“NASA interprets this recommendation to be directing NASA to institute penalties outside the bounds of the contract,” said Catherine Koerner, deputy associate administrator of the ESDMD, in NASA’s response to the report. “There are already authorities in the contract, such as award fee provisions, which enable financial ramifications for noncompliance with quality control standards.”

Essentially, the agency believes it can keep Boeing in check by rewarding good behavior rather than penalizing mismanagement. The OIG, predictably, disagrees, characterizing NASA as “unresponsive” to what it considers significant safety concerns.

“In the end, failure to address these issues may not only hinder the Block 1B’s readiness for Artemis IV but also have a cascading impact on the overall sustainability of the Artemis campaign and NASA’s deep space human exploration efforts,” the report says.