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Companies Skeptical of Commercial Space Market

Hugh Pickens writes "The NY Times reports that Boeing and Lockheed Martin will happily sell rockets to carry astronauts into space, but are leery about taking a leading role in President Obama's vision for a revamped NASA that relies on commercial companies to provide taxi transportation to the ISS. 'I don't think there is a business case for us,' says Lockheed Martin's John Karas about space taxis. Both Boeing and Lockheed were stung during the last burst of optimism for the commercial space business about a decade ago. They invested several billion dollars — Lockheed to develop its Atlas V, Boeing for the Delta IV — in the hopes that the huge market for commercial satellites would supplement their traditional business of launching American military spy satellites. The market did not materialize, and what business there was went to European and Russian rockets that were cheaper. The hoped-for commercial market for space taxis hinges on one small company, Bigelow Aerospace, which is developing inflatable space habitats that it hopes to market as research facilities to companies and foreign nations looking to establish a space program."

8 of 192 comments (clear)

  1. want NASA to foot the bill by confused+one · · Score: 4, Informative

    For those who don't RTFA: ULA said the cost to upgrade the basic Atlas V to meet manned spaceflight would be $400M. They also said that if you want to build a heavy lift Atlas or Delta to manned spaceflight spec it would cost between $1B and $2B. And they want NASA to pay all the cost, up front.

  2. Re:riiiight by icsEater · · Score: 3, Informative

    They're saying there is no market for investing in new expensive launch vehicles with all the quadruple redundancies and fail-safes imposed by the government. There's already a crop of old but reliable Soviet technology that does the same.

  3. Re:Government is Clueless about Business by ZonkerWilliam · · Score: 4, Informative

    Working with the Feds I can honestly agree, the mentality is vastly different. From perspectives of a federal agency, they submit a request for more funding if they need it, usually they get it (meaning, usually, a tax hike). What kills me is the way the whole funding is setup, if you don't spend all your funding you have to send it back, and next year you get reduced funding. So... all the agencies are motivated to spend all the cash on unneeded equipment at the end of the fiscal year just so they can get the same amount of money next fiscal year. So this tells us that basically Government is structured to waste money.

  4. Re:Government is Clueless about Business by Runaway1956 · · Score: 4, Informative

    From experience in the Navy, I can verify the fiscal thing. Each quarter, we would "purchase" things out of our own storerooms, so that the books balanced within a couple of dollars. Across the board, we did this. The galley (or kitchen, for you landlubbers), office supplies, paint, you name it. The money had to be spent, or lost. At the end of the fiscal year, same thing. Spend right down to the very last dollar, never turn money in, or the next year your budget would shrink.

    Damn shame that things work that way. It's an incentive to waste.

    --
    "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
  5. Re:Government is Clueless about Business by CRCulver · · Score: 3, Informative

    It's gratifying to see they are doing this in a "bottom-up" fashion instead of a "top-down" organization, as so many of those are just front groups for various monied interests.

    There's been plenty of examples of supposedly grassroots events being in fact organized by large, highly funded Republican groups. It's just like those old protests against the Iraq War where the marches were organized by extreme groups like International ANSWER without participants knowing about it. True grassroots events of late have been few. In many cases, a sincere public is being manipulated by very organized groups.

    Every new federal agency becomes a permanent fixture, never to be disbanded. Every entitlement and social program will never be repealed no matter how bankrupt.

    Behold the real problem in American politics: corruption and ossification. The rest of the developed world ought to serve as proof that the welfare state does work, though it requires flexibility, constant reevaluation of programs, and relatively honest functionaries. The Tea Party folks are foolishly desiring an end to the government as a principle, when they ought to be electing better politicians who might bring a successful political culture into Washington.

    Though American by origin, I've lived in Finland for some years. From this vantage point, the entire Tea Party platform seems based on ignorance. Working towards a smaller government? No, you won't progress towards a higher standard of living without a stronger welfare state. (For all the supposed higher taxes of Nordic Europe, I have more spending money left over at the end of the month than I ever did in the US, and families here typically own two homes.)

  6. Re:What's wrong with cost plus? by h4rr4r · · Score: 3, Informative

    The alternative is the producer puts in a quote and is stuck with it. If they fail to produce for that, then you get your money back.

    I do not pay the costs of USPs truck breaking down when they deliver a package to me. They lose money on that delivery and make it up on the aggregate.

    If you make a bid and it is too little, too fucking bad. Cost plus allows these companies to bid far lower than they know it will cost to produce these things and then jack the price up later.

  7. mod DOWN! by Anubis350 · · Score: 4, Informative

    Honestly, insightful?

    From a quick google search on NASA inventions:

    Ten NASA inventions you use every day

    Top 15 NASA inventions

    Polimide Foam

    NASA Inventions benefiting our daily lives

    Highlights from those links include kidney dialysis, CAT scans, various types of insulation, efficient water purification tech, cordless tools, modern designs of microchips, satellite tech (you know, it deleives a great deal of your communications....), scratch resistant lenses... And there's a *lot* more, a great deal of modern tech comes from NASA is one way or another.

    Even if you have a problem with exploration and a search for knowledge and understanding of the universe, you have to admit the space program and its SCIENCE have yielded *massive* results on earth in technology. I'm also pretty sure there were luddites like you when the first ships were being built, the first submarines, the first plans, hell, the first time someone said "I'm going to wander 50 miles that way and see what's there".

    --
    "goodbye and hello, as always" ~Prince Corwin, from Zelazny's Amber series
  8. Re:riiiight by Dr.+Spork · · Score: 3, Informative

    I don't think you understood this right. Obama is opening the position of taxi service to the ISS to the open market, but by this he doesn't mean the private sector. He means that the national government would pay for this service with tax money. They're declaring unambiguously that there will be a demand, and inviting private companies to satisfy it at market rates. But those two companies have much more lucrative things to work on, like SDI - where they get billions for making powerpoint presentations.