GAO Dings FAA Commercial Space Launch Methodology Update

FAA updated maximum probable loss (MPL) methodology used in commercial space launch insurance didn't re-evaluate probability thresholds -- used to divide the risk of loss between launch companies and the government as it partially indemnifies them -- under the new methodology, GAO reported Tuesday. The update was required by 2015's Commercial Space Launch Competitiveness Act. GAO said the FAA also failed to consider the direct costs to the government and private launchers of implementing that updated methodology -- costs such as insurance premiums and indemnification liability. It said the agency was too limited in its consultation with the commercial space sector and insurance providers in evaluating its MPL methodology. A Transportation Department letter included with the report concurred with the draft recommendations and said DOT will provide a detailed response to each.