Earlier quoted context omitted.
Destruction of $700m property due to negligence certainly seems jailworthy to me. At the very least, this company should be paying a fine which actually recovers the damages.
That can only be done if first, it can be proven that it was poor materials that caused the failure, and two, it's only useful if the company can actually afford a fine like that. You also have to consider what your motivation behind punishment is; is it re-education? Is it compensation of damages? Or is it to just completely bankrupt the company because Never Again? I mean in that last case, NASA and the US as a who…
The company caused 700M damage to the US tax payers (assuming the proof part), they should be on the hook to repay that, if they can't they should go bankrupt like anyone else who owes more money than they have.