NASA Cancels $2 Billion Satellite Refueling Project Due to “Poor Performance”
NASA has made the decision to cancel its $2 billion project, the On-orbit Servicing, Assembly, and Manufacturing 1 (OSAM-1), after facing significant challenges and poor performance from its lead contractor, Maxar. The project, which aimed to test satellite refueling in space, had been in development for nearly a decade. However, NASA cited technical, cost, and schedule difficulties, as well as a lack of commitment from partners in the broader community.
Maxar, the prime contractor for OSAM-1, has faced criticism from NASA’s auditor for its poor performance. The company was taken private by private equity firm Advent International in May 2023 and split into two businesses: Maxar Intelligence, focused on satellite imagery and analytics, and Maxar Space Systems, focused on spacecraft manufacturing. Despite the disappointment of discontinuing the program, Maxar has expressed its commitment to supporting NASA in exploring new partnerships or alternative uses for the hardware.
The Goddard Space Flight Center in Maryland, in collaboration with Maxar Space Systems, was leading the development of OSAM-1. The project aimed to dock with the aging U.S.-owned Landsat 7 imagery satellite in orbit to repair and refuel it, extending its operational life. However, OSAM-1 has experienced significant delays and cost overruns. NASA’s Inspector General conducted an audit and found that Maxar’s poor performance was the primary cause of these setbacks. The report also highlighted challenges faced by NASA’s Goddard center in certain aspects of development.
The cancellation of OSAM-1 by NASA comes as no surprise given the project’s troubled history. The agency’s auditor predicted that the project would exceed its current budget of $2.05 billion and miss its already delayed launch date of December 2026. Maxar representatives admitted that they were no longer profiting from their work on OSAM-1, and NASA felt that the project was no longer a high priority for the company in terms of staffing quality.
This decision by NASA is a setback for the nascent sub-sector of satellite servicing in the space industry. While Northrop Grumman’s extension missions have shown promise, the cancellation of OSAM-1 highlights the challenges faced in this field. Despite the disappointment, NASA remains committed to supporting its project workforce until fiscal year 2024 and is open to exploring new partnerships or alternative uses for the hardware.
The cancellation of the OSAM-1 project serves as a reminder that space exploration and innovation come with their fair share of challenges. As the industry continues to evolve, it is crucial for organizations to learn from setbacks and adapt their strategies accordingly. While this particular project may not have achieved its goals, it paves the way for future endeavors and collaborations in satellite servicing and other areas of space exploration.
