The Sutherland Inquiry, commissioned by Children's Secretary Ed Balls after American contractors ETS Global BV failed to mark the tests on time, found that QCA "failed to deliver its remit".
Although the contractors were mostly to blame for the problems, the exams watchdog "did not manage the contract it held with ETS effectively".
Lord Sutherland recommended that the delivery for National Curriculum tests should be modernised and suggested the government introduce a pilot scheme to trial online marking.
He also warned that customer service to schools and exam marking professionals must be "vastly improved".
Balls said Lord Sutherland's recommendations would be implemented in full and described the delivery of this years SATs tests as "a shambles".
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