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NASA Hoping To Create Super X-Prizes

Rei writes "NASA is attempting to use a strategy of handing out contracts as prizes, akin to the Ansari X-Prize, instead of the contractor-preferred method of bidding and having payment before work is completed. They are hoping to have prizes worth as much as one billion dollars. The only hitch? Congress won't let them."

26 of 268 comments (clear)

  1. Two words by antifoidulus · · Score: 1, Insightful

    Special Interests.

  2. Ahem... by rice_web · · Score: 3, Insightful

    $$$ is expensive, and I don't know if you've noticed, but the federal government isn't exactly bathing in money, what with the largest federal deficit and all.

    --
    The Political Programmer
    1. Re:Ahem... by Brandybuck · · Score: 2, Insightful

      If there were a superpower around that the US could hide behind while pretending it only needs a small army, then of course you would be right. But while the current military budget is way too large, IMHO, a budget of only one billion is absurdly low. Other countries can get away with tiny armies because there's a friendly superpower out there that will protect them if they get invaded. It's called the $400 billion military budget USA! Iraq only got screwed because Hussein was a dick.

      --
      Don't blame me, I didn't vote for either of them!
    2. Re:Ahem... by shirai · · Score: 2, Insightful
      Money is expensive is not in conflict with the program. In fact, this is the point:
      1. Under the old system, you pay before you get results.
      2. Under a prize system, you only pay if and when you receive results.
      3. Under both systems you still pay but under the latter system, you are guaranteed results. In the cases where results are not generated, the prize system is cheaper.
      4. Since multiple companies may fight for the same prize at the same time, you encourage growth in the aerospace industry, even for those companies that did not win the prize.
      --
      Sunny

      Be my Friend

    3. Re:Ahem... by .milfox · · Score: 2, Insightful

      Funny me, but I thought that my cell phone worked because of ground based towers, which are tied into the land line system. Unless someone upgraded me to an iridium phone and didn't tell me.

      And you know something? Satellites arent' the only tool used to predict weather. In fact, it's only one of an assortment, including things such as NOAA weather bouys, automated towers, and even old fashioned observations from ships.

      As far as fusion with Helium isotopes? :P First build me a working reactor that is past the breakeven point, then we'll think about the sources for fueling it, m'kay?

  3. and congress is correct not to allow it... by Anonymous Coward · · Score: 2, Insightful

    Nasa should set standards for the work they want completed, and have it done in a safe manner

    They are trying to cut corners by shifting the RISK of death off their own astronaughts and test pilots to those of outside contractors many of whom in the case of the original X- Prise were working on the super cheap and therefore were much more dangerous than should be tolerated..

    Even the winner who HAD decent backing had a few moments without complete control in EACH of their flights -

    I think folks would have reacted very differently to the winning vehicle had it tumbled back into the atmosphere and burned up killing the pilot.. which was a not unlikely outcome

    Worker saftey and standards are somthing that shouldnt be shoved aside in the quest for scientific advancement on the cheap...

    2 cents

    1. Re:and congress is correct not to allow it... by Coryoth · · Score: 4, Insightful

      Worker saftey and standards are somthing that shouldnt be shoved aside in the quest for scientific advancement on the cheap...

      If people are willing to take the risk, why not let them. Certainly when worker safety is being compromised through exploitation it might be worth worrying about, but I fail to believe that the test pilots for SpaceShipOne didn't have every option to decline to fly. They were being paid plenty of money to voluntarily take a risk. If they choose to take the risk let them.

      Jedidiah.

    2. Re:and congress is correct not to allow it... by Iainuki · · Score: 4, Insightful

      You're probably a troll. Congratulations. Why does Congress, or you, have the right to determine the risks that others will take for science? Living is dangerous. Even though thousands of humans are killed every year in car accidents, people still drive. Taking on that "ordinary" risk is acceptable, and yet taking on greater risk for the possibility of greater rewards isn't? Are legislators better at determining at determining what risks individuals should take than the individuals themselves? We're not talking about sweatshops where children are locked into virtual slavery: the engineers, pilots, and entrepreneurs who create and run small aerospace corporations are educated, experienced, and capable both of finding less risky positions and making informed decisions about their own safety. Who gave Congress, or you, the authority to make decisions for them?

    3. Re:and congress is correct not to allow it... by danila · · Score: 3, Insightful

      Should it be legal for people to climb mountains, to paraglide, to skate aggressively, to drink alcohol, etc? Should it be legal for them to tinker with high-power engines, dangerous chemicals and sharp knifes in their garages, as long as they don't violate local regulations and don't endanger their neighbours? And if yes, why it should be illegal to start a company that would send a human to Moon in a risky way, as long as they don't violate existing labour safety and other laws and everyone working there understands and accepts the risk?

      There is nothing wrong with people risking their lives as long as they know what they are doing and do it voluntarily.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
  4. Re:Did anyone else think of... by StaticShock · · Score: 2, Insightful

    well, of course not, because it's "One Million Dollars" --Dr. Evil.

  5. Of course Congress won't let them... by Anita+Coney · · Score: 4, Insightful

    Congress doesn't care if a contractor gets actual results. All they care about is milking the various contractors for re-election contributions. Those who give the most get the contracts. That is so obvious that even a rocket-scientist should be able to figure it out.

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
  6. Re:Good thing by hengist · · Score: 4, Insightful

    It could scare off the big companies, but that would allow smaller companies to get a foothold in the industry. Sounds like a good thing to me.

  7. Why They Meed Difficulty in Congress by Space_Soldier · · Score: 2, Insightful

    The article states the problem NASA is facing: "Under the agency's old way of doing business, officials decided what they wanted built, asked private companies to bid on building it, then awarded a contract to the lower acceptable bidder - who often was located in an important Congressional district." I hope that there is still an honest man in Congress that would push for them to pass a bill to allow NASA to do this.

  8. A Kings Ransom? by thogard · · Score: 3, Insightful

    It turns out that big rewards to solve real problems does seem to work and I think the US Gov't should go way out with the rewards for the hard problems.

    For example give a billion dollars to the person(s) and not the company the comes up with a cure for aids. If someone does win the prize, then look at the cost savings over the long run. In the case of aids, a billion dollar one off payment is cheap.

  9. Re:Points to Ponder by Coryoth · · Score: 2, Insightful

    So you are objecting to the principle of NASA paying for actually getting results instead of drawing up attractive proposals? Yes people will need backing to be able to produce results to claim the prize, but there is a big payoff if it works: the prize money. The benefit for NASA is they get to pay for proven results. Considering the amount of money they've spent on the past on "proposals" (for instance they spent over a hundred million on reusable suborbital craft that never made it off the drawing board) paying for results instead seems like a pretty good idea.

    The real reason Congress is objecting is because there's no control over to whom the money gets awarded, so they can't trade pork for getting it done in their congressional district.

    Jedidiah.

  10. Re:I wonder why? by Charcharodon · · Score: 4, Insightful

    Easy they wouldn't be able to control which team "wins" since the best product would win rather than the winner being picked by the current "political process" of lowest bidder/cost overruns.

  11. Of course Congress won't let NASA do this... by PainBreak · · Score: 2, Insightful

    Big Corporation won't like it, because it'll take money out of their pocket, and the congressmen have to look out for corporations. For the people, my ass. It's all about who's putting food on the other's table, and if you think congressmen aren't in Lockheed and others' pocketbooks, well, have I got a tin foil hat with your name on it.

  12. no way by sumdumass · · Score: 2, Insightful

    NASA should not do anyhting of the sort here. For one, who is to say they won't overpay for something? I mean even if they offered a prize somewere more reasonable like around 10 million dollars, what if the first company to "make it work" could do it for 3 million. That means nasa has just waisted 7 million dollars that could have went to another project.

    Also, if the prize isn't large enough, some of the major players capable of making things happen might stay away form competing because of not having enough money to compete or because the return on investment is too low.

    Now ask yourself, If you was the CEO of a large publicaly traded company, how many times would your investor/board of directors let you compete in good faith When after spending X amount of money to acomplish goals X and Z, your bigest competitor beats you to the punch and your out X amount of dollars and little hope of recycleing the research that went into it.

    The X-prize worked for what it was intended for because that was the sum of money to make it attractive for other buisinesses to get into the market and that money wasn't competing with any other projects. (IE.. There wasn't any other projects needing the money like an international space station of a space shuttle overhaul to make it safer.) Also the money for the Xprize was colected by donation were people gladly risked thier money with little chance of return outside a market being developed. With NASA the moneys are colected from taxes and sometimes comercial missions, you need to justify what is being spent if you expect to get it and you have to qualify/spend the budget in order to get it again the next year.

    Eventualy this will echo with claims of a $200 toilet seat or a $1200 step ladder and every new congressman trying to get re-elected will jump on the waist in an attemp to "clean up washington" so they can get re-elected. I don't think we want NASA to become a political venture so congressmen make a name for themselves. NOBODY really likes paying taxes and would soon see this as a reason to cut NASA's funding. They would have a fit when some bitter company that was competing started telling the newspapers they could build a simular product for millions less in an effort to get congress to award them a contract.

    If NASA way of doing buisiness nedds reform, this is definatly not the way to do it. And anyone that thinks this is a way for the little guy to get thier foot into the door should reconsider the situation. IT favors the large guy with tons of money and a research base alrwady in existance form ealier contracts.

    1. Re:no way by Headw1nd · · Score: 5, Insightful
      Ok, I can't imagine that you know much about the way gov't contracts are run.
      For one, who is to say they won't overpay for something? I mean even if they offered a prize somewere more reasonable like around 10 million dollars, what if the first company to "make it work" could do it for 3 million. That means nasa has just waisted 7 million dollars that could have went to another project

      So let's say the idea is 10 mil to get a man into orbit. OK, so they do it for 3 million. So they find a more cost effective way of doing things, which can be used in future spaceflight technology, and leads to greater savings in the long run.

      But far more important that that, there's no way for the project like this to go overbuget. Look at the history of the shuttle, and you'll see a project that far exceeded it's initial cost estimate. Once you've sunk a few billion, though, it's a hard to back out and lose everything to save a billion or two. Especially when you've made promises to everyone and their mother to get the funding in the first place. This is what really saves you money.

      As for the idea that companies wouldn't take the financial risks if uncertain of a reward, it's demonstrably untrue. This happens in the world of defense contracts all the time. Most large defense contractors, especially in areospace, have lost large sums of money developing prototypes, in failed bids to secure larger contracts.

      As a final note, there are already congressmen who have made careers out of attacking NASA's budget. They point to the billions invested in space flight, and the lack of any visible progress. I can't imagine a program that guarantees results would make that any easier.

  13. Re:Congress by Slack3r78 · · Score: 4, Insightful

    So rewarding open ended contracts, often leading to billions of dollars wasted on dead end projects is being more careful with your money than making companies produce results *BEFORE* they're paid?

    That's an interesting take on this, IMO.

  14. Re:I wonder why? by jdray · · Score: 4, Insightful

    Precisely. Congress won't vote to dramatically increase NASA's ability to award prizes, because they lose control over the ability to grab pork for their constituencies. Even if prizes are restricted to Americans (likely, since they don't want to be awarding multi-million dollar prizes to foreign economies), the chances are essentially n/300 million, where n is the number of people in any particular Congressman's district, that a prize will be awarded where that Congressman wants it to be. Now, for a state like Texas, with about 8 percent of the nation's population, a one-in-twelve roll of the dice might be okay, but it probably still doesn't compete with their average take on contracts, which I (without any evidence) seem to think is higher.

    --
    The Spoon
    Updated 6/28/2011
  15. no, a control move by SuperBanana · · Score: 3, Insightful
    They are trying to cut corners by shifting the RISK of death off their own astronaughts and test pilots to those of outside contractors many of whom in the case of the original X- Prise were working on the super cheap and therefore were much more dangerous than should be tolerated

    Not quite. NASA is trying desperately to remain relevant, as well as retain control over space exploration. The whole space exploration thing has been a wonderful bit of PR for NASA's military research.

    Let's face it- for forty years NASA has told everyone that space flight is risky, only perfect, super-smart people can travel into space, and that there's only one way to do it- the Orbiter. During those forty years they've putzed around space, done lots of experiments, lots of simulations and calculations, quietly helped develop a lot of military technology...and come up with various designs for alternatives to the Orbiter and dismissed all of them, probably because they like the status quo, but also because they've been obsessed with making one vehicle do everything, instead of just accepting that you use cargo rockets for cargo, and people ships for people; NASA is like a Soccer Mom, convinced they need a giant hulking vehicle just to toodle to the supermarket and pick up the dry cleaning.

    NASA is, as far as technical knowledge is concerned, one of the best equipped organizations to develop something like a new space vehicle. But they were not the ones who ultimately succeeded. Scaled Composites showed up with a nice, small, sexy craft that looks very much this-decade. It uses a pair of jet engines and a single main rocket, and the whole thing could probably fit inside the Orbiter bay several times over, but still carries the same # of people, roughly. NASA is embarassed out of their minds.

    Yes, NASA's efforts over the last 40 years have made it possible, but the agency that should have been in the best position, it turns out, was in the worst- and distracted with military projects (do you really think a mach 10+ mini-plane is for peace, love, and understanding? Phbt. It's for delivering tactical nukes very, very quickly from across the globe to better project US military strength).

    It's a very typical power move you see in corporations and the public sector all the time. If the other guy's ideas start to endanger you, suddenly embrace his ideas and position yourself as the ideal candidate to manage that guy.

  16. And if Haliburton won a contest? by Picass0 · · Score: 2, Insightful

    Damn that congress for getting in the way of awarding an X-Prize!

    --Later---

    Damn that congress! NASA gave another technology contact to Microsoft!

    So what would people say if NASA asked for a new technology and the best entry was from a company with ties to the sitting president? Or a company with a bad reputation, such as SCO?

    A NASA X-Prize could become a magnet very for political charges of contract favoritism. NASA has managed to remain a government agency without the stigma of being partisan to one party. That changes the moment people think NASA is offering sweetheart contracts to companies with friends in high places.

    1. Re:And if Haliburton won a contest? by Coryoth · · Score: 2, Insightful

      So what would people say if NASA asked for a new technology and the best entry was from a company with ties to the sitting president? Or a company with a bad reputation, such as SCO?

      As opposed to now, where the contracts get awarded based on proposals, and seem to have a habit of showing up in appropriate congressional districts? There's plenty enough pork now, I don't see how this will make it worse.

      The money goes to whoever comes up with a working prototype first, so I don't see how claims of favouritism can come into it. If Microsoft or SCO manage to be the first to build a cheap reusable orbital vehicle, I won't be crying over it, I'll be cheering.

      Claims of favouritism and pork come from contracts going to companies that fail to deliver (like, say EDS over in England). The fundamental basis of these prizes is that you have to deliver the results before you get the money. If someone proves that they can do the job, do it well, and do it first, I don't see any problem with awarding them the cash for doing so. You'd have to be deluded to claim favouritism in that case.

      Jedidiah.

  17. Re:That didn't work, so create a fake market by Anubis350 · · Score: 2, Insightful

    what costs, NASA is one of the least funded us agencies. Every time more money is needed for something else their budget is slashed becuase they are the least politically valuable to congress. This is just another example of such a move. Just goes to show, politics and science dont mix well together

    --
    "goodbye and hello, as always" ~Prince Corwin, from Zelazny's Amber series
  18. Re:I wonder why? by Mycroft_VIII · · Score: 2, Insightful

    Because it's not reality that gets congressmen elected. It's the perceptions.
    Also the special interest don't CARE about the overal picture in a congressional distict or state, the only care about thier specific picture. Why would they back a congressman that would make them actually compete, rather than just hand out contracts to the highest bidders (donations to political campain, not contract bids).
    I'm not saying what you said makes no sense, I'm saying it makes to much sense.

    Mycroft

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