Canceled NASA exploration projects suffered billions of dollars in overruns

Key Points:

• NASA halted four Artemis lunar exploration projects earlier this year after their costs more than doubled, with over $1 billion in additional increases expected, according to a June 24 memo from NASA’s Office of Inspector General (OIG).
• The projects affected include three linked to the Space Launch System (SLS) Block 1B—Exploration Upper Stage (EUS), Universal Stage Adapter (USA), and Mobile Launcher 2—and the Habitation and Logistics Outpost (HALO) module for the lunar Gateway.
• Combined contract values for these projects grew from nearly $2.8 billion to $5.9 billion, with delivery dates extended by up to seven years; projections indicated costs and schedules would have worsened if work had continued.
• NASA officials acknowledged the overruns but emphasized that the OIG’s projections are based on outdated assumptions and stated the agency is improving internal controls to fix requirements earlier and favor firm-fixed-price contracts to enhance affordability and speed.
• Specific cost escalations included Boeing’s EUS rising from $962 million to a projected $3.7 billion with completion delayed to 2028, Dynetics’ USA adapter tripling in cost to a projected $497 million with delivery slipping to 2030, and Mobile Launcher 2 costs potentially reaching $2 billion by 2026.