How George W. Bush and NASA Saved SpaceX From Financial Ruin (blastingnews.com)
MarkWhittington quotes a report from Blasting News: Elon Musk and the people at SpaceX are rightly basking in the afterglow of finally landing the first stage of the Falcon 9 rocket on a drone barge in the Atlantic. The same flight delivered an expandable module built by Bigelow Aerospace to the International Space Station. But, as Ars Technica points out, the launch, landing, and arrival at the space station would not have taken place had it not been for the generosity of NASA. George W. Bush began the Commercial Orbital Transportation Services (COTS) program, which commercialized first cargo and then crew flights to and from the ISS. Four years later, SpaceX, having endured a number of launch failures of its small Falcon 1 rocket, was running out of cash. They were teetering on the brink of financial ruin as they were trying to develop a much larger and more complex Falcon 9 that would compete with more established launch vehicles such as the Atlas 5 and the Delta 4. Then NASA announced the initial contracts for COTS cargo flights. SpaceXâ(TM)s share was $1.6 billion. The NASA contract saved the company and allowed it to press on with building the Falcon 9 and the Dragon and then successfully compete for the Commercial Crew contracts.
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NASA awarded a contract and will get full value from it. It wasn't charity.
In the end, if it reduces the cost of lifting payloads to orbit, it will be the government that will be the true beneficiaries.
In this case the right way to do it was to hire lobbyists so you can suck off of the government teat.
putting the 'B' in LGBTQ+
In this case the right way to do it was to hire lobbyists so you can suck off of the government teat.
The companies that are really sucking at the government teat are Lockheed Martin and Boeing who collectively own ULA. They supply launches under "Cost Plus" contracts. Basically the government pays the cost, as decided by the company, plus a guaranteed cost margin. This causes incentives to inflate costs through hiring too many managers and by choosing expensive complicated designs. SpaceX saves the government money by doing launches under fixed price per service contracts. The government pays a fixed price for launches; this creates incentives for SpaceX to save money. SpaceX has become the world's most affordable launcher. They are already cheaper than the Chinese and Russians, even without reusing their rockets.
This and no other is the root from which a tyrant springs; when first he appears as a protector - Plato (423 to 327 BC)
I doubt it's that nefarious. Cost inflation happens in any large organization that isn't actively trying to prevent it. And they do have some incentive to keep costs under control - there's only so much money to go around, and projects that look to be more expensive than they're worth tend to get cancelled.
We generally referred to COTS as "Commercial Off The Shelf".
In the shuttle and before days since it was the early days of computers and digital communications there was a LOT of custom hardware. Most of our networking was serial, and let me tell there was some weird custom equipment floating around. I got Mil-Spec certified in wire-wrap more than a decade after the spec was cancelled.
This was good equipment when it was created for what they wanted it for. Long story short when the shuttle launched a reel to reel flight recorder seemed like a good idea. By the time it quit flying you could do everything that flight recorder did with an iPod, it would be more reliable, hold more, you could put a triple redundant system in far less space and use less power doing it. Due to government red tape and "certification" programs this sort of thing didn't often happen.
When the shuttle was decommissioned the COTS initiative - as we knew it - really began to take off (my first five years there were still COTS, just lesser). It basically meant if you had a monitor go bad on one of our OS/2 systems (really) with a 15" IBM CRT monitor with a particular part number I could instead use any 15" CRT we happened to have laying around in spares, and if I didn't happen to have anything of the sort I could even use some good judgement (maybe requiring an engineer to approve it maybe not, I would ask a shift sup to be sure) even put an LCD with a VGA port on it. Don't something "radical" like that before COTS as we knew it would have caused a QC guy to have a heart attack, which during his time in the hospital recovering he would drain an entire Sam's-Club sized box of G2 pens in the ways he would write us up.
Often acronyms around there had two meanings, the official public one, and the one the people who wrote it actually meant. There were some humorous ones thrown out there on occasion, some of which had entire program names changed when the right person actually figured out what was intended.
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But only because the commercial companies took all the taxpayer paid research and built on it to create the commercial platforms. Good think the commercial companies don't have to pay that money back via patent royalties.
After the Space Shuttle retired, and with all replacement programs canned by Congress, NASA had no way to get astronauts into space, except by hitching a ride with the Russians, and NASA had no native way to resupply the ISS.
The COTS program has already fixed one of those. NASA now has access to two locally-made spacecraft that can fly on either the entirely-American Falcon 9, or the partially-foreign Antares or Atlas V. This gives pretty robust resiliency - a single accident cannot halt the entire system. (Two back-to-back RUDs can do that, though, as we saw).
The CCD program is getting NASA access to two spacecraft capable of shuttling astronauts to low orbit - one built to fly atop basically any lift rocket that can handle the load. Three other spacecraft are in the program, theoretically able to replace either of the two main CCD craft should they fall too far behind schedule or too far over budget - helping to ensure robust access to space.
Where would NASA be right now without them? Well, they could still loft satellites or probes on the high-price ULA vehicles, but they'd probably have to abandon the ISS. Between only having Russia for crew transfers, and only having Russia, Japan and the ESA for resupply missions, they would not have been able to effectively operate the ISS.
The entire cost of COTS, CRS and CCD combined is $12.3B. For comparison, the Constellation program cost $9B, and produced no flyable launch vehicles or spacecraft before it was canceled. SLS will have cost us $18B by the time it makes its first test flight. Considering the commercial programs* have given us multiple, redundant systems, and included the cost of dozens of missions, while SLS is a single spacecraft for a single rocket that will perform a single flight on its $18B budget, I think we're getting a pretty good deal.
* SLS is technically "commercial" as it is being made by several independent corporations. However, the key difference is that it is not competitive. If Aerojet Rocketdyne cannot produce engines at sufficient quality and quantity, or at a low enough price, NASA has no alternative. Same for the boosters and Orbital ATK, or the upper stage and Boeing, etc.. (The other difference is that the COTS/CRS/CCD program rockets are assembled by the contractor, while SLS will be assembled by NASA, but this is not a particularly meaningful distinction)
Then you haven't been involved in it. While working on a design for the shuttle, we'd finish a design, build and qual a widget. Before delivery, our manager would arbitrarily make some non functional requirement change (think paint color or wiring layout) and get the customer to agree.
To meet the process requirements, you'd have to go back two months and re-do all of the work for no functional change. In this one specific example half the people quit after six months on the merry-go-round. The trick is to finish and test early, then keep repeating the above process until the customer runs out of money then hand over what you have. There are many tricks that you can play, another is active incompetence where you make some terribly boneheaded decision that a fourth grader would question the rational and stretch out the process for weeks. I forgot to order the spectrum analyzer What???!!!!!????? You know it has a six week lead time and we told you four months ago and made you understand that we'd have twenty people sitting around twiddling their thumbs if we did not have it by this time. Yeah, my bad. Sorry about that.
From TFA: "The next president, or some in Congress, may begin asking why NASA is spending billions to develop its own heavy-lift rocket when SpaceX already has one."
As I recall, within about a year of taking office, Obama tried to kill the SLS (Nasa's heavy rocket) on this reasoning (that private companies could do the job better, given the chance, and secondarily that the funding NASA was getting for SLS was insufficient to achieve anything in a reasonable time frame) but Congress resurrected it.
Can anyone who has followed this more closely comment on the political history of COTS, and in particular the attitude of Bush and then Obama, and Congress/Senate, to COTS and SLS?
Quattuor res in hoc mundo sanctae sunt: libri, liberi, libertas et liberalitas.
What school did you go to that was only 3K for a full year of tuition, much less books?
Community college. I already had an A.A. degree in General Education. Adding an A.S. degree in Computer Programming on top of that meant taking the courses in that major.
That also neglects the increased cost in transportation, although I suppose in your case housing was fixed cost unless you had to move to attend classes.
I was working 60 hours a week and teaching Sunday school at the time. Apartment rent came out of my regular paycheck. I lived next door to the community college, so I just walk to class.
If you did an "online" university you got screwed - no accreditation.
I did several online classes through the community college. Because the classes I needed to graduate got cancelled several semesters in the row, I took three them as self-study classes with the dean being my supervising instructor. I made the president's list for maintaining a 4.0 GPA in my major upon graduation.
When it comes right down to it, wasn't NASA created to foster American companies and inspire the next generation of Scientists, Technologists, Engineers and Mathematicians?
Kudos to them believing in SpaceX and I hope that they continue to promote and support other up and coming companies.
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This is how the entire aerospace/aviation industry has functioned from the beginning. Government pays for R&D and private industry capitalizes on it. Boeing's 747 came from work done to develop the C-5. If you're shocked by this story then you haven't been paying attention for the last fifty years.
Sadly a lot of it is nefarious.
Take a look at most orgs during boom times and it's not hard to spot the crooks. Many are quite flashy with their looted wealth when they think the shareholders or customers are not looking.
Quite to the contrary. I've been on the government side of tha table v.s. Northrop and it was the contractor saying "that's stupid and will run up costs." While the government was insisting on change because everyone competent on our side quit and got a real job.
P.s. No, I wasn't competent. I was a pilot pretending to be a program manager to bring "the operators perspective" even though nobody in the program office gave a shit about the product or anything other than making sure that they couldn't be blamed for any decision the government made.
This stuff is why I don't understand people that consistently blame government for cost overruns, but never consider that corporations game the system to maximize their profits. We could probably cut the federal budget in half if the contractors working on government jobs stopped doing stuff like this to pad their spreadsheets.
The problem is that government isn't a very tough negotiator. There's little incentive to do so when it's not your money.
I'll get upset when he stands on an aircraft carrier with a big "Mission Accomplished" banner.
All launch customers desire "mission assurance", that is, effective management of the risk involved in getting their payload into space. Commercial customers achieve this mission assurance by buying insurance that pays out in the event a launch failure. In lieu of purchasing insurance, the US Government "carefully shepherds" taxpayers' money by incentivizing ULA, via cost-plus award fee, to design and build their launch vehicles with an extremely high attention to detail, achieving a level of mission success that is the envy of the launch industry.
You're crediting George W Bush with wise and foresighted... government spending? We don't need George W Bush to demonstrate the utility of government spending in spurring innovation that the private sector wouldn't otherwise be able to afford. Kennedy did that in the 60s.
Both parties believe in welfare, they only differ on who should get the dough; poor people on one side, and corporations on the other.
Poor people voting for democrats make sense. Poor people voting for republicans are just idiots
Actually, it's poor people AND corporations on one side, ONLY corporations on the other.
That, frankly, is the fault of voters, who don't mind the corporate graft so much when it benefits their state.
Can't have parasites without food. And here. the government funding is the food source.
Three gub'mint pensions actually (University of California, State of California, and United States Government).
Much like the anti-government crusader Paul Ryan who used his Social Security survivor benefits to pay his college tuition (quite legitimately - that's what the program was created to do) then immediately embarked on a lifelong career cashing government paychecks while campaigning on the evils of... government.
sPh
The difference is that Bush isn't claiming credit, people are crediting him.
Tend to agree; government agencies tend to have one exceptional person near the top and a whole lot of "others" filling the ranks. There are so many bad measures to control costs pushed onto contractors that it drives up compliance costs to insane levels. One person in my office has a full time job just dealing with invoices.
Not all government organizations are the same though. Generally it is when one gets a windfall of cash to spend that everything goes out the window. The $trillions of major jnrastructure upgrades will fall into this trap: it is cheaper to invest consistently over time than defer work and let it ballon up.
> SpaceX saves the government money by doing launches under fixed price per service contracts.
I love me some SpaceX but, unless I'm missing something, you can't actually say that. Why? Because it's not true. SpaceX has done no such thing.
Now, ideally, they *might* do so in the *future* but, as of yet and unless I'm missing something, nothing even remotely like that is true.
Am I missing something?
"So long and thanks for all the fish."
The Commercial Resupply Services contract is fixed cost and has had SpaceX supply the ISS 7 times already. At $133 million per mission, a traditional NASA cost-plus contract would have cost much more.