The day before it became known that NASA decided to cancel the project to refuel satellites in orbit, the cost of which exceeded $2 billion. The reason for terminating the contract was an audit of the agency, which revealed cost overruns and a lack of necessary qualifications from the contractor, Maxar.
The OSAM-1 project to refuel satellites in orbit was launched in 2015 with the goal of extending the operation of the old Landsat 7 satellite. Since then, nothing intelligible has been done and it makes no sense to continue working with this contractor, as the agency explained.
NASA said in an official statement posted on its website Friday that the project's termination was prompted by “ongoing technical, cost and schedule issues, and a shift in direction in the community away from refueling unprepared spacecraft, resulting in a lack of a promising partner (for future joint projects to service satellites in orbit).”
All 450 OSAM-1 project employees will be financially supported by the agency until at least the end of fiscal 2024 (end of September 2024).
“While we are disappointed by the decision to terminate the program, we are committed to supporting NASA in identifying potential new partners or alternative uses for the equipment as it completes its work,” Maxar Space Systems spokesman Eric Glass told CNBC.
Maxar was acquired by private equity firm Advent International in May 2023 and then split into two businesses: Maxar Intelligence, which specializes in satellite imagery and analytics, and Maxar Space Systems, which specializes in spacecraft manufacturing.
On the NASA side, work on the OSAM-1 project was led by the NASA Space Flight Center. Goddard in Maryland. Work on the project fell years behind schedule while the agency's cost of the program skyrocketed. NASA's October 2023 Auditor General's report stated that the inspector “found that project cost increases and schedule delays were primarily caused by Maxar's poor performance,” but center workers also suffered.
“NASA and Maxar officials acknowledged that the company underestimated the scope and complexity of the work, did not have a full understanding of NASA technical requirements, and did not have the necessary expertise,” NASA’s inspector general said in a report following a year-long audit. The auditor noted that OSAM-1 will likely “exceed its current price tag of $2.05 billion and (miss) its December 2026 launch date,” which is already 6 years behind schedule.
Also in the report, citing Maxar representatives, it is noted that the company “no longer profits from its work on OSAM-1” and, according to NASA, because of this, this project is not “a high priority for Maxar in terms of the qualifications of its personnel “
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