NASA Procurement

The current contract for running the National Aeronautics and Space Administration's (NASA) Jet Propulsion Laboratory contains improvements in several areas--award fee, selected cost controls, scope of work, and number of contract deviations. In addition, steps have been taken to address internal control concerns. For example, policy changes have drastically curtailed the lending of computer equipment to employees and greatly reduced meal and beverage costs. NASA has not yet reviewed the reasonableness of paying college tuition for dependents of lab employees. However, NASA has asked the Defense Contract Audit Agency to review the lab's compensation package, singling out the tuition assistance benefit for special scrutiny. The ultimate success of both the contractual and oversight changes at the lab will depend on effective implementation.

GAO found that: (1) NASA has improved the JPL contract in several areas including award fee, selected cost controls, scope of work, and number of contract deviations; (2) although NASA has not yet reviewed the reasonableness of paying the college tuition of JPL employees' dependents, it requested that the Defense Contract Audit Agency perform a comprehensive review of the JPL compensation package and the dependent tuition assistance benefit; (3) the success of the contractual and oversight changes at JPL will depend on effective implementation; and (4) NASA needs to better coordinate its audit resources to meet the demands of its oversight responsibilities.