ACEE Battles with the GAD

The roots of this struggle predated Reagan’s inauguration, originating with the controversial 1979 GAO report. For much of NASA’s history. [248] aeronautics programs had never required close oversight because of the low levels at which they were traditionally funded. The large budget and greater visibility of ACEE suddenly brought it unwanted attention. In June 1979, the heads of several key NASA programs were asked to com­ment on “where we’re going in aeronautics.” Donald Nored, Director of the Lewis ACEE program, responded by saying that this is the type of ques­tion that is “perhaps best explored in a leisurely retreat" but complied by answering in a four-page letter. In it. he said that NASA should be respon­sive to major national needs and should focus on “break-through, innova­tive. novel, high risk, and high payoff’ programs. Nored. who was far from an unthinking cheerleader, was critical of some aspects of the NASA aeronautical program. He said that there seemed to be a “hodge-podge” of activities, with NASA trying to do too many things and responding to industry in areas that were too evolutionary and incremental. NASA’s aeronautics should be. according to Nored, “more revolutionary.”

Nored’s final suggestion addressed what he believed to be the most important issue facing aeronautics in 1979 and the future—fuel. “The prob­lem of fuel,” he said, “is an overriding problem to all other technical issues in the field of aeronautics.” Nothing was more important than solving the technological issues represented by rising fuel costs because it threatened the airline industry and the continuation of American prosperity. Nored believed that ACEE was a good beginning, but that even more needed to be done. He advocated for “continued vigorous support” of this and other related fuel efficiency activities, and he pleaded for what he called “agency urgency."*

Nored’s views were almost entirely discounted in a GAO report on ACEE. In August 1979, 2 months after Nored made his suggestions, the GAO released a draft review that was highly critical of the ACEE project. It was the first in a series of reviews the GAO planned for all of NASA’s aeronautical projects. Since ACEE had the greatest visibility and importanceamongallofthem. itreceivedthefirstofthegovemmental reviews. Under the direction of the House Committee on Science and Technology, the review’s goal was to “recommend potential program options for replacing ACEE,” and the GAO went on a 6-month fact-finding mission

4. Emphasis in original. Nored to the NASA director of aeronautics. June 4. 1979. Box 238. Division 8000. NASA Glenn archives.

in 1979 to Lewis and Langley Research Centers, 3 airframe companies, and 2 jet engine companies.[249] [250]

The first observation made by the report was that it was “unclear” if ACEE—which had, after all, only been operational for a few years — would achieve its objectives, although it found that NASA had some “limited technology successes to date.” All of this should have been a likely obser­vation. since the 10-year program was still, for the most part, in its begin­ning phases and was attempting some risky and revolutionary aeronautical research. The report did indicate one of the main reasons the results were unclear—funding. The programs with the highest fuel-savings potential — the Advanced Turboprop, Laminar Flow Control, and Composite Primary Aircraft Structures—were threatened because neither Congress nor the Carter Administration would commit to funding. The report concluded that “the cumulative affect [sic] of these uncertainties highlights why the meeting of ACEE objectives is currently very unclear.”*

The GAO’s analysis of specific ACEE programs was also critical. Of the Lewis projects, it had little positive to say. The report stated that the Engine Component Improvement project was “falling short” of its perfor­mance goal. The Energy Efficient Engine was too new to evaluate, and its chances of meeting goals were “unknown.” Likewise, the GAO admitted that it was “too early to say” if the Advanced Turboprop would be a suc­cess, but that it was 3 years behind schedule. The Langley ACEE programs did not fare much better. The Energy Efficient Transport was criticized because it appeared to the GAO that only Douglas Aircraft would be able to integrate the new fuel-saving technologies, and not Boeing or Lockheed. The GAO called the prospects for the Laminar Flow Control program “uncertain,” believed that NASA was further away than originally thought to achieving its goals, and claimed the program was 4 years behind sched­ule. Finally, the GAO criticized the Composite Primary Aircraft Structures program for failing to develop a composite wing or fuselage, underesti­mating costs, and not foreseeing the hazardous potential effects of car­bon fiber releases into the environment. The GAO concluded that the

composites program would achieve “dramatically less” fuel savings than originally projected.

On January 24, 1980, NASA Administrator Robert Frosch responded vigorously to the draft. Frosch wrote to J.11. Stolarow. the GAO Procurement Director, that after reviewing the report with officials at Langley and Lewis, “We are very concerned about the negative tone of the report and its implica­tions regarding the value of the NASA Aircraft Energy Efficiency (ACEE) Program.” Frosch criticized the reviewers for basing evaluations of the program upon schedules set up in 1975. before the program began. More significantly, he said, the report trivialized the major advances that ACEE had already achieved. Frosch put the full weight of his support behind the program and described it as a “significant contributor” to the overall avia­tion research and technology program in the United States. He praised the Government and industry team for its cooperation and added that the results would have a “major influence on transport aircraft of the future.”[251] [252]

ACEE managers at Lewis, Langley, and Headquarters wrote a more detailed response to the GAO and fought to have its conclusions changed before the GAO released the final report. They argued that in general, the GAO presented a "distorted view" that, if left unchanged, would create the "false impression that the program has been less than successful," jeopardizing future funding for the program and leading essentially to a self-fulfilling prophecy.[253] NASA produced a several-page document that provided a thorough review on how large portions text of the report should be altered to better reflect the realities of the ACEE program.

Their efforts were successful in persuading the GAO to craft a much more positive document. In the final report, "A Look at NASA’s Aircraft Energy Efficiency Program” (July 1980). the GAO explained its rever­sal of language and opinion, saying that in light of NASA’s concerns, it “carefully reevaluated its presentation and made appropriate adjustments where it might be construed that the tone was unnecessarily negative or the data misleading."[254] [255] For example, the first sentences of the original draft chapter on the ACEE status read: "The prospects of ACEE achieving its objectives are unclear. Technical readiness dates are being slipped.”11 This tone was significantly changed in the final published report, which said: “The ACEE program, which is in its 5th funding year, has experienced some technological successes which will be applied on new and derivative airplanes built in the early 1980s. Examples are improved engine compo­nents, lighter airframe components, and improved wings.”[256]

Changes were also made to specific program reviews. John Klineberg, a member of the founding ACEE task force and eventual Lewis Center Director, said that in the original report, the GAO treated the turboprop project unfairly. He called the reviewers ignorant of the project’s “inherent uncertainties,” because from the start, it was considered one of the more risky ACEE programs.’3 Lewis project managers prevailed in persuading the GAO to cast a more favorable light on the turboprop. In the draft, the GAO argued: “The Task Force Report shows that in 1975 there was considerable disagreement on the ultimate likelihood of a turboprop engine being used on commercial airliners”[257] [258] In the final publication, the GAO amended the sentence to read: “The possible use of turboprop engines on 1995 commercial aircraft is still uncertain, but has gained support since 1975 ”[259] [260] These editorial adjustments demonstrated the effectiveness of project managers working to improve public and gov­ernmental understanding of the project. They also highlight the political skills often necessary to ensure technological success, or the perception of success, at NASA.

In August 1980, 1 month after reading the final report, Walter B. Olstad, the Acting Associate Administrator for Aeronautics and Space Technology, felt as if the battle had been won. He said that upon final review, the report “fairly stated” the ACEE progress. He was also pleased to report that in almost every area that NASA expressed objections, the GAO made appropriate changes. Olstad wrote, “while a great deal of our responses to the draft versions of the GAO ACEE report may have sounded negative… (we) appreciate the opportunities afforded during its prepara­tion to make substantive inputs.”1”

The battle exemplified by the NASA and GAO conflict was not unusual. Institutional conflict is more the norm than the exception. In an article about NASA during the Reagan years, political scientist Lyn Ragsdale wrote that conflict between Congress, the Presidency, and NASA occurred often because they operated within a system of separate institu­tions that all shared a power mitigated through checks and balances. "In order to circumvent such conflict,” according to Ragsdale, “officials in one or more institutions must be willing to invest political capital to raise public awareness.”[261] [262] The political fights for ACEE did not end with the GAO conflict. Instead, they intensified as ACEE managers and NASA leaders fought to raise awareness not only of the importance of fuel – efficiency aviation programs, but of NASA’s role in aeronautics itself.