NASA IG Cites Dire NASA Launch Infrastructure Needs

A new report from NASA’s Office of Inspector General spells out dire launch infrastructure needs at Kennedy Space Center and Wallops Flight Facility. One solution is for Congress to pass legislation giving NASA authority to receive money from commercial partners for capital infrastructure investments. DOD was given such authority more than a decade ago.

Today’s 52-page report, NASA’s Launch Infrastructure, details how the aging facilities at KSC and Wallops are struggling to keep pace with rapidly increasing launch rates. KSC launch pads and supporting electrical power, water, and commodity supply lines date back to the 1960s and Wallops’ are even older. Roads and bridges over which rockets and support vehicles travel are also in failing health.  All at a time when launch demand is rapidly increasing.

Although Congress included $250 million for launch infrastructure improvements at KSC in last summer’s reconciliation bill, H.R. 1 (the One, Big Beautiful Bill Act, OBBBA, or Working Families Tax Cut Act), NASA officials estimate at least $1 billion is needed for KSC alone.

One step the report recommends is for Congress to pass legislation allowing NASA to accept money from commercial partners for capital infrastructure investments. The Antideficiency Act prohibits NASA from doing that now because it would be considered an augmentation to NASA’s appropriations. The Act also restricts NASA from funding infrastructure projects that primarily benefit commercial partners even if NASA also would benefit, according to the report.

The report says Congress authorized the Department of Defense to accept contributions of funds, services, and equipment from commercial companies to support investment in DOD infrastructure in the 2013 National Defense Authorization Act and NASA’s been seeking similar permission for years.

Sen. Ashley Moody (R-FL) introduced the Space Ready Act, S. 2622, last year to establish a 10-year pilot program for KSC to accept financial contributions from public and private entities through an Infrastructure Investment Fund established in the Department of the Treasury. Funds could be used for capital repairs, maintenance, and improvements to NASA-owned infrastructure. The legislation only addresses KSC, although the OIG report says Wallops was included in early drafts. No action has taken place on the bill yet.

In addition to getting Congress to allow NASA to accept money for capital improvements, the OIG encourages NASA to change how it recovers costs. NASA should use Enhanced Use Lease (EUL) agreements instead of Commercial Space Launch Act (CSLA) agreements because CSLA only recovers direct costs for launch and reentry services while EUL collects fair market value for use of the land and infrastructure.

The overall message is that NASA’s aging launch infrastructure needs investments at the same time NASA’s construction and maintenance budgets are declining. The $250 million in H.R. 1 is a start, but not nearly enough. “As the Agency looks to the future with crewed missions to the Moon and Mars, maintaining a robust and reliable launch infrastructure is essential to meeting mission needs.”