GAO discussed management challenges facing the National Aeronautics and Space Administration (NASA), focusing on: (1) matching program goals with likely budgets; (2) managing systems development efforts more efficiently; (3) improving operations and oversight; and (4) preserving U.S. aeronautical leadership. GAO noted that: (1) NASA efforts to match its strategic plan with its budget have been inadequate; (2) NASA has acknowledged the shortcomings of its strategic plan and has promised a new plan that matches program goals with realistic budgets; (3) NASA must establish realistic cost, schedule, and technical performance goals and identify and mitigate problems that can significantly increase costs, disrupt schedules, and impair performance to effectively manage its projects; (4) NASA intends to establish a new independent cost assessment group to review cost estimates at all major milestones; (5) foreign companies have made significant gains in the global market for aeronautics products at the expense of U.S. manufacturers; and (6) NASA headquarters needs to carefully monitor field center's and contractor's management of NASA activities.