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E X E C U T I V E O F F I C E O F T H E P R E S I D E N T

                          THE WHITE HOUSE
                   Office of the Press Secretary

FOR IMMEDIATE RELEASE THURSDAY, June 17, 1993

SPACE STATION REDESIGN DECISION REDUCES COSTS, PRESERVES RESEARCH, ENSURES INT'L COOPERATION

WASHINGTON -- President Clinton today (6/17) announced he is recommending a scaled-down version of the Space Station Freedom that will significantly reduce costs to taxpayers, preserve critical research, ensure international cooperation, and mean a major redesign of America's space agency as well.

The redesigned space station will save an estimated $ 18 billion over the projected two decade life of the program, with more than $ 4 billion in savings in the next 5 years due to decreased development, operations, and management costs.

"At a time when our long-term economic strength depends on our technological leadership and our ability to reduce the deficit, we must invest in technology but invest wisely, making the best possible use of every dollar," President Clinton said in a statement announcing his decision.

"I instructed NASA to redesign the space station program in a way that would preserve its critical science and space research and ensure international cooperation but signficantly reduce costs and improve management. NASA has met that challenge," the President said, announcing that he is proposing a scaled-down version of the Space Station Freedom recommended by an expert panel that reviewed NASA's redesign proposals.

President Clinton said the Administration would work with Congress, NASA, and America's international partners during the next 90 days to make the very best use of the simplified design, an option based on the Space Station Freedom and recommended by the expert panel assembled to review NASA's proposals for the redesign of Space Station Freedom.

"I am calling for the U.S. to work with our international partners to develop a reduced cost, scaled-down version of the original Space Station Freedom. At the same time, I will also seek to enhance and expand the opportunities for international participation in the space station project so that the space station can serve as a model of nations coming together in peaceful cooperation. Finally, I will be directing NASA to implement personnel reductions and major management changes to cut costs, reduce bureaucracy, and improve efficiency, " the President said. "We are going to redesign NASA as we redesign the space station."

President Clinton cited the involvement of the National Performance Review team, led by Vice President Gore, in working with NASA to develop proposed management changes.

Ninety days ago, President Clinton asked NASA to review the Space Station Freedom program to confront rising costs and management problems. NASA's proposals were reviewed by a team of experts, led by Dr. Charles Vest, President of MIT, assembled by Vice President Gore and Dr. John Gibbons, the President's Science and Technology Advisor. The option chosen by the President was one of the options recommended by the Vest panel.

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                         THE WHITE HOUSE
                  Office of the Press Secretary

FOR IMMEDIATE RELEASE Thursday, June 17, 1993

STATEMENT OF THE PRESIDENT

At a time when our long-term economic strength depends on our technological leadership and our ability to reduce the deficit, we must invest in technology but invest wisely, making the best possible use of every dollar. That's why I asked for a review of NASA's space station program. Concerns over rising costs and mismanagement raised serious questions about a program vital to our technological leadership. I instructed NASA to redesign the space station program in a way that would preserve its critical science and space research, and ensure international cooperation, but significantly reduce costs and improve management.

NASA has met that challenge, offering a plan that will substantially reduce costs to taxpayers, improve management, preserve research, and allow the United States to continue to work with its international partners and keep its international commitments. That was the conclusion of an outstanding panel of independent experts who carefully reviewed NASA's proposals. And, that is my conclusion as well, after thoroughly considering their report and recommendations. It will take not just a redesign of the space station, but a redesign of NASA itself.

I am calling for the U.S. to work with our international partners to develop a reduced cost, scaled-down version of the original Space Station Freedom. At the same time, I will also seek to enhance and expand the opportunities for international participation in the space station project, so that the space station can serve as a model of nations coming together in peaceful cooperation. Finally, I will be directing NASA to implement personnel reductions and major management changes to cut costs, reduce bureaucracy, and improve efficiency. The National Performance Review team, led by Vice President Gore, has been essential in working with NASA to develop these management proposals. We are going to redesign NASA at the same time that we redesign the space station.

To make maximum use of our investments and meet the scientific goals we have set, the specific design we will pursue will be a simplified version of Space Station Freedom recommended by the review panel. We will work with Congress, NASA and our international partners during the next ninety days to make the very best use of this design. The details of this proposal will be delivered to Congress within the next few days. I have asked Dr. John Gibbons, my Science and Technology Advisor, to transmit a letter to NASA with more detailed instructions for implementing this decision.

The redesigned program will capitalize on the investments we have already made. However, with its deep cuts in future development and operations costs, this redesigned program will save more than $4 billion over the next 5 years, compared with our assessments of what the real costs of funding the planned Space Station Freedom would have been. Over the two-decade life of the program, these savings will grow to more than $18 billion.

There is no doubt that we are facing difficult budget decisions. However, we can not retreat from our obligation to invest in our future. Budget cuts alone will not restore our vitality. I believe strongly that NASA and the space station program represent important investments in that future, and that these investments will yield benefits in medical research, aerospace and other critical technology areas. As well, the space station is a model of peaceful international cooperation, offering a vision of the new world in which confrontation has been replaced with cooperation.

In making this announcement today, I want to recognize the extraordinary efforts of all those involved. Vice President Gore and Dr. Gibbons assembled an outstanding team of experts, led by Dr. Charles Vest, President of MIT, who assessed several costsaving options prepared by NASA. This review included not only the design of the space station, but also the structure and management of NASA itself. Their work and the work of all those at NASA involved in this project, has been invaluable.

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The White House

Office of the Press Secretary

For Immediate Release June 17, 1993

FACT SHEET: SPACE STATION REDESIGN

In March, the White House asked NASA to redesign the Space Station Freedom program to reduce significantly the costs of the program while achieving many of the current goals for long duration scientific research. This decision came out of concerns over both the rising costs of the Space Station program and the program's management problems.
To accomplish this, a space station redesign process was developed which included a NASA redesign team, as well as an independent panel of experts chaired by Dr. Charles Vest, the President of MIT. Both the redesign team and the independent panel included representatives of our international partners in the Space Station program -- the European Space Agency, Canada, and Japan.
NASA's redesign team produced three options as alternatives to the current Space Station Freedom. Two of these options (A, B) were derivations of the current Freedom design, and one (C) was an entirely new design. NASA also conducted an independent assessment of the costs of the current Space Station Freedom program.
The Vest Panel was charged with evaluating the technical merits of the options developed by NASA, verifying their costs, and making recommendations to the President. On June 10, the Vest Panel forwarded its recommendations to the White House. The Vice President and Dr. John Gibbons, the President's Science and Technology Advisor, were formally briefed on the report by Dr. Vest on June 11, with a subsequent briefing to the President by the Vice President and Dr. Gibbons.
Among its findings, the Vest Panel concluded that:

          The redesign options were technically viable and could 
          offer significant cost savings over the current Space 

          Station Freedom design.

          The Space Station program could accommodate and would 
          benefit from increased international participation, 
          including the possible participation of Russia in the 
          program.

          Successfully completing the Space Station program at 
          reduced cost would require significant management 
          changes at NASA in order to decrease  excess personnel, 
          reduce the bureaucracy, and increase efficiency.  The 
          majority of the cost savings would depend upon this 
          management reform.

          Either a scaled down, technically simplified  version of 
          the Space Station Freedom program or the new design 
          alternative identified by NASA would be recommended for 
          proceeding with the Space Station program.

After consideration of the Vest Panel's report, the President today announced his decision to support the development of a scaled down, modular version of Space Station Freedom, consistent with the Panel's recommendations. NASA will be instructed to work with our international partners during the next 90 days to further optimize this design.
In addition, the President announced that he will seek increased international participation in the space station program, and will implement major management changes at NASA in order to achieve cost savings and increased efficiencies.
Based on this decision, the White House will provide Congress with a revised FY94 budget request for NASA that includes approximately $1.85 billion for space station development costs, and approximately $250 million for development of science payloads and other costs associated with the Space Station. The total FY94 request for the Space Station will be $2.1 billion.
The redesign will save $ 8 - 9 billion dollars through the year 2000, and approximately $ 18 billion through the life of the project.
Dr. Gibbons will provide a letter of instruction to NASA within the next several days to facilitate the implementation of this decision.
The United States will work closely with its international partners on the Space Program to implement all aspects of this decision.

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