Authorizes appropriations for FY 1987 to the National Aeronautics and Space Administration (NASA) for specified activities relating to: (1) research and development; (2) space flight, control and data communications; (3) construction of facilities; and (4) research and program management. Permits appropriations for research and development and for space flight, control and data communications, to be used: (1) for any items of a capital nature (other than acquisition of land) which may be required at locations other than NASA installations for the performance of research and development contracts; and (2) for grants to nonprofit institutions of higher education, or to nonprofit organizations whose primary purpose is the conduct of scientific research, for purchase or construction of additional research facilities. Requires the Administrator of NASA (the Administrator) to notify specified congressional officers and committees whenever the cost of a facility exceeds a specified amount. Permits funds appropriated for research and development, for space flight, control and data communications, or for construction of facilities to remain available without fiscal year limitation. Permits appropriations for research and program management to be used for scientific consultations or extraordinary expenses upon the approval of the Administrator. Limits to not more than $100,000 per project (including collateral equipment) the amount that may be used for construction of new facilities and additions to existing facilities, and for repair, rehabilitation, or modification of facilities, from funds appropriated for research and development, for space flight, control and data communications, and for research and program management. Limits to not more than $500,000 per project (including collateral equipment) the amount that may be used for any of the foregoing for unforeseen programmatic needs, from funds appropriated for research and development and for space flight, control and data communications. Directs the Administrator to report to specified congressional committees by November 15, 1986, on the reassignment of technical work responsiblities for a permanently manned Space Station. Permits the funds for construction of any of specified facilities: (1) in the discretion of the Administrator, to be varied upward ten percent; or (2) following a report by the Administrator to specified congressional committees, to be varied upward 25 percent to meet unusual cost variations. Permits one-half of one percent of the funds appropriated for research and development or for space flight, control and data communications, to be transferred to the appropriation for construction of facilities. Authorizes the expenditure of such transferred funds, together with a specified amount of the funds appropriated for construction of facilities, to construct, expand, or modify laboratories and other installations. Requires the Administrator, 30 days before expending such funds, to notify specified congressional officers and committees of the nature, cost, and necessity of such construction. Prohibits, until 30 days pass after congressional receipt of a full explanation by the Administrator, the use of funds appropriated pursuant to this Act for any program: (1) deleted by the Congress; (2) in excess of the amount actually authorized for the particular program under provisions for research and development, space flight, control and data communications, and research and program management; or (3) which has not been presented to either of the specified congressional committees. Directs the President, on the date of submittal of a budget for NASA for FY 1988, to also submit to the Congress budget estimates for the recommended level of program activity and subactivity funding for FY 1989 and 1990 of a permanently manned space station. Declares that it is the sense of the Congress that it is in the national interest that consideration be given to geographical distribution of Federal research funds whenever feasible, and that NASA should explore ways of doing so. Prohibits any civil space station authorized under this Act from being used to: (1) carry or place in orbit any nuclear weapon or any other weapon of mass destruction; (2) install any such weapon on any celestial body; or (3) station any such weapon in space in any other manner. Requires that such civil space station be used only for peaceful purposes. Directs the Administrator to prepare and submit to the Congress by March 31, 1987, a comprehensive acquisition strategy and plan for the continued procurement of space shuttle solid rocket motors. Requires such strategy and plan to address: (1) the decisions made by the Administrator regarding the motor design or designs; (2) alternatives for establishing and maintaining competition in future procurements; and (3) the costs and benefits of each such alternative. Directs the Administrator to issue requests for proposals for a second source for a redesigned motor and for an upgraded motor, upon completion of the solid rocket motor redesign and the upgraded motor evaluation efforts and the determination of a safe and reasonable flight rate, but before signing or extending any production contract for follow-on solid rocket motors beyond those currently under contract. Directs the Administrator to determine whether a request to the Congress for second source qualification funding is necessary or desirable in order to permit the second source to compete with the incumbent on a fair and effective basis, consistent with the Competition in Contracting Act. Directs the Administrator to consider the competitive advantages of the nozzle and the solid rocket motor separately. Requires the Administrator, before signing or extending any production contract for follow-up solid rocket motors, to notify the Congress of the number of additional solid rocket motors required in order to allow the space shuttle transportation system to operate if a new contractor is not able to provide any of such additional solid rocket motors. Provides that such requirements shall not be construed to direct the Administrator to select and qualify a second source or upgraded source of production for solid rocket boosters if the proposals are inconsistent with specified requirements. Finds that NASA should take every action available to it to restore, to its previous standards of excellence, its commitment to quality assurance, reliability, and safety. Directs the Administrator to identify as a separate line item in the budget submitted by the President the number of individuals per NASA facility whose functions relate to quality assurance, reliability, and safety. Directs the Administrator to: (1) review the findings and recommendations of the National Commission on Space; and (2) submit to specified congressional committees by February 15, 1987, a long-range plan for implementing such findings and recommendations. Authorizes the Administrator, if the public interest so requires, to award to a domestic firm a contract that, under the use of competitive procedures, would be awarded to a foreign firm, if: (1) the final product of the domestic firm will be completely assembled in the United States; (2) at least 50 percent of the final product will be domestically produced; and (3) the difference between the bids is not more than five percent. Requires the Administrator to make the determination if the public interest so requires: (1) with the concurrence of the U.S. Trade Representative and the Secretaries of State and Commerce; and (2) taking into account U.S. international obligations and trade relations. Establishes the National Space Council in the Executive Office of the President. Directs the Council to advise the President with respect to the following functions: (1) survey of ongoing civilian space activities; (2) review of long-range goals for civilian space activities; (3) coordination of civilian space activities among civilian agencies and with agencies involved in national security space activities; and (4) interagency cooperation in civilian space activities. Directs the Council to establish a Users' Advisory Group composed of non-Federal representatives of industries and other persons involved in space activities.