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GAO-07-306R 1 (2007-03-01)

handle is hein.gao/gaocrptautq0001 and id is 1 raw text is: Sai Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 March 1, 2007 The Honorable Daniel K. Inouye Chairman The Honorable Ted Stevens Co-Chairman Committee on Commerce, Science, and Transportation United States Senate The Honorable Bart Gordon Chairman The Honorable Ralph M. Hall Ranking Member Committee on Science and Technology House of Representatives Subject: NASA: Enhanced Use Leasing Program Needs Additional Controls In 2003, the National Aeronautics and Space Administration (NASA) was authorized to demonstrate enhanced use leasing (EUL) at two centers, allowing the agency to retain the proceeds from leasing out underutilized real property and to accept in-kind consideration in lieu of cash for rent. NASA selected Ames Research Center and Kennedy Space Center for the demonstration program. The agency had requested that Congress extend this authority to additional NASA centers during formulation of the NASA Authorization Act of 2005. NASA's request was not granted. Instead, Section 710 of the NASA Authorization Act of 2005 (Public Law 109-155) directed GAO to review NASA's EUL program. We examined (1) the financial impact of the EUL authority on NASA and whether EUL revenue and other financial benefits would have been realized without the authority, (2) NASA's use of the authority and whether the arrangements made under the authority would have been made in the absence of the authority, and (3) what controls are in place to ensure accountability and transparency and to protect the government. The act also directed GAO to report back to the Congress by December 30, 2006. We presented our preliminary findings to your staff in December 2006. Because of your committees' interest in how NASA is implementing its EUL authority, we are enclosing the full briefing that supported that December presentation with this report (see encl. II), along with a summary of our findings and conclusions. To ensure that NASA's EUL program is transparent and protects the interests of the government, we GAO-07-306R NASA Enhanced Use Leasing Page 1

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