Surplus Missile Motors: Sale Price Drives Potential Effects on DoD and Commercial Launch Providers

The U.S. government spends over a billion dollars each year on launch activities as it strives to help develop a competitive market for space launches and assure its access to space. Among others, one launch option is to use vehicles derived from surplus ICBM motors such as those used on the Peacekeeper and Minuteman missiles. The Commercial Space Act of 1998 prohibits the use of these motors for commercial launches and limits their use in government launches in part to encourage the development of the commercial space launch industry in the United States. Legislative and policy changes would be needed to allow DOD to sell these motors for use on commercial launches. The National Defense Authorization Act for Fiscal Year 2017 contains a provision for GAO to analyze the potential effects of allowing the use ofsurplus ICBM motors for commercial space launch. This report addresses (1) the options for pricing surplus ICBM motors; and (2) the potential benefits and challenges of allowing surplus ICBM motors to be used for commercial space launch. GAO used Office of Management and Budget criteria to develop a range of breakeven prices, collected detailed motor storage and disposal costs from the Air Force, reviewed industry stakeholder responses to an Air Force request for information about other pricing methods, and interviewed DOD and industry officials. GAO is not making recommendations in this report.