NASA’s Management of the Space Launch System Booster and Engine Contracts

Submitting OIG:

National Aeronautics and Space Administration OIG

Report Description:

NASA is adapting heritage hardware from the Space Shuttle era, including solid rocket boosters and RS-25 rocket engines, to power the Artemis campaign’s Space Launch System rocket that will launch the Orion crew capsule to the Moon. This report examines whether NASA is meeting cost, schedule, and performance goals for its Booster and RS-25 Engine contracts and examines efforts to reduce the Agency’s financial risk and promote affordability.

Date Issued:

Thursday, May 25, 2023

Agency Reviewed / Investigated:

National Aeronautics and Space Administration

Submitting OIG-Specific Report Number:

IG-23-015

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$49,867,103

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
Final-Report-IG-23-015-NASAs-Management-Space-Launch-System-Booster-and-Engine-Contracts.pdf	3.32 MB

Additional Details Link:

https://oig.nasa.gov/docs/IG-23-015.pdf

Recommendation Number	Recommendation Status	Significant Recommendation
2	Open	No
Coordinate with the Marshall procurement office to identify procurement needs and resources available under MAP to address staff capacity shortages at the senior procurement level to ensure sufficient oversight roles are staffed and separated from the contract actions.
3	Open	No
Ensure Marshall procurement, legal, project planning and control, and SLS and booster program officials comply with best practices for establishing and maintaining internal controls, specifically on the appropriate process and procedures on REAs, fiscal law, and appropriate internal and external engagement.
4	Open	No
Ensure Elements and procurement management comply with appropriate separation of roles and responsibilities for program and procurement actions and the FAR with respect to use of letter contracts, proper definitization, overpayments, and duplicative payments of award fees for modified scope and contracts.
5	Open	No
Update RS-25 production per engine cost estimate to include investment costs in restart facilities, equipment, new production overhead costs, and government-funded property.
6	Open	No
Conduct a thorough review of BPOC’s scope of work and technical requirements needed to complete the respective periods of performance and update the contract as appropriate.
7	Open	No
Conduct a thorough review of BPOC’s definitization to ensure proper liquidation of funds paid under the letter contract as progress payments are returned to the Agency and are appropriately paid when the performance of the work, per the contract, is completed.
8	Open	No
Develop a separate non-fee bearing contract line item for completion of the 11 unfinished heritage RS-25 adaptation engines.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Coordinate with the Marshall procurement office to identify procurement needs and resources available under MAP to address staff capacity shortages at the senior procurement level to ensure sufficient oversight roles are staffed and separated from the contract actions.

Open

Ensure Marshall procurement, legal, project planning and control, and SLS and booster program officials comply with best practices for establishing and maintaining internal controls, specifically on the appropriate process and procedures on REAs, fiscal law, and appropriate internal and external engagement.

Open

Ensure Elements and procurement management comply with appropriate separation of roles and responsibilities for program and procurement actions and the FAR with respect to use of letter contracts, proper definitization, overpayments, and duplicative payments of award fees for modified scope and contracts.

Open

Update RS-25 production per engine cost estimate to include investment costs in restart facilities, equipment, new production overhead costs, and government-funded property.