Synopsis
Here is a summary of the key points from the GAO report GAO-17-609 on surplus missile motors:
- The report analyzes the costs and benefits of allowing commercial sale of surplus Minuteman II and Peacekeeper ICBM motors by the Department of Defense (DOD).
- Under the status quo of only government launches, it would take DOD 9-10 years to deplete the Minuteman II inventory, with a net present value cost of $36.4 million to $38.7 million for storage and disposal.
- If commercial launches were allowed, the net present value cost to DOD of the Peacekeeper inventory would be $8.5 million to $10.3 million, with the remaining costs absorbed by discounts to commercial buyers. The full inventory would be depleted in 11-13 years.
- For the Minuteman II motors, commercial sale could generate estimated net revenues to the government of $35 million to $75 million, depending on the number sold commercially.
- The report notes potential benefits of commercial sales in terms of generating revenue and reducing storage and disposal costs for DOD, as well as risks in terms of pricing and impacts on the domestic launch industry.
- Overall, the analysis shows commercial sale of surplus motors could benefit DOD through cost savings and revenue, but could also negatively affect commercial launch providers like SpaceX and ULA. Policymakers would need to balance these factors.
