U.S. Involvement at Major International Air Shows Principally	 
Depends on Agencies' Missions and Aerospace Companies' Resources 
(21-SEP-07, GAO-07-1165R).					 
                                                                 
For years, the U.S. government has participated at international 
air shows, such as those in Paris, France, and Farnborough,	 
United Kingdom, with federal agencies renting exhibit space to	 
present program information, displaying aircraft, or providing	 
assistance to U.S. aerospace companies seeking to showcase their 
businesses. Hosted by aerospace industry associations and foreign
governments, these shows present opportunities for business	 
networking and often serve as forums for announcing billions of  
dollars in contract awards. While large U.S. aerospace companies 
are generally well represented at these shows, the ability of	 
small and medium-sized companies to participate is unclear. On	 
the basis of your interest in understanding U.S. government and  
company involvement at major international air shows, we (1)	 
identified federal agencies' participation as well as their	 
support to U.S. companies at these shows since 2000 and (2)	 
determined what factors affect small and medium-sized U.S.	 
companies' decisions to participate.				 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-1165R					        
    ACCNO:   A77487						        
  TITLE:     U.S. Involvement at Major International Air Shows	      
Principally Depends on Agencies' Missions and Aerospace 	 
Companies' Resources						 
     DATE:   09/21/2007 
  SUBJECT:   Aerospace industry 				 
	     Agency missions					 
	     Aircraft						 
	     Aircraft industry					 
	     Commercial aviation				 
	     Federal agencies					 
	     Fighter aircraft					 
	     Foreign governments				 
	     Government information dissemination		 
	     International cooperation				 
	     International relations				 
	     International trade				 
	     Small business					 
	     Small business assistance				 
	     Trade fairs					 

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GAO-07-1165R

September 21, 2007

The Honorable Tom Davis
Ranking Member
Committee on Oversight and Government Reform
House of Representatives

The Honorable Michael Turner
Ranking Member, Subcommittee on
Information Policy, Census and National Archives
Committee on Oversight and Government Reform
House of Representatives

Subject: U.S. Involvement at Major International Air Shows Principally
Depends on Agencies' Missions and Aerospace Companies' Resources

For years, the U.S. government has participated at international air
shows, such as those in Paris, France, and Farnborough, United Kingdom,
with federal agencies renting exhibit space to present program
information, displaying aircraft, or providing assistance to U.S.
aerospace companies seeking to showcase their businesses. Hosted by
aerospace industry associations and foreign governments, these shows
present opportunities for business networking and often serve as forums
for announcing billions of dollars in contract awards. While large U.S.
aerospace companies are generally well represented at these shows, the
ability of small and medium-sized companies to participate is unclear. On
the basis of your interest in understanding U.S. government and company
involvement at major international air shows, we (1) identified federal
agencies' participation as well as their support to U.S. companies at
these shows since 2000 and (2) determined what factors affect small and
medium-sized U.S. companies' decisions to participate.

Scope and Methodology

To identify federal agency participation and support since 2000, we met
with officials at the Departments of Defense (DOD), Commerce, and State;
the Federal Aviation Administration (FAA); and the National Aeronautics
and Space Administration (NASA)--the five federal agencies that are
involved at major international air shows. We reviewed laws, policies,
guidance, and other documentation pertaining to these agencies'
participation and support at international air shows. We defined federal
agency participation as activities that include transporting, displaying,
staffing, or demonstrating exhibits and equipment, as well as agency
officials sitting on panels or conducting meetings with company
representatives and foreign officials. We defined agency support as
providing resources or other assistance to U.S. aerospace companies to
enable them to participate at air shows. However, we did not review
general attendance at air shows that was not related to participation or
support activities. To determine what factors led aerospace companies to
participate, we interviewed 20 small and medium-sized companies--which we
defined as those having fewer than 500 employees--based on their recent
participation at major international air shows and their use of federal
agencies' assistance. These companies represented a range of aerospace
industry sectors, including components manufacturing; simulation and
training; and maintenance, repair, and overhaul. The views of company
representatives included in this report do not represent those of the
entirety of small and medium-sized aerospace companies. We conducted our
review from February 2007 through September 2007 in accordance with
generally accepted government auditing standards.

Results in Brief

Agencies' participation in and support to companies at major international
air shows largely depend on the agencies' missions, with such activities
funded by operations accounts or fees charged to companies. While DOD is
the predominant U.S. agency participant at air shows, its presence is
based on whether participation will contribute to its mission of advancing
security cooperation, promoting interoperability of weapon systems, and
demonstrating commitment to alliances or regions. Typically, DOD displays
or demonstrates weapon systems, such as fighter aircraft, or meets with
foreign military officials. DOD also provides support to U.S. companies by
leasing military aircraft to them for use at these shows on a limited
basis. Commerce is a key provider of support to U.S. companies
participating at air shows because of its mission to open new markets and
promote U.S. companies' products and services overseas. Commerce's support
includes a range of fee-for-service programs, including product literature
displays and business-to-business introductions, as well as business
counseling services available at no charge. While FAA and NASA do not
provide support to companies, they occasionally participate at air shows
when it may advance a specific agency mission. The State Department
provides diplomatic support to federal agencies and facilitates meetings
between U.S. companies and foreign officials--activities that the agency
normally performs as part of its overseas mission. Because show
participation and support are an integral part of agencies' missions,
their costs are not budgeted separately from other mission activities.
While only DOD and Commerce track direct participation costs, other
agencies were able to estimate how much they spend for show participation.
All five agencies pay for their costs from operations accounts or from
fees charged for company support. For example, in 2005 and 2006, DOD spent
approximately $2.4 million from its operations accounts to participate at
air shows in Paris, France; Farnborough, United Kingdom; Singapore; Dubai,
United Arab Emirates; and Santiago, Chile.

Officials we interviewed from small and medium-sized companies identified
a number of factors, including cost and sales opportunities, that
influence their participation at air shows. One major factor is the high
cost of sending employees and materials to international locations.
Company officials indicated that their participation, which includes such
activities as setting up information booths or establishing business
contacts, generally does not result in a direct return on investment.
While officials noted that their costs are typically greater than any
sales that can be directly tracked to their show participation, they
indicated that it is a business decision based on opportunities for
promoting name recognition and fostering business relationships. Some
companies paid fees to obtain Commerce's assistance at air shows, while
others were unaware of Commerce's programs to assist small and
medium-sized companies.

Background

The air shows at Paris and Farnborough are preeminent and are held in
alternating years. Other major air shows include those at Singapore,
Dubai, and Santiago. Table 1 provides an overview of these five shows.

Table 1: Overview of Five Major International Air Shows

                  Paris       Farnborough Singapore^a Dubai       Santiago    
First show     1909        1932        1981        1989        1980        
Show frequency 7-day show  7-day show  6-day show  5-day show  6-day show  
                  held every  held every  held every  held every  held every  
                  other year  other year  other year  other year  other year  
Most recent    2007        2006        2006        2005        2006        
show                                                                       
Number of      2,000       1,480       940         726         379         
exhibitors     exhibitors  exhibitors  exhibitors  exhibitors  exhibitors  
                  from 42     from 35     from 43     from 46     from 40     
                  countries   countries   countries   countries   countries   
Number of      153,920     140,000     34,300      35,000      40,000      
trade visitors trade       trade       trade       trade       trade       
                  visitors    visitors    visitors    visitors    visitors    
Foreign        150 defense 83 defense  153         60 military 143         
delegations^b  delegations delegations delegations and 44      delegations 
                  from 60     from 43     from 44     civil       from 21     
                  countries   countries   countries   delegations countries   
                  and 40      and 40                                          
                  civil       civil                                           
                  delegations delegations                                     
                  from 20     from15                                          
                  countries   countries                                       
Aircraft on    140         Over 100    n/a^c       101         121         
display                                                                    
Dollar amount  n/a         Over $40    $15 billion Over $21    n/a         
of orders                  billion                 billion                 
announced at                                                               
shows                                                                      

Source: Data obtained from air show organizers and U.S. federal agencies.

^a Following the 2006 Asian Aerospace show at Singapore, the organizer
relocated the show to Hong Kong. A new show is planned to be launched in
Singapore in 2008.

^b Information on delegations varies for these shows and is included as
available.

^cn/a indicates official information not available.

These shows serve as an opportunity for industry and government
participants to display products and services to potential buyers and
demonstrate aircraft to increase the public's awareness and understanding
of aerospace technologies.

Agencies' Participation and Support at International Air Shows Is Mission
Driven, with Costs Funded by Operations Accounts or User Fees

U.S. agencies participate to varying degrees at international air shows
based on their missions, and the cost of their activities is funded by
operations accounts or user fees for certain support services. DOD and
Commerce are the two key agencies that usually participate and provide
support to companies at air shows, while FAA, NASA, and State participate
to a lesser extent. Table 2 highlights these agencies' participation,
support, and missions.

Table 2: Federal Agencies' Participation, Support, and Missions for the
Five Major International Air Shows

                  Participation and/or support      Agency mission for air    
Federal agency since 2000                        shows                     
DOD            Displays or demonstrates weapon   Advances security         
                  systems and sets up information   cooperation and           
                  booths at most of the shows;      technological             
                  leases weapon systems, such as    interoperability with     
                  fighter aircraft, on limited      friendly nations          
                  basis, to U.S. companies                                    
Commerce       Offers several programs for U.S.  Supports U.S. companies'  
                  aerospace companies, for a fee,   sales of goods and        
                  to assist companies in marketing  services abroad           
                  goods and services at most of the                           
                  shows                                                       
FAA            Sends official delegations to     Promotes aviation safety  
                  many shows and sets up            and harmonization of      
                  information booths                international aviation    
                                                    standards                 
NASA           Sends official delegations to     Advances international    
                  some shows and has set up an      cooperation and           
                  exhibit on one occasion           disseminates results of   
                                                    U.S. space exploration to 
                                                    the public                
State          Assists agencies with show        Ensures U.S. government   
                  activities by facilitating entry  activities are consistent 
                  into foreign countries and        with foreign policy goals 
                  coordination with foreign                                   
                  officials; cohosts receptions at                            
                  some shows for companies to build                           
                  business relationships                                      

Source: GAO analysis of agency statements and data.

DOD

Since 2000, DOD has participated at most of the five major air shows based
on its mission of advancing security cooperation, promoting
interoperability of weapon systems, and demonstrating commitment to
alliances or regions. Officials stated that to foster coalition building
with international partners, DOD has displayed weapon systems,
disseminated information about systems' capabilities, and performed live
demonstrations. Air show participation also provides U.S. military
officials with opportunities to network with foreign counterparts. For
example, U.S. military officials may attend numerous bilateral meetings,
as many as 20, at a single air show.

DOD determines which weapons to exhibit at upcoming shows, based on a
multitiered process, which begins with U.S. embassy and combatant command
officials providing DOD with a list of weapon systems, such as military
aircraft, to be displayed. The combatant command charged with
responsibility for the particular geographic region provides input on
whether the display of such systems advances the political-military agenda
for that region. These commands are responsible for providing the required
resources to support the event and paying the cost to exhibit the system
at the air show. As such, current military operational needs may restrict
certain equipment from being exhibited at air shows. The Defense Security
Cooperation Agency (DSCA) and the military services also assess the
political-military situation of the country in which an embassy and a
combatant command are seeking direct show participation. Finally, DSCA
obtains approval for participation from DOD's Undersecretary of Defense
for Policy. Since 2000, DOD has exhibited a range of aircraft at these
shows, including the C-130J Hercules transport aircraft, UH-60A Blackhawk
helicopter, and F-16 Falcon fighter aircraft. While DOD focuses on
participating at major shows, such as Paris and Farnborough, the agency
also considers the importance of smaller shows. For example, an Air Force
official told us that participation at an air show in South Africa is
gaining in importance for DOD's goal of providing regional support now
that the agency has established the U.S. Africa Command.

Also, DOD supports U.S. business by leasing equipment to defense companies
that seek to demonstrate particular weapon systems and initiate sales to
foreign nations. When a company requests an equipment lease for an air
show, DOD officials review the political-military situation of the region,
as well as equipment availability, to determine whether to grant approval.
All costs associated with leasing the equipment are to be borne by the
company, including transporting, fueling, and potential damage during
use.^1 For the 2006 show in Farnborough, the Air Force approved a lease to
Lockheed Martin for the F-16 Falcon fighter aircraft, and for the 2005
Paris show, the Navy approved a lease of the F/A-18F Super Hornet strike
fighter to Boeing. Army officials say they have approved very few leases
because equipment is needed for ongoing military operations. On a limited
basis, DOD supports U.S. businesses at international air shows by sending
high-level officials to meet with potential buyers of U.S. equipment,
provided such contracts promote technological interoperability for U.S.
and foreign military equipment and strengthen the capabilities of
coalition partnerships.^2

Commerce

According to Commerce officials, the agency's participation at air shows
is driven by its mission to promote the interests of U.S. businesses
abroad by providing support to U.S. aerospace companies through a number
of assistance programs. The agency's U.S. Commercial Service, within the
International Trade Administration, offers these programs and activities
to help U.S. companies, particularly small and medium-sized companies,
increase international exposure at air shows, according to officials.
Officials also noted that before approving the use of company assistance
programs for an air show, Commerce uses its Trade Fair Certification
Program to endorse an international air show organizer that will recruit
U.S. exhibitors and manage an official U.S. pavilion. The certification
program is a cooperative partnership among Commerce, industry
associations, international trade show organizers, and foreign trade fair
authorities. Commerce then initiates a range of show-related services,
such as oversight and coordination of events and in-country site
assistance to the show organizer. Show organizers are required to recruit
small and medium-sized businesses and provide Commerce officials with a
show floor booth to run operations, display materials, and conduct
business counseling. Since 2000, Commerce has certified and supported
eight trade show organizers.^3 To encourage companies to participate at
shows and use available assistance programs, Commerce utilizes
International Trade Administration staff that identify and contact
companies, including those that are new to the market, and distributes
information through domestic and international trade events, news
releases, and Web sites. In addition to the Trade Fair Certification
Program, Commerce uses the following company assistance programs:

Aerospace Product Literature Center aids small and medium-sized companies
by disseminating company literature at an information booth staffed by
Commerce personnel at air shows. This program typically serves 50 to 65
small and medium-sized U.S. companies at a single air show and is the most
frequently provided program. The user fee charged to companies generally
ranges from $600 to $650 per show.

^1We did not assess whether DOD incurred any leasing costs that were not
paid for by companies.

^2DOD guidance specifies when agency officials may support U.S. companies
competing for foreign contracts.

^3While the official U.S. pavilion at the Paris Air Show is not part of
the Trade Fair Certification Program, it is operated under the authority
of the Department of Commerce and organized and managed by a contractor.
Nevertheless, Commerce offers its complete range of business services at
the Paris show.

Aerospace Executive Service facilitates introductions and sets up meetings
between U.S. companies and potential foreign customers. Commerce has
provided this service to between 5 and 34 U.S. companies per show,
charging fees ranging from $2,500 to $4,700. Companies have utilized this
program at the Farnborough, Dubai, and Singapore air shows in recent
years.

Pathfinder Program is modeled after the Aerospace Executive Service and
assists U.S. companies by providing customized program catalogues and a
list of suggested foreign companies to meet with. This program has been
used in lieu of the Aerospace Executive Service but does not set up
meetings for participants. Since 2000, Commerce has offered the Pathfinder
Program only once at the 2005 Paris air show for a charge of $2,950 per
company plus $700 for each additional company participant.

Showtime Program provides market analysis and counseling services to U.S.
companies at major shows through a team of in-country market and industry
specialists. There is no user fee for this service.

Table 3 indicates Commerce assistance programs provided at the major shows
since 2000.

Table 3: Commerce Assistance Programs Provided Since 2000

                                  Aerospace                                  
                                  Product      Aerospace                     
                    Trade Fair    Literature   Executive Pathfinder Showtime 
Year Air show    Certification Center       Service   Program    Program  
2000 Farnborough                                                          
        Singapore                                                            
        Santiago                                                             
2001 Paris                                                                
        Dubai                                                                
2002 Farnborough                                                          
        Singapore                                                            
        Santiago                                                             
2003 Paris                                                                
        Dubai                                                                
2004 Farnborough                                                          
        Singapore                                                            
        Santiago                                                             
2005 Paris                                                                
        Dubai                                                                
2006 Farnborough                                                          
        Singapore                                                            
        Santiago                                                             
2007 Paris                                                                

Source: GAO analysis of Commerce data.

On a limited basis, Commerce also arranges for officials to advocate on
behalf of U.S. businesses competing for foreign contracts, including those
participating at international air shows. Although not specific to air
shows, this advocacy can include U.S. embassy and consulate assistance, as
well as communications from senior-level U.S. government officials to
foreign government officials.

FAA

FAA participates at many air shows as part of its mission to promote
aviation safety and the harmonization of international aviation standards
by conducting bilateral and multilateral meetings with foreign aviation
counterparts. Sometimes, FAA will send an employee to distribute agency
information at its own exhibition space or at Commerce's booth. In other
cases, FAA pays Commerce a fee to display and distribute materials at a
show. Since 2000, the agency has regularly participated at the Paris show
because it is the largest and at the Singapore show because it is in the
fast-growing Asia-Pacific region. The agency has also participated at
Santiago and Dubai. According to agency officials, FAA does not provide
support to companies seeking to participate at international air shows.

NASA

NASA officials stated that the agency participates at air shows to support
the agency's mission of advancing international cooperation and
disseminating the results of U.S. space exploration to the public. Since
2000, NASA has taken part in two international shows--Farnborough and
Paris--to disseminate information on the completion of the International
Space Station and future exploration efforts as directed by a 2004
presidential policy statement that introduced a new vision and priorities
for the agency. At the 2004 Farnborough show, NASA had an exhibit to
describe this new vision, and at the subsequent Paris Air Show in 2005,
NASA officials said they met with foreign international space program
officials but did not set up an exhibit. In addition, these officials told
us that NASA does not provide support to companies seeking to participate
at international air shows.

State

According to State officials, as part of the agency's mission to ensure
that international air show participation is consistent with overall
foreign policy objectives, agency and embassy staff facilitate
coordination of Commerce and DOD participation and provide support to U.S.
government officials to these shows. These activities are coordinated
through State's International Cooperative Administrative Support Services.
For example, State provided country clearances and logistical support for
a NASA official participating at the 2006 Farnborough air show. At some
air shows, State cohosts an ambassador's reception with U.S. industry
associations, such as the Aerospace Industry Association, to build
business relationships. In addition, officials noted that when approved
through a Commerce, DOD, and State interagency process, State officials
attend the shows to advocate on behalf of U.S. companies competing for
foreign contracts.

Cost of Agency Participation and Support

We found that the five agencies in our review do not receive separate
budget line item appropriations for international air show participation,
as participation and support are integral parts of agencies' missions.
While DOD and Commerce track costs associated with their direct
participation, other agencies were able to estimate some of their air show
costs, even though they do not track these separately from other mission
activities.

DOD collects data on expenditures from combatant commands based on
estimates of air show participation and support. These costs include
travel for agency personnel, exhibition expenses, and transportation costs
for military aircraft exhibited at the show and are paid out of existing
operations and maintenance or other budget accounts. Table 4 shows that
combatant commands reported a total of $7.1 million between 2000 and 2007
for air show participation and support.^4

4These costs include participation as identified by the combatant commands
and military services, but do not include other defense agencies'
participation, such as the Missile Defense Agency or the National
Geospatial-Intelligence Agency. These agencies separately reported that
they spent $168,639 and $22,564.17, respectively, for their participation
at major international air shows since 2000.

Table 4: DOD Combatant Command Reported Costs for Major Air Shows

Year Air show                       Cost (U.S. dollars)^a                
2000 Farnborough Singapore Santiago $336,873 $501,000 $531,182           
2001 Paris Dubai                    $443,911 $21,500                     
2002 Farnborough Singapore Santiago $394,237 Data not available $193,709 
2003 Paris Dubai                    $356,069 $403,631                    
2004 Farnborough Singapore Santiago $663,747 $415,930 $194,910           
2005 Paris Dubai                    $395,484 $1.1 million                
2006 Farnborough Singapore Santiago $372,184 $327,147 $253,120           
2007 Paris                          $239,925                             
Total of available data: $7.1 million

Source: GAO analysis of DSCA and DOD combatant command data.

^aNot adjusted for inflation.

Commerce tracks the cost of its direct air show participation and support
and tracks the fees charged to each company for programs offered at
certified shows. According to Commerce officials, these fees generally
offset the agency's direct cost. Officials stated that they require a
minimum level of company participation to ensure that fees charged cover
their expenses. However, officials noted that such fees would not include
the cost of many show activities related to participation, such as agency
and personnel resources expended in preparation for the show. For the
three fee-based company assistance programs Commerce provided at the five
major air shows from 2001 through 2006, agency officials identified total
costs of $399,598 for which the agency collected $583,043 in fees from
companies.^5

Although FAA and NASA officials said their agencies do not routinely track
air show participation separately from other mission activities, they
provided estimates on their total cost, where available. FAA officials
estimated that the agency has spent approximately $107,000 at over half of
the major air shows it has participated at since 2001 for travel and
registration fees for FAA delegations to the show, but were unable to
estimate costs for the remaining shows. NASA officials estimated $729,350
for participation costs at the 2004 Farnborough air show. This estimate
included costs for booth space, exhibit design and construction, and
literature distribution. The State Department did not provide any cost
figures because its participation is integrated into its overall mission
activities and is not separately tracked.

^5Fees collected in excess of costs are retained in a Commerce trust fund
to be used for International Trade Administration activities.

Small and Medium-Sized Companies Consider Cost and Sales Opportunities
When Participating at Major International Air Shows

According to officials at the small and medium-sized companies we
interviewed, their decision to participate at air shows is based on a
number of factors, including cost and potential sales. However, these
officials generally could not identify a direct return on investment
resulting from their participation. For these companies, participation
included such activities as renting space and setting up information
booths, displaying sample products, and prearranging meetings with
potential customers at shows. Company officials told us that they may have
a booth at some shows and at others they may opt just to meet with
potential customers. One company leased a large booth space and sent a
significant number of its employees to share information about their
company's products.

More than half of the company officials we spoke with noted that the high
cost of sending employees and materials to international air shows is a
major factor for determining whether and to what extent they participate.
Several companies indicated that their average cost of participating
ranged from $5,000 to $15,000 per employee. Generally, this cost included
travel, hotel, meals, and entertainment but did not include booth rental
and assembly and shipping of materials to international locations. Some
companies said additional expenses that are not captured include the time
employees are away from other work activities that is spent preparing for,
traveling to, and participating at shows.

Another major factor companies consider is the potential that
participation will generate sales. Although most companies were unable to
identify specific sales of goods or services resulting from show
participation, they made a business decision to participate in an effort
to generate sales by promoting name recognition and goodwill of the
company. Even companies that subsequently sell to contacts made at shows
are uncertain about attributing those sales to show participation.
Nevertheless, some companies view participation at major international air
shows as necessary for being recognized as an active player in the
aerospace industry. Some stated that nonparticipation puts them at a
disadvantage with competitors that do participate. While at shows, some
companies split their time between maintaining relationships with current
clients and building relationships with potential customers. For example,
officials at one small company we met with said that they recently
participated at an air show to maintain the company's relationship as a
supplier to a larger exhibiting company, even though the company did not
expect to generate any direct sales from participating.

Companies also considered other factors when participating at air shows.
Some companies were more likely to participate at air shows if others from
the same aerospace industry sector were also present. For example,
companies that provide interiors for private and corporate jets may not be
interested in shows that are dominated by military and large commercial
manufacturing companies.

Most of the companies we interviewed attend the Paris and Farnborough
shows. Fewer companies attend the Singapore, Dubai, and Santiago shows and
either already have a company presence in the region or have a desire to
move into the region. Figure 1 shows the frequency and type of
participation by these companies at the major air shows.

Figure 1: Overview of 20 Small and Medium-Sized Companies' Participation
at Major International Air Shows, 2000-July 2007

The majority of the companies we interviewed were aware of Commerce's air
show support programs and activities and often paid the applicable fees to
use these programs. For these companies, the programs frequently
supplemented other forms of participation. For example, instead of sending
employees to both conduct meetings and distribute literature, one
company's employees were free to conduct meetings and make new contacts
while also having the company's literature distributed through Commerce's
Aerospace Products Literature Center. Some companies utilized Commerce's
Aerospace Executive Service to facilitate foreign business contacts and
arrange meetings at the shows. Company officials that use these services
told us that they were generally satisfied. None of the company officials
we spoke with leased DOD equipment, which has generally been leased to
larger companies, according to DOD data.

Agency Comments

We provided a draft of this letter to DOD, Commerce, State, the Department
of Transportation, and NASA for comment. Commerce and State provided
technical comments, which we have incorporated as appropriate.

                                  * * * * * *

As requested by your office, unless you publicly disclose the contents of
this report, we plan no further distribution of it until 30 days from the
date of this letter. At that time, we will send copies to the Secretaries
of Defense, Commerce, State, and Transportation; the Administrator of
NASA; and interested congressional committees. We will also make copies
available to others upon request. In addition, this report will be
available at no charge on GAO's Web site at http://www.gao.gov.

Should you or your staff have any questions concerning this report, please
contact me at (202) 512-4841 or at [email protected]. Contact points
for our Offices of Congressional Relations and Public Affairs may be found
on the last page of this report. Key contributors to this report were John
Neumann, Assistant Director; Angela D. Thomas; Najeema Davis Washington;
Brent Helt; Lily J. Chin; and Alyssa Weir.

Ann Calvaresi Barr
Director, Acquisition and Sourcing Management

(120605)

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