Category: Behind The Black

In a report [pdf] issued yesterday, NASA’s inspector general blasted the agency’s manned commercial space management for issuing a $287 million bonus payment to Boeing to help it avoid delays in developing its Starliner capsule — which would have caused gaps in future American flights to ISS — even though the cost to use Russian Soyuz capsules would have been far less.

Worse, the agency never even allowed SpaceX to make its own competitive offer.

NASA agreed to pay Boeing Co (BA.N) a $287 million premium for “additional flexibilities” to accelerate production of the company’s Starliner crew vehicle and avoid an 18-month gap in flights to the International Space Station. NASA’s inspector general called it an “unreasonable” boost to Boeing’s fixed-priced $4.2 billion dollar contract.

Instead, the inspector general said the space agency could have saved $144 million by making “simple changes” to Starliner’s planned launch schedule, including buying additional seats from Russia’s space agency, which the United States has been reliant on since the 2011 retirement of its space shuttle program.

…NASA justified the additional funds to avoid a gap in space station operations. But SpaceX, the other provider, “was not provided an opportunity to propose a solution, even though the company previously offered shorter production lead times than Boeing,” the report said. [emphasis mine]

I’ve read the report, and from it the impression is clear that when NASA management discovered that Boeing was facing delays in Starliner and needed extra cash, it decided to funnel that cash to it, irrespective of cost. While it is likely that the agency did so because it did not wish to buy more Russian Soyuz seats, it makes no sense that it didn’t ask SpaceX for its own competitive bid. By not doing so the management’s foolish bias towards Boeing is starkly illustrated

Eric Berger at Ars Technica also notes that the report makes clear how Boeing’s prices for Starliner are 60% higher than SpaceX’s Crew Dragon prices, further illustrating how the agency favors Boeing over SpaceX.

Boeing’s per-seat price already seemed like it would cost more than SpaceX. The company has received a total of $4.82 billion from NASA over the lifetime of the commercial crew program, compared to $3.14 billion for SpaceX. However, for the first time the government has published a per-seat price: $90 million for Starliner and $55 million for Dragon. Each capsule is expected to carry four astronauts to the space station during a nominal mission.

What is notable about Boeing’s price is that it is also higher than what NASA has paid the Russian space corporation, Roscosmos, for Soyuz spacecraft seats to fly US and partner-nation astronauts to the space station. Overall, NASA paid Russia an average cost per seat of $55.4 million for the 70 completed and planned missions from 2006 through 2020. Since 2017, NASA has paid an average of $79.7 million.

I don’t have a problem with NASA favoring Boeing over Russia, considering the national priorities. I can also understand the agency’s willingness to keep buying some Starliner seats in order to guarantee an American launch redundancy. However, giving Boeing even more money to keep its schedule going, when SpaceX is available to fill the gaps, demonstrates the corruption in the agency’s management. They haven’t the slightest understanding of how private enterprise and competition works.

The report is also filled with the same tiresome complaints about the on-going delays to the manned commercial program, focusing greatly on past technical issues (now mostly solved) while hiding in obscure language how it is NASA’s paperwork that is likely to cause all further delays.