In a surprising move, NASA has announced the termination of the $2 billion OSAM-1 project, which aimed to test satellite refueling in space. The decision comes after the agency’s auditor criticized Maxar, the project’s lead contractor, for poor performance. Despite nearly a decade of work, NASA cited technical, cost, and schedule challenges, as well as a lack of a committed partner in the broader community, as reasons for discontinuing the project.
Maxar, taken private by Advent International in 2023, has expressed disappointment over the cancellation but remains committed to supporting NASA in pursuing potential new partnerships or alternative uses for the hardware. It is unclear how many personnel will be impacted by OSAM-1’s cancellation as NASA did not provide any comment.
The OSAM-1 project, led by NASA’s Goddard center in Maryland with Maxar Space Systems as the prime contractor, aimed to dock with the U.S.-owned Landsat 7 imagery satellite in orbit. The goal was to repair and refuel the aging spacecraft to extend its life. However, the project has faced significant delays over the years, causing costs to soar. In a critical report from October, NASA’s Inspector General attributed these issues primarily to Maxar’s poor performance and a lack of understanding of NASA’s technical requirements.
The auditor also noted that OSAM-1 was likely to exceed its current $2.05 billion price tag and miss its December 2026 launch date, already six years behind schedule. Maxar representatives acknowledged that they were no longer profiting from their work on OSAM-1, leading NASA to question the company’s commitment and quality of staffing.
This cancellation by NASA comes at a time when satellite servicing is still a developing sub-sector within the space industry. While Northrop Grumman’s extension missions have shown promise, there is still much to learn and refine in this field.
The termination of the OSAM-1 project raises questions about the future of satellite refueling and the role of contractors in such endeavors. It also highlights the challenges faced by both NASA and private companies in managing complex and ambitious projects. Moving forward, NASA will need to explore new partnerships and alternative hardware uses while ensuring better oversight and understanding of technical requirements. As the space industry continues to evolve, it is crucial to learn from these setbacks and strive for better collaboration and performance in future endeavors.
