NASA’s Dilemma on Satellite Servicing Mission
NASA is thinking about a new plan from Congress to keep a satellite servicing mission alive, but no decisions have been made yet.
Back in March, NASA decided to cancel the OSAM-1 mission because it was getting too expensive and taking too long. They also didn’t have a partner who wanted to use the satellite servicing technology. Around 450 people were supposed to keep working on it until the end of fiscal year 2024.
Right after NASA’s cancelation news, the final 2024 appropriations bill was released. This bill fully funded OSAM-1 at $227 million and told NASA to adjust the mission to launch by 2026 with the money included in the 2024 budget. The bill suggested cutting out non-essential parts if needed and doing another review in September if things didn’t work out.
Since then, NASA hasn’t said much publicly. But during an Aug. 13 earnings call, Intuitive Machines hinted they might have figured out how to keep OSAM-1 going within the budget and timeline set by the bill.
“We were asked to go in and look at what it would take to ramp that down, but also we got the opportunity to say how you might save that project, how you might get it back on schedule and back on budget,” Steve Altemus, chief executive, said on the call.
People want to see this mission succeed.
He didn’t explain the exact steps his company took with NASA to fix the cost and timing issues. He just mentioned, “We’ve restructured it for success, so that’s a very positive sign.” He also noted that a Senate bill for fiscal year 2025 would offer up to $174.5 million for OSAM-1, while NASA had only asked for $11 million to wrap it up.
NASA still hasn’t decided whether to reverse the cancelation. “NASA directed the OSAM-1 project to develop two potential forward plans for review: one to meet a 2026 launch date and another to close out the project,” NASA spokesperson Jasmine Hopkins said on Aug. 15. “These plans have been provided to NASA leadership and are being assessed.”
No details have come out about what a revised OSAM-1 mission might involve. A February report from an independent review board suggested cutting the team to 200 people and accepting the spacecraft as it is, without any more changes. It also recommended removing some equipment to avoid delays and setting a launch date by February 2026.
However, that same report advised canceling OSAM-1 due to high costs and risks of further delays. The mission could need nearly $1 billion more and might slip to March 2028.
Despite the Senate’s support, there’s no agreement in Congress to continue OSAM-1. The House spending bill for fiscal year 2025 didn’t allocate any funds, waiting for NASA’s update on the feasibility of a 2026 launch. Even the Senate report emphasized needing a solid plan before spending any money in 2025.
Both House and Senate urged NASA to find other partners like the Defense Department. The DOD is interested in satellite refueling but prefers capabilities in geostationary orbit rather than low Earth orbit where OSAM-1 will operate.
DOD officials expressed concerns about the industrial impact if OSAM-1 is canceled. Yet, they consistently viewed the mission’s high cost, short operational life, and its limitations as reasons to consider termination or significant redirection.
