NASA Administrator Proposes Reorganization and Workforce Shift to Reduce Contractor Reliance

NASA Administrator Jared Isaacman has released two separate directives outlining a comprehensive reorganization of the agency's structure and a significant shift in its workforce strategy.

The proposals aim to consolidate mission directorates, prioritize lunar exploration, and reduce the agency's dependence on external contractors by expanding the civil servant workforce.

The initiatives follow Isaacman's initial 50 days in office, during which he visited NASA centers and engaged with agency personnel.

Agency Reorganization Proposal

In a letter published on NASAWatch.com, Isaacman announced a plan to restructure NASA's Mission Directorates and consolidate key activities. The proposal includes the following elements:

• Human Spaceflight Mission Directorate (HSMID): Created by merging the Space Operations Mission Directorate (SOMD) and the Exploration Systems Development Mission Directorate (ESDVD). Dr. Lori Glaze has been named as the Associate Administrator for this directorate.

• Research and Technology Mission Directorate (RTMD): Formed by combining the Aeronautics Research Mission Directorate (ARMD) and the Space Technology Mission Directorate (STVD). Dr. James Kenyon will serve as the Associate Administrator.

• Moon Base Program: A new program consolidating lunar activities outside the Artemis program, with the stated goal of establishing a sustained U.S. presence on the Moon by 2030. Carlos Garcia-Galan has been appointed as the Program Manager.

• Space Reactor Office: Centralizes all space nuclear activities under the RTMD. The directive targets having the SR-1 Freedom and LR-1 missions launch-ready by 2030.

• Low Earth Orbit Program: Unifies management of the International Space Station (ISS), the Commercial Crew Program, and the Commercial Low Earth Orbit Development (CLD) program under Dana Weigel.

The letter states that no reductions in force are planned and encourages the conversion of contractor positions to civil servant roles.

Additional directives focus on communications, science, finance, infrastructure, legislative affairs, aviation, and national space policy execution.

Workforce Directive to Restore Core Competencies

A separate workforce directive outlines a plan to reduce NASA's reliance on external contractors for core functions. The directive states that the agency's dependence on vendors for engineering, operations, manufacturing, and repair has eroded internal capabilities and added over $1 billion in annual overhead. It also attributes an estimated $1.4 billion in annual inefficiencies to suboptimal project cost and schedule outcomes related to this reliance.

The directive's stated vision is to expand the civil servant core to lead complex engineering and operational challenges, including building and repairing critical components in-house.

Contractors would be utilized primarily for limited-term assignments, surge staffing, and specialized functions outside NASA's core competencies.

Within 30 Days:

• Center Directors, Mission Directorate leadership, and the Office of the Chief Human Capital Officer (OCHCO) must identify outsourced mission-critical work and propose which functions should be brought in-house.
• The same leadership must identify outsourced or missing technical expertise and propose converting core roles to civil service, categorized by priority.
• The Office of Procurement must incorporate "right-to-repair" provisions in future and applicable existing contracts, granting NASA access to specifications, parts, and technical documentation for internal manufacturing and repair. Restrictive contract language and intellectual property barriers that prevent NASA from performing internal repairs or redesigns are also to be addressed.

Within 60 Days:

• The OCHCO, Office of Procurement, and Office of the Chief Financial Officer (OCFO) will consolidate assessments and create an implementation plan for converting or adding civil service roles, addressing contract changes, timelines, and costs.
• A streamlined process for rapidly onboarding candidates into civil servant positions without disrupting operations will be established.
• Strategies will be developed with the Office of Personnel Management (OPM) to attract talent from industry and academia.
• Internal training, mentorship initiatives, and the internship program will be assessed and expanded to develop in-house technical talent.
• Center Directors must develop plans to create "makerspaces" at each center for rapid prototyping and proposal development.

The directive clarifies that it does not reflect any intent or commitment to take action regarding any specific existing or future contract.