The NASA Office of Inspector General has posted the Langley Research
Center Exchange Activities (G-00-001, March 23, 2001) to its web site.

To access the entire report, please go to:

Synopsis: The OIG conducted an inspection of the Langley Research
Center (Langley) Exchange. We found that, in general, the Exchange
offered a variety of programs and activities benefiting the Langley
work force. However, we identified changes that could improve the
operations and activities of the Exchange, and ensure sound business
and management practices.

The Langley Exchange, an instrumentality of the Government, is
responsible for operating activities that contribute to the efficiency,
welfare, and morale of Langley employees. The activities and
operations of the Exchange are primarily funded with nonappropriated
funds. The Langley Exchange operates a cafeteria, a diner, vending
machines, a gift shop, a lounge, a gym, a child care center, an
activities association, and a business office.

As a result of our review, we found that Center management
inappropriately used Langley Exchange funds for activities for which
appropriated funds were available. These activities included providing
supplies, magazines, newspapers, and other related goods and services.
We found the Exchange was not observing several requirements of the
NASA policy directive on NASA Exchange activities. Key Center
officials had not fulfilled some management oversight responsibilities
regarding Exchange activities. The Exchange and the Center also did
not fully comply with regulations implementing the Randolph-Sheppard
Act. One purpose of the Randolph-Sheppard Act is to provide preference
to the blind in operating vending facilities located on Federal
property and buildings or to collect a percentage of vending machine
income for employment and education programs for the blind.

Management Response: NASA Management concurred with the
recommendations in the report.

To comment on this report, please send an email to