A new report finds Boeing’s rockets are built with an unqualified work force

NASA’s program to develop a new upper stage for its Space Launch System rocket is seven years behind schedule and badly over budget. New reports The figures come from the findings of the space agency’s inspector general’s investigation, but beyond those headline figures there are some startling details about the project’s prime contractor, Boeing, and its poor quality control.

The new Exploration Upper Stage, a more powerful second stage of the SLS rocket debuting in late 2022, is seen by NASA as a key part of its Artemis program to return humans to the Moon. Current plans call for the new upper stage to be used starting with the second lunar landing, the Artemis IV mission, currently scheduled for 2028. In NASA terminology, the upgraded version of the SLS rocket is called Block 1B.

However, for a variety of reasons, including the readiness of the lunar lander, the Lunar Gateway hardware, and the new mobile launch tower, NASA is unlikely to push back that date. Now, based on the information in this new report, the exploration upper stage could be added to the list.

“We found a series of issues that could impede SLS Block 1B’s readiness for Artemis IV, including Boeing’s inadequate quality control system, escalating costs and schedules, and insufficient visibility into Block 1B’s projected costs,” the report, signed by NASA Deputy Inspector General George A. Scott, said.

Quality control is a concern

The report contains some startling details about Boeing’s quality control practices at its Michaux Assembly Plant in southern Louisiana, where the spacecraft’s upper stages are built. Federal watchdogs have issued an astonishing number of “corrective action requests” to Boeing.

“According to NASA Safety and Mission Assurance officials and Michaud’s DCMA officials, Boeing’s quality control problems stem primarily from employees’ lack of aerospace production experience,” the report states. “The lack of trained, qualified employees increases the risk that contractors will continue to manufacture parts and components that do not comply with NASA requirements or industry standards.”

A shortage of qualified labor has caused significant delays and increased costs for the program. According to a new report, “poor” welding work caused propellant tanks to fail to meet specifications and directly led to the program’s seven-month delay.

NASA’s inspector general was so concerned about quality control that she recommended that NASA impose financial penalties for Boeing’s noncompliance. But in her response to the report, NASA Deputy Administrator Katherine Corner rejected this. “NASA interprets this recommendation as directing NASA to impose penalties outside the scope of the contract,” she replied. “The contract already contains authorities, such as award clauses, that allow for financial consequences for noncompliance with quality control standards.”

NASA’s unwillingness to punish Boeing over these issues will likely reinforce the impression that the agency is favoring some contractors.

7 years late

The new report predicts that Block 1B’s development costs will reach $5.7 billion by the time it is eventually launched, which is already $700 million more than the cost estimate NASA formally set last December.

As for the upper stage itself, NASA originally projected in 2017 that it would cost $962 million to develop. But the new report predicts that the actual cost of the exploration upper stage will be $2.8 billion, or three times the original cost estimate. (For reference, Ars used a simple estimation tool in 2019 to project that the exploration upper stage would cost $2.5 billion to develop, so it’s not like it’s been a big secret that NASA and Boeing would go over budget here.)

But because this is a cost-plus contract, meaning Boeing pays all of its expenses plus fees, any increased costs will favor Boeing, which may help explain why the development program, originally scheduled for completion in 2021, likely won’t be completed until 2028 at the earliest.

So what for? Space Launch System works well as is. There are much cheaper upper stages that can be used for the rocket’s primary function: launching the Orion spacecraft into lunar orbit, including United Launch Alliance’s reliable (and ready) Centaur V upper stage. With Starship and New Glenn, NASA will soon have access to two very powerful commercial superheavy rockets.