Summary: The X-33 Reusable Launch Vehicle Program, a cooperative agreement between NASA and the Lockheed Martin Corporation, is developing advanced technologies and techniques needed for future launch vehicles. The vehicles are essentially spacecraft or rockets whose components will be used on later flights. If the program is successful, Lockheed Martin may build a small fleet of operational vehicles called VentureStars. One way for NASA to cut future launch costs may be to phase out the shuttle fleet and buy launch services from commercial sources. This testimony, which summarizes a recent GAO report (GAO/NSIAD-99-176, Aug. 1999), discusses (1) whether the X-33 program is meeting its original cost, schedule, and performance objectives; (2) how NASA conducts oversight under the cooperative agreement; and (3) the issues NASA may face if it decides to use Lockheed Martin's VentureStar to service the international space station. GAO also comments on the X-33 program's progress in meeting the intent of the National Space Transportation Policy.