ble study is involved, however, to ensure that we have covered all aspects of the facility requirements. It is not anticipated, therefore, that we will be in a position to announce selection of the launch and recovery facilities prior to the fall of this year."

In August 1970 KSC was assigned the responsibility for launch facility design for the shuttle program regardless of where the launch facility might eventually be located. Additionally, KSC has been baselined as the launch site in the two contracted studies in support of the shuttle vehicle definition. Accordingly, in order to be ready to carry out this assigned and other potential responsibilities in a timely manner, it has been necessary for us to commence planning using KSC as the point of reference as if development flight testing will be conducted here. Our current and planned activities in this area include:

An in-depth study, examining the comparative advantages and disadvantages of a number of proposed launch sites, has been completed. This study shows that KSC offers superior or equal vehicle performance for the majority of test missions under consideration, substantial savings by making maximum utilization of existing facilities that would have to be duplicated elsewhere, no overflight of populated areas for flights during the development phase, favorable abort mode recovery options, and efficient utilization of experienced launch personnel. The results of this study have been presented to NASA management and will be fully incorporated in the current NASA/Industrial team studies.

During the current NASA Space Shuttle study activities, we are participating with the other development centers in the technical monitoring and evaluation of the ground and flight systems. We are working to assure that the areas of refurbishment, serviceability, maintainability, safety, logistics, and support equipment are given full consideration in the preliminary design of the Space Shuttle vehicles.

When the decisions are made to initiate Space Shuttle development contracts, our participation will include assistance in the evaluation of current study results and the development of contract statements of work for our assigned tasks in the support of Source Evaluation Boards.

KSC plans to contribute, within the proper organizational framework, its cumulative evaluation of ten years' launch experience as it affects the design of Ground Support Equipment. One particular consideration is the influence that Ground Support Equipment has on the length of operational "turn-around time," a crucial factor in the efficiency of shuttle operations.

We are studying in-depth the obvious need for organizational and staff realignments to be fully responsive to these future programs requirements. Our objectives include consolidation of functions, economical and effective use of our launch team, and the infusion of young scientists and engineers into the work force. We are studying totally new organizational concepts for Shuttle operations including airline type maintenance, logistics, and payload management.

With regard to advanced missions such as Space Station, Space Tug, Translunar Shuttle, and lunar landing efforts, our planning is oriented toward launch processes and support systems which involve multiple missions and payloads. Our three objectives are efficient operations, economical utilization of existing launch facilities, and the integrating of these facilities with the requirements of the Space Shuttle Program. Total KSC involvement in these areas of the Agency's integrated program is much the same as in the Shuttle Program with KSC personnel participating in program definition, prelaunch test and checkout, and the relationship of each major element to overall program plans. In addition, we are examining the problems associated with the handling and checkout of experiments packages and logistic support for all elements of the integrated program during definition phases.

Our participation in the agency's Advance Study programs is increasing significantly. We are conducting both in-house and contractor studies in several areas including corrosion prevention and treatment methods, lubricants evaluation for specialized launch operations requirements, the production, transportation, and storage of propellants for the Space Shuttle, landing site safety, operational analysis, and cargo handling.

SUMMARY

The current and planned activities at the Kennedy Space Center indicate clearly that we will continue to be busy for the near future. The combination of presently approved programs and those we hope will be approved should ensure a major continuing role for the Kennedy Space Center in both manned and unmanned space explorations. Even so, we are currently engaged in a major overall

reorientation of agency space goals and objectives which is resulting in a slower launch pace and a significantly lower resource level. Reorientation of goals not only establishes new values and priorities, but also creates new challenges which must be met, accommodated, and solved.

At the Kennedy Space Center we are faced with many technical and management challenges, some old and some new. We must continue to manage our total resources in such a way that we continue to enjoy that technical success which the world associates with the Apollo Program. Although more limited in magnitude than in past times, our technical programs continue to require the same unrelenting vigilence as we complete the Apollo Program, launch the Skylab missions, and move forward in the pursuit of new scientific and technological goals.

Our challenge for the future is to preserve the unique experiences of our launch team and to restructure it so it will be capable of absorbing the new programs we feel confident will materialize in time. The national interest can ill afford total disbandment of this expertise and we are dedicated to retain it for the future to the extent that our resources, imagination, and ingenuity will allow.

Because of the extensive work force reductions, there has been concern expressed about morale at the Kennedy Space Center and the manner in which it might affect the quality of workmanship. There is a morale problem. It is true that our personnel are concerned about the future of the space program, their jobs, their families, and their future, and it is natural that this should be an individual and personal concern. We have made a total and diligent search for evidence that this concern, this morale problem, has reflected itself in the quality of workmanship. I can assure you that there is no evidence of any such interaction and that performance and quality remain and will continue to be of the highest standards.

We at Kennedy Space Center look forward to the future with confidence in our continued ability to successfully accomplish our assigned tasks. Although we are somewhat apprehensive that the national resource our launch teams represent may start to dissipate in the not too distant future, we will continue to work diligently to avoid such a consequence. I know that his Committee shares our concern and we welcome any suggestions which will help us solve this very serious problem.

Again, thank you for the opportunity to submit this statement of record.

THE BOEING COMPANY

INTRODUCTION

APRIL 6, 1971.

This report was prepared to review for Congress the Boeing participation in NASA's Manned Space Flight program and offer our perspective on the future.

OUTLINE OF THIS REPORT

STATUS OF BOEING ACTIVITIES ON
APOLLO/SATURN & SKYLAB PROGRAMS

Figure 1 gives the outline of this report. Figure 2 identifies the major organizational elements of The Boeing Company. The main product organizations are across the bottom. On the left, the Commercial Airplane Group produces the commercial airplane products. The Vertol Division produces Boeing helicopters. The Apollo/Saturn, Skylab and Space Shuttle work is accomplished within the Space Division of the Aerospace Group. The Field Operations and Support Division provides support services to NASA at Kennedy Space Center.

STATUS OF BOEING ACTIVITIES

ON APOLLO/SATURN AND SKYLAB PROGRAMS

Figure 3 identifies the Boeing operating locations on the Apollo/Saturn program. It also lists the employment as of mid-March for each location. At New Orleans, where the Saturn S-IC Stage is assembled and tested, there are currently 886 employees. All 15 S-IC stages have completed assembly and static-firing. Five S-IC stages are still at Michoud. All will undergo stage checkout to reverify all systems. Then two S-IC stages for the Apollo 16 and 17 missions and one S-IC stage for the Skylab mission must be delivered to the Kennedy Space Center. The S-IC-10 stage, to be used on Apollo 15 in July of this year, is already at KSC-having been delivered early last year. Michoud will continue to provide logistics support as well as engineering analyses for the upcoming launches. Two stages (S-IC-14 and -15) have no currently identified mission and will be delivered into long-term storage after stage checkout

The 223 employees located at Kent, Washington, are involved in manufacturing and test of the remaining two Lunar Roving Vehicle flight units. The design work on this program was done at Huntsville. The Boeing-Huntsville organization, currently with 692 employees, provides prelaunch engineering analysis, flight systems engineering, and flight readiness support for MSFC on the Saturn V vehicle. At Houston, the current 417-man organization provides systems engineering and analysis plus flight readiness support to MSC on the Apollo Spacecraft.

BOEING OPERATING LOCATIONS ON APOLLO/SATURN

& SKYLAB PROGRAMS AND CURRENT HEADCOUNT

The Boeing operation at Cape Kennedy currently employes 1,018 persons. This employment has recently increased with the addition of a services support contract there. The basic task at KSC is for launch operations on the Saturn V launch vehicle in support of the Apollo mission, and on both the Saturn V and Saturn IB launch vehicles for Skylab. Our Washington, D.C. operation, now employing 65 persons, provides technical and flight readiness support for the Lunar Exploration Program through its contract with the Apollo Program Office.

Figure 4 shows the Boeing Apollo/Saturn total employment. The profile begins at about peak employment, which actually occurred in the latter part of 1967. Current employment is about 3,300 as indicated. The headcount at the time of your visit to Michoud (March 7, 1969) is also shown-at that time, it was 10,304. A forecast line has been applied to this chart and indicates that Boeing program manpower will be relatively stable until the latter part of next year. The slight increase shown in the forecast is attributable to the new services contract obtained by Boeing at KSC. Incidentally, the Boeing employment on the Apollo/ Saturn programs represents about three per cent of the total national employment on the NASA Manned Space Flight program.

The dramatic downturn in program employment has affected the Boeing payroll at the various locations participating in the program. As Figure 5 shows, during the peak period from FY 1966 through 1969, payrolls in the several southeast states of Louisiana, Mississippi, Alabama, Texas, and Florida aggregated to $163 million annually. Current FY 1971 levels are off approximately $100 million to $63.5 million annually and in the State of Mississippi there will be no Boeing payroll in FY 1972.

About 45 percent of all dollars contracted for by Boeing on the S-IC program were redistributed by subcontracts around the country. Figure 6 shows the distribution of money by state. These are total dollars spent and committed since the beginning of the S-IC program. By way of comparison, Figure 7 shows what we currently have committed in subcontracts by state. The bulk of these subcontracts are for spare parts and replacements for modified parts.

Assembly of S-IC stages was concluded with completion of final assembly on S-IC-15 on August 3, 1970 (see Figure 8). All Apollo/Saturn activity at the Mississippi Test Facility has been concluded following completion of static-firing activities. The S-IC-15 completed this activity for Boeing with successful staticfiring on September 30, 1970 (see Figure 9).