NASA Procurement:

Management Oversight of Contract Costs and Time Changes Could Be Enhanced

NSIAD-91-259: Published: Sep 30, 1991. Publicly Released: Mar 24, 1992.

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Pursuant to a congressional request, GAO provided information on the National Aeronautics and Space Administration's (NASA) contract administration and management practices, focusing on the extent of cost increases and time extensions in contracts at the four largest NASA procurement centers.

GAO found that: (1) 32 percent of the contracts at the four centers increased in cost, with an overall contract cost increase of $257 annually; (2) 41 percent of the contracts experienced schedule and delivery date extensions, with an average annual extension rate of almost 9 percent; (3) the statistical results varied across centers, and by type of contract and contract product; and (4) the centralized NASA database, the Financial and Contractual Status System (FACS), was not designed to track contract cost increases and time extensions.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: NASA concurred with the recommendation and has made the necessary changes to FACS.

    Recommendation: The Director, NASA, should direct the Office of Procurement to examine the extent of changes necessary to enhance FACS to routinely and comprehensively provide information on contract cost increases and time extensions, and to implement such changes, if it would be effective to do so.

    Agency Affected: National Aeronautics and Space Administration


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