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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."

19 of 268 comments (clear)

  1. I wonder why? by neoform · · Score: 2, Interesting

    a billion dollars as a prize seems somewhat of a NASA style expenditure.. why would they do that?

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    1. Re:I wonder why? by ceejayoz · · Score: 4, Interesting

      RTFA... hell, read the bloody summary!

      They'd do it because they'd only pay for delivered results - no more paying for billion dollar Lockheed projects to have them go "oops, we messed up and you'll have to pay us another four billion to get it working..."

    2. Re:I wonder why? by the_2nd_coming · · Score: 2, Interesting

      but why worry about pork when this prize competition could spark more industry in more places than a single awarded contract could. when you have 5-10 teams, each building with their own cash, they are in more disperse places, and they do it more cost effectively because they want to maximize profit.

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  2. Good thing by Darthmalt · · Score: 5, Interesting

    This could turn out to be a good thing, Developer handles all of the R&D costs doesnt get a dime unless work is satisfactorily completed and cant go over budget.

    only down side I see is it could also scare off buisnesses not willing to take the risk of spending all that money and then not getting the contract.

    1. Re:Good thing by Israfels · · Score: 3, Interesting

      This is similar to how the F-117 got it's funding. As I recal there were a couple designs from other aerospace comanies.

    2. Re:Good thing by Charcharodon · · Score: 4, Interesting
      This would not work for whole projects, but would be quite effective for components.

      For example Boeing put their entire company at risk by creating the 747 especially after it was the losser in the C-5 Air Force cargo aircraft bid. They managed to make it work quite well fortunately. Many companies aren't willing to take that kind of risk.

      But on the other hand if say NASA said after looking around at off the shelf equipment and not finding what they needed for say a new manuevering thruster then they could post a prize (contract)

      10 million for one that fits the minimum specs

      and then throw in bonus awards

      1 million if it is 50% smaller than specs
      100k for each 10% thrust strength above specs
      15k for each 1% reduction in weight below specs
      500k for each 10% gain in efficiency

      Now I can see many companies being interested in this since they can compete on multiple levels or work with other companies to claim portions of a multi-award prize.

      The problem is not that companies don't have the capabilities to advance space technology, Scaled Composites proved that, it's just that there is little interest and fewer opportunities for smaller companies that are not associated with the big boys of aviation to get involved.

      I see these prizes as very effective means of streamlining the component aquisition portion of space flight, and who knows maybe one of these days companies will make space ships the way companies crank out airplanes.

  3. Congress by jeffkjo1 · · Score: 2, Interesting

    Congress won't let them

    So, I'm supposed to be disappointed that Congress is actually looking out for my money... at least to some extent?

    1. Re:Congress by Zocalo · · Score: 3, Interesting

      I guess it depends on how much significance you attach to that "up to" and how NASA handles determining just how much a given "prize" should be. Suppose NASA has a requirement for 10 satellites and its own staff estimate an R&D cost of $250m and further production cost of $50m per unit - $750m total. I don't see a problem with NASA offering an "X-Prize" for designing a $50m/unit satellite of $300m plus a minimum contract of 10 units, or $800m in total. Assuming the contestant meets the budgets then the "profit" value of the prize is $50m plus any savings made in R&D and production costs. Meanwhile, NASA gets what it wants while effectively capping budget overruns at $50m - and we all know how those NASA budgets like to overrun...

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    2. Re:Congress by Charcharodon · · Score: 5, Interesting
      Actually the old method does not insure that the money is spent well, but that it's spent in their consituants home town.

      This space station will cost only 3 billion dollars

      5billion...
      10 billion...
      15 billion...
      20 billion...
      30 billion...
      and going and going.....

      verses

      NASA would like to propose a new space station modual that has X characteristics and they'll give the first team that creates one that fullfills that need for 1 billion dollars and won't pay out a penny for those that don't

      It's called being a smart shopper you do it every day (hopefully) why shouldn't they?

  4. NASA Finances by DeathByDuke · · Score: 1, Interesting

    If NASA want to offer upto $1 billion of cash prizes, I think they'll have to generate most of money for the prizes in other ways, i.e fund raising events, or charging for trips on the Shuttle or to the I.S.S.

    I doubt Congress is going to grant them an extra $1 billion a year to just provide the cash prizes. They will have to take the money from elsewhere, i.e current projects and missions, something they are already doing for the Moon - Mars plan. In other words, ain't going to happen. It's a shame really, as we've already seen what the X-Prize is doing, creating more and more determined would-be astronauts and a real effort to make space accessible to all of us. Something like winning a prize from NASA would really be a fledgling space tourism companies PR dream.

  5. Man hours by kaleco · · Score: 2, Interesting
    The prizes model seems to be very labour intesive since it involves many autonomous groups working towards the same goal. If they are all working on the same thing, but not cooperating, then they are all working to overcome the same problems and only one group will get paid for it (the prize money).

    This seems to me like potentially a very wasteful way of accomplishing a goal since many people will contribute a lot of work and never see any money for it.

    To overcome this, perhaps NASA could consider breaking the prize money down to make sure that the most efficient way gets acknowleged as well as the quickest way.

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  6. Points to Ponder by amigoro · · Score: 2, Interesting
    N.B. Everything in italics is from TFA. 1. Despite all the buzz about X-Prize, the X-prize was only for sub-orbital flights. No private entrepreneur has come up with a privately funded spacecraft that can do a full orbit around the earth.
    2. The NASA contract awarding process is flawed as is. There's rampant corruption and favouritism. These factors directly contributed to the Challenge disaster, as the Faynmen report outlined. The Super X-Prize is not going to solve that.
    3. Winners will be determined by actual achievements, not proposals, So they need money to build it in the first place. But prize competitors will have to produce some results first before NASA will fork out any cash. So unless you have a co-founder of M$ backing you to the hilt, you ain't gonna reach orbital velocity buddy!


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  7. A billion dollars is chump change by tjstork · · Score: 3, Interesting

    Would you rather have NASA get another 5 billion a year or the FAA spend the same on a computer upgrade that doesn't work. Come to think of it, which would rather have: NASA, or another aircraft carrier battle group.

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  8. Don't make it a prize then by dj245 · · Score: 4, Interesting
    According to the article it seems the only reason they can't do it is because they can't award prizes larger than a quarter million dollars. So instead they should make it a contract, open to any "contracter" with the expectation that the design has a working scale model that has already completed full-scale "testing".

    Nasa usually does their own testing on most of their stuff.

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  9. Re:This won't work by ceejayoz · · Score: 4, Interesting

    It's too much of a risk. $10 million for X-Prize is fine because that's doable for a corporation, but $100 million - $1 billion + is just way too far out there.

    Microsoft is sitting on $40 billion in cash. I'm sure there are a number of companies with visionaries at the helm who'd love to throw cash at the problem - Richard Bransom of Virgin, for example.

  10. Isnt this how the JSF worked? by doormat · · Score: 2, Interesting

    If the documentary i saw on the discovery channel is to believed, Boeing and Lockeed-Martin built fighters, and then the army, navy, etc, picked the best performing unit (it ending up being the Lockeed-Martin one). If the army can do it, why cant NASA?

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  11. Re:A Kings Ransom? by Anonymous Coward · · Score: 1, Interesting
    Thats not a problem. Leave that to contracts - a major corporation funding AIDS research is likely to have a ironclad contract regarding what happens to any valuable discoveries anyway. In this case they'd just include a clause on how any prize money should be distributed.

    Something like AIDS is a bit different, though, in that the payoff will be astronomical even without a prize. I can easily see major drug companies offering to buy your cure for more than a billion if you came up with one independently anyway, because they know they could easily make it back - the market is large, growing and proven, which are all differences from space exploration

  12. Re:Bad thing? by Mycroft_VIII · · Score: 2, Interesting

    Sub contracting helps in this though. The big companies often sub-contract out parts of the whole to little companies, especially niche players.
    Sub contracting even aplies amoung the big companies. Once when Lockheed looked like it was going to loose a contract bid for some project or rather in the late 80's or early 90's my dad asked my uncle (who works for LM on some military project as a design engineer) if he was worried about it. He basically said "no I'll still get to work on it, it doesn't matter as much which of us (big areospace companies) gets it, the other two will still get alot of the work as subcontractors, just won't get the biggest piece of the pie". Though in quotes it's not an exact quote, just a paraphrase.
    And that's pretty much what I expect would happen here, the big companies get the lions share, and the smaller companies get a healthy load of work as subcontractors.

    Mycroft

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  13. Re:and congress is correct not to allow it... by FleaPlus · · Score: 4, Interesting

    I would love to hear from an American astronaut what they think about increased risk.

    From here:

    Cunningham [an astronaut on Apollo 7] departed from most current critics of NASA in criticizing the agency for becoming too risk-averse -- like our society, he opined. NASA is more afraid of failures than it's interested in attaining success in its missions. Abandonment of Hubble servicing was given as an example, and he criticized NASA's rationale for taking this action because of "higher risks" in placing a crew in the Hubble orbit by noting that NASA has put crews in that or similar orbits on no fewer than 90 prior occasions.

    When astronauts place themselves in harm's way to accomplish such a mission, they do so with foreknowledge and willingly accept the risk, he said. Cunningham termed abandonment of the Hubble particularly galling because of its popularity with the public. He observed that since we reached the Moon, only two things that NASA has done have stirred public imagination: the Hubble and the Mars rovers.