Summary: GAO testified on the National Aeronautics and Space Administration's (NASA) procurement of space shuttle solid rocket motors (SRM) to determine: (1) the circumstances surrounding the second-source initiative for SRM procurements; (2) NASA plans for SRM redesign to resolve problems that the President's Commission on the Space Shuttle Challenger Accident identified; (3) NASA plans to develop and maintain multiple production sources; and (4) quality control at the SRM manufacturing facility. GAO found that: (1) NASA decided to continue with its second-source initiative to broaden the industrial base for SRM production and enhance national security; (2) in order to resume safe flight as soon as possible and to use existing hardware, the NASA redesign approach was to hold its contractor responsible for fixing the defects in the SRM design; (3) NASA planned to proceed with a solicitation for SRM design change concepts; and (4) neither the government nor the contractor had resolved significant and potentially serious quality control and safety problems. GAO believes that NASA should prepare a comprehensive acquisition strategy for: (1) upgrading the SRM design; (2) maintaining competition in future procurements; (3) addressing the costs and benefits of each alternative; and (4) determining the types of government personnel needed to ensure that quality controls are properly enforced in manufacturing operations.
