NASA watchdog finds high quality management issues with Boeing SLS work

WASHINGTON — NASA’s inside watchdog sharply criticized the work Boeing is doing on the subsequent model of the House Launch System, discovering critical lapses in high quality management.

In a report launched Aug. 8, NASA’s Workplace of Inspector Normal (OIG) stated there have been important points with Boeing’s work on the Block 1B model of SLS being performed on the Michoud Meeting Facility in New Orleans, which it attributed to a scarcity of a suitable high quality administration system and skilled workforce.

NASA used the Protection Contract Administration Company (DCMA) to observe Boeing’s work on the SLS core and higher levels at Michoud. “Based on DCMA officers, Boeing’s course of for addressing contractual noncompliance has been ineffective, and the corporate has usually been nonresponsive in taking corrective actions when the identical high quality management points reoccur,” the OIG report states.

The report discovered that there have been 71 corrective motion requests, or CARs, issued by DCMA from September 2021 to September 2023 concerning Boeing’s SLS work at Michoud. A CAR identifies a selected contract nonconformity in regards to the work. Of the 71, 24 have been Degree 2 CARs, a extra critical model used for points that can’t be corrected instantly or contain vital security {hardware}.

That variety of CARs, the DCMA stated, is unusually excessive for a spaceflight program at this stage in improvement. There have been sufficient CARs of 1 type — inspections of labor referred to as “stamp guarantee” — that NASA advisable that DCMA draft a Degree 3 CAR, reserved for extreme nonconformities. That CAR was by no means issued as NASA elected to make use of what the report referred to as “alternate corrective motion strategies” that included extra critiques.

The report linked the excessive variety of high quality issues to a scarcity of a skilled workforce. “Michoud officers acknowledged that it has been troublesome to draw and retain a contractor workforce with aerospace manufacturing expertise partly as a result of Michoud’s geographical location in New Orleans, Louisiana, and decrease worker compensation relative to different aerospace rivals,” it acknowledged.

OIG famous within the report it had first-hand proof of drawback attributable to an inadequately skilled workforce. Throughout an April 2023 website go to, OIG workers noticed a liquid oxygen tank part supposed to be used on the SLS core stage for Artemis 3 that was “segregated and pending disposition” due to welds that didn’t meet specs. NASA officers informed OIG that “the welding points arose as a result of Boeing’s inexperienced technicians and insufficient work order planning and supervision.”

The report additionally criticized administration of the important thing a part of the Block 1B SLS, the Exploration Higher Stage (EUS) that may exchange the Interim Cryogenic Higher Stage used on the unique Block 1 SLS. The EUS accounts for greater than half of the $5.7 billion improvement value for the Block 1B, which has gone up $700 million for the reason that company made a baseline value and schedule dedication final December.

Whereas NASA tasks spending on EUS will go down as Boeing strikes staff off the venture, “we venture Block 1B annual prices will stay at 2023 ranges by way of not less than 2026 earlier than petering out within the out years,” the report concluded, noting NASA’s finances projections don’t embrace the extra funding wanted for EUS work by way of 2027. That dangers delays within the Artemis 4 launch, deliberate for late 2028.

Boeing, in the meantime, is utilizing a software program instrument referred to as an earned worth administration system (EVMS), which measures progress based mostly on technical, value and different information, that has been disapproved to be used by the Protection Division since 2020 due to a number of deficiencies. “Based on NASA contracting officers, Boeing can not produce a practical baseline supply date for the EUS as a result of persevering with deficiencies in its EVMS,” the OIG report famous.

“Given Boeing’s high quality administration and its associated workforce challenges, we’re involved these components may probably influence the protection of the SLS and Orion spacecraft together with its crew and cargo,” the report concluded. It made 4 suggestions, together with an improved high quality administration program, value overrun evaluation and coordination with DCMA on bringing the EVMS into compliance, that NASA accepted in its response.

The company, although, rejected a fourth advice, which referred to as for monetary penalties for Boeing’s noncompliance with quality control. “NASA interprets this advice to be directing NASA to institute penalties outdoors the bounds of the contract,” wrote Cathy Koerner, NASA affiliate administrator for exploration programs improvement, within the company’s response to the report.

She argued there are different mechanisms, like provisions for issuing award charges within the contract, that can be utilized to handle the standard issues. “Instituting monetary penalties outdoors the bounds of the contract subverts the management strategy of the contract,” she concluded.

“Our advice was written to permit the Company latitude to make use of essentially the most applicable mechanisms practicable to impose monetary penalties on Boeing for not complying with required high quality management requirements,” OIG responded within the report, deeming the advice “unresolved pending additional discussions with the Company.”

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