Boeing Space Station Overruns Disclosed

NASA chief Daniel Goldin disclosed that Boeing Co. has had a $196-million overrun on the work completed so far on the international space station program. Goldin said Boeing’s performance has been “less than stellar” on the central space station node, a major structural piece of the station. He said he has told Boeing, including Chief Executive Phil Condit, “how disappointed we are.” Seattle-based Boeing has billed NASA under its cost-plus contract about $3.65 billion for work that was budgeted to cost $3.45 billion. The cost overruns are being absorbed within budget reserves and therefore have not driven up the overall price tag set by the National Aeronautics and Space Administration for the space station, Goldin said.