NASA’s Transition of the Space Launch System to a Commercial Services Contract

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Date Issued

Thursday, October 12, 2023

Submitting OIG

National Aeronautics and Space Administration OIG

Other Participating OIGs

National Aeronautics and Space Administration OIG

Agencies Reviewed/Investigated

National Aeronautics and Space Administration

Report Number

IG-24-001

Report Description

This report, one in a series of audits examining NASA’s development of space flight systems for Artemis IV and future missions, examines the Agency’s plans to move its individual SLS contracts to a commercial services contract to lower the cost of the launch system.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 7 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
Establish achievable cost saving metrics beginning with Artemis IV SLS elements and production contracts.
2	No	$0	$0
Transition the core stage and Exploration Upper Stage contracts to fixed-price contracts with a per mission price to codify the actual costs.
3	No	$0	$0
If keeping contracts as cost-plus-award-fee, increase the percentage of cost as a factor when conducting contractor evaluations for award fee purposes.
4	No	$0	$0
Conduct a detailed review of all contractor-submitted documents to ensure the government’s rights to data and processes are not unnecessarily transferred to the contractor.
5	No	$0	$0
Include contract flexibility on future SLS acquisitions that will allow NASA to pivot to other commercial alternatives.
6	No	$0	$0
For each Artemis SLS rocket under EPOC, add compensation to the DST contract such as incentive fees for when the contractor achieves specific cost saving goals.
7	No	$0	$0
Ensure Government Mandatory Inspection Points and government oversight teams remain throughout the EPOC transition period.