NASA Acting Administrator Questioned By Congress After GAO Audit

Called on the carpet last week by the House Science and Technology subcommittee to explain cost overruns and project delays, National Aeronautics and Space Administration acting administrator Christopher Scolese explained that counterfeit parts inadvertently installed on NASA spacecraft have contributed to unforeseen problems with project schedules and budgets.

"We find out late they are counterfeit parts," Scolese said. "We find out about it while sitting atop a rocket or, worse, find out about it in space." He added that the problem is not a new one - it has been going on for years and getting worse. Foreign manufacturers and counterfeiters make bogus equipment that has ended up in NASA's supply chain, he said.

The phony parts usually carry authentic-looking logos and manufacturer markings, and are sold at premium prices. The most recent instance was detected "a couple of months ago" by NASA personnel working on the Kepler space telescope project, Scolese said. The counterfeit part was removed and replaced, contributing further to the project's delays and cost overruns.

A recent Government Accountability Office audit of NASA projects revealed typical cost overruns average 13 percent and launch delays average 11 months, but did not address the problem of counterfeit parts. The Kepler project has gone 20 percent over budget, raising total costs to $595 million.

The Houston Chronicle reports that trade in counterfeit parts has become big business worldwide. The US government estimates the bogus parts racket has grown from a $5.5 billion industry in 1982 to $600 billion in 2008, representing seven percent of world trade.

FMI: www.nasa.gov