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National Space Society Position on HR 3625

December 2013

The National Space Society (NSS) opposes passage of HR3625, which was approved December 11, 2013 by the House Science, Space and Technology Committee. This bill, if approved by the full House and Senate, would have the impact of requiring that funds currently reserved for termination costs in the case of program cancellation for convenience be immediately spent on a short list of named programs. HR3625 also states that NASA cannot cancel these programs without Congress first passing a law to that effect.

Although this may initially sound like a good idea, HR3625 violates standards of professional program management and creates a special class of NASA programs that may be more difficult to cancel in the future. As a result, potential termination actions could focus on other NASA programs that are not covered by this Act. Additionally, HR3625 sets a bad example for management across the entire US government, and may lead to further attempts to create a wide range of specially protected programs. All NASA, and all government programs, are normally evaluated regularly on their merits by both executive and legislative branches. Although it is probable that HR3625 would have minimal impact on termination-for-cause actions that derive from poor performance, it would add additional obstacles to termination-for-convenience actions and make such actions more difficult. Finally, this bill potentially could create a "moral hazard" — a precedent encouraging companies to take additional risks if they felt a covered program would be more difficult to terminate.


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Updated Mon, Jan 13, 2014 at 09:43:17
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