NASA’s inspector general has concluded that NASA’s plans to buy future launches of the Space Launch System (SLS) as a service are unlikely to result in cost savings. The inspector general’s report states that the 50% reduction in SLS launch costs projected by NASA through a services contract is “highly unrealistic.” Instead, the report recommends that NASA keep its options open for alternative launch vehicles.
In July 2022, NASA announced its intent to shift to a services contract called Exploration Production and Operations Contract (EPOC), starting with the Artemis 5 mission in the late 2020s. The contract would be with Deep Space Transport, a joint venture of Boeing and Northrop Grumman, the major contractors for elements of the SLS rocket.
NASA had hoped that the services contract would lead to a substantial cost reduction of 50% or more off the current industry baseline per flight cost of SLS. It would also allow for the use of SLS for missions other than Artemis lunar exploration flights, including non-NASA customers.
However, the inspector general’s report casts doubt on the feasibility of achieving these goals. The report estimates that the Block 1B version of SLS, starting with Artemis 4, will cost $2.5 billion per flight. Even with a 50% cost reduction under EPOC, the cost would still be $1.25 billion per flight.
The report highlights ongoing efforts to reduce costs that have not yielded expected savings, such as the assembly of core stages for SLS and the restart of production of the RS-25 engine. It also points out the lack of competition, making it difficult for NASA to negotiate cost reductions compared to other launch services and commercial crew programs.
Additionally, the report notes that efforts to find additional customers for SLS have been unsuccessful. Potential users, including the Defense Department, have opted for other vehicles developed by Blue Origin, SpaceX, and United Launch Alliance.
The inspector general’s report suggests that while SLS is currently the only vehicle capable of launching the Orion spacecraft, other human-rated commercial alternatives may become available within the next 3 to 5 years. It recommends that NASA continue to monitor the commercial development of heavy-lift space flight systems and consider these options for its longer-term plans.
This report comes on the heels of another critical report by the Government Accountability Office (GAO) in September, which criticized NASA for a lack of transparency on SLS costs. The GAO report stated that the SLS program is currently unsustainable and exceeds what NASA officials believe will be available for its Artemis missions. While initiatives like EPOC are aimed at reducing costs, it is still too early to evaluate their effectiveness, according to the GAO report.