NASA shuts down $2B satellite refueling project due to technical and cost challenges

NASA has decided to shut down the On-orbit Servicing, Assembly, and Manufacturing 1 (OSAM-1) project, a $2 billion satellite refueling program, due to ongoing cost and technical challenges. The decision was made after a thorough review of the project. NASA cited the lack of a committed partner and a shift away from refueling unprepared spacecraft by the broader community as additional reasons for the discontinuation of the project. The OSAM-1 project, which started in 2015, involved a collaboration between NASA and Maxar, as well as NASA's Goddard Space Flight Center.

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Background and Challenges

NASA has announced the shutdown of its $2 billion satellite refueling project, the On-orbit Servicing, Assembly, and Manufacturing 1 (OSAM-1) project. This decision comes as a result of ongoing technical and cost challenges that have plagued the program.

In a statement, NASA explained that the project faced significant technical, cost, and schedule challenges, which ultimately led to its discontinuation. Additionally, the agency highlighted the lack of a committed partner as a contributing factor to the project's closure.

The OSAM-1 project, which started in 2015, aimed to develop technology for refueling spacecraft. However, the program encountered numerous setbacks and experienced a significant increase in costs for NASA.

Reasons for Shutdown

A report from NASA's Inspector General in October revealed that schedule delays and soaring costs were primarily due to poor contractor performance and ongoing technical challenges. The project was expected to exceed its $2 billion budget and miss its launch date of December 2026.

According to NASA's report, the development of the servicing payload, which was responsible for rendezvous and refueling Landsat 7, faced significant cost overruns and delays. The report attributed many of these setbacks to Maxar's poor performance on the spacecraft bus and SPIDER contracts, both of which were approximately two years behind schedule.

The escalating costs and schedule delays prompted NASA to make the difficult decision to shut down the project, as it was no longer deemed feasible.

Impact and Future Considerations

NASA is currently reviewing the impact of this cancellation on the workforce at the Goddard Space Flight Center. The agency's leadership is working to determine mitigation strategies to minimize the negative effects on employees.

The discontinuation of the OSAM-1 project reflects a broader shift in the space community away from refueling unprepared spacecraft. This change in direction has influenced NASA's decision to cease development and focus on other priorities.

While the closure of the OSAM-1 project is a setback, NASA remains committed to advancing space exploration and technology. The agency will continue to pursue innovative solutions and collaborations to achieve its goals.