Mr. Chairman and Members of the Subcommittee, I am pleased to have this opportunity to discuss with you the plans for the
Aero-Space Technology Enterprise. This is a time of change for us. We have recently merged the Office of the Chief Technologist
into the Office of Aero-Space Technology. We did this to better focus the Agency on integrated, long-term, innovative aerospace
technology that is critical to the Agency’s future. As part of this expanded Agency role, we will identify and develop innovative,
new technologies for space applications in concert with our current programs in aeronautics and space transportation. By taking a
broad approach across the entire range of NASA’s long-term technology needs, we can concentrate our efforts on those technology
opportunities that have greatest impact on the Agency’s overall strategic goals. All of our activities will be closely coordinated with
technology programs in the other Enterprises focused on the specific need of their future missions. We are committed to pursuing
bold goals for the benefit of our Nation. Today, I will discuss our vision and the challenges we face.

VISION AND GOALS

The Office of Aero-Space Technology is embarking aggressively on a path to pioneer the technology and concepts required for the
future. We are looking toward a change state in our organization to match the opportunities that are emerging. We will build on
the many strengths of our current goals and programs to capture these opportunities.

First, we will enable a revolution in air transportation mobility. NASA will be pursuing advanced concepts and supporting
technologies that will help lead the air transportation system to the next level of performance. NASA will demonstrate
technologies for a new system that will incorporate intelligence and more intuitive human interfaces for safety and efficiency. Door-to-door trip times will be shortened through technologies that can support an expanded air transportation network with
smart, towerless airports and affordable, easy-to-operate small aircraft. Noise and emissions will be reduced through advances in
materials and design techniques that allow innovative airframes and propulsion systems.

Second, we will lead  technology development for advanced space transportation systems, including both earth-to-orbit and
in-space. By increasing both safety and reliability and reducing cost by an order of magnitude, we will enable a new, more
aggressive, generation of space exploration and development. The risk reduction efforts under NASA’s Integrated Space
Transportation Plan will enable the agency to purchase commercial services for Earth-to-orbit launch needs. No goal has the
potential to have a more profound impact on how the United States conducts space exploration since the start of the Apollo
Program. By converging with the commercial capabilities, enabling private sector competition, and ensuring evolvability and
alternate means of access to space, we and our industry partners intend to increase the role of industry, fundamentally change
NASA’s culture, and revolutionize the economics of space transportation. In the area of in-space, we will develop advanced
propulsion concepts for dramatically reducing in-space travel times to enable more rapid and frequent missions, putting space
exploration on a more human time scale.

Third, we will aggressively pursue engineering and technology innovation. We must pioneer a revolution in engineering tools and
processes, and a cultural change in organizations. To create the air and space transportation systems of the future, as well as
other highly complex civil and military systems, we need to develop a new approach to engineering that puts safety, reliability and
mission assurance first. Critical to unlocking this capability are high-fidelity, collaborative tools and environments with intuitive
human interfaces that will allow us to simulate in a virtual environment, complete product life-cycle evaluations before cutting the
first piece of hardware.

And, technology innovation will continue to be a part of everything NASA does. The next step is to build into advanced systems
such new characteristics as intelligence, rapid self-repair, and adaptability to enable major changes in safety, reliability and
performance. These characteristics will come about through innovation and integration of leading-edge technology, most notably
nano-technology, biologically-inspired technology and intelligent systems.

We believe we can accomplish these things because this Enterprise has a proven track record of accomplishments. In FY 1999 the
Enterprise set a number of performance targets to measure progress toward specific objectives in such areas as environmental
emissions, aviation safety, technology innovation and access to space. The Enterprise met or exceeded many of these targets. With
regard to environmental issues, NASA in collaboration with Pratt & Whitney demonstrated that low-emission combustor
technology can reduce oxides of nitrogen (NOx) levels to half of the 1996 ICAO regulations during landing and take-off cycles.

Over 30 percent of all fatal accidents worldwide are categorized as controlled flight into terrain (CFIT) accidents, in which a
functioning aircraft collides with terrain or obstacles that the flight crew were unable to see. As part of our joint NASA/FAA
aviation safety program, several underlying causes of CFIT were identified, and we are developing approaches for fully operational
certifiable synthetic vision and health management systems. A significant contribution to the world-wide terrain database, and
thus to aviation safety efforts, is the “digital planet” derived from the Space Radar Topography  Mission flow on STS-99.

Toward the end of last year, the High Performance Computing and Communications Program achieved a 320:1 reduction in
turn-around time-from 3,174 hours on the Intel Paragon computer to 10 hours on the Silicon Graphics Origin 2000 computer-of
a full combustor simulation from compressor exit to turbine inlet. This improvement in the National Combustor Code will
contribute to a significant reduction in aircraft engine combustor design time and cost by reducing the need for combustor rig
testing by one-third, resulting in a savings estimated at $2 million per design. This will also aid in accomplishing the national
goal to reduce aircraft engine emissions.

Although slowed by hardware delivery problems and the resolution of environmental concerns at the White Sands Test Facility,
progress toward the first flight of the X-34 continued during FY 1999. At Stennis Space Center, hot-fire testing of the Fastrac
engine has been very successful. Construction of the first powered flight vehicle continues to progress.

BUDGET

The Office of Aero-Space Technology is submitting a FY 2001 budget of $1.193 billion, which represents a $68 million increase
over FY 2000. We have restructured this budget to reflect our priorities and to maximize the benefit arising from synergy between
aeronautics and space transportation technologies. The increase represents expanded investments in existing programs (Aviation
Safety, Flight Research, and Information Technology) and new programs (Space Launch Initiative, Small Aircraft Transportation
System, and Quiet Aircraft Technology). These increased investments and new initiatives reflect our priority objectives in safety,
aviation systems capacity, noise reduction, next-generation design tools, experimental aircraft and access to space. These
investments also support our collaborative effort with the Federal Aviation Administration (FAA) and the Department of Defense
(DOD) to achieve the national aviation goals described in the National Science and Technology Council’s “National Research and
Development Plan for Aviation Safety, Security, Efficiency and Environmental Compatibility.”

NEW INITIATIVES

This budget includes funding for three new initiatives. Over the five year period from FY 2001 through FY 2005, the new Small
Aircraft Transportation System (SATS) Program is funded at $69 million. The budget also supports a funding increase of $100
million for noise research over the same five-year period in the new Quiet Aircraft Technology (QAT) Program. This budget
reflects robust funding-$4.397 billion over five years-for the new Space Launch Initiative.

SATS will develop and perform focused demonstrations of advanced vehicle and infrastructure technologies that could better
utilize the Nation’s under-used airspace and landing facilities at non-towered airports in all weather conditions. While
community vitality and economic opportunity are dependent on safe access to high-speed transportation, the current aviation
system does not adequately serve many of the Nation’s communities. Success depends on technology innovation and a National
partnership. NASA’s history of success in general aviation and airspace operations has positioned NASA to lead this effort. The
SATS program will develop and demonstrate advanced aircraft technologies and the integration of small aircraft operations with
smart landing facilities. The integration of these technologies is key. Non-towered airports will become smart landing facilities by
providing automated traffic separation, sequencing, and conflict resolution (both in the air and on the ground) and on-demand
information services. If successful in a limited demonstration, SATS could enable a communications architecture that delivers
aviation information services in an Internet-like manner, where aircraft and ground facilities will be interconnected nodes on a
high-speed digital communications network. This program is coordinated with the FAA.

QAT will provide the technology to meet the National vision for a noise-constraint-free air transportation system that would in the
long-term contain the 65 decibel noise contour within the boundaries of most airports, a 10 decibel reduction from 1997
best-in-fleet aircraft. This program will build upon highly successful efforts resulting from the joint NASA/FAA Noise Reduction
program. A direct response to the National Science and Technology Council National Research and Development Plan for
Aviation Safety, Security, Efficiency, and Environmental Compatibility, released in November 1999, QAT will develop
technologies for engine and airframe source noise reduction and advanced operations to reduce community impact.

Safe, cost effective space transportation remains the key enabler of a more aggressive civil space program, and the Space Launch
Initiative puts us on the track to accomplish this. This initiative is a result of NASA’s Integrated Space Transportation Plan that
consolidated Space Shuttle Safety, 2nd Generation Reusable Launch Vehicle technology program, Alternate Access to Space
Station, Crew Return Vehicle for Space Station, and Aero-Space Research and Technology Base programs into a unified Agency
strategy. It makes the critical investments that will enable major safety, reliability and affordability improvements for future
generations of space transportation systems.

No effort will be as important to the future of this Enterprise and this agency as the Space Launch Initiative. In recent years,
NASA has made significant progress in transitioning routine space operations to the private sector so that taxpayer resources can
be concentrated on high-leverage science research and technology development functions. However, commercially competitive,
privately owned, low cost, safe, Earth-to-orbit launch for human space flight remains the most critical, fundamental step this
agency can take to enable more aggressive civil space exploration and to stimulate new space commerce. If successful, the Space
Launch Initiative will mark a dramatic maturing of our space program, with the potential to revolutionize NASA and industry
roles and responsibilities. The Initiative supports our goal of conducting a competition in 2005 to meet NASA’s human space
flight needs through commercial launch service procurements by 2010. To achieve this goal, the Space Launch Initiative will
pursue a three-pronged strategy. The first element involves technical risk reduction activities supporting full-scale development
decisions for at least two commercially competitive reusable launch vehicles prior to the 2005 competition. The second element is
hardware development to meet NASA-unique needs, such as crew transport and cargo return. The final element is comprised of
launch service procurements to provide alternative access for select Space Station needs on commercial vehicles in the near-term.

PROGRESS IN ONGOING PROGRAMS

The X-33 Program develops cutting-edge technologies such as large composite tanks, a metallic thermal protection system,
innovative aerospike engines and a lifting body approach to a launch system as part of the effort to the reduce cost of access to
space to one-tenth of the current level. Despite technical difficulties with the liquid hydrogen tanks, the program made
considerable progress in the last year. The X-33 launch complex was completed and site activation begun. Testing of the world’s
first aerospike engine is underway at the Stennis Space Center and is on track to be completed this year. All of the flight software
for the X-33 has now been delivered and is in integration testing at NASA’s Dryden Flight Research Center. Independent
Verification and Validation (IV&V) of the software is also underway by the NASA IV&V Facility in Fairmont, West Virginia. The
technology demonstrator’s unique metallic heat shield also passed qualification tests at our Ames and Langley Research Centers,
as well as at the Marshall Space Flight Center. The two composite liquid hydrogen tanks-the largest and most complex ever
built-were completed and qualification testing began at Marshall. Unfortunately, during this testing, there was a structural
failure of one of the tanks after the successful completion of a rigorous testing sequence. An independent investigation team will
soon release a report on the incident.

Incidents like this, while disappointing, are not unexpected in a technologically challenging program. We have established a very
strict ground development and test program to assure that we have validated components before they are assembled in the vehicle. Our industry partners have been exceptional in addressing the challenges that the program has experienced over the course of this
effort. NASA’s funding for the X-33 has not changed since the beginning of the program, while our industry partners’ investment
has increased significantly. We have, however, utilized additional staff at NASA Centers to help mitigate issues in the past and, as
other situations arise, we will continue to do so as priorities permit.
In a parallel effort over the past two years, the X-33 team has been updating the design of the Single Stage to Orbit (SSTO)
VentureStar™.   A key result of these trade studies on propellant tank design is a major breakthrough using nested liquid oxygen
and hydrogen tanks, permitting major weight savings for the vehicle. Significantly, this enables design closure using standard
aluminum tanks on VentureStar™. Advanced technologies for tanks such as aluminum lithium and large-scale composites can
add significantly to the weight margins on VentureStar™.

The Future-X Pathfinder program will flight demonstrate advanced space transportation technologies through the use of flight
experiments and experimental vehicles that can dramatically reduce the cost and increase the reliability of reusable space launch
and orbital transportation systems. The program currently includes the development and operation of the X-34, X-37 and a
number of flight experiments. The X-34 project is a rocket-powered, Mach-8-capable flight demonstrator test bed to close the
performance gap between the subsonic DC-XA and the Mach 13+ X-33. The first vehicle (A-1) was delivered to Dryden Flight
Research Center (DFRC), and the first half of the captive-carry FAA certification flights with X-34 and the L-1011 carrier aircraft
were conducted. Progress continues on the construction of the second vehicle, A-2, which will be the first powered flight vehicle. We are continuing our environmental assessment activities for all operations areas: DFRC, Edwards Air Force Base (AFB),
Kennedy Space Center, and White Sands Missile Range (WSMR). Before proceeding any further, we are working to ensure flight
success by conducting a series of reviews. First, two independent reviews are nearing completion, the first studying redundant
avionics and comparing the potential benefits of autonomy versus pilot in the loop, and the second reviewing the Fastrac engine. Following these reviews, we will complete an additional end-to-end review of the flight vehicle this spring, and will complete a
failure modes and effects analysis and a fault tree analysis. After completion of these activities, the program will conduct a series
of tow tests for X-34 with the A-1A vehicle. The first unpowered flight to be conducted at WSMR will follow, as will delivery of the
Fastrac flight engine.

The X-37 Space Plane is a modular orbital flight technology testbed which will be flown in both orbital and reentry environments. A cooperative agreement for the development of the X-37 was awarded and its systems requirements review was satisfactorily
completed. In FY 2001, we will complete X-37 vehicle assembly, integration and testing and begin pre-flight ground tests. In other
Future-X activities, a Critical Design Review for the Propulsive Small Expendable Deployer System (ProSEDS) tether flight
experiment was conducted, and the Preliminary Design Review for the SHARP-B2 ceramic thermal protection system experiment
was completed. The SHARP-B2 will be launched in FY 2000.

X-33 and Future-X vehicles are part of NASA’s Integrated Space Transportation Plan under risk reduction and competition for a
2nd generation reusable launch vehicle.

In February 1997, President Clinton announced a national goal to reduce the fatal accident rate for aviation by 80% within ten
years. This national aviation safety goal is an ambitious and clear challenge to the aviation community. NASA had responded to
the President’s challenge with an immediate major program planning effort to define the appropriate research to be conducted by
the Agency. This led to a redirection of the Aeronautics Research and Technology Base in FY 1998 to immediately begin
additional aviation safety research. In addition, the Aviation Safety program was established in FY 2000 as a focused effort to
develop and demonstrate the technologies that contribute to the accomplishment of the national safety goal. Some exciting things
will be accomplished over the next eighteen months. There will be a flight evaluation of an initial national capability for digital
data link and graphical display weather information in an aircraft cockpit. Synthetic vision and runway incursion technologies
integrated into an aircraft flight deck will be demonstrated at a major U.S. airport. We will demonstrate the use of an icing
training module on CD-ROM for general aviation and commuter pilots.

The goal of the Aviation System Capacity (ASC) program is to enable safe increases in the capacity of major U.S. and
international airports through both modernization and improvements in the Air Traffic Management System and the introduction
of new vehicle classes which can potentially reduce congestion. ASC is working to: increase National Airspace System (NAS)
throughput while assuring no degradation to safety or the environment; increase the flexibility and efficiency of operations within
the NAS for all users of aircraft, airports and airspace; and reduce system inefficiencies. In FY 1999, the ASC program conducted
a demonstration of Advanced Vortex Spacing System (AVOSS) technologies with transport of vortices and class-wise spacing
features to potentially reduce approach spacing standards. The program also conducted a flight demonstration of the Airborne
Information for Lateral Spacing (AILS) concept to enable independent approaches to parallel runways spaced 2500 feet apart. In
FY 2000, we will conduct the final demonstrations of the Terminal Area Productivity technologies and procedures that have the
potential for an increase of 12 to 15% in airport throughput. During FY 2001 field evaluations will be conducted to demonstrate
transition airspace decision support tools in support of: 1) information exchange between air traffic service providers, airline
operations centers, and flight crews and 2) conflict resolution. The decision support tools with information exchange will enable
collaborative decision-making between ATC and the aircraft operators to optimize both ATC and airline operations. Conflict
detection capabilities by both the ATC and aircraft will enable optimization of both overall traffic flow and individual aircraft
flight trajectories.

The Ultra Efficient Engine Technology (UEET) Program will develop high-payoff, high-risk technologies to enable the next
breakthroughs in propulsion systems necessary for a new generation of high-performance, operationally efficient and economical,
reliable and environmentally compatible U.S. aircraft. We have had great success in developing technologies that result in
significant reduction of NOx emissions. For example, in FY 1999, a low-emissions combustor demonstrated a 50% reduction in
NOx emissions (relative to 1996 ICAO standards) in a PW 4000 engine. The UEET will build upon this achievement to produce the
technology to enable cleaner and more efficient engines for the future. As a result of the establishment of the Quiet Aircraft
Technology program, the UEET program was rephased and stretched out by one year. It was replanned to ensure the right balance
on engine emissions and performance. To ensure technology transfer, we are working with industry and will continue to
encourage their contribution to the program as we encourage more innovation. In FY 2001, UEET will complete the design and
fabrication efforts for the 2200°F ceramic matrix composite combustor liner, complete scaled-up forging of candidate
turbomachinery disk configurations utilizing the 1350°F advanced Nickel based material, and select revolutionary turbine flow
control concepts that will achieve increased turbomachinery performance in fewer stages.

The specific goals of the High Performance Computing and Communications (HPCC) program are to accelerate the development,
application and transfer of high performance computing capabilities and computer communications technologies to meet the
engineering and science needs of the U.S. aerospace, Earth and space sciences, spaceborne research, and education communities
and to accelerate the distribution of these technologies to the American public. In FY 1999, the HPCC program demonstrated a
300 to 1 reduction from the 1992 baseline in the time required for a full aircraft engine compressor simulation. In addition it also
demonstrated a 500 to 1 improvement in communication testbeds over the 1996 baseline. Both these accomplishments exceeded the
goals that we established for the program for FY 1999. The HPCC program will continue to expand the boundaries of
computational sciences and in FY 2001 will demonstrate 1,000-fold improvements over the FY 1992 baseline in time-to-solution for
relevant applications on high-performance computing testbeds. 

A major restructuring and replanning of the Aero-Space Research and Technology (R&T) Base program was accomplished during
1999 to integrate the Enterprise’s existing space transportation and aeronautics R&T Base development programs into a single
entity. This restructuring better aligned the required technology development efforts with core competencies and brought the
expertise, resident in the aeronautics research centers, to bear on the technological challenges associated with space
transportation. Secondly, the integration of the space and aeronautics development needs resulted in a synergistic technology
development plan that better utilized our resources, eliminated overlaps, and allowed dual-use between the space transportation
and aeronautics users, to be included as part of the planning process.

NASA’s Aero-Space Base Research and Technology (R&T) serves as the vital foundation of expertise and facilities that
consistently meets a wide range of aeronautical and space transportation technology challenges for the nation. The Base R&T has
an objective to develop revolutionary concepts, highly advanced, accurate computational tools, and breakthrough technologies that
can reduce the development time and risk of advanced aerospace systems. Recently, an intelligent, neural-network flight control
system was flown on an F-15 research aircraft, and work was initiated to integrate this capability with propulsion control, health
monitoring and diagnostic capabilities. In addition, nondestructive evaluation techniques were developed that increase crack
detection in thick structures by a factor of two. Excellent progress continues toward first flight of the Hyper-X (X-43) this summer. Successful low-altitude flights of the Helios, a solar powered, unpiloted air vehicle, were significant steps toward our attempt to fly
this aircraft at 100,000 feet next year. In our new Revolutionary Concepts for Aeronautics project, three advanced concept projects
have been initiated-blended wing body, pulse detonated engine, and autonomous formation flight-and soon, systems analysis
phases will begin for several more. In FY 2001, we plan to demonstrate the capability to allow an aircraft to adapt in flight to the
loss, as a result of failure or malfunction, of any and all control surfaces. Integration testing and delivery of the blended wing body
test vehicle will be completed. We plan to complete the conceptual design of the innovative pulse-detonation-engine-based hybrid
cycle and combined cycle propulsion systems, as well as rig testing of a core hot section oil-free radial foil bearing.

In FY 2001, we will significantly expand our activities to exploit emerging nano-technology and new concepts inspired by biology. We are currently exploring aerospace composite materials based on carbon-nanotubes (100X stronger than steel and 1/6 the
weight) and methods for imbedding sensors and actuators in materials to enable design of smart systems. Through such
approaches, we will begin developing concepts for aerospace systems having physical and performance characteristics similar to
biological systems. One example is a material that would allow an aircraft wing to warp-changes in thickness, camber or
dihedral-to respond to particular operating conditions to enable extreme maneuverability and aerodynamic efficiency without
separate control surfaces. Other concepts include materials that can self-heal if damaged or that have embedded vehicle “nervous
systems” to provide highly detailed information on the physical health of the systems.

Intelligent Synthesis Environment (ISE) will revolutionize the next generation science and engineering capabilities within NASA,
and on a national scale. The goal of the program is to develop the capability for personnel at dispersed geographic locations to
work together in an immersive virtual environment, using computer simulations to rapidly model the complete life-cycle of a
product or mission before commitments are made to produce physical products. The emphasis of the program is on revolutionary
capability such as modeling and simulation using advanced machine learning versus traditional “mathematical” analysis methods
and modeling approaches to quantify total life-cycle cost and risk. In  FY 2000, NASA will identify high-payoff technologies
through pilot and pathfinding studies and will initiate partnership agreements to leverage related technology development
activities in other government agencies and industry. Prototype collaborative engineering environments will be established with a
primary focus on developing the capabilities to support concepts and designs for reusable space transportation systems and for
reducing Space Shuttle and International Space Station operations costs.

COMMERCIAL TECHNOLOGY

Since its inception in 1958, NASA has been charged with ensuring that the technology it develops is transferred to the U.S.
industrial community, thereby improving the Nation’s competitive position in the world market. The FY 2001 budget request of
$135 million for Commercial Technology continues this important aspect of our mission. The Agency’s commercialization effort
encompasses all mission-relevant technologies created at NASA centers by civil servants, as well as innovations produced by NASA
contractors.

The technology commercialization program involves the following components:  conducting a continuous inventory of newly
developed NASA technologies, maintaining an Internet-based database of this inventory, assessing the commercial potential of
each technology, using commercial marketing  processes to provide information to the public and businesses on commercially
relevant technology, establishing R&D partnerships with industry for dual use of the technology, disseminating knowledge of
these NASA technology opportunities to the private sector, and providing an efficient business-like system for licensing NASA
technologies to private companies.

NASA has achieved many successes in partnerships with businesses that turn technology into profit. For example, in the last two
Spinoff Magazines we have documented 99 success stories where businesses have incorporated NASA technology in their products
and services. Moreover, we have a productive and growing technology partnership relationship with U.S. business, which will
provide for more successes in the near and far term.

Included in the amount requested for NASA commercialization efforts is $100 million to carry out the provisions of the Small
Business Innovation Research (SBIR) Act. This act requires that 2.5 percent of NASA’s total extramural R&D spending be set
aside for small businesses research grants, and that an additional set-aside, involving 0.15 percent of NASA’s total extramural
R&D spending, be applied to the Small Business Technology Transfer (STTR) Program. The SBIR and STTR program seek to
engage small business in developing innovative technology that meets NASA’s mission needs. The NASA SBIR Program has also
expanded its outreach program to the states to provide information on NASA technology needs and to guide the development of
high quality proposals. The NASA SBIR program has clearly contributed to the U.S. technology base and the economy by fostering
the establishment and growth of over 1100 small, high-technology businesses, and contributing technology to the development of
over 200 new SBIR spin-off firms and over 400 new products and services that have generated revenues in non-government
markets. The broad spectrum of these products and services, the several key industrial sectors they represent, as well as related
partnering with NASA SBIR firms by more than 700 other private entities, demonstrates the pervasive effect of NASA’s SBIR
Program in the nation’s economy.

CONCLUSION

Mr. Chairman, NASA’s aerospace technology programs and new initiatives will lay the foundation for air and space transportation
in the next millennium. We are proud of our accomplishments. We are providing excellent return on the taxpayers’ investment
by focusing our resources in several high-payoff areas. Working with our partners in industry and government, we will enable a
safer, more efficient air transportation system and help make space access safer and more affordable. These achievements will
open new doors of opportunity for research and commerce, leading America into the future.