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When the launch of NASA's Orbiting Carbon Observatory and Glory missions failed in 2009 and 2011, the agency said it was because their launch vehicle malfunctioned. The clamshell structure (called fairing) encapsulating the satellites as they traveled aboard Orbital ATK's Taurus XL rocket failed to separate on command. Now, a NASA Launch Services Program (LSP) investigation has revealed that the malfunction was caused by faulty aluminum materials. More importantly, the probe blew a 19-year fraud scheme perpetrated by Oregon aluminum extrusion manufacturer Sapa Profiles, Inc., which Orbital ATK fell victim to, wide open.
“For nearly two decades, SPI and its employees covered up substandard manufacturing processes by brazenly falsifying test results,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “They then provided the false test results to hundreds of customers across the country, all to increase corporate profits and obtain production-based bonuses. This proposed resolution ensures that the victims of this conduct, including the U.S. military, can replace faulty product put into the supply chain and help recover the costs foisted on taxpayers to investigate this scheme. I want to thank our partners at NASA-OIG, DCIS, and the FBI for their efforts in helping bring much-needed oversight and reform to these companies.”
mfb said:The $46 million don't even look like a fine. They are used to clean up the remaining mess - pay the investigation and replace bad parts that are still around.
On the other hand: This was ~20 years ago, the company has been bought by another company in the meantime, management changed (probably more than once). A fine as punishment wouldn't have an effect any more. At best you could get more money back that was lost in the failed missions.
The complaint states that in January 2018, an internal audit by SQA Services, Inc. (SQA), at the direction of SpaceX, revealed multiple falsified source inspection reports and non-destructive testing (NDT) certifications from PMI Industries, LLC, for Falcon 9 and Falcon Heavy flight critical parts. SpaceX notified PMI of the anomalies. Source inspections and NDT are key tools used in the aerospace industry to ensure manufactured parts comply with quality and safety standards. Specifically, the signed source inspection report had a forged signature of the SQA inspector. SpaceX and SQA officials believed the signature of the inspector was photocopied and cut and pasted onto the source inspection report with a computer.
The scheme is not unique. Kobe Steel had very similar scheme uncovered in 2018.nsaspook said:https://www.engadget.com/2019/05/01/nasa-aluminum-fraud-scheme-probe/Only fined for $46 Million?
The "NASA aluminum fraud scheme probe" refers to an investigation by the National Aeronautics and Space Administration (NASA) into allegations of fraud within the agency's aluminum supply chain. It was launched in 2017 after reports surfaced of falsified test results for aluminum used in rocket parts.
The investigation was prompted by a whistleblower who reported that a third-party supplier had been providing falsified test results for aluminum used in NASA's rockets. This raised concerns about the safety and reliability of the materials used in space missions.
The investigation is ongoing and has expanded to include multiple suppliers and thousands of parts used in various NASA projects. The agency is working closely with the Department of Justice and other government agencies to thoroughly investigate the allegations and hold any responsible parties accountable.
As of now, no definitive evidence of fraud has been found. However, the investigation is still ongoing and NASA has taken several precautionary measures, such as conducting additional testing and inspections, to ensure the safety and reliability of their materials and equipment.
It is too early to determine the full impact of the investigation on NASA's future missions. However, the agency is committed to maintaining the highest standards of safety and quality in their materials and equipment, and will take all necessary steps to ensure the integrity of their supply chain moving forward.