Report: KSC must do more to succeed as spaceport

Kennedy Space Center has made progress transitioning into a multiuser spaceport but must do more to compete with a growing number of alternative launch sites, according to a NASA audit report released today.

"The better Kennedy can position itself now as a commercial-friendly launch site, the more competitive it will be in the future," says the report by NASA's Office of Inspector General.

Read the full 33-page report here: http://oig.nasa.gov/audits/reports/FY15/IG-15-003.pdf.

KSC has leased about half of the 23 facilities it no longer needs after the shuttle program's 2011 retirement, including giving SpaceX control of launch pad 39A.

But in interviews with the auditors, six companies and KSC's closest government partner, Space Florida, continued to raise concerns about bureaucracy, high costs and potential mission conflicts that can hamper commercial operations at KSC.

The companies have not abandoned the spaceport given limited options available today, but "this may change as the commercial space industry grows and additional non-Federal launch sites become available," the report says.

A recent example of that is SpaceX's groundbreaking on a private launch complex on Texas' Gulf Coast, where the company wants to concentrate its commercial launch activity (while continuing to launch government missions from two Cape pads).

The audit undercuts one of NASA's primary reasons for resisting a state proposal to develop a competing site that might make the Cape more attractive for commercial launches.

Space Florida two years ago sought NASA's permission to develop one or two pads on up to 200 acres at the north end of KSC and the Merritt Island National Wildlife Refuge, in an area known as Shiloh before the federal government seized the land in the 60s for the Apollo moonport.

While NASA let the state start an environmental review of the proposed site, it continues to claim that it needs the land as a safety buffer zone and to support future missions.

When questioned by auditors, however, "Kennedy personnel were unable to provide any details as to the need for a buffer zone of information about specific future missions involving the property."

The report notes that Shiloh is located farther away from Titusville than KSC's existing two pads.

NASA agreed with three recommendations aimed at improving how the agency leases unneeded facilities and reducing "costs and burdens on commercial partners."

In a response, Richard Keegan, associate administrator for the Mission Support Directorate at NASA headquarters, said the agency would "look for streamlining opportunities" that could benefit commercial partners.

"However, NASA will not reduce its safety or security policies or standards or public safety requirements," he wrote.

The auditors backed NASA's lease of pad 39A to SpaceX, a process that Blue Origin formally protested. But they said informal discussions earlier on with potential tenants had caused confusion.

Another deal with Space Florida to take over one of KSC's three former shuttle hangars was unclear about the criteria that would be used to pick a winner, resulting in complaints.

The report said NASA should provide better guidance about how and when leases are competitively awarded and improve communication with partners to "help the process run more smoothly and lessen any perception of favoritism."

Contact Dean at 321-242-3668 or jdean@floridatoday.com.