NASA’s Artemis campaign, an ambitious space flight endeavor, aims to return humans to the Moon and set the stage for crewed missions to Mars. The program involves the development of several key systems, including the Space Launch System (SLS), the Orion Crew Vehicle, the Exploration Ground Systems (EGS), spacesuits, the Human Landing System (HLS), and the Gateway lunar outpost. These complex systems rely heavily on a global supply chain of specialized parts and components. The management of this extensive supply chain is essential to ensure the Artemis campaign achieves its objectives.
From fiscal years 2012 to 2022, NASA obligated approximately $40 billion to 860 contractors across multiple Artemis-related programs. These contractors depend on a network of subcontractors and suppliers to deliver the hardware, materials, and services necessary to meet NASA’s needs. However, the Artemis campaign has faced several supply chain challenges, leading to cost increases and schedule delays. These challenges stem from various factors, including the COVID-19 pandemic, inflation, and geopolitical conflicts, all of which have exacerbated the already fragile space industrial base.
This article explores NASA’s efforts to manage its Artemis supply chain, the challenges faced by the agency and its contractors, and the evolving strategies NASA is employing to mitigate supply chain risks.
Artemis Supply Chain Challenges
Key Components and Resource Shortages
NASA and its prime contractors have encountered difficulties obtaining key components, such as space-grade valves, electrical and electronic parts (EEE), and critical resources like helium. These shortages have led to increased costs and delays across multiple Artemis programs. For example, the SLS Core Stage 2 experienced a $18.5 million cost increase due to delays in acquiring helium and valves, while the Orion Program faced a $41 million cost increase due to component shortages.
Valves are particularly problematic due to their highly specialized nature. These components must withstand extreme pressures and temperatures, limiting the number of suppliers capable of meeting NASA’s stringent requirements. Similarly, the procurement of EEE parts has been hampered by raw material shortages, workforce challenges, and production failures. Lead times for these parts have stretched to as long as 12 months, creating significant risks to project timelines.
Helium, a vital resource for space operations, has also become increasingly difficult to obtain. A series of global helium shortages over the past two decades, coupled with the termination of the Federal Helium Program in 2022, has driven up prices and extended procurement times. The scarcity of helium has directly impacted NASA’s testing schedules, further compounding delays.
Lack of Supply Chain Visibility
One of the major challenges facing NASA’s Artemis program is the lack of visibility into its supply chain, particularly with respect to subcontractors and sub-tier suppliers. While NASA tracks contractors directly funded by the agency, its insight into the subcontractors used by its prime contractors is limited. This lack of visibility hinders NASA’s ability to proactively manage supply chain risks and increases the likelihood of schedule disruptions.
The problem is exacerbated by the fact that performance challenges with suppliers are not always communicated across Artemis programs. In one instance, a subcontractor with known performance issues in the Orion Program was subsequently awarded a prime contract for another Artemis-related system without the knowledge of the Orion Program officials. This reactive approach to managing supply chain issues leaves NASA vulnerable to unforeseen disruptions.
Global Events and Their Impact
The COVID-19 pandemic, inflation, and the Russia-Ukraine conflict have all had significant impacts on the space industrial base. The pandemic caused widespread disruptions, with some suppliers shutting down operations and others facing workforce shortages. Inflation has driven up wages and material costs, further straining NASA’s budget. The Russia-Ukraine conflict has disrupted the global supply of noble gases like neon and xenon, which are essential for semiconductor manufacturing and propulsion systems.
These global events have exacerbated existing vulnerabilities in NASA’s supply chain, making it more difficult for the agency to meet its Artemis campaign objectives.
Workforce Challenges
Workforce challenges have been a persistent issue for NASA and its contractors. The space industry faces stiff competition for qualified engineers, and many contractors have struggled to hire and retain the skilled workforce necessary to fulfill their contracts. The COVID-19 pandemic further exacerbated these challenges, with many workers leaving the industry or opting for remote positions.
The shortage of qualified engineers and technicians has led to delays in the production and delivery of critical components, adding to the overall schedule risk for the Artemis program.
National Security Project Prioritization
NASA’s Artemis program has also faced challenges due to the prioritization of national security projects over civil space missions. The Department of Commerce’s Defense Priorities and Allocations System (DPAS) prioritizes defense-related contracts, meaning that suppliers often fulfill orders for national security projects before addressing NASA’s needs. This prioritization has led to delays in the delivery of critical parts and materials for Artemis, further impacting the program’s schedule.
NASA’s Evolving Supply Chain Management Strategies
NASA is taking steps to improve its visibility and management of the Artemis supply chain, though these efforts are still in the early stages of implementation.
Internal Databases: Insight Central and PrimeE
NASA has developed two internal databases—Insight Central and PrimeE—to track and manage supply chain issues across the agency. Insight Central, managed by NASA’s Supply Chain Risk Management (SCRM) Program, combines information from NASA and its contractors to create a repository of prime contractors, subcontractors, and suppliers. However, the database relies on manual input from program personnel, and its use has been inconsistent across the agency. As a result, Insight Central currently lacks comprehensive and up-to-date information on Artemis suppliers.
PrimeE, managed by NASA’s Logistics Management Division (LMD), offers supply chain visualizations and mapping capabilities. The tool can identify sole-source suppliers, map supplier relationships, and simulate economic resiliency based on different scenarios. NASA hopes that PrimeE will complement Insight Central and other supply chain management tools, though there is currently no interface between the two databases.
Supply Chain Resiliency Forum
The Supply Chain Resiliency Forum (SCRF) was established in 2022 to coordinate supply chain-related activities across NASA and benchmark against other federal agencies. The forum is working to develop a Supply Chain Visibility Data Requirement Description (DRD), which will require prime contractors to provide data on the top three tiers of their supply chains. This data will be incorporated into Insight Central, allowing NASA to share information about supplier issues across programs. However, some prime contractors have expressed reluctance to comply with this requirement, citing the costs associated with gathering the necessary information.
Holistic Agency Study
NASA’s Holistic Agency Study, conducted from 2021 to 2023, aimed to assess the agency’s supply chain management practices and provide recommendations for improvement. Preliminary findings from the study highlighted the siloed nature of NASA’s supply chain structure and the agency’s reactive approach to managing supply chain issues. The study emphasized the need for a more integrated and proactive approach to supply chain management across NASA.
Mitigation Efforts by NASA and Contractors
NASA and its contractors have implemented various mitigation strategies to address supply chain disruptions, though these efforts have met with varying degrees of success.
NASA’s Reactive Mitigation Strategies
NASA has taken several reactive measures to address supply chain challenges, including reallocating resources between projects, authorizing advance procurements, and coordinating with the Department of Defense for critical components. For example, the Orion Program coordinated with the SLS Program to purchase valves on an existing contract, avoiding a lengthy procurement process. Similarly, the ML-1 and ML-2 projects within the EGS Program collaborated to share tubing, preventing a 12-week delay for the ML-1 project.
NASA has also authorized the purchase of parts earlier in a project’s timeline to mitigate schedule risks. For instance, after experiencing delays with propulsion parts for Core Stages 3 and 4, the SLS Stages project office authorized the contractor to begin purchasing parts earlier for Core Stages 5 and 6.
Contractor-Led Mitigation Strategies
NASA’s prime contractors have adopted several proactive strategies to mitigate supply chain risks, including bulk-buying common parts, in-house manufacturing, and maintaining supply chain dashboards and databases. These tools allow contractors to build internal inventories, streamline acquisition processes, and track supplier performance. Contractors have also leveraged their financial resources to order parts earlier and have sought out international suppliers when domestic suppliers were unable to meet requirements.
Benchmarking Best Practices from Other Industries
NASA has the opportunity to benchmark its supply chain management practices against those of other federal agencies, international partners, and private sector industries.
Department of the Navy
The Department of the Navy has developed a comprehensive supply chain database that tracks critical suppliers based on factors such as long lead times, high costs, and sole-source status. This database allows the Navy to maintain visibility into its supply chain and proactively manage risks. NASA’s ongoing efforts to implement a similar system through its Supply Chain Visibility DRD could benefit from the Navy’s approach.
Department of the Army
The Army uses a third-party service to populate dashboards with supplier data and generate specialized reports. These tools provide transparency and traceability in the Army’s supply chains, allowing the agency to identify bottlenecks and assess supplier risks. NASA could explore similar third-party services to enhance its own supply chain visibility.
European Space Agency
The European Space Agency (ESA), one of NASA’s key international partners, emphasizes centralized project management support and periodic assessments of key suppliers. ESA’s approach to supplier management offers valuable insights for NASA as it seeks to improve its own supply chain management practices.
Automobile Manufacturing Industry
U.S. automobile manufacturers have implemented digital tools and monitoring systems to track supply chain signals in real time and identify bottleneck suppliers. These practices, developed in response to the global microchip shortage, highlight the importance of enhanced visibility and proactive management in mitigating supply chain risks.
Summary
NASA’s Artemis campaign is a highly ambitious space flight endeavor that relies on a complex global supply chain. The challenges faced by NASA and its contractors in obtaining critical components and materials have led to cost increases and schedule delays across multiple Artemis programs. Factors such as the COVID-19 pandemic, inflation, and geopolitical conflicts have further strained the space industrial base.
To address these challenges, NASA is taking steps to improve its supply chain management through initiatives like the Insight Central and PrimeE databases, the Supply Chain Resiliency Forum, and the Holistic Agency Study. These efforts, while still in their early stages, have the potential to enhance NASA’s visibility into its supply chain and allow for more proactive risk management.
NASA’s contractors have also implemented various strategies to mitigate supply chain disruptions, including bulk-buying, in-house manufacturing, and maintaining supplier databases. These proactive measures have helped reduce the impact of supply chain challenges on the Artemis campaign.
As NASA continues to refine its supply chain management practices, the agency can benefit from benchmarking against other federal agencies, international partners, and private sector industries. By adopting best practices from the Department of the Navy, the Army, the European Space Agency, and the automobile manufacturing industry, NASA can strengthen its supply chain and better position itself to achieve the ambitious goals of the Artemis campaign.
