NASA OIG Critical of Boeing in New Report
NASA OIG Critical of Boeing in New Report
Company Developing the Exploration Upper Stage for Artemis IV
The NASA Office of Inspector General has released a 37-page report focused on the development of the Exploration Upper Stage (EUS) for Artemis IV under development by Boeing.
"Boeing’s delivery of the EUS to NASA has also been delayed from February 2021 to April 2027, and when combined with other factors, suggests the September 2028 Artemis IV launch date could be delayed as well."
NASA OIG Report
According to the audit, the SLS Block 1B has been under development since 2014 and has faced changing technical requirements and competing funding priorities. These factors, along with congressional directives to accelerate the rocket’s development, have led to increased costs and schedule delays. Originally intended for the Artemis II mission, Block 1B's first flight was moved to Artemis IV, extending the development timeline and increasing costs. Boeing’s EUS contract has grown from $962 million to over $2 billion through 2025, contributing to the overall SLS Block 1B cost increase.
The OIG interviewed officials from NASA Headquarters, Marshall Space Flight Center, Michoud Assembly Facility (Michoud), Boeing, and the Defense Contract Management Agency (DCMA). They also reviewed NASA and contractor cost and budget documentation, contracts for each SLS element, contract obligations and disbursements, Boeing financial management reports, and Earned Value Management System (EVMS) cost estimates. Additionally, past and current schedules and quality control documents for SLS core and upper stage production were assessed.
The OIG found that Boeing's quality management system at Michoud does not comply with NASA standards or the SAE International's AS9100D standards on quality management systems. The issues at Michoud stem from a lack of sufficient number of trained and experienced aerospace workers at Boeing, the report states. While Boeing does provide training and work orders to its employees, the OIG found those efforts to be inadequate. "The lack of a trained and qualified workforce increases the risk that Boeing will continue to manufacture parts and components that do not adhere to NASA requirements and industry standards," the report said.
The OIG now projects that the SLS Block 1B costs will reach approximately $5.7 billion before the system is scheduled to launch in 2028. This is $700 million more than NASA’s 2023 Agency Baseline Commitment, which established a cost and schedule baseline at nearly $5 billion. EUS development accounts for more than half of this cost, which OIG estimates will increase from an initial cost of $962 million in 2017 to nearly $2.8 billion through 2028.
"Boeing’s delivery of the EUS to NASA has also been delayed from February 2021 to April 2027, and when combined with other factors, suggests the September 2028 Artemis IV launch date could be delayed as well," the report states.
The OIG made four recommendations to NASA to complete in conjunctions with the Assistant Administrator for Procurement and Chief, Safety and Mission Assurance:
coordinate with Boeing, the SLS Stages prime contractor, to develop a quality management system training program that is compliant with AS9100D and reviewed by the appropriate NASA officials
institute financial penalties for Boeing’s noncompliance with quality control standards.
To minimize the impact on the Artemis campaign’s timeline and achieve sustainability, OIG recommends the Associate Administrator for ESDMD perform a detailed cost overrun analysis on Boeing’s Stages contract for EUS development.
To provide greater visibility into cost and schedule estimates for SLS upgrades, the Associate Administrator for ESDMD should coordinate with DCMA to ensure contractual compliance with EVMS clauses.