IN THE SURVEY OF CONTRACT ADMINISTRATION AT THE GODDARD SPACE FLIGHT CENTER, THREE SERVICE CONTRACTS OUT OF NINE REVIEWED WERE EITHER WRITTEN IMPROPERLY OR APPEARED TO LACK THE ESSENTIAL INTERNAL CONTROLS FOR MINIMIZING FRAUD AND ASSURING THAT CONTRACTED SERVICES WERE ACTUALLY PROVIDED. THE THREE INADEQUATE CONTRACTS WERE FOR PAINTING, OPERATION OF THE GODDARD HEALTH UNIT, AND COMPUTER SUPPORT. NASA'S PARTIAL PAYMENTS FOR THE PAINTING AND HEALTH UNIT CONTRACT APPEARED EXCESSIVE, AND THE INTERNAL CONTROLS OVER THE COMPUTER SUPPORT C CONTRACT NEEDED TO BE IMPROVED. BECAUSE THE PAINTING CONTRACT WAS WRITTEN AND ADMINISTERED SO POORLY, MEMBERS OF NASA'S INSPECTOR GENERAL STAFF WERE BRIEFED FOR INVESTIGATION INTO POSSIBLE FRAUD. CERTAIN CHANGES ARE REQUIRED IN NASA'S PROCUREMENT REGULATIONS AND POLICIES CONCERNING FLOOR CHECKS AND THE USE OF COST-PLUS-AWARD-FEE CONTRACTS TO PREVENT A RECURRENCE OF THE PROBLEMS FOUND. RECOMMENDATIONS ARE OFFERED FOR EACH OF THE THREE INADEQUATE CONTRACTS. THE NASA ADMINISTRATOR SHOULD INSTRUCT THE APPROPRIATE OFFICIALS TO IMPLEMENT