NASA Cancels $2B Satellite Refueling Project Over Contractor Performance Issues

After nearly a decade of work, NASA has decided to shutdown the OSAM-1 project which aimed to test satellite refueling in space. The space agency stated that the decision was made due to "continued technical, cost, and schedule challenges, and a broader community evolution away from refueling unprepared spacecraft, which has led to a lack of a committed partner."

Maxar Faces Criticism

The program's lead contractor, Maxar, faced criticism for "poor performance" from NASA's Inspector General, resulting in the discontinuation of the project. According to the report, the project cost soared as it fell years behind schedule.

Maxar's Response

In response to NASA's decision, Maxar Space Systems spokesperson Eric Glass expressed disappointment but also commitment to support NASA in pursuing potential new partnerships or alternative hardware uses as they complete the shutdown.

Financial and Technical Challenges

The audit revealed that the OSAM-1 project was likely to exceed its current $2.05 billion price tag and the December 2026 launch date, which was already six years behind schedule. Maxar representatives admitted that the company was "no longer profiting from their work on OSAM-1," and NASA observed that it no longer appeared "to be a high priority for Maxar in terms of the quality of its staffing."

Implications and Future of Satellite Servicing

The cancellation of OSAM-1 comes amidst the nascent stage of satellite servicing in the space industry. While Northrop Grumman's extension missions have represented early efforts in this sub-sector, the discontinuation of the OSAM-1 project raises questions about the future of satellite refueling and repair.