Artemis: Cost explosion for mobile launcher Mobile Launcher 2
The mobile launch pad Mobile Launcher 2, which serves NASA's Artemis mission, is becoming more expensive. Very significantly, in fact.
(Image: NASA / David Zeiters)
NASA is developing a second mobile launch pad, Mobile Launcher 2 (ML-2), which will be used to assemble, transport and launch the rockets of the Artemis mission. NASA's Inspector General has now presented an interim report. According to the report, the costs of the project are spiraling out of control.
The second version of the mobile launch pad is intended to serve the more powerful rockets (Space Launch System, SLS) of types 1B and 2, for which the first model of the launch pad is too small. NASA uses the Mobile Launch System for the assembly, processing, transportation and launch of the heavy-duty SLS rocket with the associated multipurpose Orion capsule for the crew. It is to be used for the Artemis IV mission in 2028.
The company responsible made a mistake
NASA's prime contractor for the ML-2 is Bechtel National, Inc. Bechtel is responsible for project management, architectural and engineering design, technical integration, manufacturing, construction, testing, commissioning and quality control, NASA explains in its report. The contract was originally concluded in June 2019 with a volume of 383 million US dollars and a delivery date of March 2023. In August 2022, the contract volume increased to over one billion US dollars and delivery was postponed to May 2026. More recent estimates from NASA and Bechtel point to further cost increases and delivery delays.
NASA management had previously published a report on excessive costs and delivery times in June 2022, which essentially blamed Bechtel's performance. While progress has been made, NASA has struggled to provide reliable cost and schedule projections for the ML-2 project and incentives for significant improvements in contractor performance. Given the importance of the ML-2 system to future Artemis missions, it is critical that NASA effectively manage the project to contain cost increases and avoid further schedule delays.
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Findings of the investigation
NASA estimates that ML-2 will cost three times more than originally planned. While the agency estimated in 2019 that the entire project would cost less than 500 million US dollars, the estimate rose to around 1.5 billion US dollars in December 2023. The Bechtel contract accounts for USD 1.3 billion of this, while USD 168 million comprises other project costs. In 2024, NASA estimated the costs to the US Congress at USD 1.8 billion, with a delivery date of September 2027. To this end, the agency has drawn up a cost and schedule (Agency Baseline Commitment), in which NASA intends to hold Bechtel accountable for meeting the plans from December 2023.
The agency figures are offset by the costs expected by the Inspector General: now as much as 2.7 billion euros are on the table, which could accrue until delivery by Bechtel. There will also be no first launch before spring 2029, which also throws the planning for Artemis IV, which is due to take off in September 2Ăź28, into disarray. There are differences of opinion here with NASA officials, who are assuming less of a cost increase now that Bechtel has started designing the launcher. This is the company's specialty, but it is uncertain whether Bechtel can achieve and sustain better performance through the design phase.
Bechtel underestimated complexity
According to the inspector, the main driver of costs and delays was Bechtel's fault. The current contract amount of 1.1 billion US dollars includes almost 600 million US dollars due to Bechtel's overruns. 130 million US dollars of the increases are an effect of the Covid-19 pandemic. Bechtel had massively underestimated the workload. Between May 2022 and January 2024, the estimated overtime had doubled to around 850,000 hours. These were incurred in an attempt to meet NASA schedules. The company estimated in January that it would need 1.7 million hours more than the 4 million hours scheduled in May 2022.
The inspector general highlights that while NASA has taken steps to "stabilize" the ML-2 project, it has few options to incentivize better contractor performance. In conclusion, the Inspector General concludes that NASA needs to manage the project more efficiently. The observations from the ML-2 project should be noted and considered for future developments regarding acquisition, contract and project management. In concrete terms, an in-depth feasibility study should also be carried out into whether the fixed-price option should be exercised, and if NASA came to the conclusion that it would not use the option, it should be removed from the ML-2 contract.
After 50 years away from the moon, the ambitious Artemis program is set to take humans to Earth's satellite again for the first time. However, some also see this as the first stage on the way to Mars.
(dmk)
