsored by NASA. particular fields of interest
The program, based in Cocoa Beach, involves students, parents and employers for 26 students selected
and is intended to encourage students with physical, sensory or learning from Brevard, Orange,
Volusia and Osceola
disabilities to pursue interests in science, engineering and technology.
counties.

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People
While KSC benefited from stability in its upper management during
FY 98, some notable personnel changes did occur.

Jim Harrington, who had overseen 22 launches during his tenure as Space
Shuttle Launch Director, announced his retirement from that position in
David King December. He was succeeded by David King, the Shuttle Processing Deputy
Space Shuttle
Launch Director Director.

Harrington was not alone in the timing of his retirement. He was joined during
FY 98 by Jimmy J. Akin, Chief Information Officer; J. Albert Diggs Jr., Equal
Opportunity Program Office Director; Hugh W. Harris, Public Affairs Director;
Napoleon
Carroll A. David Flowers, Chief Financial Officer; Sal Cristofano, Payload Carriers
Chief Financial Program Manager; and Floyd Curington, acting director of Expendable Launch
Officer
Vehicles.

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

and Barbara Brown took the helm as Chief Information Officer. In other
changes, Bruce Anderson was named Chief Counsel and Kenneth Payne was
Barbara
Brown named director of Logistics Operations at KSC.
Chief Information
Officer As a result of increased center responsibilities, the Payload Processing
Directorate was reorganized into two directorates. Bobby Bruckner, director
of the original office, was given the role of leading the newly established
Expendable Launch Vehicle and Payload Carriers Program office. Steve Francois
Kenneth
Payne was named to lead the Space Station and Shuttle Payloads Directorate.
Director of
Logistics
Operations Meanwhile, employees were saddened by the passing of Alan Shepard Jr.,
one of the seven original Mercury astronauts and the first American in space.
Mr. Shepard died in July at the age of 74. Shepard, who became the fifth
human to walk on the moon as commander of Apollo 14, served for many
years as the chairman of the Mercury 7 Foundation, now the Astronaut
Scholarship Foundation.
Bruce
Anderson
Chief Counsel

Steve
Francois
Director of Space
Station and
Shuttle Payloads

Bobby
Bruckner
Manager of
ELV and Payload
Carriers Program
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Looking Toward The Future...

•
KSC continues to move its focus from its traditional
THE MOON role as
a launch service provider to one incorporating space launch technology
research and development in support of theMARS • Center’s customers.
We embrace a leadership position in anticipation of the changing forms of
•
space flight, taking early steps toward a transitionAND BEYOND
to a national spaceport
and eventually to many spaceports on Earth and other solar system bodies.

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

to create the tools needed for developing advanced spaceport architecture
and space launch operations capabilities. In support of our Spaceport
Technology Center concept, KSC identified technology growth areas and
future technology opportunities.

With a structured foundation already in place and the experience gained

from the ISO 9001 implementation, KSC is enhancing its management
system. The Center’s Integrated Management System will be based upon
a customer-focused strategy and continual improvement. The assessment
of processes certified to ISO 9001 standards will rely on a set of measures
tied to customer needs and organizational performance. This performance
review will align all activities with the Center’s long-term objectives for
systematic, prevention-based and continually improved processes.

This management framework will enable KSC to focus on the activities

most critical for our missions and to meet customer needs so that we
play a major role in achieving the NASA vision and goals for the future.

Roy D. Bridges, Jr., Center Director

James Jennings, Deputy Director for Business Operations

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

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

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 A N N U A L R E P O R T F Y 1 9 9 8 P A G E 2 9

N AT I O N A L A E R O N A U T I C S A N D S PA C E A D M I N I S T R AT I O N

• THE MOON J O H N F. K E N N E D Y S P A C E C E N T E R

K E N N E D Y S PA C E C E N T E R , FL 32899

• MARS
• Financial
Statement of the Chief AND BEYOND
Officer

The FIscal Year (FY) 1998 financial statements (unaudited) have been prepared to report the financial
position and results of NASA’s Kennedy Space Center operation, pursuant to the requirements of the
Chief Financial Officers (CFOs) Act of 1990 and the Government Management Reform Act of 1994
(GMRA). The statements include the Statement of Financial Position and the Statement of Operations
and Changes in Net Position.

The statements have been prepared from the books and records of NASA, in accordance with the
comprehensive basis of accounting prescribed by the Office of Management and Budget (OMB) Bulletin
94-01, “Form and Content of Agency Financial Statements.” The statements are different from finan-
cial reports used to monitor and control budgetary resources, which are prepared from the same
books and records.

The statements should be read with the realization that they are for an agency of the U.S. Government,
a sovereign entity. Liabilities not covered by budgetary resources cannot be liquidated without the
enactment of an appropriation, and payment of all liabilities, other than for contracts, can be abrogated
by the sovereign entity.

These financial statements were prepared in accordance with Federal accounting standards. These
standards are evolving through the efforts of the Federal Accounting Standards Advisory Board (FASAB).
This board includes members from the Office of Management and Budget (OMB), the General Account-
ing Office (GAO), and the Department of Treasury (Treasury). Currently, NASA observes the following
heirarchy of accounting standards as required by OMB;

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

• OMB guidance on the form and content of financial statements;
• Agency accounting guidance, which represents prevalent practice; and
• Accounting principles published by other authoritative sources.

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

Amount
Appropriation (in thousands)

Mission Support 259,353

Human Space Flight 104,531
Science, Aeronautics, and Technology 34,108
Construction of Facilities 12,387
Research and Development 196
Research and Program Management 2
Space Flight Control and Data Communications (82)
_____________________
Total Expenses $ 410,495

The 1998 Annual Report and Financial Statements were the result of the work of a dedicated team of
professionals at KSC.

N.A. Carroll
Chief Financial Officer

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FINANCIAL STATEMENTS
N A T I O N A L A E R O N A U T I C S A N D S P A C E A D M I N I S T R A T I O N

J O H N F. K E N N E D Y S P A C E C E N T E R

A N N U A L R E P O R T F Y 1 9 9 8

Statement of Financial Position

As of September 30, 1998 (In Thousands)
See Financial Notes 1 through 8 on the following pages

Assets: 1998 1997

Intragovernmental Assets:
Fund Balance With Treasury (See Note 2) $ 257,696 $ 257,903
Accounts Receivable, Net (See Note 3) 7,168 6,238
Governmental Assets:
Accounts Receivable, Net (See Note 3) 1,423 703
Advances and Prepayments 477 0
Property, Plant and Equipment (See Note 4) 1,806,073 2,314,963
Other Assets (See Note 5) 120,359 166,959
_______________ _______________
Total Assets $ 2,193,196 $ 2,746,766
_______________ _______________

Liabilities:
Liabilities Covered by Budgetary Resources:
Intragovernmental Liabilities:
Accounts Payable $ 20,922 $ 19,918
Other Liabilities (See Note 6) 425 364
Governmental Liabilities:
Accounts Payable 89,109 95,448
Other Liabilities (See Note 6) 12,732 7,149
_______________ _______________
Total 123,188 122,879
_______________ _______________
Liabilities not Covered by Budgetary Resources:
Intragovernmental Liabilities:
Other Liabilities (See Note 6) 57 57
Governmental Liabilities:
Other Liabilities (See Note 6) 16,853 16,468
_______________ _______________
Total 16,910 16,525
_______________ _______________
Total Liabilities $ 140,098 $ 139,404
_______________ _______________

Net Position (Note 7):

Unexpended Appropriations $ 143,576 $ 141,965
Invested Capital 1,926,432 2,481,923
Cumulative Results of Operations 0 0
Future Funding Requirements (16,910) (16,526)
_______________ _______________
Total Net Position $ 2,053,098 $ 2,607,362
_______________ _______________

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

_______________ _______________

The accompanying notes are an integral part of these statements.

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FINANCIAL STATEMENTS
N A S A
•
A T I O N A L E R O N A U T I C S A N D P A C E D M I N I S T R A T I O N

J O H N F.
THE
K
MOON
S
E N N E D Y P A C E C E N T E R

•
A N N U A L MARS
R E P O R T F Y 1 9 9 8

• AND BEYOND
Statement of Operations and Changes in Net Position
For the Year Ended September 30, 1998 (In Thousands)
See Financial Notes 1 through 8 on the following pages

1998 1997
Revenues and Financing Sources:
Appropriated Capital Used $ 389,196 $ 622,162
Revenues from Sales of Goods and Services:
To the Public 4,255 4,414
Intragovernmental 17,044 16,639
Other Revenues and Financing Sources (See Note 8) 491 302
Less: Receipts Transferred to Treasury (491) (302)
_______________ _______________
Total Revenues and $ 410,495 $ 643,215
_______________ _______________
Financing Sources

Expenses:
Program or Operating Expenses by Appropriation:
Mission Support 256,223 250,838
Human Space Flight 89,089 326,109
Science, Aeronautics and Technology 31,392 41,632
Construction of Facilities 12,387 3,718
Research and Development 196 (27)
Research and Program Management 2 (16)
Space Flight Control and Data Communications (93) (92)

Reimbursable Expenses 21,299 21,053

_______________ _______________
Total Expenses $ 410,495 $ 643,215
_______________ _______________
Total Expenses in Excess of
Revenues and Financing Sources: 0 0

Nonoperating Changes:
Unexpended Appropriations (See Note 7) 1,611 (100,056)
Invested Capital (See Note 7) (555,491) (5,900,447)
Future Funding Requirements (See Note 7) (384) 830
_______________ _______________
Total Nonoperating Changes $ (554,264) $ 5,999,673
_______________ _______________
Change in Net Position (554,264) 5,999,673

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

_______________ _______________
Net Position, Ending Balance $ 2,053,098 $ 2,607,362
_______________ _______________
The accompanying notes are an integral part of these statements.

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FINANCIAL STATEMENTS
N A T I O N A L A E R O N A U T I C S A N D S P A C E A D M I N I S T R A T I O N

J O H N F. K E N N E D Y S P A C E C E N T E R

A N N U A L R E P O R T F Y 1 9 9 8

Notes to the Financial Statements

For the Year Ended September 30, 1998

1. Summary of Accounting Policies and Operations

Basis of Presentation

These financial statements were prepared to report the financial position and results of operations of John F. Kennedy
Space Center (KSC) , pursuant to the requirements of the Chief Financial Officers Act of 1990. The statements were
prepared from the books and records of KSC, in accordance with the comprehensive basis of accounting specified in
OMB Bulletin 94-01.

Reporting Entity

KSC is one of nine NASA field centers established to aide NASA in its mission to provide for aeronautical and space
activities. Financial management of its operations is the responsibility of Center officials at all organizational levels.
KSC’s accounting system is one of ten distinct operations located at nine NASA Centers and Headquarters. Although
KSC, like the other Centers, is independent and has its own deputy chief financial officer for finance, it operates under
Agencywide financial management regulations. KSC provides payroll accounting for approximately 1,732 civilian employees
and processes approximately 6,497 non-payroll related accounting transactions monthly. This data provides the basic
information necessary to meet internal and external financial reporting requirements and provides both funds control
and accountability.

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

(1) The Human Space Flight (HSF) appropriation supports human space flight research and development activities for
space flight, spacecraft control, and communications actions. This includes research, development, operations,
services, maintenance, and construction of facilities, which encompasses the repair, rehabilitation, and modification
of real and personal property.

(2) The Science Aeronautics and Technology (SAT) appropriation provides for the conduct and support of science,
aeronautics, and technology. This includes research, development, operations, services, maintenance, and
construction of facilities, which encompasses the repair, rehabilitation, and modification of real and personal
property.

(3) The Mission Support (MS) appropriation provides for safety, reliability, and quality assurance activities supporting
Agency programs, space communication services for NASA programs, salaries and related expenses in support
of research in NASA Field Centers, and construction of facilities, which encompasses the repair, rehabilitation,
and modification of real and personal property.

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(4) The Research and Development (R&D) appropriation, which was restructured and replaced in the 1995 budget,
includes research and development of aeronautics and space, space vehicles, space systems effort, related
institutional activities, minor construction repair, maintenance, rehabilitation, and modifications.

(5) The Space Flight, Control, and Data Communications (SFCDC) appropriation, which was restructured and replaced
in the 1995 budget, includes production, operations and support activities for the Space Transportation System,
which includes the Space Shuttle and expendable launch vehicles. The appropriation also provides for tracking,
telemetry, command and data acquisition support of all flight projects.

(6) The Construction of Facilities (CofF) appropriation, which was restructured and replaced in the 1995 budget,
includes the construction of new facilities and the repair, rehabilitation, and modification of facilities.

(7) The Research and Program Management (R&PM) appropriation which was restructured and replaced in the 1995
budget, includes salaries, travel, and related expenses for the civil servants in support of NASA programs.

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

Basis of Accounting

KSC accounts are maintained on an accrual basis (i.e., expense and revenue are recorded in the accounts in the period
in which they are incurred or earned). Expenses are classified in the accounts according to the appropriation that
financed the activity. These expenses are coded in accordance with the Agencywide coding structure, which sets forth
a uniform classification of financial activity that is used for planning, budgeting, accounting, and reporting. The expenses
are further categorized in the General Ledger as operating expenses or capitalized expenses.

Funds with the U.S. Treasury and Cash

KSC’s cash receipts and disbursements are processed by the U.S. Treasury. The funds with the U.S. Treasury include
appropriated funds and deposit funds for advances received for reimbursable services. Balances are not held outside
the U.S. Treasury.

Advances

KSC funds its University Contracts and Grants program through the use of predetermined payment schedules where
letters of credit are not used; recipients are required to schedule drawdowns to coincide with actual, immediate cash
requirements, in accordance with OMB Circular A-125 and Department of Treasury regulations. Quarterly financial
reporting of cash transactions is provided on Federal Cash Transactions Reports (SF 272’s). Detailed monitoring and
accountability records are maintained; monitoring includes audits by the Defense Contract Audit Agency and NASA’s
Office of the Inspector General.

Accounts Receivable

The largest portion of accounts receivable is due from other Federal agencies and includes research and development
of satellites as well as launch services. Nongovernment customers are required to provide advance payments which
are placed on deposit with the U.S. Treasury until services are performed. In unusual cases, exceptions and waivers
to this general rule have been granted under the Space Act, allowing customers to postpone advance payments.

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

Property, Plant and Equipment

KSC-owned Property, Plant and Equipment may be held by the Center or its contractors. Under the provisions of the
Federal Acquisition Regulation (FAR), contractors are responsible for control over and accountability for such property
in their possession.

Under the User Charge Act and OMB Circular A-25, Property, Plant and Equipment may be depreciated while in prior
years a “use” charge was applied to commercial reimbursable customers, which included a factor for depreciation of
facilities and equipment. KSC is permitted to charge depreciation under the “full cost” concept to non-government
reimbursable customers.

Automated data processing software is costed as an operating expense when acquired rather than capitalized in
accordance with GAO Title II guidelines.

Equipment with a unit cost of $100,000 or more and a useful life of 2 years or more, that will not be consumed in an
experiment, is capitalized. Capitalized cost includes unit cost, transportation, installation, and handling and storage
costs.

Real property such as land, buildings, and other structures and facilities, is capitalized when the asset value is $100,000
or more. The capitalized value represents the total cost to NASA, including both acquisition and preparation costs.
Land values are recorded at original acquisition cost and do not reflect current value or include the cost of improvements.
Buildings are also valued at acquisition cost, including the cost of capital improvements and fixed equipment required
for functional use of the facility. Other structures include the acquisition cost of capital improvements.

Government-owned/contractor-held property includes KSC materials, plant equipment, space hardware, special tooling,
and special test equipment. Contractors are directed to annually report plant equipment costing $100,000 or more
and having a useful life of 2 years and which will not be consumed in an experiment. Reporting is also required for
special test equipment, special tooling, materials, and space hardware which, for the most part, includes items that
are in excess of $100,000; however, reporting on all such items is required and their total value is included in the
statement of financial position. Contractors report, as of September 30, on a NASA Form 1018, Report of Government-
owned/Contractor-held Property, is certified by the contractor’s representative and reviewed by a Government property
administrator.

Contractor-held space hardware includes flight pallets, mission peculiar experiment support structures, spacelab,
transfer tunnel, igloo assembly and similar components unique to NASA space programs and held by NASA prime
contractors or their first-tier subcontractors who are responsible for building, refurbishing and launching the hardware.
Contractor reporting is required for cost-type contracts exceeding $500,000 where space hardware costs exceed
$75,000. These items are priced in accordance with guidance set forth in a NASA supplement to the FAR. The
valuation policy allows for use of actual or estimated costs, which may be abstracts of data from contractors’ records,
computations based upon engineering estimates, estimates from NASA contractor financial management reports,
formula procedures, latest acquisition/pricing estimates or other approved methods.

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

Other Assets

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

Liabilities

Accounts payable includes amounts recorded for receipt of goods or services furnished to the Center, based on
receiving reports and billings rendered. Additionally, KSC accrues cost and recognizes liability based on information
that is provided monthly by contractors on cost and performance reports (NASA Form 533, Contractor Financial
Management Report). KSC relies on independent audits by the DCAA to ensure the reliability of reported costs and
estimates. To provide further assurance, financial managers are required to test the accuracy of cost accruals
generated from the NF 533’s, and NASA Headquarters independently analyzes the validity of KSC’s data.

Revenues and Other Financing Sources

KSC receives the majority of its funding through multi-year appropriations. These include 3-year appropriations for
construction activities, 2-year appropriations for operational and space flight activities, and a single year appropriation
for civil service payroll and travel. In addition to appropriated funds, the Center performs services for other Federal
agencies and the public and receives reimbursable funding authority.

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

2. Fund Balance with Treasury:

(In Thousands)
Unobligated Unobligated Fund
Fund Balances: Obligated Available Restricted Balance

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

_________ _________ _________ _________

Deposit Funds 0
Suspense/Clearing Accounts 84
_________
Total Fund Balance with Treasury $ 257,696
____________

3. Accounts Receivable, Net:

(In Thousands)
Entity Non-Entity Allowance for
Accounts Accounts Uncollectible Net
Receivable Receivable Receivables Amount Due

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

Governmental 994 1,168 (739) 1,422
_________ _________ _________ _________
Total $ 8,162 $ 1,168 ($739) $ 8,590
____________ ____________ ____________ ____________
Nonentity accounts receivable represent amounts that will be deposited to
miscellaneous receipts when collected.

4. Property, Plant and Equipment:

(In Thousands)
1998 1997 Change

Government-owned/Government-held:
Land $ 73,672 $ 73,672 $ 0
Structures, Facilities and Leasehold 1,399,861 1,363,460 36,401
Improvements
Equipment 29,386 101,603 (72,218)
Work in Progress 38,508 81,785 (43,277)
___________ ___________ ___________
Total $ 1,541,427 $ 1,620,520 $ (79,092)
_______________ _______________ ______________
Government-owned/Contract-held:
Equipment 50,130 134,669 (84,538)
Special Tooling 1,239 21,958 (20,719)
Special Test Equipment 58,227 76,613 (18,386)
Space Hardware 154,215 459,920 (305,705)
Work in Process 835 1,283 (448)
___________ ___________ ___________
Total $ 264,646 $ 694,443 $ (429,797)
_______________ _______________ ______________
Total Property, Plant and Equipment $ 1,806,073 $ 2,314,963 $ (508,889)
_______________ _______________ ______________
See Note 1 for further discussion on property, plant and equipment.

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

5. Other Assets: • THE MOON

(In Thousands)
• MARS 1998 1997 Change

Contractor-held Materials: • AND

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

6. Other Liabilities:
(In Thousands)
Liabilities Covered by Budgetary Resources:
Current Non-Current Total
Intragovernmental Liabilities:

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

___________ ___________ ___________
Total $ 425 $ 0 $ 425
________________ _______________ _______________

Governmental Liabilities:
Liability for Deposit and Suspense Funds: $ 1,691 $ 0 $ 1,691
Accrued Funded Payroll and Benefits 11,041 0 11,041
___________ ___________ ___________
Total $ 12,732 $ 0 $ 12,732
________________ _______________ _______________

The liability for deposit and suspense funds includes cash advances received from other Government
agencies and public reimbursable customers. Also included are funds on deposit with the U.S. Treasury
for employees’ savings bonds and state tax withholdings.

Liabilities Not Covered by Budgetary Resources:

Intragovernmental Liabilities:
Current Non-Current Total

Accounts Payable for Closed Appropriations $ 57 $ 0 $ 57

___________ ___________ ___________
Total $ 57 $ 0 $ 57
________________ _______________ _______________

Governmental Liabilities:
Accounts Payable for Closed Appropriations $ 2,898 $ 0 $ 2,898
Contingent Liabilities 1,119 0 1,119
Unfunded Annual Leave 0 12,835 12,835
___________ ___________ ___________
Total $ 4,017 $ 12,835 $ 16,853
________________ _______________ _______________

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

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

7. Net Position:
(In Thousands)
Appropriated
Funds

Unexpended Appropriations:
Undelivered $ 82,105
Unobligated:
Available 48,869
Unavailable 12,602

Invested Capital 1,926,432

Cumulative Results

Future Funding Requirements:

Annual Leave (12,835)
Closed appropriations (2,956)
Other (1,119)
_____________
Total $ 2,053,098
_____________

8. Other Revenues and Financing Resources:

(In Thousands)
1998 1997

General Fund Proprietary Receipts $ 491 $ 302

___________ ___________

Total $ 491 $ 302

_______ _______

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

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