NASA Advisory Council Recommendation 

Industrial Base 

2011-02-04 (EC-03) 

Recommendation: 

The Council strongly urges that NASA work expeditiously and visibly to ensure that the industrial 

base supporting engine production and development is sustained and enhanced. 

Major Reasons for the Recommendation: 

Financial support ofthis activity has become time critical--especially given the cancellation ofthe 

Constellation program and the end of the Shuttle era. 

Consequences of No Action on the Recommendation: 

Without NASA's attention to this matter, the engine workforce and knowledge base could slowly 

decline to a point of being unable to develop new leading edge U.S. engine technology. 

NASA Response: 

NASA concurs with the recommendation. NASA is already working expeditiously and visibly with 

other Government space acquisition partners within the Department ofDefense (DoD) and 

intelligence community to address space industrial base issues and the Government's future needs 

and requirements for rocket engine production and development. 

As a member ofthe National Security Space Industrial Base Council (SIBC), which is co-chaired by 

the Director ofthe National Reconnaissance Office and the DoD Executive Agent for Space, NASA 

works diligently with its partners to coordinate its activities. The SIBC, as chartered, identifies and 

addresses space industrial base issues across the national security, civil, and commercial space 

sectors. As each department and agency decides its future needs for space launch and other rocket 

engine needs, the SIBC will be the forum that seeks to coordinate the impact ofthose decisions on the 

affected space industrial base related to engine production and development. While NASA is the 

driver on large segmented solids, it should be noted that NASA has historically not been the driver of 

overall rocket engine production and development. For additional background, attached is the June 

2011 NASA report to Congress, "Effects ofthe Transition to the Space Launch System on the Solid 

andliqUid Rocket Motor Industrial Bases. " 

NASA, along with other departments and agencies, is also working with a Department of Commerceled survey of the U.S. space industrial base, which will include suppliers of propulsion elements. 

This year-long interagency effort will culminate next spring with a report to the President on the 

health ofthe U.S. space industrial base and related issues. It will also include recommendations for 

improving the state of the space industry. 

Additionally, NASA is leading a cost sensitivity study of solid rocket motors with representatives 

from the Office ofthe Secretary ofDefense, the Department ofthe Navy, and the Department ofthe 

Air Force. This ongoing study will help assess the technical and business health ofthe solid rocket 

motor industrial base to ensure that the Government's requirements can be met at a reasonable cost. 

The objective ofthe study is to inform the user communities ofthe sensitivity ofprice to future 

Enclosure 1 
2 

demand levels. With the joint participation by the Navy and Air Force, the analysis offuture costs 

for larger diameter solid rocket motors will be based on a common range of assumptions. 

Lastly, it should be noted that the May 24, 2011, announcement by NASA Administrator Bolden 

regarding the next transportation system that will carry humans into deep space contained this 

passage: 

«In the coming weeks, we will be makingfurther decisions with regard to the transportation 

architecture. In the meantime, we are refining the SLS [Space Launch System] concept and 

defining strategy alternatives based on detailed analysis and input from industry through 

Broad Agency Announcement study contracts. Additionally, the MPCV [Multi-Purpose Crew 

Vehicle] team is focusing on further development ofthe Ground Test Article, other 

development design and development, as well as coming up with an integrated MPCV/SLS 

plan that will be affordable, sustainable, and realistic. " 

NASA recognizes that decisions on the SLS directly affect the propulsion industrial base. NASA 

requires large and small propulsion systems to safely execute its mission, and the appropriate 

industrial base is essential for the Agency's mission success. 
Report Regarding 


Effects of the Transition to the Space Launch System 


on the Solid and Liquid Rocket Motor Industrial Bases 


Pursuant 


to 


Section 306(a) of the NASA Authorization Act of2010 (p.L. 111-267) 


June 2011 

Enclosure 2 
BACKGROUND 

NASA has prepared this report regarding the effects ofthe transition to the Space Launch System 

(SLS) in response to direction in Section 306(a) ofthe NASA Authorization Act of 2010 

(P.L. 111-267). The specific requirements ofthis report are provided below. 

306(a): REPORT ONEFFECTS OF TRANSITION TO SPACE LAUNCHSYSTEM ON THE 

SOLID AND LIQUID ROCKETMOTOR INDUSTRIAL BASES. 

REQUIRED.-Not later than 120 days after the date ofthe enactment ofthis Act, the 

Administrator shall submit to Congress a report settingforth an assessment, prepared by the 

Administrator, in consultation with the Secretary ofDefense and the Secretary ofCommerce, of 

the effects ofthe retirement ofthe Space Shuttle, and ofthe transition to the Space Launch System 

developed pursuant to section 302, on the solid rocket motor industrial base and the liquid rocket 

motor industrial base in the United States. 

(b) MATTERS TO BE ADDRESSED.-In preparing the assessment required by subsection (a), 

the Administrator shall address the following: 

(1) The effects ofefficiencies and efforts to stream-line the industrial bases referred to in 

subsection (a) for support ofcivil, military, and commercial users. 

(2) The extent to which the United States is reliant on non-United States systems, including 

foreign rocket motors andforeign launch vehicles. 

(3) Such other matters as the Administrator, in consultation with the Secretary ofDefense and the 

Secretary ofCommerce, may consider appropriate. 

In preparing this report, NASA worked with the Office ofthe Under Secretary ofDefense for 

Acquisition, Technology and Logistics Industrial Policy Team in the Department ofDefense 

(DoD), as well as with the National Oceanic and Atmospheric Administration Office of Space 

Commercialization, and the Bureau of Industry and Security Office ofTechnology Evaluation of 

the Department ofCommerce (DoC). This report incorporated elements ofthe Solid Rocket 

Motor Industrial Base Interim Sustainment Plan delivered to Congress in June 20I 0 by the 

Department ofDefense. NASA is part ofthe interagency task force formed by the Department of 

Defense to develop the Sustainment Plan, and continues to collaborate with other Federal 

agencies in addressing the challenges affecting the solid and liquid rocket motor industrial bases. 

The Sustainment Plan, along with the DoC led assessment ofthe health of the Space Industrial 

Base tasked in connection with the 2010 U.S. National Space Policy, are among several studies 

that NASA is actively participating. As a result, this report provides an assessment based on the 

information collected to date. Some ofthe results ofthese collaborative activities will be 

reflected in subsequent reports to Congress requested in sections 915 through 917 of the National 

Defense Authorization Act for FY 2011 (P.L. 111-383). 

1.0 RETIREMENT OF THE SPACE SHUTTLE AND TRANSITION TO THE SLS 

The Space Shuttle has been NASA's primary means for human access to space since 1981 and is 

scheduled for retirement in 2011. On October 11, 2010, the NASA Authorization Act of20 10 

("the Act") was enacted, which directs the Agency to develop a SLS as a follow-on to the Space 

Shuttle that can access cis-lunar space and the regions of space beyond LEO in order to enable 

the United States to participate in global efforts to access and develop this increasingly strategic 

region. The Act also provides a series ofminimum capabilities that the SLS vehicle must 

achieve: 

2 

• 	 The vehicle must be able to initially lift 70-lO0 tons to LEO, and must be evolvable to 

130 tons or more; 

• 	 The vehicle must be able to lift a multi-purpose crew vehicle; and 

• 	 The vehicle must be capable ofserving as a backup system for supplying and supporting 

cargo and crew delivery requirements for the International Space Station (ISS) in the 

event such requirements not otherwise met by available commercial or partner-supplied 

vehicles. 

The Act directs NASA to begin development ofthe SLS vehicle "as soon as practicable after the 

date ofthe enactment of' the Act, with the goal of achieving operational capability for the core 

elements not later than December 31, 2016. 

The Act authorizes a total of$6.9 billion for SLS development over a three-year period, with $1.6 

billion authorized in FY 2011. The Department ofDefense and Full-Year Continuing 

Appropriations Act, 2011 (PL 112-lO) states not less than $1,800,000,000 shall be for the heavy 

lift launch vehicle system which shall have a lift capability not less than 130 tons and which shall 

have an upper stage and other core elements developed simultaneously. 

In compliance with the Authorization Act, NASA plans to make use of current investments and 

workforce as appropriate. The Nation's new SLS will leverage these critical capabilities and 

experience, while being designed with innovation and robustness. In doing so, NASA's 

evaluation of SLS designs will be based on key drivers such as affordability, partnerships, 

innovation, and lean systems engineering and integration approaches, as well as determinations 

about how prior investments can be leveraged. It also will employ modem manufacturing and 

processing techniques, improved insight and oversight practices, and streamlined infrastructure 

requirements, while also reducing other fixed costs to help drive down development and 

operational costs, as required by the Congress. 

For the SLS, the Agency has decided to use a Reference Vehicle Design that is derived from Ares 

and Shuttle hardware, given the Congressional direction. This vehicle concept incorporates a 

liquid oxygen/liquid hydrogen (LOXILH2) core with five RS-2S Space Shuttle Main Engine 

(SSME)-derived engines, five-segment solid rocket boosters, and a J-2X based Upper Stage for 

the SLS. This approach would allow for use ofexisting Shuttle and Ares hardware assets in the 

near term, with the opportunity for upgrades and/or competition downstream for eventual 

upgrades in designs needed for affordable production. 

This spring, NASA is reviewing industry input and alternative vehicle designs to evaluate the 

affordability, sustainability, and realism of all options for the SLS, including the Reference 

Vehicle Design. In addition, NASA is assessing whether current contracts can be legally 

transitioned to support SLS development efforts. NASA will make a determination on the SLS 

Vehicle Design in summer 2011. 

The transition to the new SLS may result in impacts to the various suppliers ofthe Space Shuttle, 

ISS and Constellation Programs. The Space Shuttle uses liquid engines for its Space Shuttle 

Main Engines (SSME). It also uses two reusable solid rocket motor boosters. NASA solicited 

input from its primary suppliers to these programs in order to understand the effects ofthe Space 

Shuttle retirement and the capability ofthe industrial base to provide a replacement SLS. NASA 

is sponsoring a survey that is being conducted by the DoC Bureau ofIndustry and Security that 

includes transition and retirement as a primary focus area. Currently, we anticipate that the report 

ofthe survey will be completed in the summer timeframe. 

3 

2.0 SOLID ROCKET MOTOR INDUSTRY EFFECTS 


Solid rocket motors (SRM) are used for space launch, missile defense, and strategic and tactical 

missile systems. Over the past 20 years, NASA was the single largest consumer of large SRM 

propellant, particularly aluminum perchlorate, and drove the market demand for both propellant 

and constituent materials. This demand was due to the production ofthe Space Shuttle Reusable 

Solid Rocket Motor (RSRM). 

However, with the transition from the Shuttle to the SLS Program, as well as reductions within 

DoD programs and reduced competitiveness ofU.S. launch vehicles in the global marketplace, 

the SRM industrial base is experiencing greatly reduced demand. As an example, total propellant 

production had decreased from 30 million pounds per year in the 1 990s to less than 4 million 

pounds ofpropellant projected for 2011. This reduced demand trend is expected to continue for 

the foreseeable future. 

Additionally, the large-SRM (greater than 40 inches diameter) industrial base infrastructure has 

had significant excess capacity, even with the Shuttle operating. In order to sustain the SRM 

industrial base and control costs, the industry must better align its capacity with the current and 

future large-SRM market demand. The United States has this unique capability and is the only 

producer ofSRMs comparable to the RSRM (138 inches). (Note that the Ariane 5 and the H-IIB 

each use SRM strap-ons that are 118 inches and 98 inches, respectively.) 

In the worst case, the dominant customer (NASA) for large-SRM propellant could potentially be 

leaving the customer base. The DoD has stated that this industrial capability is mandatory for the 

strategic defense ofthe U.S. Major fluctuations in demand will have impacts on the remaining 

customer base, to include both strategic missile and space launch programs. The Trident II D-5 

program is currently in production and the build rates from year to year will be driven by planned 

replacements of fielded units. In addition, SRM's are also being produced in support ofthe 

EEL V program as solid strap-ons that are used to support both the Atlas V and Delta IV family of 

vehicles. 

2.1 Solid Rocket Motor Prime Suppliers 

The significant drawdown of defense budgets during the 1990s and the collapse ofthe demand 

for commercial launch capabilities during the late 1990s and early 2000s resulted in significant 

SRM industry consolidation and underutilized production facilities. This has left two remaining 

prime suppliers (Alliant Techsystems, Inc. ofUtah and Aerojet ofCalifornia) manufacturing 

SRMs in the United States that have acquired or absorbed the earlier manufacturers, thereby 

inheriting their facilities. 

The United States' space activities are conducted in three distinct but interdependent sectors: 

commercial, civil and national security. Solid rocket motors and their constituent materials are 

used to support the needs ofthese three sectors. Based on currently-projected civilian and 

defense production needs, the SRM industrial base has more capacity than will likely be required 

in the future. 

Facility closures and consolidations are being implemented with the ramping down ofthe Space 

Shuttle RSRM program. Requisite reductions in personnel have been accomplished while 

retaining critical skill sets needed to continue manufacturing safe and reliable SRMs. The 

industry sees a continued decrease in production capability in the next 10 years, and is adjusting 

its workforce to accommodate current and near-term (three-to-five years) production rates. 

4 

The two prime suppliers' average production area utilization is less than 30 percent. This underutilization provides the capacity to accommodate increased throughput in response to demand, 

either as a surge or on a continuous basis. As a result, the capacity and skill set may be currently 

available to respond to market demands from the NASA SLS. However, the length of the gap 

between supplying the Space Shuttle and the start up of the successor SLS program could 

increase the difficulty and cost of restarting production capacity ofthese suppliers. 

2.2 Solid Rocket Motor SUb-tier Suppliers 

Although the two prime suppliers currently retain the capacity and skills to supply the SLS 

Reference Vehicle Design, they depend upon a common supply chain that has been impacted by 

the general downward trend of demand for SRMs. As with the prime suppliers, the lower-tier 

enterprises have also experienced consolidation to where there are currently about two dozen 

small-to-medium size suppliers in this chain. These small-to-medium size suppliers represented 

about 94 percent ofthe SRM material costs during the peak ofthe Space Shuttle program. 

The following are examples of materials supplied to the SRM production facilities that are 

identified as potential issues for continued or increased production. 

• Propellant Chemicals: Currently, there is a single domestic source ofAmmonium 

Perchlorate (AP). AP is the primary propellant chemical constituent in many SRMs. Due to 

significant and continuing downturns in the total national demand, the material price has been 

dramatically impacted due to amortization of fixed costs. This reality represents an 

affordability risk to all future SRM programs. Other propellant constituents, which are 

variants of other commercial products, are occasionally at-risk due to low demand and 

percentage oftotal sales. 

• Carbonizable Rayon Precursor Material: There is no domestic source of organic 

carbonizable rayon material, a precursor to carbon phenolic composites used in SRM ablative 

nozzle fabrication. The U.S. industry is currently relying on stockpiles of aerospace-grade 

rayon from manufacturers that are no longer in production. Projects are underway to evaluate 

and characterize alternative polyacrylonitrile-based fiber technologies to determine if 

alternatives are viable and sustainable, although these efforts have experienced performance 

and schedule challenges. 

• Carbon/Carbon Billets and Combustion Throats: There is a single domestic commercial 

source for the carbon/carbon billets and throats used in SRM nozzle assemblies. There is 

another domestic producer that uses its product in-house but does not sell it commercially. 

2.3 Research and Development in Solid Rocket Motors 

Investments in new technologies within the solid rocket motor community have been 

implemented by the industry's internal investment and through research and development 

sponsorship from the DoD. Activities include research in pulsed motors (rocket motors with 

multiple segments that allow the motor to be burned in segments that bum until completion ofthe 

segment; development ofvariable thrust through the use ofpintle mechanisms or mechanically 

varying throat diameter; research into the use ofinsensitive munitions for propellants; and 

research into hybrid rocket propulsion. Hybrid rockets include a combination ofliquid and solid 

rocket technologies where the fuel and oxidizer are stored separately and in two different phases. 

Current research and development efforts on hybrid rockets is focused on formulating fast 

5 

burning fuels, achieving propellant stability, scaling the technology to larger motors, and in 

developing flight weight motors. Although the solid rocket motor industrial base has 

considerable excess production capacity, it is using internal and government investment to 

maintain critical engineering skills and utilize existing facilities and equipment. 

3.0 LIQUID ROCKET MOTOR INDUSTRY EFFECTS 

The U.S. space launch sector is under significant stress due primarily to the low demand of 

launch services, hence the decrease in the need for liquid propulsion skills and manufacturing 

capabilities. Since the Nation has lost a significant portion of the global market, this situation has 

numerous serious consequences such as the atrophy ofthe propulsion systems supply chain and 

associated loss ofworkforce skills and sub-tier providers. To have a healthy industrial base, the 

liquid propulsion system sector should have work in all phases ofthe lifecycle ­

design/development and manufacturing for sustainment/operations. In addition some ofthe U.S. 

launch capability makes use offoreign-made engines. This imbalance between supply and 

demand could lead to the erosion ofthe Nation's technical leadership should this overcapacity 

and low demand scenario continue. 

3.1 Liquid Rocket Engine Prime Suppliers 

As with the SRMs described above, there has been considerable retraction and consolidation in 

the liquid rocket engine industrial base the United States. There are currently two prime suppliers 

(Pratt and Whitney Rocketdyne ofCalifornia and Florida, and Aerojet of California) ofliquid 

rocket engines that sell engines commercially, and a third (Space Exploration Technologies of 

California) that produces engines exclusively for its own use. Although there are three prime 

suppliers, they do not have equivalent production capability. Pratt and Whitney Rocketdyne is 

the only U.S. supplier of liquid oxygen/liquid hydrogen engines, such as the SSME (a candidate 

for use in the new SLS) and the RS-68 engine currently used in the Delta N launch vehicle. 

Aerojet and SpaceX supply liquid oxygen/kerosene engines with lower thrust levels. 

Liquid rocket engines are used for missile defense, national security, commercial, human, and 

robotic space exploration launch and spacecraft applications, including the Evolved Expendable 

Launch Vehicle (EEL V) program and other commercial launch vehicles. In response to the 

general trend in the industry, the prime suppliers are consolidating production capacity to "rightsize" their business and reduce fixed and recurring costs by reducing production floor space, 

consolidating facilities, and decommissioning excess facilities and upgrading manufacturing 

techniques. Due to market uncertainty, the industry has been reluctant to invest in new 

capabilities and technologies. Limited business volume makes it difficult to maintain current 

capabilities or hire new staff. The technical work force is aging with retirements on the horizon; 

this may have some significant negative impacts on knowledge transfer to the next generation of 

propulsion engineers. 

Future demand is highly dependent upon Federal Government decisions going forward, but recent 

past-trends would indicate likely reduced demand in the near tenn, which will result in lowvolume orders, inconsistent annual rates and discontinuous production and/or production gaps. 

These elements are further aggravated by existing EEL V inventories, which are significantly 

large in some cases, such that projected launch rates are driving even longer gaps in production. 

Additionally, customers today prefer to procure existing engines or modified derivatives to 

minimize integration, testing, and (re)certification costs and risk for new or existing launch 

vehicles. 

6 

3.2 Liquid Rocket Motor Sub-tier Suppliers 

As with the SRM manufacturers, the two liquid engine suppliers generally depend upon a 

common supply chain. The following are examples of materials supplied to the liquid rocket 

motor production facilities that are identified as potential issues for continued or increased 

production. 

• 	 Specialty Metal, Castings, and Forgings: Cost and lead times have been steadily increasing 

over the past 24 months and the projection is for this trend to continue. Limited or low 

quantities required by the aerospace market often limit or dictate the supply base. 

• 	 Engine/Propulsion Controllers: This product area has a limited industrial base, due to 

vertical integration at the prime contractor level. 

• 	 Valves and Regulators: This critical product area has a very limited supply base of 

qualified technologies, with long lead-times and escalating costs. The development of 

alternative suppliers, although attractive, is unrealistic, due to overall schedule and funding 

constraints. Limited market opportunities have also thwarted industry investment and 

product development. 

• 	 Electromechanical or Hydraulic Aerospace Actuators: This critical product area also has 

a very limited supply base of qualified technologies, with long lead-times and escalating 

costs. The development of alternative suppliers is typically constrained by overall schedule 

and funding. The limited opportunities have also negatively impacted industry investment 

and product development. 

• 	 Turbopump and Rotating Hardware Supply Base: The turbopump and sub-tier rotating 

hardware supply base is limited and shared with aircraft turbine engine manufacturers. The 

relatively small demand quantities for space applications often limit or dictate supplier 

choices. 

• 	 Liquid Oxygen (LOX), Liquid Hydrogen (LID), Liquid Nitrogen (LN2), and Helium: 

Continued production of these critical materials should be relatively stable as there are many 

uses for these products beyond rocket propulsion. Helium supply, however, may not be as 

stable. According to the National Research Council, 10 - 15 years after the completion ofthe 

Bureau ofLand Management helium reserve sell off (as mandated by the Helium 

Privatization Act of 1996 and scheduled for implementation in 2015), the U.S. Helium supply 

may be inadequate for projected consumption and may lead to importation of Helium from 

other countries (most likely Algeria, Russia, and/or other petroleum producing countries in 

the Middle East). 

• 	 Hydrogen Peroxide: Uses for high purity (greater than 90 percent) hydrogen peroxide are 

limited. An industrial base could be established if the demand arises. 

• 	 Monomethyl Hydrazine (MMH) and other hydrazines: Only one manufacturer ofthese 

commodities exists in the United States. The vast majority (greater than 99 percent) ofthe 

production supports commercial and civil space programs. The U.S. maintains an inventory 

ofMMH to support its space programs for the next seven to 10 years, at current consumption 

rates. Ifthe domestic facility shuts-down, and demand for these products re-materialize in 

the future, building a new production facility will take approximately three to five years. 

7 

• 	 Nozzle Assembly production capability: Production ofthese items terminated in 

mid·FY 2009. Typical new Nozzle production requires a five-year lead time. Historically, 

53 suppliers in eight states have supported this capability with one critical supplier providing 

a large vertical braze capability unique only to the United States. Most skills have been 

transitioned as ofJune 2009. 

3.3 Research and Development in Liquid Rocket Engines 

Investment in liquid rocket engine development for boost engines is focused on enhancements to 

existing engines. For example, research on the RS-68 liquid oxygen/liquid hydrogen engine is 

directed at creating a more efficient and higher powered RS-68A variant for the Delta IV family 

of launch vehicles and on the Air Force's hydrocarbon boost 250K technology demonstrator 

liquid oxygen/kerosene motor. And, minor modifications and upgrades are being made to the 

Merlin engine, which has been flown on Falcon 9, while focusing on increasing production 

capacity. NASA has invested in the development ofthe J-2X liquid oxygen/liquid hydrogen 

upper stage engine as part ofthe Constellation program and the SLS Reference Design Vehicle 

assumes the use ofthe J-2X. As with the solid rocket motor community, internal investments in 

enhancing existing designs or in leveraging developments for ongoing government research are a 

means ofmaintaining critical expertise and utilizing existing facilities and equipment. There is 

currently little research and development activity regarding wholly new U.S. liquid rocket 

engines intended for use in launch vehicles. Several companies outside of the traditional 

aerospace prime contractors, however, are current working on new small U.S. liquid rocket 

engines, primarily for use in upper stages. 

4.0 RELIANCE ON NON-U.S. SYSTEMS 

4.1. Foreign Launch Vehicles 

In addition to NASA, the Russian, European, and Japanese partners in the ISS program provide 

logistical support to the ISS. The Russian Soyuz spacecraft is currently used for crew 

transportation to and from the ISS. Cargo is delivered by a combination ofthe Russian Progress 

spacecraft launched on the Russian Soyuz launch vehicle, the European Space Agency (ESA) 

Automated Transfer Vehicle (ATV) launched on the European Ariane 5 launch vehicle, and the 

Japanese Aerospace Exploration Agency (JAXA) H-II Transfer Vehicle (HTV) launched on the 

JASA H-IIB launch vehicle for cargo. With the successful maiden flights ofthe European ATV 

in April 2008 and the Japanese HTV in September 2009, the availability ofthe Partner vehicles 

has been demonstrated. Manifesting and flight schedules for future ATV and mv are actively 

being planned and executed. To date, the Progress vehicle has flown 33 supply missions to the 

ISS, the ATV has flown one mission, and the mv has flown two missions. NASA has no plans 

to purchase Russian cargo services using Progress beyond 2011, but Progress will continue to be 

used by Russia for its supplies. The use ofRussian launch services in support ofthe ISS is 

dependent on NASA's current exemption in the Iran, North Korea, and Syria Non-proliferation 

Act (INKSNA). This exemption will expire in July 2016. 

NASA uses the Space Shuttle for both crew and cargo, but will retire the vehicle by the end of 

FY 2011. After this retirement, U.S. obligations for logistical support to the ISS will be 

transitioned to U.S. commercial and international partner cargo vehicles (the latter based on 

existing agreements as part of the International Partners' commitments to the ISS partnership). 

8 

Although the Progress, ATV, and HTV vehicles will continue to resupply the ISS, NASA is 

pursuing a U.S. commercial cargo resupply capability. As part ofNASA's Commercial Orbital 

Transportation Services projects, NASA is providing fmancial assistance to help two U.S. fInns 

(Space Exploration Technologies, known as SpaceX, and Orbital Sciences Corporation, known as 

Orbital) develop reliable, cost-effective access to low-Earth orbit. 1Additionally, NASA has 

awarded two contracts, one each to SpaceX and Orbital for cargo resupply to the ISS under the 

auspices ofthe Commercial Resupply Services (CRS) contract. 

After the Space Shuttle is retired in 2011, NASA will rely upon the Soyuz for crew transportation 

until a commercial capability is available. The Agency will continue to use ATV and HTV for 

cargo resupply, as well as domestic commercial vehicles, once they are operational. As directed 

in the Act, the NASA SLS also will be capable ofproviding a back-up capability for crew and 

cargo resupply to the ISS. 

4. 2 Foreign Rocket Motors 

Orbital's Taurus II rocket, planned for use under the company's CRS contract, will utilize a 

U.S.-modifIed, Russian-built, fIrst-stage engine known as AJ-26. Orbital's U.S. supplier, Aerojet, 

has a sufficient number of the engines already in stock to meet NASA's CRS contractual needs. 

As part ofthe Air Force's EELV program, the Atlas V rocket uses a Russian-built, fIrst-stage 

engine known as the RD-180. The Atlas V rocket is not currently planned for use in the COTS 

cargo project. However, several companies have expressed interested in using a human-rated 

version ofthis launch vehicle for eventual commercial crew transportation systems. 

As mentioned earlier in this report, NASA continues to perfonn technical and programmatic 

assessments to detennine the best path forward for the SLS. Assuming that current trade and 

analysis activities go as planned, and FY 2011 appropriations are in place, NASA will make a 

determination on the SLS Vehicle Design in Summer 2011. Therefore, it is too early to say what 

hardware elements will or will not be needed for the SLS. 

5.0 CONCLUSION 

The U.S. space launch industrial base is underutiIized due both to lower launch rates over the last 

10 years, the noncompetitiveness ofmany U.S. launch vehicles in the global commercial market, 

1 The Space Act Agreements negotiated between NASA and the two COTS partners (SpaceX and Orbital 

Sciences) spell out in detail a schedule ofperformance milestones that each participant is expected to 

achieve along with a fixed payment to be made upon the successful completion of each milestone. These 

milestones culminate in a flight demonstration where the participant's vehicle will launch, rendezvous and 

berth with the ISS, and return safely to Earth. The funded partners are paid a pre-negotiated fixed amount 

only ifthey successfully complete a milestone. Ifthey do not complete the milestone to NASA's 

satisfaction, they are not paid. These milestones can be technical (for example, a successful design review 

or hardware test) or financial (raising a certain amount ofprivate funding). NASA's original investment in 

COTS was to be a total of$500 million. However, NASA has requested and been authorized an additional 

$300 million to augment the original COTS and CRS investments so that additional funded milestones can 

be added to the agreements to help reduce risk and increase the chances ofmission success for both 

partners. On December 8, 2010, SpaceX successfully completed its first demonstration launch, orbit, reentry, splash-down and recovery ofthe Falcon 9 launch vehicle and Dragon spacecraft. Cargo 

demonstration flights to the ISS by both SpaceX and Orbital are expected to be completed by the end ofthe 

year. 

9 

as well as use offoreign engines in some U.S. launch systems. The propulsion industry (solids 

liquid) has significant excess capacity. The retirement ofthe Space Shuttle has compounded 

a general downward trend for the historical solid and liquid rocket motor industrial bases, 

resulting in a tenuous, but currently sufficient capacity, infrastructure and key skill sets among the 

legacy prime suppliers within the industrial base to supply the SLS Reference Vehicle Design. 

Some new entrants into the liquid propulsion field have developed or are developing 

enhancements to existing liquid rocket engines. Challenges also exist within the critical sub-tier 

suppliers and are reflective ofthe relatively low demand, lack ofsustained investment, fiscallychallenging times, as well as the broader consolidation ofthe space industry as a whole. The 

longer the gap between supplying the Space Shuttle and the startup of any successor program, the 

greater will be the difficulty and cost ofrestarting production capability. In general, the supply 

base is shrinking, which can result in escalating costs due to limited production (or availability) 

and increasing project risk in terms of availability and performance of critical items. Overall, 

active and prudent measures across the national space community are necessary to ensure the 

viability ofthe solid and liquid industrial base sectors in order to ensure the viability of all 

planned programs. 

10