Satellite System Is Over Budget and in Trouble

By WARREN E. LEARY
The New York Times
May 12, 2006

WASHINGTON, May 11 - A new weather satellite system planned for 
civilian and military use is behind schedule and billions of dollars 
over budget because of technical problems and poor management, 
according to testimony Thursday before the House Science Committee.

Johnnie E. Frazier, the inspector general for the Commerce 
Department, said managers from agencies involved in the program had 
failed to respond to problems as they arose and to challenge overly 
optimistic progress reports from the project director.

In addition, Mr. Frazier said, the program suffered from a flawed 
contract incentive program that awarded millions in bonus money to 
the prime contractor, Northrop Grumman Space Technology, even as the 
satellite system fell months behind schedule and costs grew by $3 
billion or more.

...

http://www.nytimes.com/2006/05/12/washington/12satellite.html?ex=1305086400&en=b0335bffd5c15a90&ei=5090



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