NASA's Mobile Launcher 2 (ML-2) project, essential for its Artemis Moon program, is facing significant criticism from the Office of Inspector General (OIG) due to escalating costs and delays.

The OIG has reported that the cost of ML-2 could exceed $2.5 billion, a staggering increase from its original contract value of $383 million.

Current estimates suggest that the development of ML-2 will cost around $2.7 billion, which is over five times the initial projection.

The audit revealed that the project's costs have ballooned, with potential expenses reaching $2.7 billion, significantly impacting NASA's budget and timelines.

Originally awarded in August 2019, the contract with Bechtel included a delivery date of March 2023, but this has now been pushed back to May 2026.

NASA's internal estimates now set the project's cost at $1.8 billion with a revised delivery date of September 2027, although the OIG suggests actual costs may be higher.

Delays in ML-2's completion could jeopardize future Artemis missions, with the OIG projecting that ML-2 may not be ready until spring 2029.

The Space Launch System (SLS) has already incurred $23.8 billion in costs through 2022, which is $6 billion over initial estimates.

These delays and cost overruns are partly attributed to Bechtel's underestimation of the project's complexity and labor requirements.

NASA Administrator Bill Nelson has expressed frustration with the cost-plus contracting method, advocating for a shift to fixed-price contracts to enhance cost control.

While there is an option to convert the current cost-plus contract to a fixed-price model, NASA is unlikely to pursue this due to potential high cost proposals from Bechtel.

As NASA continues to face challenges with the ML-2 project, the agency's ability to manage costs and timelines remains under scrutiny, raising concerns about the future of its Artemis program.