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NASA Eyes Cash Prizes Of Its Own

joeldg writes "Wired is reporting that NASA is considering offering cash prizes for space innovation. 'Lembeck said NASA would consider offering $10 million to $30 million in prizes to encourage private investors to develop space vehicles. Such prizes appear compatible with the vision for space exploration released last week by a White House commission that studied President Bush's plan to send Americans back to the moon and possibly to Mars.'"

40 of 289 comments (clear)

  1. cash prize, like.. the X-Prize? by sjwaste · · Score: 5, Insightful

    Obviously the $10M X-Prize got a few groups together to be the first. Most if not all of them have put in more money than the prize would bring in for winning, but there's something about our competitive nature as people... NASA should strongly consider this. If you want innovation, make it a contest. There's a ton of people out there who are that damn competitive that they'll sink their own money to win. I personally think it's great.

    1. Re:cash prize, like.. the X-Prize? by bwy · · Score: 3, Insightful

      The thing is, Scaled has spent over $20M already. The $10M is obviously a big help, if they win- but it isn't the primary motivating factor. It couldn't be- you don't spend $20M to win $10M.

      So, NASA wants to award a prize for the development of a deeper-space vessel. If I develop a lunar capable spacecraft and win the prize, how does this help NASA? Do they expect that they'll get design rights to the spacecraft? I just don't understand why government would be giving away our tax money as a prize for a private company to make money. Maybe it is time for NASA to just go away completely. Any of NASA's space technology necessary for national defense or the like could be absorbed into USSTRATCOM. It is clear that at the very minimum, NASA needs to be completely rebuilt. What remains of the shuttle fleet is old and outdated and expensive to fly. We have a partially assembed ISS that seems to serve little purpose unless it is built out to allow for a larger crew as originally designed. The Mars Rovers offer good science but you could easily retain those talented guys as part of a new organization or a stand-alone JPL.

      That being said, I'd donate in a heartbeat to a private X-Prize II contest that would have awards for a manned Lunar or Mars mission.

    2. Re:cash prize, like.. the X-Prize? by DAldredge · · Score: 4, Insightful

      No, NASA will buy copies of your ship from you, that is how you make a profit and NASA gets a good ship for less of the taxpayers money.

    3. Re:cash prize, like.. the X-Prize? by fucksl4shd0t · · Score: 2, Insightful

      If I develop a lunar capable spacecraft and win the prize, how does this help NASA?

      Um, isn't NASA's mission to promote the exploration of space, or something like that? So offering prizes that bring about competition to accomplish the goals NASA sets for the prizes (the goals being in line with NASA's space mission), then NASA is accomplishing their mission. Furthermore, by offering prizes instead of contracting development, NASA can really save some real money on development and at the end of it they have several development projects to choose from rather than the one they sunk all their money into.

      It creates a market for NASA, and at the same time creates a market for the rest of us. So NASA gets to accomplish their mission in a much more cost effective fashion all the way around, and the rest of us get better access to space.

      How exactly is it bad for NASA, again?

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    4. Re:cash prize, like.. the X-Prize? by fucksl4shd0t · · Score: 2, Insightful

      For those of you who are hard of reading, here's what I wrote again (emphasis added):

      So offering prizes that bring about competition to accomplish the goals NASA sets for the prizes ( the goals being in line with NASA's space mission), then NASA is accomplishing their mission. Furthermore, by offering prizes instead of contracting development, NASA can really save some real money on development and at the end of it they have several development projects to choose from rather than the one they sunk all their money into.

      That translates to a more efficient NASA that spends less money on development (by offering it as prizes instead of contracting it) and gets more technology. More bang for the buck. Then NASA gets to purchase the technology at competitive rates rather than government-gouged rates in order to pursue goals that they can't even set right now because they're so caught up in the problems they have now. Offering prizes is a way *out* of NASA's current dilemma.

      Let's summarize their current dilemma, shall we? They can't develop better orbiters because they don't have the money and congress won't approve it. They've been told to keep using the existing fleet. They can't go past LEO because they don't have the money to develop the ships to do it, they're spending it all on the current fleet. So they're stuck at LEO. How does NASA break free? By getting someone else to develop better orbiters, getting permission to buy them (easy enough, private industry has a unique way of proving technology), and then using them. How can they do it inexpensively and with congressional approval? By offering prizes.

      Take it a few more steps down. NASA decides they want to put an observatory on the moon, to be always manned by 10 people or so. But they can't develop the technology to go to the moon, and the stuff used previously isn't going to accomplish this goal. They can already get to LEO cheaply (they gave away a prize for it, remember?), but now they've gotta get to the moon. So they put out another prize, someone wins it, and NASA gets to buy some lunar landers that are cheap cheap cheap and build their observatory. They get the technology at a fraction of the price they would have spent developing it, and then they get additional price cuts because of the competitive market. Furthermore, they don't even have to build the entire moonbase, they can just install their observatory near the privately-funded moonbase that'll get built.

      It's a winning proposition for NASA. They get to find better ways to explore space, and they get to actually do it instead of just talking about it.

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  2. sweet!!! by the_2nd_coming · · Score: 5, Insightful

    yes, this is exactly how research on high tech pie in the sky stuff like next generation space vehicles should be done.

    then all NASA needs to do is sit back and let private companies do the engineering which means that they can send the rest of the ash over to propulsion research.

    this works well because it helps mitigate the investments made by companies that win and the recognition of the win helps future sales of the products based on the new tech.

    --



    I am the Alpha and the Omega-3
    1. Re:sweet!!! by sjwaste · · Score: 5, Insightful

      I agree with you completely. If you look at state run enterprises in general, their industry is usually one where a private company would not take on the risk. I think space is past that. If private contractors are building satellites, pieces of the space station, etc for NASA, the next logical step is for these private companies to build the means to move such objects into space. While it's not exactly profitable yet, the pride factor alone will compel many. Soon enough, private space travel WILL be profitable. Wouldn't it be sweet to take a trip above the Earth before we're dead?

    2. Re:sweet!!! by Cerilus · · Score: 3, Insightful

      Isn't this how the Internet got started? A bunch of contracts from DARPA (now ARPA) to spend a bunch of money without a real clear ROI (return on investment).

      I like it. There's some bureaucracy, but not in the actual design, construction or testing elements. The government wants the paper to prove it's doing a good job, but with private grants at least there's a point where the paper-for-paper-sake ends.

  3. Hmm... by CompSurfer · · Score: 5, Insightful

    The question is, are prizes of 10 to 30 million USD enough for corporations to spend that much or more developing space tech? Would it be cheaper than NASA developing the same things in-house? Or would the prize money be better spent on NASA projects?

    1. Re:Hmm... by the_2nd_coming · · Score: 2, Insightful

      well, since these companies get patents on this equipment which gives them a monopoly on the access the tech allows for 15 years, I think that is a pretty good incentive.

      --



      I am the Alpha and the Omega-3
    2. Re:Hmm... by sjwaste · · Score: 2, Insightful

      NASA's bloated and inefficient these days, just like most of our agencies. Private companies exist to turn a profit. If they're willing to undertake these projects, you'd bet they're going to try to come out ahead on the ledger. Because of that, I would bet that private companies will generally develop space tech cheaper than NASA would. Otherwise, they'll likely pass on the opportunity at the cash prize. Or, some takers will sink a load of cash just to say they did it. In that case, the economy comes out ahead.

  4. LAte? by YrWrstNtmr · · Score: 2, Insightful

    No. The X-prize hasn't been claimed yet, and there are other avenues and goals to reach.

    Diversity is a good thing.

  5. don't crininalize the model rocket enthusiasts. by Camel+Racer · · Score: 5, Insightful

    Maybe step one would be not to criminalize model rocketry

    http://www.space.com/missionlaunches/launches/ro ck etry_future_000823.html

    and

    http://www.sas.org/E-Bulletin/2003-02-28/feature s/ body.html

    --
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    1. Re:don't crininalize the model rocket enthusiasts. by ratsnapple+tea · · Score: 5, Insightful

      Would it be too much trouble for Slashcode to automatically make links out of text starting with http://? Just a thought.

  6. In Other Words... by MaineCoon · · Score: 4, Insightful

    ... NASA wants some of this spotlight, and will gladly make hints of support and pose for the camera.

    NASA has a budget of USD$16 Billion for this year alone. $10M to $30M?

    Lets see prizes in the range of $100M on up. That would make the financial investment risks FAR easier to swallow, and we might actually see more serious commercial enterprises make the attempt.

    Seeing SpaceShipOne's successes makes me dream of a brighter future. I'd love to see serious interplanetary space travel within my lifetime.

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    1. Re:In Other Words... by sql*kitten · · Score: 2, Insightful

      Have one or the other, or even both, but don't give public money to private enterprise.

      Right now, NASA is giving money - billions and billions of dollars every year - to contractors like Boeing and Lockmart. And they're getting precisely NOWHERE. But you have no problem with that?

      For a fraction of that amount put into a prize foundation, private industry will do the rest. Here's a hint: you don't fly on a government airline, do you?

      I think you need to see past your socialist "public good, private bad" ideology and have a think about what you actually want to see as the result: lots of fat, happy bureaucrats, or being able to buy a daytrip into space at your travel agent?

  7. Compatible with Bush's vision? by gad_zuki! · · Score: 2, Insightful

    Huh? How are a few fledgling attempts to break the 100km barrier anything close to a feasible manned Mars mission?

    I guess its Lembeck's job to say nice things about NASA and those who control its purse-strings, but its a bit too optimistic to expect private industry to do a Mars launch anytime in the forseeable future. Heck, its hard to see NASA doing it, or any good reason to do it as a moon base would be safer, cheaper, and practical!

    This sounds like damage-control after Scaled's success yesterday. Is NASA scared perhaps? Or maybe they don't want to look like a lumbering dinosaur to the tax payers.

    Dunno, but the timing of this is very suspicious.

  8. sounds to me like... by Anonymous Coward · · Score: 1, Insightful

    sounds to me like NASA has been slacking in the R&D dept. and after SpaceShipOne took off the otherday, they see it and scratch their heads about their R&D and say "Why did'nt we think of that"

    DUH!!!

  9. Finally, a reasonable use for NASA launch money by nasor · · Score: 5, Insightful

    Considering the roughly $900 million that NASA spent on the X-33 shuttle replacement before simply canceling the project, or the $400 million that they spend on each shuttle launch, I certainly think they should be able to spare a hundred million or two as a prize for someone can develop a private, x-prize style orbital vehicle.

  10. Re:Risky bussness venture by saiha · · Score: 2, Insightful

    And this is different from the "real" business world how? Look at why different techs are adopted, not always because they are the best engineering, etc... Many times it is because they got to the market first.

    And I don't think anyone would try to make a business out of the prize money alone. Spaceship One is costing around $20million with a prize of only $10million. The investers know this, but what it does give them is (if they win) a bit of a coupon for some of their R&D but mostly they huge huge publicity that this type of thing will bring.

  11. Re:suggested goals by emorphien · · Score: 2, Insightful

    I'm good with those. Really, I think those are not unrealistic values, if maybe a little low for the lunar trips. Either way, if a company can do it, while the $$ offered is probably minimal by comparison, its the competition and the science that are the point and science will benefit.

    --


    Presently here, but not there.
  12. Re:while its cool... by grozzie2 · · Score: 2, Insightful
    Isnt this comming a little late? I mean the X prize has been out there for a very long time, and now NASA is finally getting into it.

    There's probably a few people at Nasa see the big light bulb coming on. Scaled has achieved sub-orbital capability on a budget rumored between 20 and 35 million dollars. This included the design, build, and test flight stages of the program. The same program running in the Nasa culture, using Nasa methodologies, would not be finished the preliminary design study before it had burned up 35 million dollars, and to achieve the result of 'successful manned test flight', the program would have burned up at least a billion dollars. the efficiency delta here is close to 2 orders of magnitude. that's very serious when you are talking the differences between millions and billions of dollars.

  13. Re:smart idea by Daniel+Dvorkin · · Score: 2, Insightful

    The smartest people are in the private sector

    That's a pretty big generalization you got there, pilgrim.

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  14. Re:smart idea by wass · · Score: 3, Insightful
    The smartest people are in the private sector, why not use their skills and efficiencies to benefit the race to the stars?

    That's not really true, so I'll take it you haven't worked with NASA much at all. I've worked with NASA scientists on several projects and the scientists/engineers there are typically top-notch. Much more knowledgeable than most engineers I've dealt with from the private sector. NASA's problems primarily stem from its bureaucracy and red-tape, not from shortcomings of its engineers.

    And to take your skepticism further, the smartest people I've encountered to date have been university professors (at least in physics). Usually more likely to collaborate w/ NASA than with the private sector, too.

    --

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  15. No patents! by One+Louder · · Score: 2, Insightful
    Any prize money should come with a requirement that any technology that is developed that could be or is covered by patents must be made royalty-free to anyone or assigned to the public domain.

    It makes no sense to have the government effectively subsidize the development of a proprietary technology.

  16. Re:Thieving bastards by DAldredge · · Score: 2, Insightful

    Where is the profit motive in sending probes to the outer solar system?

  17. Re:Help mummy! by bobhagopian · · Score: 4, Insightful

    The parent post is pretty insightful, IMHO. NASA's biggest problem in the last 20 years has had nothing to do with engineering, but with public relations. Add to it two major accidents and you're left with a pretty unhappy public questioning (unfortunately) the need for NASA. Imagine the kind of hell NASA would have to pay if it suffered another accident. NASA is already under tremendous scrutiny by Congress; what would happen if Congress was given yet another reason to cut the NASA budget? How much worse would public opinion get? Now consider the alternative: NASA offers a monetary prize for private companies seeking a route to space. The risks are the same -- people may die, and unlike the parent, I believe that NASA cares about these people. However, NASA avoids the added risk of organizational self-destruction. I've been pretty impressed with NASA in past years. Unlike many governmental organizations, they don't seem to demand credit for everything that is done; if someone gets to space on their own, NASA will be cheering them on. A monetary prize just allows them to promote the exploration of space (with all the risks that it carries) while avoiding the one extra risk of permanently turning the tide of public opinion against it.

  18. This is old news: NASA's Centennial Challenges by colonist · · Score: 3, Insightful

    The Wired article uses information from this Reuters article by Deborah Zabarenko.

    Reuters: "Within hours of the first private flight to outer space on Monday, a NASA official said the agency might offer millions of dollars in prizes..." This is misleading. NASA's Centennial Challenges program has been in the planning stage for quite some time now.

    My opinion on prizes: Prizes are great, but they should complement grants, not replace them. An analogy: If we want to catch Osama bin Laden, we should put a big bounty on him. But that doesn't mean we should call off the military and the CIA. We should post a big bounty AND fund the military and the CIA. Same thing with space: Put a big 'bounty' on space achievements, but fund NASA too.

  19. Private enterprise brings different priorities by Syncdata · · Score: 3, Insightful

    The thing is, Scaled has spent over $20M already. The $10M is obviously a big help, if they win- but it isn't the primary motivating factor. It couldn't be- you don't spend $20M to win $10M.

    All you say is true, but this can be viewed as a retroactive subsidy towards R&D. If a company like Scaled has some plans to exploit this potentially lucrative market, the prospect of potentially spending 10 million if you win is much more palatable then a gauranteed expenditure of 20 million in R&D. Demanding success of the prize recipient also removes the risk of fraud by questionable contractors.

    As has been mentioned, the aviation industry has progressed rapidly through such "contests", particularly the lockheed martins, et all. Stealth didn't become so common because private industry wanted it, or because government invented it. The government set the challenge, and let Private industry worry about keeping the margins low.

    Finally, we've all,as you do in your post, griped enough about NASA expenditures to know this is a good idea. I'm inclined to think that a private company would not have come up with a re-entry shield that is composed of hundreds of ceramic tiles, all of which have to be inspected pre and post launch. It would simply not be cost effective. We already ran the crash program to space. Now lets run the slow, sensible one. Get private industry involved. Allow the profit motive in the lifting stage, not just the payload stage.

    The sooner we ween space transport off of the government teat, the sooner we stop hearing about all the better ways government can spend money on this or that social program. If all that can be done is to remove that chestnut from the debate, I say it's worth it.

    --
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  20. Can NASA learn from NSF and Darpa? by FleaPlus · · Score: 2, Insightful

    I can't help but wonder if NASA would be more effective if it took on a model much more like NSF's or DARPA's. Instead of splitting up tasks between their own field centers and painstakingly managing everything, it could become more focused on providing funding to foster the nation's space infrastructure and using programs like Centennial Challenges to accomplish specific tasks. Existing NASA centers could compete for this funding just like other organizations like universities and private companies. Doing things in this manner would also limit NASA's PR liability in the event of catastrophe, keeping the space program from becoming completely paralyzed every time a disaster happens.

    Of course, this would also limit the potential for pork-barrel spending, and would thus experience difficulties in actually becoming enacted.

  21. Re:Incentives, not plans by ArsSineArtificio · · Score: 2, Insightful
    Without a frontier, for the past two decades, Americans have operated under the inevitable conclusion that land, raw materials and wealth itself are fundamentally limited and therefore to be hoarded and controlled -- rather than created. Out of this post-Apollo mentality, a deeply rooted cynicism has led young people into careers as lawyers and financial manipulators rather than farmers, inventors and engineers. It has led to an environmental movement which loathes humanity's natural capacity to transform hostile environments with technology. It has led to cartels, wars over energy and a devastatingly expensive arms race. It has led businesses and investors to remain averse to high risk technology development even as they issue billions in high risk debt vehicles for corporate take-overs. It has led to a preference for real estate speculation over job creating investments, making it nearly impossible for most of those born in the mid-to-late baby boom of the 1950s to establish stable careers, homesteads and equity for retirement, even with two incomes.

    What a load of tiresome, pretentious twaddle. The end of the Apollo program meant the collapse of American society, creating a plague of lawyers and real estate investors. Gotcha. Why, I remember thinking as I watched the Challenger explode in third grade, "Screw this, I was going to be a soybean farmer, but now I'll just get a job securitizing mortgages instead."

    You see, there'd be these conclusions you could jump to...

    --
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  22. How to deal with the red tape of going orbital? by FleaPlus · · Score: 2, Insightful

    Presumably, in the near future we'll be seeing a variant of the X Prize for orbital flights; perhaps in the interim we'll see things like X Prizes for transcontinental flights.

    I'm curious though: How can contestants be able to deal with all the liabilities which that entails? With the test flights of Scaled Composites and Armadillo Aerospace, before being allowed to fly they've had to make various government official certain that in a worst-case scenario their craft would remain within the testing zone. With orbital (or even transcontinental) flights, their flight range will have to extend beyond the testing zone and into inhabited areas (even other countries). Governments are able to test things like this because they can deal with the liability, but what about private companies?

  23. No, no no by dbc001 · · Score: 2, Insightful

    The government should not give $30 million dollars away for spaceflight when we have unemployment, poverty, unequal healthcare, violent crime, drug addiction, cancer, and AIDS - all of which would benefit *us* far more than space travel. Oh yeah and then there's also the fact that the market is taking care of the space thing already.

    1. Re:No, no no by blaberski · · Score: 2, Insightful

      Their will always be some problem on the planet that will seem just as bad as all those things you mentioned (except for unemployment, you know you really should do some investigating, you will find out that unemployment rate really is not that bad at all). The question is do we let those problems which stop us from reaching for great things as a species?

  24. NASA Surrenders by tinrobot · · Score: 2, Insightful

    Quite honestly, I see this as NASA flat out admitting they can't do innovative development on the cheap.

    Burt Rutan spent $20 million on his prototype. That's pocket change to NASA, yet I haven't seen anything come out of NASA that is even close to what Rutan designed. I haven't seen any NASA spaceplane prototypes even take off, let alone go sub-orbital.

    He went sub-orbital on $20 million, I couldn't imagine what Rutan could do with a few hundred million. That's only a fraction of NASA's budget.

    1. Re:NASA Surrenders by delong · · Score: 3, Insightful

      Burt Rutan spent $20 million on his prototype. That's pocket change to NASA, yet I haven't seen anything come out of NASA that is even close to what Rutan designed. I haven't seen any NASA spaceplane prototypes even take off, let alone go sub-orbital.

      That's mostly because the US government got there, oh, nearly 40 years ago.

      SpaceshipOne is not innovative in any way technologically. It's revolutionary because for the first time, a non-governmental organization did it.

      That said, the promise of Apollo was that we'd all be flying to vacations in space in no time. Well, here we are, 30 some odd years since the first Moon landing, and nothing. NASA can't open up the frontier. Private, profit making corporations will. I hope this is the start of the deluge.

  25. Re:how about 100 billion for a space drive? by fucksl4shd0t · · Score: 3, Insightful

    $1 billion to the first person to establish some sort of viable industry in orbit.

    Um, I think that prize is already being offered by basic economics. Or something comparable, at least.

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  26. hrmmm by ShadowRage · · Score: 3, Insightful

    Anyon else think this is nasa basically shitting its pants in the reaction of spaceshipone being successful?

    you're damn right it is.

    Now they wanna try getting innovators to innovate for them, since they're stuck, one catch though, they'll basically take your idea, give you half the money you deserve from it, and then they end up getting 10 times the funding and the control over space again. Just like any good monopoly over anything, they're trying to pull anything to ensure they keep their superiority and political rights over space. My science teacher did contract work for NASA and recalls it being the worst job he ever had, spending was horrible, and many people were underpaid, and only the higher ups made the most cash. it was a job you had to have a passion for, and NASA did a great job at killing a lot of people's passion for space. My teacher actually gets paid more for teaching than he did working for NASA. Sad as it is.

    I dont think too many people will jump at this, because the x-prize is much more fun, and you get to keep your soul afterwards.

  27. If Bush does manage to bring in more private.. by Anonymous Coward · · Score: 1, Insightful

    enterprises the next 20 or 30 years will see some major advances in space travel. If he doesn't get reelected, Kerry will divert that funding to social programs.

    We will see soon enough either a space and tech boom or the end of the middle class.

  28. Re:Thieving bastards by joeljkp · · Score: 2, Insightful

    By your definition, everything publicly funded is "coercive". The president's salary is "coercive". The financial aid for college students is "coercive". Unemployment benefits are "coercive".

    The public is not forced to finance any specific project. This is not a case of taxation without representation. Congressmen and the President are your voice for how your money should be spent.

    Each member of society, however, cannot be given a choice as to exactly what their individual sum of money will be used for. Such a system would be simply unworkable.

    As for NASA, I doubt SpaceShipOne could have gotten off the ground with the funding it received without the huge amount of government-sponsored research behind it. One of NASA's primary roles is as an incubator project for the still-fledgling aerospace industry. You and I finance the groundwork science and engineering that must be done before industry can profitably take it up. But once it is, if successful, the industry in our country enjoys a significant advantage over others, increasing market share, profit margins, employment opportunities, and the general economy.

    And a good economy benefits us all. And, again, if successful, more than reimburses you for the paltry sum you paid to finance it.

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