National Aeronautics and Space Administration Reform Act of 1986

National Aeronautics and Space Administration Reform Act of 1986 - Title I: Implementation of Commission Recommendations - Requires the Administrator of the National Aeronautics and Space Administration (NASA) (the Administrator) to carry out the reported recommendations of the Presidential Commission on the Space Shuttle Challenger Accident (the Commission).

Provides that the requirements imposed by this title shall be treated as having been appropriately incorporated into the National Aeronautics and Space Act of 1958.

Sets forth general and specific design requirements for the shuttle program. Directs the National Research Council to form an independent Solid Rocket Motor Design Oversight Committee to implement the Commission's design recommendations, oversee design requirements under this title, and report to the Administrator.

Sets forth requirements for shuttle program management. Directs the Administrator to review the Shuttle Program Structure and report to the appropriate congressional committees within six months after the enactment of this Act. Requires redefinition of the Program Manager responsibilities and inclusion of astronauts in such management. Directs the Administrator to establish a Safety Advisory Panel reporting to the Program Manager.

Sets forth requirements for criticality review and hazard analysis by the Administrator and the primary shuttle contractors. Requires the National Research Council to appoint an Audit Panel to verify the adequacy of the review effort and to report directly to the Administrator.

Directs the Administrator to establish an Office of Safety, Reliability, and Quality Assurance. Sets forth the responsibilities of such Office within NASA.

Sets forth requirements involving improved communications, launch constraints, and flight readiness.

Sets forth requirements involving landing safety and weather considerations.

Sets forth requirements involving launch abort and crew escape.

Sets forth requirements involving flight rate. Directs the Administrator to report to the Congress every six months regarding flight rate.

Sets forth requirements involving maintenance safeguards, inspection, and spare parts.

Title II: Additional Provisions - Abolishes the Office of NASA European Representative.

Directs the Administrator to work with private industry to foster the development of private and independent launch capabilities.