SpaceX Rocket Failure Cost NASA $110 Million

An anonymous reader writes: On June 28th, a SpaceX Falcon 9 rocket exploded just over two minutes into its attempt to reach the International Space Station. It was a contracted mission from NASA to resupply the astronauts living there. Today, NASA associate administrator William Gerstenmaier said the price tag to taxpayers for that failed launch is $110 million. SpaceX is leading the investigation into the cause of the failure, and NASA officials faced tough questions about whether private companies should be allowed to direct investigations into their own failed launches. A similar inquiry is underway at Orbital ATK. NASA inspector general Paul Martin said his office is looking into the matter. Gerstenmaier added that NASA is thinking about making these companies take out insurance policies that would cover the cost to taxpayers in the event of another failure.

Comments

Better than the shuttle

[Bugler412]

Better than multiple billions and astronaut lives lost for a cargo run. Hell, a shuttle launch that succeeded cost over a billion per launch.

Re:They don't already?

[Firethorn]

They may be self-insuring (getting lower launch costs by not requiring insurance - maybe the launch is $150M insured).

This was my thought. Rocket launches are risky, so any insurance is going to be expensive.

So let's say they require commercial insurance to be bought, and the insurance company correctly predicts a 5% failure rate. But they have expenses to cover, the insurance is 'unusual' and highly variable, it's a small market, etc....

Just to break even, they would have to charge 1/20th the cost per launch, but that's not the end of it. They have expenses and profit to worry about. For something like rocket launches? 20% overhead wouldn't be out of line, I think.

So rather than the 'insurance' cost per launch being 5%, it's now 6%. For a $100M launch, that means self covering costs, on average, $5M. Commercial insurance would increase that to $6M.