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NASA to Privatize ISS Missions?

Brian Young writes "Nasa is looking for private companies to take over the business of transporting astronauts and cargo to the International Space Station. "'Certainly this is an opportunity for the new space companies,' said Jim Banke, head of Florida operations for The Space Foundation industry trade association. 'They've been lobbying NASA hard for something like this for years.' NASA hopes to supplement, and eventually replace, crew and cargo flights to the space station that had been planned for the shuttle fleet." One has to wonder how much money can be saved by NASA that can be put to use elsewhere, such as trying to figure out how to put together a manned mission to Mars, if they no longer have to dish out the tremendous amount of money that getting astronauts and cargo to the ISS requires."

37 of 156 comments (clear)

  1. Duplicate! by Firethorn · · Score: 2, Informative

    Dupe. See NASA Seeks Help Carrying Cargo Into Space

    I still think it's a good thing that might end up saving money if it's done right.

    --
    I don't read AC A human right
    1. Re:Duplicate! by georgewilliamherbert · · Score: 2, Informative

      The $500 million is hoped to fund several demonstrations, not one.

      It would be appalling if nobody was able to, at the end of this, also fly cheaper resupply missions than Shuttle's loaded mission cost (which is over $1 billion a flight now, with the lower flight rates post-Columbia).

  2. Efficiency and Safety by MntlChaos · · Score: 2, Interesting

    Hmmm... Which is better at providing safe and cost-effective missions: the government or a private company?

    On the one hand, being in a bidding situation forces companies to have a lid on their costs, while on the other it encourages said companies to cut corners whenever they can. If NASA were competently managed, then it would be obvious that outsourcing the missions would be silly. However NASA's management has some issues, so maybe this is the right move.

    1. Re:Efficiency and Safety by blueeyedmick · · Score: 3, Insightful

      Once an operation becomes routine, I think it should be privatized. In this case, NASA does a better job at developing the new (and highly risky) missions (like the one to Mars), and less well at doing routine things like lifting payloads into orbit. I'd put this akin to commercial freight hauling and less in the vein of the Apollo missions. Given this, getting someone in the commericial market to do the hauling should be cheaper, quicker, and probably safer than having the government do it. Sort of like the difference between the USPS and UPS... perhaps 100 years ago when delivering packages was a very risky endevor with zero profit margins having the government deliver them was logical, but it's hard to see the reason now. Perhaps we're turning that corner in the orbital lift business this decade.

  3. Scuttle the ISS by toddbu · · Score: 3, Insightful

    How about we fire the retro rockets and bring it down? Do we really want to put more money into the ISS when there are so many more interesting projects to pursue (Moon, Mars, deep space exploration)? Apart from creating jobs, just what have we gotten for the billions that we've spent on the ISS?

    --
    If you don't want crime to pay, let the government run it.
    1. Re:Scuttle the ISS by grozzie2 · · Score: 4, Insightful
      Apart from creating jobs, just what have we gotten for the billions that we've spent on the ISS?

      We've gained a lot of knowledge, albeit, not quite the knowledge intended to gain, gained nonetheless.

      Science is a wondeful thing. You start with a set of assumptions, add either hypothesis or theory, then design experiments to validate the whole works, or, sometimes try invalidate it. In the end, knowledge is gained. sometimes, the experiments accidently invalidate the assumptions, so, altho they appear on the surface as a failure, valuable insight is still gained for future use, even tho the failure of assumptions means the hypothesis or theory never did get tested.

      The iss is a platform for developing and testing long duration mission technology. The goal is to reach the point where the technology for a mars mission exists (it doesn't today), and has been tested in the harsh environment of space. Low orbit is a good starting point, because it's a place we can go to 'routinely' to do this kind of testing. The iss was designed to take the best parts of the russian space program, combined with the best parts of the american space program, and get an international program in motion that could leverage it all. The iss itself is not an initial experiment in low orbit long duration, Mir already showed us that can be done, it carried on in that role for 15 years. ISS is a platform for hosting more advanced experiments and development.

      The problem with the iss program is, access to low orbit as routine turned out to be an invalid assumption, and, pretty much everybody had to step back and re-evaluate the fundamentals on which the program were built. In order to fulfill it's mission, the iss needs to be completed, but, it's slowly becoming apparent that the american space program is not up to the task of delivering into orbit the modules required. This was the 'strength' of the program that the entire iss concept was built on. As sometimes happens in science, the setup for the experiment invalidates the assumptions, now you have to step back and re-evaluate the basics before you can finish the experiment. The whole program was launched on the premise that us space shuttles would be available to lift specific modules for station assembly, and a lot of other countries bet significantly on that assumption. It's turned out to be flat wrong.

      The re-evaluation process is now ongoing. The usa took a couple years, spent a few billion, and 'fixed' the shuttle problem, then launched another shuttle. Up to that point, it was just a delay. The 'fixed' shuttle turned out to be not quite so fixed, the same old problem still exists. This really does now put the entire iss program in doubt, for a lot of reasons, some political, some technical. From a political view, other partner countries are asking a simple question. What happened during the 'fix the shuttle process'? A lot of time/effort/money was expended on the problem. Is this a core competency problem within the american space program ? Can other countries afford to continue investing billions into this program if the station is not going to be completed ?

      ISS partners have gained a LOT of knowledge from the program. It's just to bad most of that knowledge is in the area of politics, and engineering required to get to low orbit. Those were actually 'assumptions' at the onset of the program. The soviets were able to service Mir for many years, the ability of an american/russian partnership to service ISS was never questioned. It's turned out to be the achilles heel of the program overall. Shuttles are not flying, Russia cant afford to fly all the missions themselves, and silly laws in the us prevent american money from extending funding to soyuz launches.

      The ISS is proably going to die uncompleted. The biggest lesson learned for most of the partners, dont depend on the usa when large expenditure projects are involved, projects that extend beyond the 4 year election cycle hence they become suceptible to

  4. Money still comes from NASA... by blueeyedmick · · Score: 2, Informative

    I believe the money to pay for the payloads to the ISS will still come out of the NASA budget (for instance, the article mentions a $500 million price tag just to fund this privatization effort). NASA just hopes that the price tag will be less once competition takes over. And, I suspect they're correct, given the remarkably low cost of the recent X-prize contestants.

    1. Re:Money still comes from NASA... by Rhinobird · · Score: 4, Interesting

      the recent X-prize contestants weren't exactly low cost,

      For what it did, I think it was very low cost. Could you imagine NASA developing anything with the same capabilities as Space Ship One for 20 million dollars? The closest thing I can think of recently was the DC-X project back in the 90's, and that cost 58 million dollars.

      They got nowhere close to what it takes to send crew / cargo to the ISS.

      True, but the X-prize's goal wasn't orbit, just up to space and back down. It was eminently do-able, but nobody was doing it.

      --
      If Mr. Edison had thought smarter he wouldn't sweat as much. --Nikola Tesla
    2. Re:Money still comes from NASA... by Comatose51 · · Score: 4, Interesting

      It's a very clever move on NASA's part. For the cost of the reward, $20 million, they managed to get all the contestants to invest their money to do the research. Even if each contestant invested less than the $20 million, the sum of their research investment will add up to be more than $20 million, even if you discount for some redundancy in their research efforts. I think it's a very good example of using public money to promote private investment in something that will eventually benefit the public.

      --
      EvilCON - Made Famous by /.
  5. NASA by paul248 · · Score: 3, Insightful

    Perhaps they should change their name to "Not Attending Space Anymore"

  6. Read... by TrevorB · · Score: 3, Insightful

    Read "NASA decides to scrap ISS, blame private industry for not picking up the ball."

  7. How much cheaper? by forkazoo · · Score: 4, Insightful

    Really, how much cheaper can we expect a private company to do this? After all, NASa just needs to do it, while a private company needs to do it and turn a profit. And, seeing as how all "NASA" hardware is built by private contactors, how much of a difference are we really going to see?

    1. Re:How much cheaper? by FleaPlus · · Score: 4, Informative

      Really, how much cheaper can we expect a private company to do this?

      Much, much more cheaply. The private space startup SpaceX is targeting the ISS contracts with their Falcon 9, which has a price of $35-$78 million. In contrast, a launch on an equivalent Boeing or Lockheed rocket costs up to $230 million, and a space shuttle launch costs somewhere between $500 million and a billion.

      The key thing to remember is that a truly private company has a direct incentive to make things cost-effectively. For a government agency the incentive is quite indirect, and in the case of a typical cost-plus contractor (i.e. Boeing or Lockheed), they actually make more money if a project costs more.

      And, seeing as how all "NASA" hardware is built by private contactors, how much of a difference are we really going to see?

      Again, the big difference here is that they'll be using fixed-price contracts for deliveries, rather than using cost-plus contracts.

    2. Re:How much cheaper? by maraist · · Score: 4, Insightful

      The key thing to remember is that a truly private company has a direct incentive to make things cost-effectively.

      You miss the whole point.. In a truely private "industry".. There is competition for consumers.. Each corporation MUST minimize costs, as that's the only way to maximize profit (technology, timing, etc help but are less reliabile). But the eact opposite is true of ANY government contract job. That "industry" works by a completely differnet set of rules. Yes there is competition, but only for the initial bid.. After that, there is a trick called "cost ovrerruns". The government will pay ALL over-runs, because they're in it too deep.. They can't afford to back out and switch to a competator.

      Imagine being a software programing and KNOWING that your boss can't fire you, but pays you by the hour.. How long is that bug going to take to fix?

      The incentives are completely out of wack. The gov-contract-industry is supposed to correctly estimate how cheaply they can do something.. Then their goal is to ahead-of-time estimate every innacurancy in the government-contract plan.. Each gov-err in their specification will require a renegotiation of the price, and almost always at a hansome profit for the contractor.. So the contractor that can find the most flaws in the specification knows they can reduce their estimatd bid the most, and ultimately turn the highest profit.

      Then, when the contract is being fullfilled, the company has trade-offs.. Money-based trade-offs.. At any given point, they can choose to do something money-efficiently or not.. The determining factor is whether the gov will pick up the tab for the extra cost or not. And if the contractor can get the service done for cheaper than they know the government can track, all the better.

      The end result is that the project will DEFINITELY cost more than anoter space shuttle mission the 1'st couple times; look at all the libability coverage; they can't just go out there with untested stuff. (NASA could, but a private firm couldn't).

      In the long run, space industry has to be purely based on a high-volume consumer demanded, competatively offered industry.. Otherwise, somebody is getting the shaft.

      --
      -Michael
  8. Where's Russia, China, India, et al in all this? by PurifyYourMind · · Score: 2, Interesting

    I remember hearing something about Russia not being able to afford to help out the ISS project anymore, but what about China, India, France? These are hardly backwater nations... why aren't they helping more? Is it a contractual thing?

  9. do you know how to climb a really big mountain? by way2trivial · · Score: 2, Insightful

    with base camps...

    --
    every day http://en.wikipedia.org/wiki/Special:Random
    1. Re:do you know how to climb a really big mountain? by toddbu · · Score: 2, Interesting

      Sure, but do you need a multi-billion dollar "tent" set up years in advance to put everything into? After all, during the debate on which mode to use to get to the Moon, an orbital station was never considered. The closest mode would probably have been EOR, which allowed for on-orbit assembly of components before departure for Earth's orbit. I'm not sure that I see how having a manned orbital outpost would make things any easier. To use your own analogy, base camps are set up while on-route to the top of the mountain. You don't set them up years in advance. You set them up as you go. (In partial defense of your argument, polar explorations often set up depots in advance of travel. This is necessary, however, because of the short windows of opportunity for travel.)

      --
      If you don't want crime to pay, let the government run it.
    2. Re:do you know how to climb a really big mountain? by NoMoreNicksLeft · · Score: 2, Interesting

      You do if you plan on making the trip routinely. If a person goes up the moutain once a decade, put up a tent. However, if 25 ascend per week, maybe something a bit more permanent is in order...

  10. Re:Maybe if they hadnt spent half a trillion.... by Loconut1389 · · Score: 3, Insightful

    despite the obvious troll:

    if they'd spent the trillion on space instead of iraq, people would complain it was better spent on education- which it would be. It would be better spent on a lot of things.

    But the truth is, we ultimately need to go to space, we ultimately need education, we ultimately need a lot of things which is why we have budgets and its not an all or nothing deal for one particular endeavor.

  11. Incredible opportunity... by Cherita+Chen · · Score: 2, Interesting
    This is an incredible opportunity for the aerospace industry as a whole, spurning competition, new jobs, etc... There is some really good info on the subject, and its impact on the economy and space program (USA).

    http://www.angelfire.com/pa/sergeman/issues/techno logy/space.html

    Manned space flight has all but died, perhaps this will spark a new era - The one we geeks have been waiting for...

    --
    I'm not fat, just big boned...
  12. Yet another step.... by aussie_a · · Score: 3, Interesting

    This is just another step in NASA's eventual demise that I spoke about earlier.

    With NASA not even putting people in space, instead paying others to, it will be yet another step in furthering NASA away from... well anything involving space. After all, once a company does this, eventually people will begin to ask "what is NASA needed for? Can't we just have this company do it? We'll be able to save money if we cut out the NASA overhead and replace it with a smaller group."

    Thank god this will be help in furthering private space-flight. If NASA has to be destroyed, at least they're doing it in a way that will give a boost to the private space industry.

    1. Re:Yet another step.... by Cherita+Chen · · Score: 2, Informative

      Don't count on NASA going anywhere anytime soon. Shifting strategy, and scientific objectives, yes - but "an eventual demise", no. Though it is not widely advertised, NASA is embedded deeply in the defense research industry. This is a vital conduit for government contracts and congressional funding - all of this is outside the media-spun "Manned Missions" hype. Remeber, the DOD relies heavily on NASA for direction, new technology, etc...

      --
      I'm not fat, just big boned...
    2. Re:Yet another step.... by Planesdragon · · Score: 3, Insightful

      eventually people will begin to ask "what is NASA needed for? Can't we just have this company do it?

      When folk ask that, the answer will be "research and exploration, like they've always been good at."

    3. Re:Yet another step.... by FleaPlus · · Score: 2, Insightful

      With NASA not even putting people in space, instead paying others to, it will be yet another step in furthering NASA away from... well anything involving space.

      NASA's mission is "to understand and protect our home planet; to explore the Universe and search for life; and to inspire the next generation of explorers."

      As far as I can tell, transporting cargo and people to a space depot isn't part of NASA's mission. If they can pay a private company to take care of logistics so that they can focus on research and exploration, more power to them.

  13. Outsourcing Core Competencies a Poor Idea by dgallina · · Score: 2, Insightful

    But why would NASA outsource the very skills they'll eventually need for future Moon, Mars, and beyond missions? They'd win the immediate budget battle but loose the war.

  14. The Launch Services Purchase Act of 1990 by Baldrson · · Score: 3, Interesting
    I was initially as cynical about Michael Griffin as I was about Dan Goldin when he took the helm with grand plans to "reform" NASA. This is sounding like a new NASA and it indeed may be in the offing in response to the public pressure generated by the Shuttle failures combined with the popularity of the Ansar X-Prize. Seminal figures in the technological advances that lead to basic advances in transportation technology were conducted by private individuals competing for privately funded prize awards. These included the Wright Brothers, Henry Ford and Charles Lindbergh.

    This sort of incentives-based policy is in the tradition of American values. It should be no surprise that such values are being eroded as the 'nation of immigrants' changes from pioneering independence to bureaucratic dependence. The use of a socialist bureaucracy to explore space is a fundamentally different experiment that other proven American approaches to expanding the resource base available to humanity.

    In 1989 I was working on grassroots legislation to reform NASA's launch services policies. This led to the passage of P. L. 101-611, The Launch Services Purchase Act of 1990 which required NASA to procure launch services from private vendors whenever possible. This is common sense if proper boundaries between public and private functions are to be maintained. As radical as this may sound to many who see NASA as a space transportation company, it was, in fact, Presidential policy at the time and the legislation was therefore, in fact, redundant, but bureaucratic inertia demanded separate acts by the Legislative branch to reinforce the Executive's own command structure. This legislative effort started out as an attempt to passsomething along the lines of the Kelly Act of 1925 (which formed the basis for Jerry Pournelle's recommendations first put forth by his Citizen's Advisory Council for Space Policyin 1980), but compromised when it became clear that resistance from NASA, and its contractors, to citizen involvement in space policy was so intense that serious reform would be impractical. My testimony before Congress legislative follow-up to P.L. 101-611 made recommendations for a focus onincentives for commercial investment, rather than plans or "programs". An example of incentives-based legislation, applied to fusion energy policy, was recommended for passage by Bussard, R. W., one of the founders of the US fusion program in a letter confessing some of the subterfuge to which technical leaders resorted. It is still quite relevant today given the reliance on Middle Eastern oil and problems with fission energy. The point here is that incentives are more effective in general than governmental programs.

    The first settlers in America experienced enormous causalities their first years they were in America. Entire colonies were lost. The original colonies included a substantial variety of fundamentally differing approaches to settling North America. America's frontier wasn't built by a centrally controlled bureaucracy -- and there is no reason to expect such a bureaucracy will take Americans to their next frontier.

    Space policy is a touchstone of American values since Americans are spiritually a pioneering culture. Let's not forget who settled the frontier, how those "immigrants" differed from later immigrants, and what sort of "program" they had to settle the new frontier.

    If Michael Griffin is for real about this he may just reawaken the very pioneering character of Americans. We must hope he is not just sincere but will be successful doing so.

  15. Unfounded Rumor Mill by kgfowler · · Score: 4, Funny



    I didn't realise that the Halliburton Space Agency (HSA) was that far along in development.

    kgf

  16. What if the chinese put up their hand... by Traf-O-Data-Hater · · Score: 2, Insightful

    ...and offered to fly their new taikonauts to the ISS?
    I bet NASA woould suddenly receive all the funding it needed, ASAP, and no questions asked!

  17. Not necessarily a savings. by Irvu · · Score: 2, Insightful

    Despite what people claim "privatizing" something does not necessarily entail a cost-savings. I'm not saying that it won't here but people (on /. and elsewhere) have a tendency to assume that private companies are necessarily cheaper/faster/better than a public function. This is the mantra of both Republicans and Libertarians (as well as many Democrats).

    Consider the costs of privatized schools, privatized prisons, privatized utility companies (California anyone?) etc. In many cases of privatization the promised cost savings never appear but people still press ahead as if it will necessarily come.

    NASA already contracts out much of their work. In a sense contracting for the whole shuttle rather than each part is not an illogical step. I just hope (for the sake of NASA and my tax dollars) that they privatize the flights if and only if real savings emerge not the expectation of savings.

  18. Re:Cheaper and safer by FleaPlus · · Score: 2, Insightful

    But if you were to plot journey cost vs safety, you'd find strong correlation, that is, flights are getting both cheaper AND safer. Of course, corrleation does not imply causation.

    It's a matter of flight rate. As more and more flights took place and it became a part of everyday life, people got a better understanding of how to make airplanes fly more cheaply and safely. The hope is that the same thing will happen with spaceflight.

  19. NASA should focus on the mission by schwit1 · · Score: 2, Interesting
    1. NASA should get out of launch vehicle operations. It's become a commodity business.
    2. NASA should sell it's stake in the ISS. It's a toy and a money sinkhole.
    3. NASA needs to focus on space based research and exploration. Leave terrestrial flight research to the Air Force, DARPA and the private industry.
    4. NASA needs to focus on robotic planetary research, astronomy related projects and deep space vehicle research.

    BTW, a manned mission to the moon or Mars is the ISS on steroids sinkhole wise.

  20. Fallacy by perrin · · Score: 2, Insightful

    if they no longer have to dish out the tremendous amount of money that getting astronauts and cargo to the ISS requires.

    They will still pay the tremendous amount of money that getting astronauts and cargo to the ISS requires. The only difference is that the money will be going to a private company instead of doing it in-house. What did the OP expect - that the private sector will do something like this for free?

    Of course, it is possible that a private company can do it cheaper. However, since there are currently no private companies that can do this, it is equally possible that it will cause no end of scandals, court battles, disasters and bankruptcies that may force NASA to pick up unexpected bills. The good thing about doing things in-house is that a large number of variables can be trusted to be under control without the overhead of armies of lawyers, miles of contracts, thousands of accountants and unbelivably expensive insurance.

    I would like to see the insurance company that would insure a small space company against the possibility of astronatus being stranded in space, or a failure to deliver setting a space program like the ISS back so long that it would have to be scrapped. Who can even provide an objective cost of such losses?

  21. Saving Money - The Eternal Issue by Joska · · Score: 3, Insightful

    This may not be all bad but I don't advise any holding of breath. We have some insightful comments, yet judging by the scores, the moderators know nothing about economics or monetary policy. This is hardly surprising in view of the fact that it is not generally taught. The accepted belief system for most citizens is that money came from God or the Big Bang and as populations grow and society becomes more complex, we have to do more and more with a fixed amount of money, necessitating a sort of social, economic and environmental triage. What makes this silly model even sadder is the implicit assumption in all discussions of cost, that money once spent is simply gone. This is clearly contrary to everyday experience, yet we as a species simply don't often make these connections without serious study once a belief system is established and widely held. Sorry guys, but it is a fact that when the human resources, raw materials and infrasructure are available, then claims of a government being unable to afford something it purports to want or that the citizens want, is nothing more than Orwellian doublespeak meaning "We don't want to do that." The struggle to get by in a world of limited money helps keep people off the backs of the unelected real government that detests and fears democracy. Who has not noticed how infrequently the elected government does what was promised in the election campaign? Look into this or struggle, fight or pray for more money. When can we move on? The choice is up to us.

  22. Have to differ here by WindBourne · · Score: 2, Interesting
    The ISS is proably going to die uncompleted.

    For several reasons, it will not die. Since it is already jointly owned, it can not be re-tasked. That is, we can not take it apart and use the parts for another station (Bigelow's).

    More important, Europe, Japan, and Canada all own parts of it. Assume that USA and/or Russia make it to the Moon. It will be years before we set up a perm staffed base. Until then, we will need a base to keep testing equipment. But assume that we establish a base in 2010 or we decide to go to Bigelow's. So we abandon the ISS. The other countries will continue on with it. Why? For the simple reason that they need to test their equipment. Nobody wants to go to the moon and part way there, find out that they are losing O2.

    I suspect that in about 3 years, China will send up a mission that will dock with the ISS. They will then join the team as well.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  23. Privatization = saved money?! Don't make me laugh! by intnsred · · Score: 2, Insightful

    I'm amazed that no one has bothered to note the inherent biased assumption that privatization will save money.

    There are tons of examples that suggest that privatization, far from being the be-all/end-all cure to gov't bureaucracy, results in even shoddier service and actually costs more in the end.

    One can pick out tons of examples: States that have privatized the investigation of welfare fraud find that it costs more. Privatized prisons not only cost dearly, but result in barbaric treatment for the inmates (not that state-run prisons are any prize!).

    The US military has privatized many combat tasks to private mercenary corporations -- but does anyone think that privately hiring now-ex Green Berets and Rangers and paying them hundreds of dollars per day as mercenaries is really cheaper and more effective than paying them $30K/year as members of the US Army?! The Army is having to pay out huge bonuses to elite troops just to keep them from leaving the service to go work for the private mercenary corporations -- taxpayers pay to train them, then we pay through the nose because of privatization. Halliburton and mercenary corporation stockholders may benefit by military privatization, but the taxpayers certainly do not!

    We can also have ample evidence that privatization doesn't work in health care. The US has the world's most expensive health care, yet Canadians live 4+ years longer and the cheaper Canadian system outperforms the US privatized health care system in almost every measure. (Standard disclaimers: The US system performs great -- expensive, but great -- if you're rich and/or have good insurance, and the Canadian system is far from perfect; but on a national scale there is no comparison -- Canada's public system is cheaper and far more effective than the US private system.)

    I think there are very, very few people that will claim that Bush's privatization of FEMA resulted in an effective Hurricane Katrina response.

    Privatization may be effective in some rare instances, but it is far, far from the cost-saving, effectiveness-creating cure-all that the article's lead-in portrays it to be.

  24. Who other than Boeing & Co. can play in this s by cprice · · Score: 2, Insightful

    I seriously doubt that Scaled Composites or other 'up and commers' will have any serious shot at any dollars from this. I think we'll see more of the typical Big Business orientation that the US gov't tends to align itself with.

  25. Bah. by superdude72 · · Score: 2, Insightful

    Privatization is always a scam. ALWAYS. It is always backed by well-placed insiders who want to line their pockets by providing the same-or-lesser service at greater cost. If you expect any such scheme to work out well for taxpayers while the current GOP is in power, you're a rube.