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In a letter send Wednesday to U.S. Rep. Bart Gordon, NASA Administrator Charles Bolden also said the agency's actions would result in the loss of 2,500 to 5,000 jobs before the end of the year.
At issue is the federal Anti-Deficiency Act, which requires contractors to set aside money to cover termination costs in case a government contract is canceled. Bolden told Gordon, D-Tenn., and chairman of the House Science and Technology Committee, that the current estimate for "potential termination liability" for Constellation contracts is $994 million. Once those estimates are accounted for, Bolden said, the Constellation program is facing a shortfall of $991 million for the remainder of the year.
"Given this estimated shortfall, the Constellation program cannot continue all of its planned FY2010 activitioes within the resources available. Under the Anti-Deficiency Act (ADA), NASA has not choice but to correct this situation," Bolden wrote.
NASA intends to provide no additional funding for its Ares rocket program. Prime contract work on the Orion spacecraft will be adjusted and the scope of ground operations work -- the majority of which is done at Kennedy Space Center -- will cut by $89 million.
About $445 million remaining after the estimates for potential termination liability will be focused on:
++Maximizing the retention of people that can contribute to future technology development.
++Protecting advanced development work that still would be pursued under President Obama's proposed FY2011 budget, which calls for Project Constellation to be cancelled.
++Enable work to proceed on a scaled-back version of the Orion spacecraft and the J2X upper-stage engine.
++Place low priority on expenditures on work that applies only to Project Constellation and are not applicable under the President's proposed 2011 budget.
The move to essentially kill Constellation comes despite joint legislation passed by the House and Senate Appropriations committees that prohibits NASA from terminating any Constellation work without congressional approval.
It also comes despite rulings by both the U.S. Supreme Court and the U.S. Court of Appeals that places all termination liability on the government rather than contractors. One case in point: A lawsuit brought by DuPont in the U.S. Court of Appeals, Federal Circuit, in April 2004. The court ruled:
"[T]he Anti-Deficiency Act and its predecessors prohibit the inclusion of open-ended indemnification clauses in government contracts without specific appropriation or statutory authority. Even though the Indemnification Clause was included in this contract and it is quite reasonable to assume that both the contracting officer and the contractor believed this Clause to place the risk of virtually all liabilities on the government rather than the contractor, the state of the law compels us to hold this clause to be void and unenforceable."
IMAGE NOTE: In NASA Kennedy Space Center's Firing Room 4, NASA Administrator Charles Bolden congratulates the mission team for the successful launch of space shuttle Discovery on the STS-128 mission in August 2009. In the background, at center, is Center Director Bob Cabana. Photo credit: NASA/Kim Shiflett
58 comments:
Rules and laws? Who needs them?
So, what else is new from this admistration. Laws well we just ignore them when we don't like them. Congress just gets inthe way no need to listen to them or the public.
More job losses. How's that change workin out for ya.
I may be just your average dumb non-government-educated citizen, but isn't shutting down Constellation without Senate approval illegal? Is this just another example of the government, or part of the government, just doing whatever the hell it wants despite laws and rules? What if I conducted my personal affairs the way Bolden is handling NASA? My guess is I would be arrested and held accountable. But then again, I'm just your average dumb non-government-educated citizen
Whether this has anything to do with the space program makes no difference to me. What I find alarming is the complete disregard to the law so blatantly. This is a frightening example of a administrations desire to break laws to get what they want. What other laws will they ignore to gain power?
An article in Fl. Today earlier this morning said Pres. Obama intends to cancel the moon program so why should NASA continue to shovel oats into the mouth of a dead horse?
Mark, If I'm reading the article right, they cannot continue the program without violating the Anti-Deficiency Act (ADA).
Bolden has one Boss. His name is Barack Hussein Obama. Bolden does what his boss tells him to do.
The actions coming out of Washington DC have demonstrated the insanity that ensues from a rigged ( ACORN ) election.
We do not have a lawless society, we have a lawless government.
good idea, cutting bait on a underfunded project may be just the wakeup call NASA needs to start bringing projects in under budget and on time
Very sad. The USA has lost it's spirit as more job losses come and the drive for exploraton of space takes a back seat to the whine and bellyaching of Nobama..Ahhh but we can pay the Russians millions to do what we are supposed to do.
No need to follow the law we are the Obammy adminisytation we do as we please. Laws they just get in our way so we ignore them when we please.
Good move. The lawmakers have not funded the program, so just wave "close it down" in their faces, and maybe they'll realize that NASA ( or anyone else) needs cash to do what needs to be done. Maybe Obama knows this, too, and started this forest fire to put a little heat under congress member's seats.
Politics sux, but maybe this will work out in the end...?
Laws? What laws?
Just like immigration... Dems -- The Party Of Pro-crime.
I hope this comes as a wake up call to those who call people who read and study the Constitution a "fringe element". The President and his Administration are firing a shot over the bow at the Representatives of the People. Whether or not the "deficiencies act" calls for this, a representative of the President is openly defying the people through their representative. This is no little thing. Steppin on the rule of law is how tyrants come to power.
This article is a bit misleading...Obama/Bolden isn't technically breaking the law, they aren't telling contractors to shut down. They are enforcing a little used Act (been on the books for over a hundred years but hardly ever inforced) to do an end run around the provision that prevents cancellation of Constellation. If they tell Constellation contractors that they have to now use some of this years funding to pay for Constellation cancellation next year then they can't use that money to keep working on Constellation this year. Essentially stopping work on Constellation without telling them to stop work. ....Politiking :P
Well looks like Obama got the right puppet in place, didn't he?
What NASA is doing is shutting down Constellation without actually stating that it will shut down Constillation. Contractors who have violated the ADA law will be forced to cut their employment in the effor to make themselves financially compliant with the ADA. By losing the employees, those companies will not be able to fulfill their contract requirements. The companies will be considered in violation of their contracts and the Constellation program will effectively be dead.
By doing it this way, NASA remains compliant with the law.
For all those people who currently believe KSC is a welfare, jobs program, just wait until Obama's 21st century launch complex to nowhere is over budget!
All those Brevard merchants like getting the provided trickle down welfare. Once the tap is cut off, this place will look like Titusville all over. Enjoy! Those with educations, I say lets get the hell out of here.
Would you send your sons and daughters to war for Mr. Hussein?
"a representative of the President is openly defying the people through their representative. This is no little thing. Steppin on the rule of law is how tyrants come to power"........................................ Barak Obama has been "steppin on the rule of law" since day one. Why should NASA do any differently? After all Bolden works directly for him. Like father, like son.
Start the revolution...it's coming...not just NASA ..the government is out of control. Remember we can decide who represents us …get out and vote
Yea ...everything is Bushes fault...not
Obama is ashamed of US leadership. He'll do anything to kill Constellation, including an end-run around Congress.
Hopefully we can vote Barack Obama-Carter out in 2012.
Wow you folks sure have short memories. I seem to remember certain republican presidents who had warrantless wiretaps, lied to congress about iraq, set up literally trillions of dollars worth of defense contracts with NO bidding, had his VP out a covert agent, etc. And you are worried about a president who did what he said he would do? So the guy keeps his word, then you bash him yet the other guy lied through his teeth (or and shut down shuttle) and you believe he is a god?
"Hope" 2010 Republicans win at least one house..."Change " Obama is gone in 2012
How are you people liking Obama now? This is all Obama's doing.
Richard Armetige Colin Powell s Asst. outed the covert agent not the V.P. The speech to congress on the Iraq War was backed by every major contry s intelligence agencies and backed by your beloved party and previous Pres and V.P.so was the War until things went bad. The Shuttle was given a timeline after the Columbia disaster and the human spaceflight program was given a vision with the Constellation program. Not the vision of nowhere by your boy . Your boy also promised to not layoff all the workers after the shuttle program because he wanted all the great minds and could nt afford to lose the great minds of innovation . Now who lied thru who s teeth to get votes ? Quit watching Maddow and Olberman take off those Yobama glasses and sniff reality
Nothing more than a classless move by a gutless NASA administrator, and a stab in the back to the companies and employees who worked 5 plus years on a successful Constellation program. Too bad the companies that work the Constellation program are not located in Democratic or swing states. Think Bolden would be treating them a little different? Why don't you resign Charlie, can't you see you're reign a head of NASA has been a failure and is ruining our nations space program?
"...had his VP out a covert agent"
Richard Armitage admitted to doing this. When was he VP?
Obama did not promise to kill Constellation during his presidential campaign. He was non-committal until recently, and now he wants to skirt the law to make it happen.
Good one!!! @6:08
Uh, 6:07, Who lied to congress about Iraq? You conveniently forget that John Kerry, Ted Kennedy and Hillary said the same things about Iraq Bush did. Its called "having bad intel" Doesn't mean any of the aforementioned people lied.
Had his VP out a covert agent? That has been resolved, in case you forgot, and it was not Cheney.
As for a president doing what he said he would do, are you referring to Obama when he told voters in Brevard he would do everything possible to support the space program? Or maybe the Obama who said congressional debate about health care reform would be broadcast on CSPAN? The list goes on and on, but I grow weary.
What a way to lead, if you can't find consensus, find a loop hole. Nice pick Obama. Why don't you wake up and get rid or Bolden before the entire us space program is destroyed.
Hey Mr.Bolden, did you ever stop to think that you could be wrong?
Actually, it seems to me that they can't continue the program because they don't have the funds to do so, so there's no choice but to shut it down. So Congress can either pump more money into a program that's going to be cancelled anyway, or they just let NASA shut it down.
Nothing "illegal" about it. Why? Contractors aren't going to work for free.
"So the guy keeps his word"...what a crock of bull...did you not listen to him at Brevard Community College in Titusville? He completely lied to get elected. Hopefully, these job losses include the union employees that paid the unions to put Obama in office.
Democrats out by November.
Obama impeached by December.
Obama pledges $400 million for economy!! (6/9/10) -- "But we also think that it is important for us to explore new mechanisms so that we can have goods and services, and economic development, and the ability of people to start their own businesses, and to grow the economy and provide opportunity within...
...Gaza."
Obama pledges $400 million for Palestinians -- LA Times
The program won't be cancelled if congress has anything to do with it. That is why Obama and Bolden have to skirt the law.
If congress has to choose they'll keep Constellation and cancel Falcon 9! Bolden better be careful.
Obama....one termer.
Huge mistake and a sign of Obamas and Boldens weakness. And not going to sit well with congress.
I wonder if the no money for NASA has anything to do with the huge medical plan Obama and the Democratic congress just passed?
Bolden and Garver need to be handed THEIR pinkslips.
Big case of NIMBY here. The same folks posting with outrage are likely the same tea par tiers yelling to keep the government's hands off their medicare but rail against all other government spending. Well, it looks like some government money is ok to be spent and don't dare stop spending it or you'll face the wrath. Hypocrites!
GOOD!!! About time somebody quit shucking and jiving to the all-powerful YoMomma Administration. They won't fund it, they won't support it, but they want them (NASA) to grovel at their feet ang beg, even though the end is clear.
People have HAD IT with this clown and his puppet show.
Maybe it's time for NASA to do a little cost cutting, instead of canceling a program. I can't believe they can't find a little fat to trim. With their budget, $900 million is just a little fat.
If you spend the nation into mountains of debt as Bush-Chaney did then give all the Rich people a pass on taxes, what do republicans expect you can't pay for moon rockeys when the rich people have that tax money
lets put nasa under the dept of defence get rid of bolden then we can rule the planit from the moon without politics involved
Obama "the Destroyer of U.S. Manned Space Flight"
If Obama supported manned space flight he would have extended the Space Shuttle program to 2016 and continued the Ares V program. Obama could have reversed Bush's decision.
You cannot trust Obama.
We need to cut foreign country aid and invest in the U.S.
Obama just signed $400 million for Palestines.
Obama should be arrested for not following the Congressional law for funding the Constellation program.
After 30 plus years of supporting NASA, Bolden and Obama pull this move, and to top it, they give the companies effected no clue this was coming. Totally classless and underhanded.
I can't believe that Bolden and his puppets are defying the House of Representatives so blalantly...what a re we teaching our children? break the law to do whatever it is that you want to do...OMG
Impeach Obama
Not ONE government employee will lose their job over this. They will be counting links in the fence, bird watching, measuring the efect on the wildlife growth since the sonic booms have stopped...not ONE of those slackers will be out of a job.
Not ONE Govt employed person that works at the cape will get their hands dirty doing any kind of manual labor.
NOT ONE OF THEM !!!
Reading some of your comments are just stuip and ignorant. shows that they majority of you are uneducated. The majority of you all are like hot air balloons. You need to shut up. Take a look at the full picture. To run any part the space program, into the next faze takes mega dollars. Instead of comming up with ideas to keep KSC operational, all you folks are doing is making a whole lot of worthless noise. Did it ever occur to anyone one out there, That the picture is far bigger then your pee brains can imagne. You folks knew well in advance that a change was comming to KSC after shuttle. Folks need to look at maybe their just isn't enough money to run the program so as a result theirs no money to pay the workers. Don't blame the president and center director, they are doing the best they can with what they have been delt with. Which all falls back on the previous administration whos mess that that we are in and trying to clean it up. Look at the mess with the war. Which let me remind you all in case how soon you forgot is a result of 911. Why not make noise about stopping the war. If that is done then those millions,trillions of dollars can go into furthering the space program. What you all need to do is Pray. GOD has been good to KSC and it workers over the years, we need to trust him to get threw this. If you don't know how to pray ask someone who does to help you. God is the author and finisher of our fait. Believe it and you'll recevie it. The only way we will get through this stuff is by prayer.
HEY! ANY of you ding-dongs know how to multiply and divide?
Where do you get the idea that NASA needs to take the blows for Obama's overspending? THE TOTAL NASA BUDGET EQUALS .55 of one percent (1%) of the TOTAL U.S. BUDGET!!! That's right folks, we are throwing away our brain trust and space superiority for 1/2 of 1 percent.... WOW! and how much will it cost to get the brain trust rebuilt when we need it? Obama doesn't understand NASA OR there is some secret trade agreement with Russia and China to provide manned space exploration on behalf of the U.S. BECAUSE it's NOT the $$$$ -- maybe he's secretly an "alien" awaiting the mother ship to invade...that would be a plausible reason to dismantle the space program.
BTW, the "rich" that "pass on taxes"???? What moon are you living on? go to Ross Perot's site www perot chart dot com Ten Percent (10%) of the working Americans pay NINETY-FIVE PERCENT (95%) of the U.S. Taxes. How much more do you think the "rich" should PAY? Are you telling me the other 270 million people can't come up with FIVE PERCENT of the taxes???!!! There is no free ride...but ya'll keep asking for them...begging...that you are not responsible or accountable for anything in your lives.
Once again I call for Lori & Charlies heads on a pike! This is such a load of crap. It is time to stop walking around the elephant in the room and attack head on the administrations disregard for the law. Billy the bard was right about lawyers, "Hang them all!". We have got to stop this madness and get back to the business of designing and building hardware. The workforce has been demoralized, the world is chuckling, and we are letting these children chart a course to beach on the cape. What a joke this has all become.
We must do the following now:
1. Fly the shuttle until a replacement is operational from American soil. (Commercial or Ares).
2. Design, build, fly, a system for BEO with a mission plan that gets us to the moon at least by 2020.
3. Consolidate the nasa centers to provide for cost savings and limit political maneuvering in the future.
4. Put a funding package together that is exempt from the (4) year cycle of administration kickball.
5. Please fire Lori and Uncle Charlie NOW!
I would like to give congratulation to the Space X crew. Great job and remember you stand on the shoulders of the hard work and research that came before you too. As the rider in the chariot would always whisper, "You are mortal".
Carl (Surfduke) Hewlett
4.
Todd, I'm not an attorney but it appears that you're quoting the earlier finding in the DuPont case. That finding held that, although both DuPont and the contracting officer (gov't) believed the indemnification clause relieved DuPont of financial responsibility and shifted it to the gov't, this was NOT the case, and the court was compelled to reject that interpretation. In other words, the quote you provide shifted responsibility back to DuPont. It was the finding of the Federal Claims court in 2002.
However, you are correct (with the wrong quotation) about the eventual finding. The Federal Circuit court overturned the Claims Court's finding, which had focused on the statement in the Anti-Deficienc Act that said in effect that open ended indemnifiction clauses were prohibited without sufficient statutory authority. The Federal Circuit found that the contract itself constituted "statutory authority" because it was backed by tort law - and so in fact the indemnification clause as originally written was upheld. The upshot of that was that it made the gov't, not DuPont, responsibile for the liability issue. DuPont's case was remanded back down to the Federal Claims court to determine damages to be awarded to DuPont.
So although your citation appears to be incorrect, your interpretation is correct - but only on the surface. The court case involved a question of liability as pertained to environmental damage created during wartime when DuPont operated a facility for the U.S. Gov't. The "liability upon termination" referred to in the case is liability for that damage, which DuPont believed (rightly, as it turned out) that they were indemnified against because it was a wartime contract and had been so stated in the contract itself.
This is quite different from "termination liability" as it is being used in the NASA case at present, where TL refers to the costs of shutting down a contract - in other words, the "liability" (costs) for termination, NOT liabiity _upon_ termination. Again, it would take an attorney, which I am not, to tell us whether the DuPont finding could be extended to the NASA case, but it seems that these two types of liability are very different things, at least to my uneducated brain.
For the record, I'm not "supporting" the legal approach being taken by the Administration, for the reason that it appears designed to avoid, as much as possible, not only Congressional debate but national debate as to the direction of the space program. No matter what an individual's position may be about CxP, legal manuevering that is designed to cut off discussion is antithetical to the democratic ideal inherent in the Great Experiment and is, therefore, offensive to me.
MLDITTMAR:
Thanks for the note. I really appreciate the feedback. I realized last night that I'd picked the wrong the wrong quotation. You explanation of the DuPont case and the relevancy to the matter at hand is the very best I've seen, and again, I really appreciate the feedback. It's complicated subject matter and you spell it out well! Thanks!
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