Summary: GAO reported in December 1992 that the (1) projected cost for the baseline National Aero-Space Plane program had soared from $3.1 billion to $17 billion, (2) time frames for achieving milestones such as the first flight were uncertain, and (3) development of key technologies had encountered problems. The upshot has been a deferment of the decision to begin phase III. Neither the Office of Science and Technology Policy, the Steering Group, nor the Defense Department (DOD) has provided clear direction on what the program's future efforts and objectives should be. The Air Force and the National Aeronautics and Space Administration (NASA) have generally accepted a program office proposal to conduct a series of flight tests before committing to building the X-30, but DOD has not made a final decision on this proposal. Additionally, DOD and NASA have not agreed on the program's current and future funding needs. These conditions hinder efforts to properly plan and execute future technical efforts, initiate required contractual action, and project program costs.