'NASA needs to better manage its approach by better understanding the SLS Program's needs and complexity before moving from development to production.'
RS-25 rocket engine No. 0525 is positioned onto the A-1 Test Stand at NASA’s Stennis Space Center in Mississippi in preparation for a series of developmental tests.The report questions NASA’s choice of awarding cost-plus contracts usually reserved for bleeding-edge research and development when Aerojet and Northrop modify engines and boosters used multiple times.
Furthermore, the negotiated award fee percentage of costs for the RS-25 Restart and Production contract was observed to be higher than typically found in contracts of this type: 10 to 13 percent as opposed to the usual 6 to 8 percent. An estimated cost increase of 13 percent resulting from the overhead and other associated costs with recertification and the production of 24 new engines was found to be neglected.
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