Pursuant to a congressional request, GAO reviewed major policy, management, and program issues at the National Aeronautics and Space Administration (NASA), focusing on: (1) aligning plans with likely budgets; (2) systems development management; (3) improving operations and oversight; and (4) preserving U.S. aeronautics leadership.

GAO found that NASA: (1) strategic and program plans call for unrealistic funding levels well above what will be available, but NASA is working to improve its strategic plan; (2) needs to reevaluate its research and development efforts to make them more cost-effective, and recognize changes in priorities and needs; (3) needs to improve its operations management and oversight of its space shuttle program to enhance efficiency and effectiveness; and (4) needs to improve its budgetary support for the U.S. aeronautics industry and give more emphasis to systems technology.