NASA overpaid Boeing by hundreds of millions of dollars: Auditor

NASA "overpaid" Boeing by hundreds of millions of dollars on a fixed contract to develop a ship to carry astronauts to International Station (ISS), an audit report has said, compensation is called "unnecessary". 

US has relied on Russia to transport its crews to ISS since end of Shuttle program in 2011 but has hired Boeing and X under multi-billion dollar contracts, with two companies already two years behind schedule.

"We found that NASA agreed to pay an additional USD 287.2 million above Boeing's fixed prices to mitigate a perceived 18-month gap in ISS flights anticipated in 2019," inspector general's report issued Thursday said.

"We question USD 187 million of se price increases as unnecessary costs," it added.

auditors determined amount of additional spending was t required because risk of such a gap occurring was minimal, and X was t provided an opportunity to propose a solution "even though company previously offered shorter production lead times than Boeing." 

What's more, NASA failed to consider in ir analysis that y could overcome any perceived gap by purchasing more seats eir directly from Russia or from Boeing.

In fact, five days after NASA committed to paying USD 287.2 million, Boeing proposed to sell NASA five seats on Russian craft Soyuz during same mission period, a sale completed for an additional USD 373.5 million, report found.

But report's authors added: "We ackwledge benefit of hindsight and appreciate pressures faced by NASA manrs at time to keep program on schedule to extent possible." 

Commercial Crew Program has been beset by delays as two companies face technical and safety challenges.

As of May 2019, Boeing and X's contracts were valued at USD 4.3 billion and USD 2.5 billion, with each company, awarded six round-trip missions to ISS.

Assuming four astronauts per flight, inspector general estimated aver cost per seat at USD 90 million for Boeing and USD 55 million for X.

NASA contested findings, saying in a written response that "We do t agree that dollar amounts cited were questionable, unnecessary, or unreasonable." 

report was also a blow for Boeing, which is in midst of one of most serious crises in its history following grounding of its 737 MAX airplanes after two recent crashes killed 346 people.

aero giant has come under fire by critics who allege it rushed plane's production to match its Airbus competitor, compromising safety.

Responding to report, Boeing defended its extra billing to NASA saying it offered "additional flexibility and schedule resiliency." It also contested that its aver cost per seat was USD 90 million, saying actual value was "significantly less" but declined to give a price. 

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