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GAO-12-230R 1 (2011-11-17)

handle is hein.gao/gaobacfmr0001 and id is 1 raw text is: ~GA9 Acona ity * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 November 17, 2011 The Honorable Kay Bailey Hutchison Ranking Member Committee on Commerce, Science, and Transportation United States Senate The Honorable Ralph M. Hall Chairman The Honorable Eddie Bernice Johnson Ranking Member Committee on Science, Space, and Technology House of Representatives The Honorable Bill Nelson Chairman Subcommittee on Science and Space Committee on Commerce, Science, and Transportation United States Senate Subject: Key Controls NASA Employs to Guide Use and Management of Funded Space Act Agreements Are Generally Sufficient, but Some Could Be Strengthened and Clarified In the National Aeronautics and Space Act of 1958, Congress granted the National Aeronautics and Space Administration (NASA) authority to enter into transactions other than contracts, leases, and cooperative agreements; this gave the agency greater flexibility in achieving its mission.1 NASA uses its other transaction authority through three kinds of instruments known as Space Act agreements. Specifically, NASA uses reimbursable agreements when costs associated with an undertaking are reimbursed by the agreement partner (in full or in part); the agency uses non-reimbursable agreements when each party bears the cost of participation in mutually beneficial activities. In 2006, NASA began to use a third kind of agreement-referred to as funded Space Act agreements-that have involved NASA providing significant funds to private industry partners to stimulate the development of large-scale commercial space transportation capabilities.2 1 Pub. L. No. 85-568, § 203. 2 While this was the first time NASA has used its other transaction authority specifically to stimulate development of private-sector capabilities, NASA has used its other transaction authority in the past to enter into joint sponsored research agreements with private industry that shared funding and technical assistance on technology development efforts of mutual interest. GAO-12-230R NASA Funded Space Act Agreements

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