The On-orbit Servicing, Assembly, and Manufacturing 1 project (OSAM-1), plagued by delays and technical setbacks, was terminated after an independent review revealed "continued technical, cost, and schedule challenges."

The OSAM-1 project, in development since 2015, aimed to extend the lifespan of satellites that were not originally built for refueling. It involved the creation of a robotic arm named Space Infrastructure Dexterous Robot (SPIDER), which could perform tasks like topping up fuel and setting up antennas. The primary objective of the project was to refuel the Landsat 7, a US satellite launched in 1999 that lacked refueling capabilities.

However, as the space industry has increasingly moved towards building satellites with refueling capabilities, the need for such a device became obsolete, according to NASA. The administration cited a lack of a committed partner and the fear of the project becoming obsolete as factors contributing to its discontinuation.

One of the contractors involved in the project was Maxar Technologies, based in California. Maxar was responsible for providing the spacecraft and robotic arm under contracts worth $316 million. However, an audit report released in October 2023 criticized Maxar for its "poor performance," which led to NASA providing unplanned manpower and engineering support to help them deliver. The audit report also highlighted delays in meeting deadlines and underestimated costs.

The total cost of the OSAM-1 mission, initially estimated to be around $753 million, ballooned to $2.05 billion by 2022, exceeding the budget by a significant margin. Maxar's delays were attributed to poor prioritization, staffing issues, and a failure to conduct necessary tests ahead of delivery.

With the termination of OSAM-1, NASA is now working on mitigating the impact on the staff at the Goddard Space Flight Center in Greenbelt, Maryland. As of now, there are around 450 staff and contractors working on the project, and the agency plans to support the project workforce until fiscal year 2024.

At the time of reporting, both NASA and Maxar have not responded to requests for comment regarding the project's discontinuation.

Despite the setback, NASA remains committed to pushing the boundaries of space exploration and continues to pursue innovative projects that will shape the future of space exploration.