Summary: GAO reviewed 65 cost and schedule modifications of contracts at NASA's four largest procurement centers and found that NASA caused most of them by changing contract terms, specifications, or scope. Contractor performance and unforeseen circumstances beyond the control of NASA or the contractor caused the other modifications. NASA had significant problems in administering some of these contractor modifications. Problems included (1) new work noncompetitively added to contracts without justifying sole-source procurement, (2) negotiations of contract changes not completed in a timely fashion, (3) unauthorized personnel directing contractors to do additional work, and (4) proposed contract changes not adequately evaluated. During the last several years, NASA's procurement management surveys have identified some of these same problems, and NASA has made changes on the basis of survey results, including improving and expanding training. In addition, although NASA recently started to enhance procurement management surveys, these surveys could be further improved by adjusting their focus, scope, and frequency.
