NASA retaining plans to select a single Artemis lunar rover

The Lunar Terrain Vehicle Service Contract: A Unique Procurement Approach

NASA’s Lunar Terrain Vehicle (LTV) program is designed to deliver a rover that astronauts can use on the lunar surface during Artemis missions, as well as operate remotely when astronauts are not present. In April 2023, NASA awarded one-year feasibility study contracts to Intuitive Machines, Lunar Outpost, and Venturi Astrolab, initiating a design maturation phase that began in May.

Following this phase, NASA plans to select a single company to build and demonstrate the rover on the Moon. Unlike other Artemis-related contracts—such as crewed lunar landers or International Space Station (ISS) cargo and crew missions—where NASA contracts multiple providers to ensure redundancy and competition, the LTV program is structured around a single-provider service contract.

Under this model, NASA will effectively rent the rover from the selected company, which can also offer the rover’s capabilities to other customers when NASA is not using it. This approach is intended to maximize budget efficiency while maintaining operational flexibility.

Budget Constraints Drive Single-Provider Selection

NASA officials have emphasized that limited funding is the primary reason for selecting only one company for the rover demonstration phase. Chris Hansen, deputy manager of NASA’s Extravehicular Activity and Human Surface Mobility program, explained that maintaining competition “as far as we can” is a priority, but budget realities impose constraints.

Steve Munday, LTV project manager at NASA’s Johnson Space Center, reiterated that while multiple providers would be preferable for competition and risk mitigation, budgetary limitations may make a single-provider approach necessary. This stance reflects the broader challenge NASA faces in balancing ambitious exploration goals with fiscal responsibility.

The agency’s decision contrasts with other Artemis and ISS contracts, where multiple providers help ensure continuity if one contractor encounters technical or financial difficulties.

Lessons from the Exploration Extravehicular Activity Services Program

NASA’s experience with the Exploration Extravehicular Activity Services (xEVAS) program highlights the risks of relying on a limited number of providers. Collins Aerospace, one of two companies awarded task orders in 2022 to develop new spacesuits for both the ISS and Artemis missions, announced in June 2023 that it would no longer continue work on its contract.

This development left Axiom Space as the sole active contractor in the xEVAS program, prompting NASA to explore ways to maintain competition and risk mitigation. Vanessa Wyche, director of NASA’s Johnson Space Center, indicated that the agency might bring in new providers or conduct internal risk mitigation activities to ensure backup capabilities.

Despite this setback in the spacesuit program, NASA has not altered its approach to the LTV program, underscoring the agency’s commitment to the single-provider model for the lunar rover.

Industry Perspectives and Business Models for Lunar Rover Operations

During a panel discussion at the AIAA ASCEND conference in July 2023, representatives from the three companies involved in the LTV feasibility studies shared insights into their business models and operational plans, though details remained limited.

NASA offers two options for rover usage per Artemis mission: contracts for five or nine months at a time, aligning with an annual mission cadence. Outside these periods, the rover operator can utilize the vehicle for other customers or activities.

Trent Martin, senior vice president of space systems at Intuitive Machines, emphasized that companies must demonstrate a financially viable business case, including non-NASA customers, to ensure sustainability beyond the NASA contract. This requirement aims to foster a robust commercial market for lunar surface mobility.

Forrest Meyen, co-founder of Lunar Outpost, described a “nonlinear” and complex model for rover usage prioritization, though specifics were classified. John Muratore, program manager at Venturi Astrolab, noted that operational costs of the rover on the lunar surface are relatively low, suggesting continuous utilization is feasible.

Balancing Competition, Risk, and Budget in Lunar Exploration

NASA’s decision to pursue a single lunar rover provider reflects a pragmatic balance between ensuring mission success and adhering to budgetary constraints. While multiple providers can enhance competition and provide backup options, the agency must prioritize fiscal sustainability.

The LTV program’s service contract model, which allows the selected company to offer rover services commercially when not in use by NASA, introduces an innovative approach to cost-sharing and market development. This model could stimulate broader lunar economy growth by enabling diverse customers to access mobility services on the Moon.

However, the experience with the xEVAS program serves as a cautionary tale about the risks of limited competition, underscoring the importance of contingency planning and flexibility in procurement strategies.

What this means

NASA’s Artemis lunar rover program exemplifies the complex interplay between ambition, budgetary realities, and industry dynamics in space exploration. By opting for a single-provider service contract, NASA aims to ensure the development and operation of a reliable lunar rover while fostering a commercial market for lunar mobility. Although this approach carries inherent risks, particularly concerning competition and backup capabilities, it reflects a strategic compromise designed to advance lunar surface exploration within fiscal constraints. As Artemis missions progress, NASA’s experience with the LTV program will provide valuable lessons for future procurement strategies and the sustainable expansion of human presence on the Moon.