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NASA Spends 72 Cents of Every SLS Dollar On Overhead Costs, Says Report (arstechnica.com)

A new report published by the nonpartisan think tank Center for a New American Security shows us where a lot of NASA's money is being spent. The space agency has reportedly spent $19 billion on rockets -- first on Ares I and V, and now on the Space Launch System rocket -- and $13.9 billion on the Orion spacecraft. If all goes according to plan and NASA is able to fly its first crewed mission with the new vehicles in 2021, "the report estimates the agency will have spent $43 billion before that first flight, essentially a reprise of the Apollo 8 mission around the Moon," reports Ars Technica. "Just the development effort for SLS and Orion, which includes none of the expenses related to in-space activities or landing anywhere, are already nearly half that of the Apollo program." From the report: The new report argues that, given these high costs, NASA should turn over the construction of rockets and spacecraft to the private sector. It buttresses this argument with a remarkable claim about the "overhead" costs associated with the NASA-led programs. These costs entail the administration, management, and development costs paid directly to the space agency -- rather than funds spend on contractors actually building the space hardware. For Orion, according to the report, approximately 56 percent of the program's cost, has gone to NASA instead of the main contractor, Lockheed Martin, and others. For the SLS rocket and its predecessors, the estimated fraction of NASA-related costs is higher -- 72 percent. This means that only about $7 billion of the rocket's $19 billion has gone to the private sector companies, Boeing, Orbital ATK, Aeroject Rocketdyne, and others cutting metal. By comparison the report also estimates NASA's overhead costs for the commercial cargo and crew programs, in which SpaceX, Boeing, and Orbital ATK are developing and providing cargo and astronaut delivery systems for the International Space Station. With these programs, NASA has ceded some control to the private companies, allowing them to retain ownership of the vehicles and design them with other customers in mind as well. With such fixed-price contracts, the NASA overhead costs for these programs is just 14 percent, the report finds.

166 comments

  1. Can't blame NASA by OverlordQ · · Score: 4, Insightful

    NASA is the easiest go to for pork barrel politics.

    --
    Your hair look like poop, Bob! - Wanker.
    1. Re:Can't blame NASA by slacka · · Score: 4, Interesting

      And if you remove the pork barrel from the equation, with such fixed-price contracts, the NASA overhead costs drops to just 14 percent. This should be the main take-away.

    2. Re:Can't blame NASA by taiwanjohn · · Score: 4, Informative

      That's why so many space enthusiasts refer to SLS as the Senate Launch System. My friends and I are betting on how many times it will actually fly before it gets canceled (my money's on 2). By the time this thing flies (if ever) SpaceX and Blue Origin will already have heavy lifters available for a fraction of the price. The Falcon Heavy and New Glenn are not quite as powerful, yes, but both companies already have bigger rockets in development which will probably be available in the early-to-mid 20s.

      Besides, in the current launch market there just isn't much need for a booster the size of SLS. And by the time such needs develop, the commercial ones from Musk and Bezos will be ready.

      --
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    3. Re:Can't blame NASA by Gravis+Zero · · Score: 3, Insightful

      NASA is the easiest go to for pork barrel politics.

      I would like to remind you that about a trillion dollars a year go toward "defense". The budget for the F-35 is almost as large as the entire budget for NASA! If you want to talk about pork, you aren't talking about spending money on science, you're talking about defense spending.

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    4. Re:Can't blame NASA by Rei · · Score: 4, Insightful

      I'm anyone but someone to defend SLS, but this report seems rather flimsy. It seems that they're calling anything that NASA does in-house "overhead". That's not really a fair measure. A rocket is not just its physical construction; there's a huge amount of cost in research, design, testing, and support infrastructure - in the case of SLS, particularly the Exploration Ground Systems (EGS). Part of the problem however is that every time NASA builds something new, they're rarely allowed to shut it down. Including major projects with contractors. Congress keeps mandating this inefficiency, when what NASA really needs is the freedom to put large amounts of infrastructure to the axe when it can't contribute toward competitive costs, and reallocate the funds as is needed. So long as they face mandates to keep everything open (both internal, and with specific production lines run by particular suppliers), they shouldn't be criticized for their high costs - congress should.

      I really think NASA would fare better if it went back more to the NACA model - a research and support organization for other players, maintaining the common infrastructure and R&D used by others - with the addition of a scientific exploration program. NASA shouldn't be making anything that a private business case can be built for (for example, rockets reaching LEO / GEO), but they should be running the DSN, range support, creating a market for private industry to continually expand/improve its capabilities, nurturing startups to increase competition, and extensively working to bring more advanced technologies (that the market couldn't afford to sink money into due to the risk) from theory into real world - not trying to make "workhorses", but proof-of-concept systems that others will run with if merit and maturity can be demonstrated.

      In short:
      If there's a business model for it: private industry
      If it's too risky or long-term for business: NASA proof-of-concept
      If its a common need for multiple businesses in the field: NASA permanent infrastructure

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    5. Re:Can't blame NASA by ShanghaiBill · · Score: 4, Funny

      So your best defense of NASA's budget is that we also waste money on other things that are even stupider?

    6. Re: Can't blame NASA by Anonymous Coward · · Score: 0

      Welcome to Trumponian politics. I know, let's gut the Corporation for Public Broadcasting so we can purchase a 5 million dollar coffee machine. That way we can fuel the bureaucrats to help better manage NASA's race to the bottom.

    7. Re:Can't blame NASA by gmack · · Score: 2

      I don't think anyone is defending NASA's budget, only correcting the statement that NASA is the easiest to go to for pork barrel politics. NASA is bad, but the defense spending is far worse mainly because if you question defense spending your loyalty to your country is questioned so it's a great place to force the military to buy overpriced things, or worse yet, things they don't even need.

    8. Re:Can't blame NASA by taiwanjohn · · Score: 1

      I couldn't agree more, in particular with the idea of NASA getting back to its NACA roots. And I suspect the SLS will provide some impetus in that direction, as it becomes more and more obvious to the public that it's a colossal waste of money, especially when privately developed rockets almost as powerful as SLS are flying at a much lower cost. If Thiokol (or whatever they're called these days) wants to continue building SRBs, let them compete in the open marketplace instead of bribing Congress-critters to require NASA to use them.

      --
      XML is like violence. If it doesn't solve your problem, you're not using enough of it. --AC
    9. Re:Can't blame NASA by Drethon · · Score: 1

      So your best defense of NASA's budget is that we also waste money on other things that are even stupider?

      Sure, NASA budget needs fixed. Before projects throwing, what, two orders of magnitude more money away?

    10. Re:Can't blame NASA by Gravis+Zero · · Score: 1

      Funding NASA has continually paid off with new scientific knowledge, much of which has even been used to make weapons. War only destroys lives.

      --
      Anons need not reply. Questions end with a question mark.
    11. Re:Can't blame NASA by sheramil · · Score: 1

      You're right. You should take the budge of NASA AND the military and devote it towards more Spiderman and Batman films.

    12. Re:Can't blame NASA by K.+S.+Kyosuke · · Score: 2

      A rocket is not just its physical construction; there's a huge amount of cost in research, design, testing, and support infrastructure - in the case of SLS

      The problem is that in case of SLS, which recycles half of the STS equipment, if you need to do so much extra research, maybe it was a wrong idea from the very start. One of the things I found utterly laughable was the recent engine testing campaign for the limited amount of engines that already flew (and will be thrown away), just because they've decided to run them slightly hotter. These things sum up in a nasty way. You could have designed and developed not one but several new launchers for the total sum of incremental SLS expenses, any of them more prospective than the SLS.

      --
      Ezekiel 23:20
    13. Re:Can't blame NASA by Rei · · Score: 1

      No question. But, mandates are mandates.

      --
      Kneel Before Christ!
    14. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      the NASA overhead costs drops to just 14 percent.

      Maybe, but that assumes no work of any value was done by NASA. More likely I think is that the work would be shifted to the private sector, perhaps done cheaper or perhaps not.

    15. Re: Can't blame NASA by Tyrannicsupremacy · · Score: 2, Insightful

      Yeah, this all started with Trump. *rolls eyes*

      --
      http://i.cubeupload.com/T6cyLu.png
    16. Re:Can't blame NASA by The+Real+Dr+John · · Score: 1

      Privatization always works out great for regular people, like the water supply in Flint Michigan. I wonder if Americans will ever figure out that privatization is a con job by oligarchs to get your money for themselves under the guise of efficiency. Our privatized health care system sucks, and it costs twice as much as non-profit systems that have no co-pays and cover everyone. You're being conned folks.

      --
      A brain is a terrible thing to waste... Mind? That's debatable.
    17. Re:Can't blame NASA by knightghost · · Score: 2

      Average cost of management and profit for a private company is around 50%. Add in detailed planning for projects lasting many years and 72% isn't unreasonable. I've seen it as high as 90% for private companies.

      We're a service economy now - not a manufacturing economy like we were during the first moon mission.

    18. Re:Can't blame NASA by stealth_finger · · Score: 1

      So your best defense of NASA's budget is that we also waste money on other things that are even stupider?

      Depends if you think it needs defending. Think of what you get for your money from NASA compared to the F-35. You want to talk about wasting money? How about a billion dollars for 62 miles of wall/fence. http://edition.cnn.com/2017/03...

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    19. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      So your answer to an article on how much NASA, a government bureaucracy, wastes is to create another bigger bureaucracy to carry out life and death decisions in an area even more likely to go badly if put completely under government control.
      And let's be clear their are no no-profit systems, profit is just taken out in the form of direct power over peoples lives vice the indirect measure of power money.
      If you think that giving some government bureaucrat control over your healthcare is better than having a number of choices with balance of power oversight your the one being conned.

    20. Re:Can't blame NASA by beelsebob · · Score: 1

      This doesn't look pork barreley to me at all.

      I'm actually amazed that 28% of the cost is going on building the rocket, because you know... Someone has to fucking design the thing.

      Why is it surprising that the design of a brand new rocket system costs a significant proportion of the cost of building the first rocket of that type?

    21. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      But, but, but --- FREEEEDOOOM!

      And of course it's better to die in a ditch when misfortune strikes than paying a bit extra in taxes so those less fortunate can have access to healthcare too, because bad things always only happen to those who deserve it.

    22. Re:Can't blame NASA by beelsebob · · Score: 5, Insightful

      Except we're not talking about profit here.

      We're talking about everything that is not manufacturing the rocket. That is... designing the bloody thing.

      The thing I find surprising about the 72% figure is not how high it is - it's how low it is. It apparently is only costing 3 times as much to design an entirely new rocket system than it costs to build the first vehicle.

      That's really fucking impressive.

    23. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      You might have a point if there weren't dozens of examples of government-run healthcare systems on this planet with better health outcomes and costs than what we see in the US.

    24. Re:Can't blame NASA by bluefoxlucid · · Score: 5, Interesting

      Yeah, that's what I was thinking: people just want you to take a hammer and start putting in nails. Architects and engineers are overhead; just start putting up walls and don't worry about if it'll blow over in the first moderate wind.

    25. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      Is it acceptable to force a doctor at gunpoint to provide healthcare?

    26. Re: Can't blame NASA by prisoner-of-enigma · · Score: 2

      Welcome to Trumponian politics.

      You know, I seem to recall there might've been a different guy in the White House for the last eight years who oversaw the ridiculous F-35 program and did...well, nothing. Gosh, what was his name? O-something? But who cares, right? Since he was a Democrat he can do no wrong, and since Trump is a Republican he must be blamed for everything, including things he had nothing to do with.

      --
      In the end they will lay their freedom at our feet and say to us, Make us your slaves, but feed us. - Fyodor Dostoyevsky
    27. Re:Can't blame NASA by prisoner-of-enigma · · Score: 1

      I wonder if Americans will ever figure out that privatization is a con job by oligarchs to get your money for themselves under the guise of efficiency.

      I dunno. Americans still haven't figured out government programs are a con job by politicians to get our money for themselves under the guise of efficacy. "Hey Taxpayer! You're too stupid to know what to do with your own money so we will take it from you and spend it in ways we think are best for you! Don't object! It's for your own good!"

      This is why I'm a Libertarian.

      --
      In the end they will lay their freedom at our feet and say to us, Make us your slaves, but feed us. - Fyodor Dostoyevsky
    28. Re:Can't blame NASA by pr0fessor · · Score: 1

      That's not how it works. Of course NASA's overhead drops when they contract that work out instead of doing it themselves it just means someone else is doing the work and cost where shifted to them. You should be asking does it cost less to contract that out?

    29. Re:Can't blame NASA by Bob+the+Super+Hamste · · Score: 1

      I would like to remind you that about a trillion dollars a year go toward "defense".

      No it is actually closer to half that and if you include veterans benefits it is only about 60%. That isn't to say there isn't waste and stupid shit going on since we all should be familiar with generals and the like saying they don't want something and don't need it but congress approves money for it because it brings home the bacon to their district. Personally I think our military budget is over sized and everyone likes to complain the the US spends more than the next X countries combines on their military but unlike China or Russia we are a high cost of living country and unlike most of Europe we end up being world police. Personally I think we would be better off telling the rest of the world they need to take a bigger role in keeping the peace and dramatically scale back our forces in places like the middle east, Europe, Africa, Asia. We can't do this all at once and it needs to be done in an orderly fashion but over a 4-8 year span we could dramatically cut back.

      --
      Time to offend someone
    30. Re:Can't blame NASA by brickhouse98 · · Score: 1

      Total agreement. Sounded bogus right when I read- "These costs entail the administration, management, and development costs paid directly to the space agency" as if development should be near nothing. That's insane.

    31. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      "I'm anyone but someone to"...

      Are you American, by any chance? Can you Americans stop bastardising your own language? Can't remember the correct phrase? Just make one up!

    32. Re:Can't blame NASA by WheezyJoe · · Score: 5, Insightful

      Agreed. This report smells like sensationalized bullshit that makes light of what things really cost. The cost to essentially re-tool after decades out of the business of anything beyond low-earth orbit space travel has to be paid, and since NASA has to carry out the mission, they're the ones who first have to have everything in place. Measuring this against what contractors get is a head-fake; contractors should be specialists paid just for the piece of the puzzle required from them, so they should get paid less and later, after NASA has figured out to an excruciating degree of certainty what they need and how to get it done right so that contractors don't wind up making something useless.

      Besides, NASA is not for-profit like the private sector. Money doesn't disappear down a profit hole, CEO bonuses or golden parachutes. If money is being stolen or misappropriated at NASA, it will be found out - some of that overhead, after all, goes to paper-trailing all the funding. That's why I'm saying bullshit to this article. Unless there are examples of specific misappropriation, then the money's being spent where it's gotta be spent (it sure as fuck isn't going to big, giant salaries or bonuses). It's easy and fashionable to shit on public-sector spending... 'cause it's public so trolls can see it and troll it and feel smug without taking the time to dig into the details... unlike the private sector where their spending is none of your damn business. Pros and cons. Yes, government agencies fuck up every so often and spend tax-payer money on bridges to nowhere and other shit. But they get caught because of the paper trail and the armies of trolls looking to expose them and feel smug about themselves.

      Given the high-exposure of NASA, and how crazy fucking hard it is to get a job there in spite of relatively meager salaries compared to what you could get in the private sector, I don't bet there's too much funny business really going on... except only for pork mandated by Congress, because a congressman wants something sweet in his state or district. In THAT case, don't blame NASA, blame the Congressman (and the people who voted for him).

      --
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    33. Re:Can't blame NASA by The+Real+Dr+John · · Score: 1

      You are drinking the coolaid for sure. Government is only as good or as bad as the people who voted into office. Business is always about screwing customers to get their money. Now that college is a for profit business, regular people can't afford it. We'll see how you like the Trump administration who says they are going to make the government into a business, and citizens into customers. I'm sure you are going to love it. Not so much for most of the rest of us.

      --
      A brain is a terrible thing to waste... Mind? That's debatable.
    34. Re: Can't blame NASA by WindBourne · · Score: 1

      Funny thing is, that SLS was mostly done by house GOP, not Dems or the Senate.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    35. Re: Can't blame NASA by thomst · · Score: 2

      prisoner-of-enigma sneered:

      p>You know, I seem to recall there might've been a different guy in the White House for the last eight years who oversaw the ridiculous F-35 program and did...well, nothing. Gosh, what was his name? O-something? But who cares, right? Since he was a Democrat he can do no wrong, and since Trump is a Republican he must be blamed for everything, including things he had nothing to do with.

      Y'know, I seem to recall there WAS a different guy in the White House - a Republican, in case you've forgotten - whose administration came up with the ill-conceived F-35 project in the first place. And got it approved (sorry, I meant "mandated") by Congress, despite its infeasible design. Oh, and wasn't he the one whose "brainchild" the SLS program also was? And wasn't it was his successor (you know: the Democrat) who jawboned Congress into at least eliminating the most ludicrous, unstable booster from SLS the program, even though he could NOT persuade that same Congress to cancel that program (OR the F-35, for that matter) outright? And isn't the reason for Congress's refusal because those programs provide Federal welfare for aerospace contractors - the same kind of enormously-expensive jobs program from which the defense industry has continuously (and increasingly) benefitted since WWII - who provide employment for constituents of that Congress's representatives and senators?

      Oh, wait. The beneficiaries of both defense and aerospace programs are THE SAME CONTRACTORS? I guess that makes it okay, then, right ... ?

      Look, both programs are largely a product of our Congressional, fundraising-as-legalized-bribery, campaign financing laws - which are, in turn, themselves products of 5/4, party-line decsions by the Rhenquist- and Roberts-helmed editions of the Supreme Court. Decisions that, to jog your memory, defined money and speech as the same thing, and that enshrined the curious notion that corporate, FICTITIOUS, "persons" should have the unlimited right to SECRET political "free speech" (which is to say, "secret campaign contributions"). Which (perhaps not-so-obviously) essentially means the right to shower unlimited money on Congresspersons' re-election campaigns USING FUNDS THAT THOSE SAME CONGRESSPEOPLE GAVE THEM IN THE FIRST PLACE.

      Oh, and to put this SCOTUS-blessed conspiracy into proper perspective, it's also important to remember that the money these two cesspools of corruption so happily pass back ann forth comes from taxes. YOUR taxes, btw.

      But, by all means, please continue to sing " Let's blame Obama for the existence of programs he opposed and attempted to end - but failed to do so because CONGRESS REFUSED TO ALLOW HIM TO". It has SUCH an irresistable beat, after all ...

      --
      Check out my novel.
    36. Re: Can't blame NASA by Midnight+Thunder · · Score: 1

      You're right it didn't start with Trump, but he definitely has become the flag bearer for everything that seems wrong with the GOP and US politics in general.

      NASA unfortunately is the toy for the ambitions of many senators. Either they get tasked with missions that are overly ambitious or get critisiced for missions that were dictated by the same unrealistic ambitions of politicians.

      --
      Jumpstart the tartan drive.
    37. Re:Can't blame NASA by khallow · · Score: 1

      I guess there's a silver lining in every fubar. I'll note here that SpaceX could probably throw together a SLS-class vehicle for one to two years of SLS funding with a similar degree of schedule slippage. There is a huge cost multiplier to having NASA do these things.

    38. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      SpaceX doesnt have to deal with mandates, it can more easily revise and be more nimble. If NASA were allowed this, we would likely see improvements. I agree with what you say, COTS is essential given the inevitability of congressional meddling in NASA by politicians that dont know anything about engineering

    39. Re:Can't blame NASA by Crashmarik · · Score: 1

      Hmmm so you think 10 billion a vehicle is a good deal ?

    40. Re: Can't blame NASA by Anonymous Coward · · Score: 0

      Are you ok blaming Trump for the same things you defend Obama on?

      If you agree Trump is no more to blame than Obama, then ok. If not then time to self reflect.

    41. Re:Can't blame NASA by ShanghaiBill · · Score: 1

      Think of what you get for your money from NASA compared to the F-35.

      How about we just think about what we get for our money from NASA?
      Comparing it to the F-35 is pointless since in no way whatsoever are they alternatives.

      How about a billion dollars for 62 miles of wall/fence.

      Using that as justification for spending on something completely unrelated is idiotic.

    42. Re:Can't blame NASA by lgw · · Score: 2

      NASA is a project management organization. They don't design rockets - they design requirements for rockets. The Major corporation that take NASA contracts design the rockets, from an engineering perspective.

      This is really a comparison between having custom rockets farmed out to someone like Lockheed, vs just using "COTS" rockets from someone like SpaceX.

      --
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    43. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      There is a huge cost multiplier to having NASA do these things.

      Yep. Turns out NASA doesn't get to say "oops" as often as SpaceX does, which makes things more expensive.

    44. Re:Can't blame NASA by khallow · · Score: 1

      Yep. Turns out NASA doesn't get to say "oops" as often as SpaceX does, which makes things more expensive.

      NASA does a lot of stuff which makes things more expensive. In addition to their skewed risk perception, they also reuse the Space Shuttle lineage despite no compelling reason to do so (particularly, the solid rocket motors which generate a variety of costs and risks), employ cost plus contracts (which should be the exclusive realm of gouging law firms), and make some of the worst economic decisions in the federal government.

    45. Re: Can't blame NASA by Anonymous Coward · · Score: 0

      Too bad the GOP flag bearer has been completely at odds with the GOP since he started his bid.

    46. Re:Can't blame NASA by im_thatoneguy · · Score: 1

      Yeah somehow this "Think Tank" used their thinkers to come up this not-at-all-inaccurate conclusion that:

      if ($.destination == #NASA) then ($.Category = #overhead)
      elif ($.destination == #Private) then ($.Category = #CuttingMetal)

    47. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      This report is designed to give all the patents to private industry. Once it all is private, wait to see the overhead in those big conglomerates! And the fees for using the patents!

    48. Re: Can't blame NASA by Areyoukiddingme · · Score: 1

      Are you ok blaming Trump for the same things you defend Obama on?

      If you agree Trump is no more to blame than Obama, then ok. If not then time to self reflect.

      Trump is no more to blame than Obama today. It's only March, after all. There still isn't a Trump administration to blame yet, since their takeover is in such a shambles.

      But by the time of the mid-term elections in 2018? Yep, his fault by then. Why? Because he's the leader of the party that controls both houses of Congress.

      I managed to type that with a straight face. Ok, we can't ever blame Trump for the F-35 or the SLS. We both know he is only the titular leader of the Republican party, not the actual leader. We both know they don't like him and don't want him and have no intention of ever listening to him. Trump had no idea what he was letting himself in for. He's going to be blamed for everything, while having control of almost nothing. Congress doesn't like him, doesn't respect him, and doesn't believe in anything he believes in, lip service to the contrary. He's going to get even less traction than Hillary Clinton would have, since she knew where the bodies were buried and he doesn't. If he wasn't such a childish, self-aggrandizing prick, I'd feel sorry for him.

    49. Re:Can't blame NASA by Gravis+Zero · · Score: 1

      ... we end up being world police...

      Nobody asked us to be, so why are we doing it? You can claim whatever justification you want but we both know it comes down to money.

      --
      Anons need not reply. Questions end with a question mark.
    50. Re:Can't blame NASA by beelsebob · · Score: 1

      Yup, it's based on an assumption that everything the government does is inherently overhead, and then uses that false assumption to prove that the government is wasting tons of money.

    51. Re:Can't blame NASA by khallow · · Score: 1

      Agreed. This report smells like sensationalized bullshit that makes light of what things really cost. The cost to essentially re-tool after decades out of the business of anything beyond low-earth orbit space travel has to be paid, and since NASA has to carry out the mission, they're the ones who first have to have everything in place. Measuring this against what contractors get is a head-fake; contractors should be specialists paid just for the piece of the puzzle required from them, so they should get paid less and later, after NASA has figured out to an excruciating degree of certainty what they need and how to get it done right so that contractors don't wind up making something useless.

      Unless they had private industry do it. Then they wouldn't need to do all this stuff. It's worth noting that NASA actually did a study where they priced out how much a NASA contract for SpaceX's development of the Falcon 9 would cost. It turned out to be an order of magnitude greater than what SpaceX actually spent on development.

      Besides, NASA is not for-profit like the private sector. Money doesn't disappear down a profit hole, CEO bonuses or golden parachutes.

      Actually a lot of money does disappear exactly that way since NASA depends on private industry to actually build anything.

      Unless there are examples of specific misappropriation

      Like the existence of the Space Launch System? No reason for it aside from cash flow to the appropriate congressional districts. It has some of the most terrible economics since Titan III with a very low launch frequency and no compelling need for the capabilities it provides.

      except only for pork mandated by Congress, because a congressman wants something sweet in his state or district. In THAT case, don't blame NASA, blame the Congressman (and the people who voted for him).

      It's NASA's job to do NASA's job. They let this political rent seeking get way out of hand over the decades.

    52. Re:Can't blame NASA by khallow · · Score: 1

      They don't design rockets - they design requirements for rockets.

      They shouldn't be doing that. Private industry already has adequate rockets for NASA's purposes.

    53. Re:Can't blame NASA by Bob+the+Super+Hamste · · Score: 1

      I don't want us to be wold police and have argued long against it. Unfortunately because we have played that role for so long a lot of countries are dependent on the US being there to defend them if something happens (western Europe, Japan, South Korea, other parts of S.E. Asia, the Middle East, the UN, etc) so I realize that packing up immediately would be bad so a deliberate unwinding would be needed.

      --
      Time to offend someone
    54. Re:Can't blame NASA by Gravis+Zero · · Score: 1

      I realize that packing up immediately would be bad so a deliberate unwinding would be needed.

      It'll only happen after we stop buying oil from other nations.

      --
      Anons need not reply. Questions end with a question mark.
    55. Re:Can't blame NASA by Anonymous Coward · · Score: 0

      They did not think as industrials or engineers but as scientists. Once is enough to show: next stage. If they would think in mass producing the whatever, they would achieve lower costs at the outset. So it is like having an artisanal workshop where one would expect an industrial operation and everything becomes sunken cost, fixed cost because there will no variable costs drivers in the planning. Like the guys who do not understand that arduino UNO is just a prototype, not the technology, actual circuit you will be throwing at the market in gadgets.

    56. Re:Can't blame NASA by david_thornley · · Score: 1

      It's NASA's job to do NASA's job. They let this political rent seeking get way out of hand over the decades.

      Did NASA let this happen, or did Congress force it on NASA? The way to get a good launch system is to tell someone competent to do it, give that person adequate funding, and let said competent person get the job done. I've never been confident that the purpose of the Senate Launch System was to put anything into space.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    57. Re: Can't blame NASA by david_thornley · · Score: 1

      Too bad the GOP flag bearer has been completely at odds with the GOP since he started his bid.

      Were that true, I don't think we'd see the Republicans rubber-stamping some of his worst appointees or blocking investigation into Trump's potentially iniquitous actions.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    58. Re:Can't blame NASA by khallow · · Score: 1

      Did NASA let this happen, or did Congress force it on NASA?

      I believe both are true. A key point IMHO was in the wake of the massive downsizing from the Saturn V. NASA could no longer maintain the huge infrastructure of the Saturn period in the mid 70s. But rather than resize their ambitions for the budget they were getting, they overbuilt launch infrastructure (the Space Shuttle) in a gamble to get more funding for actual space exploration and development down the road. The Challenger accident ended that gamble.

      At that point in 1986, the Shuttle had failed as a tool to gain more funding and enable more space activities. But they continued it for another quarter century, finally ending the program in 2010. We've since 1986 have had a vastly overpriced space station, at least two Shuttle predecessors, and two Saturn V-scale rockets developed without a point by NASA.

      If NASA wanted a coherent, productive space strategy, they had numerous times where they could have changed their ways to get that, even in the face of congressional meddling. It has long been more important to lock in funding than it is to actually do anything in space.

    59. Re:Can't blame NASA by colonel+spalding · · Score: 1

      So then in the future private companies will then own the patents and vehicles. Makes sense in a era of globalization but I'd rather my country be the one that owns the patents and vehicles and infrastructure to go to Mars and beyond. That way my country benefits not the corportacrisy.

  2. What does this indicate by sonamchauhan · · Score: 1

    If space is so dazzling, and NASA that incompetent, why doesn't the private sector develop its own space program?

    Do these figures instead indicate NASA is providing hidden subsidies to the private sector lined up at its feeding trough?

    1. Re:What does this indicate by jandersen · · Score: 2

      Well, I have never heard of Center for a New American Security before, so it would be reasonable to be skeptical about how non-partisan they are. Judging from the article alone, however, it appears that 'overhead' is anything that isn't passed on to external contractors, so potentially this could include any research that is done by NASA scientists. If this is the case, I don't think it is non-partisan at all - the position that only work done by external contractors is 'real work' is a highly biased one to start from, IMO, as it seems to dismiss the crucial value of fundamental research.

    2. Re:What does this indicate by AHuxley · · Score: 1

      A few ideas.
      1. When the Germans arrived after WW2 they created German supply systems in the USA. The USA copied the best ideas from 1930-40's Germany and is now stuck with that method.
      The US was in such a rush to get into space it copied all the faults of 1930's Germany.
      No US company or gov worker is going to give up the wage structure and good standards generations later.
      The USA finally got quality control but the cost was funding the US private sector to make all the parts to German standards in the USA.

      2. No waste but the NRO and NSA use NASA as cover for other projects. e.g. a few covers for Manned Orbiting Laboratory https://en.wikipedia.org/wiki/...

      3. Lots of waste as everything is secret and thats the way the contractors like it. Too many civilian contractors like the "secret" contractor jobs that pay.

      4. A jobs creation issue for too many poor, unskilled people in poor states has created a generations of worker wage issues.
      People are taking decades to learn how to work rather than been hired ready to work. Political leaders like the low skilled local jobs and use space "secrets" to cover for good jobs for generations of unskilled locals.

      Not so much incompetent just generations of German thinking, mil grade secrecy covering generations of wealthy US contractors enjoying decades of great gov contracts.
      Or the german advice got lost after the 1970's and its back to 1920's US production systems. Expensive and lots of errors. Skills lost that have to be recreated for every project and generation. Bespoke costs for every mission as the US has lost the art of design and has no ready production lines that work.
      A US company will make what the US gov needs but the secret cost is hard to hide.

      --
      Domestic spying is now "Benign Information Gathering"
    3. Re: What does this indicate by Anonymous Coward · · Score: 0

      Musk is...

    4. Re:What does this indicate by Anonymous Coward · · Score: 0

      It's non-partisan in the same way that Fox News is fair and balanced.

    5. Re:What does this indicate by guruevi · · Score: 1

      Because there is no profit in space except where you can take from the government.

      The problem here is that we're ALREADY using the private sector (Lockheed Martin and Boeing and a host of other smaller companies) but without any true management or expectations from NASA, these things tend to go over budget or completely replaced every time a politician wants some cred for his next campaign

      The NASA budget is indeed small but it's being spent on hundreds of reviews over the same items. Nothing new is happening at NASA because it's politicized. Give a decent management NASA's budget without further interference and we'll go to Mars and back in 2030, give it to the current political appointees and when Trump leaves the White House, whatever projects were started will get cancelled again to spend on whatever the motivation of the new administration is (war, environment, local economies...)

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    6. Re:What does this indicate by Anonymous Coward · · Score: 0

      Yeah! Why doesn't a private company that's already involved in, I dunno, maybe air travel, start working on a commercial space program? Somebody like, oh, United? Or Delta? Oh! Virgin! How funny would that be!

  3. It is in the nature of the business! by farrellj · · Score: 4, Insightful

    Going into space is an incredibly front loaded type enterprise. They aren't opening a a dollar store, they are sending people in to one of the most hostile environments known to man. They say "Measure twice, cut once", but when you have the lives of people in your hands, you measure tens of thousands of times to make sure the final cutting won't accidentally kill them! And before you go and say Blue Origin and SpaceX are doing it so much cheaper, yes, but that is because they are standing on a mountain of research & technology courtesy NASA. R&D done by NASA has given us billions and billions of dollars in spin-off technologies over the years, and I am sure if you charted it out, your return on investment is pretty good.

    --
    CAN-CON 2019 - Ottawa's only book oriented Science Fiction Convention! October 18-20, Sheraton Hotel, Ottawa, Canada h
    1. Re:It is in the nature of the business! by SiggyRadiation · · Score: 1, Insightful

      No, they aren't opening a dollar store, but the numbers from TFA are enormous. SpaceX and Blue Origin may be standing on a mountain of previous research & tech from NASA, but NASA itself is also standing on that same mountain. Since it is their own mountain, it should be logical that they would be more effective in applying previously discovered knowledge to their new projects.

      And, purely the fact that space is a hostile environment isn't a fact that can be used to explain away any level of bureaucracy and overhead. Arguably, the deep see is a more hostile environment because of the higher pressures. Combine that with using nuclear power in subs and you actually have an equally complex and risky environment, probably more. There are a lot more situations where quality control is an absolute requirement, such as nuclear power, (intensive) health care, chemical plants, etc. How big is overhead in those industries?

      Probably the biggest problem in discussing overhead numbers for something that doesn't work yet is that you don't have the complete picture yet. If NASA overhead costs, say 10 billion for a total program cost of 15 billion then you could argue that the overhead would be 66%. But if we actually start transporting stuff into orbit and send a bill to whoever is sending the stuff (even if it is an internal NASA team), and you could bill them 10 billion in the course of the program for the time and materials required for the launces, then the overhead percentage would suddenly be "only" 40% (I know I'm taking a lot of shortcuts and most management would probably stick around after the SLS has been delivered).

      But, no, simply ignoring these astronomical levels of overhead because of the complexity of space as an environment is in my opinion not valid.

      --
      This unique sig is intended to make this user more recognisable.
    2. Re:It is in the nature of the business! by Rei · · Score: 1

      And before you go and say Blue Origin and SpaceX are doing it so much cheaper, yes, but that is because they are standing on a mountain of research & technology courtesy NASA.

      Something both of them readily admit. SpaceX in particular has continually expressed their gratitude for all of the support they've gotten from NASA over the years. And they have an interesting cooperative model in place now for Red Dragon - no money exchanged, but they get access to NASA facilities and time working with NASA researchers, and in turn NASA gets all of the data they acquire from their missions.

      --
      Kneel Before Christ!
    3. Re:It is in the nature of the business! by farrellj · · Score: 5, Insightful

      Yes, they stand on that mountain, but they are still building it! As for your comparison with nuclear, health, etc...sorry, the tolerances there are much greater than for space. Certification for use in the medical or nuclear fields is much easier than getting something space rated!

      And most times when a "think tank" comes out with "proof" that some agency has too much bureaucracy, it is a prelude to justify budget cuts. It's just another piece of the propaganda war. :-(

      --
      CAN-CON 2019 - Ottawa's only book oriented Science Fiction Convention! October 18-20, Sheraton Hotel, Ottawa, Canada h
    4. Re: It is in the nature of the business! by Anonymous Coward · · Score: 0

      Yes, I've always thought NASA as analogues to a bank. They provide resources at a risk and expect a return.

    5. Re:It is in the nature of the business! by sheramil · · Score: 1

      They aren't opening a a dollar store, they are sending people in to one of the most hostile environments known to man.

      "I'm not going up there!... send a droid."

    6. Re:It is in the nature of the business! by Anonymous Coward · · Score: 0

      No corporate shoguns own the rights. Billions worth of tech for EVERYONE is worth less than 1000 dollars worth of patented tech.

    7. Re:It is in the nature of the business! by Anonymous Coward · · Score: 0

      Many of those technologies are co-developed with companies who end up with the patents and contracts, depending of the subject.

    8. Re:It is in the nature of the business! by aaarrrgggh · · Score: 1

      I think a point being missed is the contract accountability requirements, and the fact that managing subcontractors is all overhead.

      In a perfect world, it might be 30-35%, but more often than not it exceeds 50% in the private sector. 76% sounds bad, but I am sure there is a little gaming of the numbers there.

    9. Re:It is in the nature of the business! by k6mfw · · Score: 1

      Regarding commercial space companies, they may be cheaper (a little) but pretty slow on delivery (though fast when compared to SLS, or Orion). In 2004 with SpaceShip One everyone thought suborbital flights, Virgin Galactic, will be commonplace quite soon (but still years away). Then we have SpaceX that has made some impressive capabilities but launching humans always seems to be 2 or 3 years away. Hard to know when BO will deliver, I see lots of impressive schedules but always some delay. SN Dreamchaser? Maybe putting people into space is hard, really hard, and takes armies of people to put just a few into orbit. That army costs big bucks and profit margins are very small if positive.

      --
      mfwright@batnet.com
    10. Re:It is in the nature of the business! by prisoner-of-enigma · · Score: 1

      Yes, they stand on that mountain, but they are still building it!

      All the more reason to question their overhead since this "mountain" was already climbed in 1969. You do realize there's almost nothing NASA is trying to do today that wasn't already done better, faster, and cheaper by the Apollo program, right?

      --
      In the end they will lay their freedom at our feet and say to us, Make us your slaves, but feed us. - Fyodor Dostoyevsky
    11. Re:It is in the nature of the business! by Anonymous Coward · · Score: 0

      Too much bureaucracy yes, too much funding no.

      NASA is a victim of Congressional bureaucracy that mandates how and where the pork is spent. They could do it much better, faster and cheaper if they actually had the discretion over the vendors used but really are limited due to geographic interests.

    12. Re: It is in the nature of the business! by Anonymous Coward · · Score: 0

      You do realize there's almost nothing NASA is trying to do today that wasn't already done better, faster, and cheaper by the Apollo program, right?

      Oh? The Apollo program launched a mission to the sun? Set up a space telescope? Landed on Mars?

    13. Re:It is in the nature of the business! by Shatrat · · Score: 1

      Cheaper? The NASA budget during the space race was almost 10 times what it is now. https://en.wikipedia.org/wiki/...

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
    14. Re:It is in the nature of the business! by Anonymous Coward · · Score: 0

      Cheaper? The NASA budget during the space race was almost 10 times what it is now. https://en.wikipedia.org/wiki/...

      That's "as percentage of federal total", not inflation-adjusted dollars. In inflation-adjusted dollars, NASA's peak budget year ever, 1966 (simultaneously doing Apollo, Gemini, Surveyor, and Mariner), was a little more than double the current budget, and they're moving at much less than half the speed.

      Constellation/SLS has been going on for longer than the time from the first object in orbit (Sputnik I) to the first man on the moon (Apollo 11) without producing a single orbital launch.

      The Saturn V program cost about $40 billion in inflation-adjusted numbers, and that included 13 launches. After half a century of technological progress and domain-specific experience, the significantly-inferior SLS is projected to exceed $40 billion before its second flight.

  4. Is this a lot? by MFriis · · Score: 3, Interesting

    Obviously it sounds like a lot, but i haven't been able to find any source on what they define as overhead. I also have no idea how much the normal overhead is.

    It sounds like any cost not going towards a private company is accounted as overhead. Surely NASA has expenses internally that wouldn't make sense to call overhead.

    1. Re:Is this a lot? by aaarrrgggh · · Score: 1

      That is pretty much my take. The other fun question is how much of the contractor's time goes to things that do not directly contribute to work-in-place. On government contracts, it is fairly normal for us to be at 10% compliance overhead, in addition to your other traditional overhead tasks.

    2. Re:Is this a lot? by godrik · · Score: 1

      It is a weird definition of overhead. Overhead is usually defined as the part of administrative expenses as opposed to research expenses. But even like that 72% would not be that big necessarily.

      When applying to NSF grant, public state universities have indirect cost, often labeled "overhead", which rate is roughly 50% for public universities (it is negociated per university, but that's roughly what it is.)
      What that 50% overhead means is that if $1 goes to the research (paying faculty in summer time when they do additional research, research assistant, travel, hardware(sometimes)), then an additional $.5 goes to indirect cost (keeping the buildings up, the lights up, the admin staff to do accounting, ...)
      But remember that public universities do not depend on research funding for many things. Some funds directly come from the state and some funds come from the students.
      If you are looking at research-only institution that do not have that stable and high source of income, the overhead is usually much larger. Some places have an overhead of 100%.
      I don't know in which category NASA falls, but my guess is that they look more like a national lab, than a public state university.

    3. Re:Is this a lot? by FrankHaynes · · Score: 1

      Well, a billion here, a billion there, and pretty soon you're talking about real money!

      --
      slashdot: A failed experiment.
  5. It's not exactly 72 on the dollar... by magusxxx · · Score: 1

    It's 42 for the normal overhead and 30 for the secret military overhead. Just thought I'd clear this up.

    --
    Care killed the cat, but satisfaction brought it back.
  6. Lost In Space by hambone142 · · Score: 1

    A book of this title written years ago describes the mess NASA was and still is.

    NASA= Not About Space Anymore

    1. Re:Lost In Space by Anonymous Coward · · Score: 0

      Space is a dead end. Despite all the earnest, quasi-religious fantasies of the Space Nutters, all space is is a deadly vacuum with some radios and cameras floating in it.

      The ISS is in the upper atmosphere. Barely space at all.

      www.distancetomars.com

    2. Re:Lost In Space by Anonymous Coward · · Score: 0

      Ah space nutters, the ones without whom you probably wouldn't be communicating over the internet thanks to things like battery technology.

      We do have to get off the Earth as having all of us on the same planet pretty much ensures that we'll eventually all be wiped out by another meteor or similar extinction level event. Whereas if we have people on Mars as well, that would greatly decrease the likelihood. What's more, if we could get people to two or three other systems that would increase our longest possible longevity to somewhat longer than our own sun.

    3. Re: Lost In Space by Anonymous Coward · · Score: 0

      Yeah who needs all those mineral rich asteroids and planets anyways? My mud hut was built with plentiful clay and garbage.

    4. Re: Lost In Space by Anonymous Coward · · Score: 0

      What do you think bricks are? And clay as such, is a perfectly viable building material in a modern building, just like wood. It's just not done even if it's being increasingly looked into, because of the huge environmental problems related to using concrete.

      "Modern" isn't always "good", and being ignorant is always bad.

    5. Re:Lost In Space by 110010001000 · · Score: 1

      "We do have to get off the Earth as having all of us on the same planet pretty much ensures that we'll eventually all be wiped out by another meteor or similar extinction level event"

      Why do Space Nutters always bring this up? Why is it a requirement that we don't go extinct? By the way, there is no way you can get an independent viable colony of humans anywhere but Earth. Read all the scifi you want, but it ain't gonna happen.

    6. Re:Lost In Space by sysrammer · · Score: 1

      "Why is it a requirement that we don't go extinct?"

      Good question. Hard to answer besides just saying "because".

      Since we have a limited ability to foresee the future, applying resources to mitigation strategies seems to be appropriate for a mentational species.

      As perhaps the first species with the ability to consciously destroy or save itself, I don't mind throwing a few bones to the "savers", as we already throw massive carcasses to the "destroyers".

      --
      His ignorance covered the whole earth like a blanket, and there was hardly a hole in it anywhere. - Mark Twain
  7. Goes Back To Kennedy by ytene · · Score: 1

    When President Kennedy famously said, "We choose to go to the moon...", a significant part of the decision stemmed from what was known as trickle-down economics. The idea was that buy investing a huge amount of money into NASA, but then require the agency to outsource much of their work to sub-contractors scattered around the country, the act of pouring billions in at the "top" (NASA) would see that money help lift a huge part of the national economy.

    Unfortunately, all the big suppliers found they liked the idea very much. Then someone (no doubt in industry), came up with the idea of cost-plus contracts (in which the government pays a contractor the cost of developing something, plus a guaranteed profit margin. Which is, of course, the perfect inducement to allow companies to inflate their baseline costs through kickbacks that end up being paid by the taxpayer.

    This doesn't necessarily mean that outsourcing to the private sector is inherently bad, just that, like anything, it needs close supervision and complete transparency. Corruption dislikes transparency...

    1. Re:Goes Back To Kennedy by Rei · · Score: 2

      I once worked at Rockwell-Collins, which had been a supplier for the Space Shuttle programme. When I arrived, they were very stringent about how we handled our time reporting and billing. Why? Because apparently before I got there they had just gotten heavy slapped down for exploiting cost-plus Shuttle contracts. Whenever any project went over budget, they just had employees credit their time to the Shuttle programme.

      --
      Kneel Before Christ!
  8. The moon landing cost more by Anonymous Coward · · Score: 0

    In current day dollars the moon landing was over $100 billion, this is on track to be less.

    1. Re:The moon landing cost more by Rei · · Score: 1

      Using what inflation index? Remember, NASA's costs are adjusted by the NNSI.

      --
      Kneel Before Christ!
  9. Nineteen Days Left to File Your Taxes by Anonymous Coward · · Score: 1

    Whether the numbers a correct - or not, why does any one care?
    Seriously. If we could reduce the obscene cost of medical care by even one percent,
    the NASA budget could be doubled and we could have a "single payer" health system.
    And if you really want to explore "social welfare tax money" don't get me started on the military budget.
    We are one nation under a bunch of god-awful, politically motivated morons.
    It feel good to rant early in the morning. Try it.

    1. Re: Nineteen Days Left to File Your Taxes by Anonymous Coward · · Score: 0

      God damn Russian's are launching Americansâ into space aboard -Soyuz- FFS! Wernher Von Braun is spinning in his grave.

  10. But but but by Anonymous Coward · · Score: 0

    Space returns seven dollars for every dollar spent! And the spinoffs!

  11. What a load of crap! by Anonymous Coward · · Score: 1

    Because Nasa does just "overhead"..? They think NASA, maybe because is not private, never does something useful by itself? Without NASA you wouldn't have all these rockets anyways..
    And Boeing, Lockeed...are cutting metal...Let me catch my breath! For one dollar given to Lockheed for the F35 how many cents did go to "cutting metal" ?!? These publicly-supported companies are overhead machines by themselves! I worked for some of them in a similar sector (high tech, main client is governments), you wouldn't believe the layers and layers of bureaucrats, managers, excel maintainers and powerpoint rangers, almost all of it is bullshit. And those are private companies, I recall! But they know that the government will always save them, because "jobs", and pork! From the guy or small company really "cutting the metal" (or writing the code or whatever) and the final customer, the lockeeds of the world can increase the price ten-fold! For doing what? escapes me! So stop pissing on NASA if you're not prepared to piss on Lockeed and co also.

  12. Private sector will increase costs. by Zemran · · Score: 2

    If it costs money to do something and you hand it over to the private sector it will cost money plus profit to make it therefore more. If the argument is that somehow the private sector magically has better management then improve the management and reduce the costs but that simply is not true. Better management always equals higher cost as they always charge more than they earn.

    --
    I love stacking my barbecues in the shed at the end of summer - you can't beat a bit of grill on grill action.
    1. Re:Private sector will increase costs. by swillden · · Score: 1

      If it costs money to do something and you hand it over to the private sector it will cost money plus profit to make it therefore more.

      Wrong. If that were true, the USSR would have economically destroyed the US. That's just one of millions of examples. It's not the case that *everything* is best done by private enterprise, but if the primary goal is to serve the customer at minimum cost, competitive private industry is the absolute best way we know to achieve it. Yes, companies need to generate a profit, but that profit is almost always dwarfed by the opportunities for reducing costs by being more efficient.

      In a competitive market, finding a way to reduce development and production costs increases profit in the short term, which is why companies work really hard to do it. Then in the longer term competitors adopt the same cost-reduction strategies (or better ones) and lower their prices in order to take business from their competitors, lowering the cost to buyers. At the same time, competitors look for ways to make their products more appealing to attract buyers. This virtuous competitive cycle in nearly all cases results in lower prices for better products because -- and this is the key point -- the need for improvement is relentless, never-ending.

      Government agencies have different incentives. Not that government employees can't be interested in efficiency, but the organizational incentives are not focused on minimizing cost and maximizing service in order to maximize competitiveness. There is no competition. Government organizations are focused on compliance with the regulations that define the reason for their existence. If the required duties are performed within the funding allocated, they've met their goal and there's no reason to try to seek better ways to do their job.

      Note that in both cases I'm speaking of idealized models. Many markets are not competitive (for example, I'm not sure a truly competitive market in health care can exist, because the complexity of the products and services exceeds the ability of consumers to buy intelligently, plus there are serious moral issues around tying availability of care to ability to pay) and private employees have an individual motivation to sit on their hands as much as possible. Many government employees are focused and driven and just as relentless about improving what they can as any business. But on the whole, results align with incentives and private enterprise has an incentive to improve that does not exist in government agencies, even those with open-ended missions.

      There's a place for both private and public sector organizations in fulfilling social goals, but correctly allocating responsibilities to them is complicated and requires a deep understanding of what each does best and what each does poorly. Incredibly simplistic views like yours are not and effective guide.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    2. Re:Private sector will increase costs. by Anonymous Coward · · Score: 0

      Wow indoctrinated much?

    3. Re:Private sector will increase costs. by jimbolauski · · Score: 1

      You are correct up to a point, but you seriously underestimate the inefficiency of the federal government. Here are a few of their greatest hits. All the employment records for the federal government are stored in an old limestone mine in Pennsylvanian, there have been many failed attempts to digitize them, the last failure was led by an English major with no technical background, It can take up to a year before people receive their retirement. The system is so notoriously bad they have a policy where beneficiaries receive 50% . The Obamacare website was not originally built to handle the expected traffic. The census bureau and had to revert back to paper copies after they had troubles with tablets. The VA also had to revert back to paper and were in danger of collapsing a floor where they were storing the paper copies.

      --
      Knowledge = Power
      P= W/t
      t=Money
      Money = Work/Knowledge so the less you know the more you make
    4. Re: Private sector will increase costs. by Anonymous Coward · · Score: 0

      The Obamacare website was not originally built to handle the expected traffic.

      This would be a more convincing example if not for the private contractors involved who messed up. Of course, they tried to blame the government, but when don't they?

      Of course, you can also find fault with the state governors who refused to do it, even when they thought it was a great idea and claimed they could do a better job, because they didn't want to work with Obama at all.

      And really, let's consider how much was crash traffic of people wanting to rush in as if there was a great hurry. It's like racing to the post office to mail your tax return. It's not necessary by any means, yet people will do it, to the extent that phone scamming plays off it.

      The most blame I can give is letting the contractors off the hook and not slowing down the panic of the lemmings.

    5. Re:Private sector will increase costs. by Thelasko · · Score: 1

      If it costs money to do something and you hand it over to the private sector it will cost money plus profit to make it therefore more. If the argument is that somehow the private sector magically has better management then improve the management and reduce the costs but that simply is not true. Better management always equals higher cost as they always charge more than they earn.

      Costs are lower in the private sector due to competition in the marketplace. If there is a monopoly on any item or service, you better believe the costs will be astronomical.

      What we have seen in the past 5-10 years is the end of a monopoly by ULA as a result of Space X and others. While ULA had a monopoly in the private sector, the SLS made sense. Now that there is competition, that is no longer the case.

      --
      One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
  13. Private savings! by Anonymous Coward · · Score: 0

    That's a wonderful idea! That way it'll spend 472 cents of every sls dollar on overhead costs!

  14. They ignored inflation. by silentcoder · · Score: 4, Insightful

    In it's day Apollo 8 cost 20 billion dollars. In today's money that's about 110 billion dollars.
    The SLS costing the about the same in today's money as Apollo 8 cost in 1968 dollars - is actually a MASSIVELY cheaper and more efficient project then. .

    The argument is pretty flawed if you make such a silly mistake. Now let's consider the claim about amounts and where they go. Are these people seriously saying that ALL of what NASA does with their share is wasted effort ? Does NASA not have a stake in doing their own testing and validation - making sure that they get what they paid for and that their astronauts will be safe ? Outsourcing that seems seriously irresponsible but even if you DID the private sector companies would have to do the same tests. Maybe they COULD do it cheaper -but cheaper isn't the most important thing here, quality matters a lot more than price for this stuff.

    Why exactly is it a bad thing if a large chunk of NASA's budget is spent on the parts NASA does ? Why are these people arguing that NASA should outsource more than they do ? NASA is the customer here - and this seems like a thinly veiled attempt to use politics to force the customer to buy more.

    NASA is the dumbest thing to complain about in terms of cost anyway - as a fraction of the federal budget they are a blip. Seriously NASA has had it's funding cut so consistently for decades that, today, they are basically a rounding error on the budget.

    --
    Unicode killed the ASCII-art *
    1. Re:They ignored inflation. by Anonymous Coward · · Score: 0

      Except projections suggest the cost will be between 40 and 50 billion, so your argument is meaningless, inflation is already accounted for in the 50% of Apollo cost projection.

    2. Re:They ignored inflation. by lavaboy · · Score: 1

      except that back during Apollo, NASA consumed between 1.2 and 4.4 percent of the entire annual federal budget. Now it accounts for around 0.5%. So, the pie got a lot bigger, and the space program's slice got a lot thinner. So NASA is actually doing a lot with less. Also - the entire Apollo Program cost around 26b$ in 1969, which works out to about 136b$ in 2007 (and closer to 160b$ in 2017 dollars) ... so it's more like 36% ( 31% in 2017 dollars) of Apollo, and less when you consider that the SLS program didn't even start until 2011, and inflation since then has been around 8.5%. So, yeah, SLS is financially pretty great, compared to the mankind's greatest technological achievement up to the 20th century.

      --
      Steve -- If you have to call it a system, you don't know what it is.
    3. Re:They ignored inflation. by Anonymous Coward · · Score: 0

      Just because the economy has grown, why should the cost go up beyond inflation? IF anything price should have come down like with that supercomputer you are using.

  15. Pournelle's Iron Law by bradley13 · · Score: 1

    Those overhead figures are no surprise at all. NASA has been around more than long enough for Pournelle's Iron Law to take over. The bureaucracy grows to meet the needs of the growing bureaucracy. Any space science that gets done is purely incidental.

    This is a fundamental problem with government agencies. When private companies become inefficient, they (in an ideal world) either clean house or they are overtaken by their competitors. When government agencies become inefficient, there is no pressure on them to change, because they generally have no competition.

    --
    Enjoy life! This is not a dress rehearsal.
    1. Re:Pournelle's Iron Law by Anonymous Coward · · Score: 0

      Pournelle tended (tends? Is he still alive? I can't recall) to fall into his own habits to chase after his own preferred beliefs. He was all gung-ho for Reagan era grandstanding at one point.

      But he never really considered one factor: Bureaucracy is blamed as it is an easy target, and if there's anything that works well for riling up anger, it's castigating the dreaded faceless evil of the bureaucrat and minister. The government kind, not the religious. He's only been able to work that up against the Islamic with any consistency.

      The reality is that there's either pressure directed at the appropriate faults, or there isn't. And inefficient or not, private companies like VW, Wells Fargo, Enron, Merck, they have all done harm in ways that aren't covered by the Iron Law, but far exceed it. That's almost never going to be brought up in these conversations. He's never fully understood that if people actually don't have the leverage to make their ire known, or even the knowledge to recognize a problem, competition isn't a solution.

      Fundamentally, thus, he often misunderstands the role and function of bureaucracy, as well as what actually causes many of the problems he laments. This has also been true of the computer issues that he has had.

      Oh well, as long as he's not convincing anybody to fund some Star Wars project that can be taken over by a rogue military group bent on seizing power, it's no real harm what he does. And let's face it, even if Trump listened, that blowhard is so incompetent, all the spending wouldn't be able to cook a single bag of microwave popcorn, let alone fill a house.

      I do wonder if Ed Begley Jr. still lives down the street from him.

      Anyway, what we have here is quite possibly a simpler thing, the Emperor's Unlearned Lesson: A scam artist will always try to sell you on what you want to hear.

      Notice how the grievances are geared towards an agenda, and not really correctable faults, it's just taking a message to be advanced.

      That says a lot about it.

    2. Re:Pournelle's Iron Law by bradley13 · · Score: 1

      "private companies like VW, Wells Fargo, Enron, Merck, they have all done harm in ways that aren't covered by the Iron Law, but far exceed it"

      First, how do you compare? It's essentially impossible, because those things are not alike.

      That said, most of the companies you mention were able to cause harm due to two factors: corporate cronyism, and too big to fail.

      The one where that doesn't quite apply may be Volkswagen. But even there: it is becoming apparent that *all* auto manufacturers cheated on their emissions tests, because the government standards are completely at odds with what consumers actually want.to buy. So again, government regulatory involvement has helped screw things up. Simple theory: follow the money. Who is now richer due to the long-term cheating? I'm not an expert in this industry, but it's a given that there's a nice revolving door between the auto industry and the regulatory bodies.

      --
      Enjoy life! This is not a dress rehearsal.
    3. Re: Pournelle's Iron Law by Anonymous Coward · · Score: 0

      First, how do you compare? It's essentially impossible, because those things are not alike.

      Actually, they are very much alike, and I don't know why you would claim otherwise. It might not be as easy as comparing apples to oranges, but not that much harder. Turnips maybe?

      Just read Feat of Clay for how.

      That said, most of the companies you mention were able to cause harm due to two factors: corporate cronyism, and too big to fail.

      If you want to argue for a dissolution of the larger organizational structures that humans have developed, you can, but it'll be hard to test the theories.

      You might as well try to implement the law of the Comyn.

      The one where that doesn't quite apply may be Volkswagen. But even there: it is becoming apparent that *all* auto manufacturers cheated on their emissions tests, because the government standards are completely at odds with what consumers actually want.to buy. So again, government regulatory involvement has helped screw things up.

      Not at all, as you have it backwards. It isn't what consumers want to buy (the assholes rolling coal are few and far between), but what they don't want to pay for, namely a cost they can't see. Or that they'd rather avoid.

      Furthermore, given that diesel engines already existed, you can't even say that they really helped screw things up any more than the numerous other times that auto manufacturers have tried to manipulate the emissions test results. Somebody wants to cheat the game, ok, so? It isn't like you are suggesting a real workable alternative, this isn't something like ignition failure or airbag malfunction where the individual events are especially identifiable.

      I'm trying to think of a pertinent fictional example to go with the theme, but I'm coming up dry. Ok, how about Dune? Does that work?

      The only fault I can give them is not expecting VW to be so brazen. It's almost comically absurd. It's like the Atreides not expecting the Emperor to let the Harkonnen use the Sarduakar. Who could imagine that?

      Simple theory: follow the money. Who is now richer due to the long-term cheating? I'm not an expert in this industry, but it's a given that there's a nice revolving door between the auto industry and the regulatory bodies.

      Good luck trying to deliberately develop an antagonistic relationship between them, the current administration is not going to run with that.

      But ok, the money went to VW's owners. They didn't even bribe a regulator.

      It's like how Harrison Bergeron went crazy and decided to take over the world. No matter what you think of the rest of the story, that's fucked up.

      Somebody had to shoot him. And if Mr. Slaughterhouse V wanted us to blame how he was raised, he should have made that more of his narrative.

  16. lowest bidder by garlicbread2 · · Score: 1

    You realize we're sitting on 45,000 pounds of fuel, one nuclear warhead and a thing that has 270,000 moving parts built by the lowest bidder? Makes you feel good doesn't it?

  17. Overhead includes engineering by sjbe · · Score: 1

    This is the sort of idiotic criticism made by people with no understanding of accounting. Part of "overhead" is engineering and the engineering costs for designing a system like SLS are substantial. Since NASA is doing the engineering for SLS in house of course the overhead costs are going to be a higher percentage of their total. If they outsourced it, the overhead for engineering won't disappear - it will just go on the P&L for a different company. You could argue that a private sector company might be more efficient (not clear in this case) but they also would charge a mark up because they have to make a profit so you give some of that back. You can't just blindly compare overhead percentages without understanding what they are comprised of. Lower overhead does not necessarily equal a more efficient program, especially when it is in design phases. Just because the money didn't go to a private company doesn't necessarily mean it was money wasted.

    You can argue whether SLS is pork or not and that's a separate issue. There is plenty to criticize about the program. But this argument about overhead is just someone who doesn't understand accounting naively comparing percentages they don't fully understand.

  18. The big waste is in the defense department by sjbe · · Score: 1

    I would like to remind you that about a trillion dollars a year go toward "defense".

    The actual number last year was around $600 billion but your point still stands. Coincidentally our federal deficit in 2016 was also right around $600 billion so we basically borrowed every penny we spent on the military last year. So thank your grandchildren for the debt they'll be paying off because we think it necessary to support a military that is grossly oversized but are unwilling to tax enough to pay for it.

    If you want to talk about pork, you aren't talking about spending money on science, you're talking about defense spending.

    Truer words have never been spoken. NASA is a rounding error compared to the wasteful spending in the defense department.

    1. Re: The big waste is in the defense department by Anonymous Coward · · Score: 0

      Much of the military budget is also pork. We routinely buy shit that congress has directed us to buy, in order to keep A-10 jobs in their state or whatnot. When you consider that 2/3 of the military budget is personnel and medical costs, all of the sudden the rest of it seems pretty reasonable. Not a big fan of Trump, but at least the civilian hiring freeze is making people actually work instead of just show up.

      Don't believe me? Ask people who have been in the military in the last 30 years what fraction of the civilians were useful. Odds are that your answer will be "one of n" as most of the n are useless.

    2. Re:The big waste is in the defense department by Anonymous Coward · · Score: 0

      A lot of things in the defense budget are things that people rely on. Food subsidies at one point were covered through the defense budget for example (the idea being in a time of war you need well fed people to have strong soldiers) and I think they may still be paid for out of the defense budget. The GPS cluster maintenance and upgrades are paid out of the defense budget. Originally the US interstate system was a defense project, though it's now funded through gasoline taxes. And obviously all the cool stuff DARPA does is more of that defense budget (if you want to talk about cool science coming out of government spending). The defense budget covers a lot more than just war machines. After all, the Internet got its start as a DARPA project.

  19. Everyone already know this. by BlueCoder · · Score: 1

    NASA is a pork barrel project and isn't about space anymore. It was appropriate for the era of getting to the moon and should now get out of the space game and be replaced with separate organizations for supervision and mission funding of private contractors as has already begun. Going to the moon was actually about shifting the high cost of rocket development as well as putting a pretty face on large rocket tests. It was a PR thing. The defense department got their rocket tech which they were going to get one way or another but the public for it's money got modern satellite telecommunications and boosted electronics developments.

    NASA over designs things with the greatest chance to work the first time but it takes longer and costs more. The economical way of design is to launch and use cheaper prototypes in the field and to actually want things to explode a good portion of the time. With every failure you improve the design and know what to look out for. It's simply too expensive and slow to try to anticipate everything. Better to be judicious and do your best and then learn as you go. Better to build ten rockets for the price of one and expect at least 7 to fail in the first batch. You ultimately succeed and do more for the same money.

    1. Re:Everyone already know this. by Anonymous Coward · · Score: 0

      Fail forward is a strategy that is hard to implement with one-of-a-kind science instruments on a Mars rover. If you've spent a billion dollars building a rover, you kind of want all the instruments to work, and moreover, the rocket that pushes it to Mars to not fail.

      Space instruments (and science spacecraft in general) are very much hand-crafted one-offs. They're unlike commercial comm sats like Iridium, where you set up a production line and make dozens of them. Instead, a flagship science mission (like Mars rovers, or Europa, etc.) is composed of dozens of independent projects spread all over the world, each building a piece of the puzzle that then gets assembled in one place. There's also a lot of international deals involved - Country A says "we'll give you a free instrument, if you give us this piece of data" or similar - and a lot of times its interlocking with other deals.

      The recent delay of the Insight mission because the sensitive seismometer coming from France didn't work is a nice example. It's not like you can launch Insight to mars carrying a known defective instrument.

      so the OP's strategy of build 10 and hope 3 survive is a *very* expensive strategy.

  20. Just more SpaceX fanboism by Anonymous Coward · · Score: 0

    Musk can launch humans cheaper! Except the past 9 years have shown he can't do it at all.

  21. No surprise at all - check the math by Anonymous Coward · · Score: 0

    Um, things cost more in 2017 than they did in 1967, this is no surprise at all. Anyone who tells you "a company skimming profit off the top can do the job at a lower cost than a not-for-profit" is not telling you the truth.

    The very premise of 'for profit' means you are taking money out of the process - when all the money dedicated to a task are applied to it, you get more of that task done.

    The real culprit is efficiency and it behooves us all to review how efficient each government run system is, and make it more efficient while maintaining levels of safety that are acceptable.

  22. Even if the private sector did it cheaper by Anonymous Coward · · Score: 0

    they'd just charge more for it. It's not like there's an open market on space rocket parts for the Shuttle.

    1. Re: Even if the private sector did it cheaper by Anonymous Coward · · Score: 0

      You do know the shuttle is gone, right?

  23. I thought it was a little over 800bn. by Anonymous Coward · · Score: 0

    Maybe the difference is acconting for it under a different umbrella (so it's not "defence", it's "Security" or "Border protection" or just "Commercial In Confidence"), just not spending under the DoD heading.

  24. Just imagine by CanadianMacFan · · Score: 1

    Imagine what NASA could do if it didn't spend 65 cents of every dollar filling out Freedom of Information requests from industry lobbying groups with patriotic sounding names!

    From the summary:
    "This means that only about $7 billion of the rocket's $19 billion has gone to the private sector companies, Boeing, Orbital ATK, Aeroject Rocketdyne, and others cutting metal."

  25. The problem is what Congress asked for by Anonymous Coward · · Score: 0

    Congress asked for (probably under the advice from Mike Griffin) a rocket which can put 130 tons into LEO. The EELVs can put into the higher digit teens of tons into LEO. A giant payload requires a giant rocket. A giant rocket requires giant infrastructure. The problem with the SLS, is that Congress is only ordering a single flight once every 2 years. If it were ordering 5 flights a year, the 'overhead' would be smaller.

    As for 'hodge-podge' of suppliers, that is normal for rockets. The Atlas 551, the first stage engine is from Russia. The upper stage engine is from aerojet rocketdyne. the upper and lower stages built by ULA. The SRBs are built by aerojet rocketdyne, and soon to be orbital ATK.

    If you want to talk cost overrun, look at Orion.

  26. Development Costs are "overhead?" by Anonymous Coward · · Score: 0

    So the scientists and engineers doing research are "overhead?" Let's move that to the other size of the equation and see how it comes out.

  27. Jerry Pournelle by pipingguy · · Score: 1
    1. Re:Jerry Pournelle by Anonymous Coward · · Score: 0

      Pournelle's had an axe to grind against NASA ever since they refused to fund his space lasers and laughed at his deportation to space scheme.

      Australia didn't work when it was on Earth, what's the point of repeating the same mistake, but IN SPACE?

      He'd eat this right up like he did the Yorktown shutdown, the California Power Crisis, and the Mortgage Market collapse. But it wouldn't make it right, it'd just mean that Jerry Pournelle is subject to his own biases and prejudices.

  28. Unless NASA is paying people by Anonymous Coward · · Score: 0

    to twiddle their thumbs the total cost of a project should be basically the same. It would have been nice is the article would have given specific cases where NASA was actually wasting money.

    1. Re:Unless NASA is paying people by seyfarth · · Score: 1

      I agree. I worked for NASA for several years. There were NASA people doing useful work. I did computer programming along with several others in my small group. At the time I thought it would be more economical to hire more government workers. The purpose of a government agency is not simply to transfer money to private contractors, so the presentation is flawed.

      --
      Ray Seyfarth, ray.seyfarth@gmail.com, http://rayseyfarth.blogspot.com
  29. NASA, DOD, who else by Anonymous Coward · · Score: 0

    Given that every government organization is a cesspool of mediocrity and waste, I can wait to see what a disaster single payer healthcare will be. I'm sure that healthcare won't be contracted out to the same HMos that increased profit by denying care. I'm confident that pork barrel politics won't push trillions of dollars into the right pockets. I mean, the VA is doing such a damn fine, cheap job that veterans are paying out of pocket to escape their "care". Medicare turns mental health issues into incarceration so, and good luck finding a doctor you trust who will take Medicare. Shit, let's let these bureaucrats improve healthcare for the rest of the country. Don't worry, identity politics will be used to explain away the disaster.

  30. Labor Isn't Overhead by Anonymous Coward · · Score: 1

    You might want a one-off widget which costs $100 to make for every launch, but if the engineering into that widget takes decades to get people to be able to engineer, years to put in place the business infrastructure to supports, months to train up the skilled labor to build, etc then it isn't really $100. Now, if you only need that widget every decade or two it gets even worse because you also have to pay for maintaining that organization which likely has to maintain a very high tech level of production simply to build it when it is needed. At the same time you have to deal with politicians demanding where all the money is going because they don't want to approve the project (but also don't want to deny it) you are keeping 1,000+ such companies alive for and have to maintain the paperwork to know who is needed for what throughout that chain. All of that costs money and all of that ultimately goes in a pretty well dispersed manner to US citizens.
     
    If you want to look at "overhead" look to the stock market, any fortune 500 company, Silicon Valley, etc. That's where you have excessive sums of money being funneled to individuals.
     
    Money exists to facilitate trade, it is only waste when it is pooling in a drastically uneven manner with some individuals more than others.

  31. Aren't they talking about manned flight? by backwardsposter · · Score: 2

    This is the epitome of news reporting these days.
    Step one: gather information to report on something you don't understand (e.g. how to do a manned flight mission)
    Step two: make assumptions about a detail you learned on a subject you don't understand (e.g. how to do a manned flight mission)
    Step three: complain about money spent (Bonus points for calling out NASA and how successful private industry is)
    Step four: compare the risk of two things that are just not relatable (the difference of risk between unmanned and manned flight is laughable)
          Just to point out, there is a dedicated team at NASA focused on the safety of everyone involved. This is "overhead".
          There are people for quality assurance. This is "overhead".
          There are system engineers.
          There are people who manage the process.
          There are managers at the project level.
          There are managers at the mission level.
          Personnel managers.
          Facility managers.
          Security.
          Independent reviews.
    Do you really want to be known as the one who cut one of these pieces when a rocket carrying people blows up? I'm not saying that the private industry can't handle this. I'm sure they will some day. But to assume they won't be exponentially more expensive???

    Look people. Space X saved millions of dollars by borrowing decades old lessons and in some cases even algorithms and hardware from what NASA accomplished. Maybe private is the future, but how can we be so arrogant as to assume that our current success is unrelated to the hard work of people for the better part of a century?

    Step five: inflammatory news piece to get your name out there.

  32. confused by Danathar · · Score: 1

    "The new report argues that, given these high costs, NASA should turn over the construction of rockets and spacecraft to the private sector." I thought contractors already build NASA's rockets?

    1. Re:confused by Anonymous Coward · · Score: 0

      You are correct. Contractors do provide the rockets used by NASA. All except the Russian rockets that send astronauts to the ISS. This piece seems to be some sort of argument for turning over all of NASA's money to contractors. In the grander scheme $19B is nothing in the overall budget. Why not go after all the Defense money. There is a way bigger pot there.

  33. 72%? wish it were so by Anonymous Coward · · Score: 0

    72% is how much NASA takes off the top

    The contractors' overhead and profit comes out of the remaining 28%

    Hopefully at least 10% gets to the folks actually doing the work.

  34. Nonsense about the defense budget by sjbe · · Score: 2

    A lot of things in the defense budget are things that people rely on.

    None that are things that have to be covered under the defense budget. Most of the defense budget is for personnel and for war fighting machines (purchase and operation).

    Food subsidies at one point were covered through the defense budget for example

    I'm not aware of this being true in my lifetime if ever. Citation please.

    The GPS cluster maintenance and upgrades are paid out of the defense budget.

    Doesn't mean it has to remain that way. Wouldn't be hard to put that into the budget for NOAA or NASA or NTSB or the Commerce Dept.

    Originally the US interstate system was a defense project, though it's now funded through gasoline taxes.

    The money for it never came out of the defense budget. The project did have defense implications but it ultimately was a civilian project that has been used almost entirely for civilian uses and funded by non-military dollars.

    The defense budget covers a lot more than just war machines.

    Let's not pretend that war machines and the people that operate them don't account for the vast majority of military spending.

    After all, the Internet got its start as a DARPA project.

    Which has fuck-all to do with the fact that our current military budget is bloated far beyond any reasonable defense needs.

    1. Re:Nonsense about the defense budget by Enigma2175 · · Score: 2

      Not to mention that one of the biggest line items for defense, the VA, is not under the defense budget. This is another $130 billion/year that is defense related but not in the defense budget. Paying for the wars in Afghanistan and Iraq doesn't get put into the general defense budget either, so add a few more trillion.

      --

      Enigma

    2. Re:Nonsense about the defense budget by Areyoukiddingme · · Score: 1

      Paying for the wars in Afghanistan and Iraq doesn't get put into the general defense budget either, so add a few more trillion.

      They weren't, under Bush. They are now. The Obama administration brought the war spending into the budget. And took the blame for the increased deficit, even though it wasn't their expense. The next time you hear some idiot hyperventilating over Obama's increase of the deficit, remember that.

  35. Enough with the MBA thinking by Anonymous Coward · · Score: 0

    This article is 100% bullshit. It's the epitome of "MBA Thinking."

    It is every MBA's dream to reduce overhead to zero, because they think overhead is bad. What they are completely failing at is basic accounting, because there isn't a single MBA program out there that requires one to learn anything about accounting.

    There are two basic costs that go into a product: recurring costs and nonrecurring costs. Recurring costs are the material and labor costs associated with making units of the thing. The nonrecurring costs are the costs that only happen one time for the purpose of becoming able to manufacture units of the thing.

    Nonrecurring costs have been labeled "overhead" by the MBA crowd and slated for elimination. They cannot be amortized with the product, and must be expensed in the accounting period during which they are incurred. That is not good for "this quarter's numbers" and definitely not good for "my performance bonus."

    Recurring costs can be amortized in the product, and there is revenue accretive to operating profit that can be tied to ever recurring cost dollar spent. Therefore it is okay to spend money on recurring cost, because every dollar of recurring money spent brings in more than one dollar in revenue. This is good for "this quarters numbers" and also good for "my performance bonus."

    What the MBA fails to see is that reducing overhead to zero means that you also do not have any recurring revenue, because you have no product to sell.

  36. It Will Nev Launch by Anonymous Coward · · Score: 0

    It will cost more than the USA by 2020.

    Should have been axed 8-years ago. Trump has to come around and kill it before it kills the USA.

  37. Lots of risk, little reward by Solandri · · Score: 1

    Unless your goal is to drop bombs on places halfway around the world, there really isn't much economic reason to go into space. Satellites are the main exception, but you launch one and you're set for the next 7-15 years. That's why pretty much all the U.S. launch vehicles are actually modified ballistic missiles. They were designed (by the private sector under contract) with the goal of dropping bombs on places halfway around the world. And NASA got to re-use that tech at a price heavily subsidized by military R&D.

    Need I point out that the initial goal of NASA, back when it was NACA, was to eliminate inefficiency in the private sector by generating a single, publicly available dataset of aerodynamic tests on standardized shapes. Sure private companies could run those tests themselves, but it was redundant and inefficient for each company to run the same tests and keep the data private. NACA ran the tests once and made the data public.

    NASA shouldn't be (and for the most part isn't) in the business of developing rockets. They contract that out to the private sector. The problem is that Congress has been putting their fingers on the scales - mandating that certain contracts be awarded to certain companies, instead of allowing the proper bidding/test/award procedure that takes advantage of the market to deliver the most ROI per dollar spent.

    1. Re:Lots of risk, little reward by Areyoukiddingme · · Score: 1

      That's why pretty much all the U.S. launch vehicles are actually modified ballistic missiles. They were designed (by the private sector under contract) with the goal of dropping bombs on places halfway around the world. And NASA got to re-use that tech at a price heavily subsidized by military R&D.

      Historically this was true. The situation has now, bizarrely, reversed. NASA is being used to artificially keep Thiokol alive because they manufacture the solid fuel rockets that are ICBMs, but the Air Force hasn't been allowed to buy more ICBMs since the Clinton era. This is why the Senate Launch System is "architected" the way it is.

      Trump has been making noises about the poor condition of our nuclear deterrent. If he gets his way, the Air Force will be able to replace a bunch of missiles directly, and NASA can stop pretending they ever wanted solid fuel boosters for anything.

  38. It's probably worse than that by Anonymous Coward · · Score: 0

    Of the 28 cents going to the contractor, the contractor probably blows a lot of that on inflated management MBAs and various other overhead too. I mean the actual cost of building this thing is probably not even $1 billion. Come on Korolev and Von Braun's teams during he space race were not even that big and they didn't even have proper computers. They designed the rocket to get us to the moon and back on paper using crude computers. If Korolev's team was alive today and had an iPhone's computing power we would be colonizing the outer planets by now. Elon Musk's ITS and Mars rocket is basically the Soviet N1 moon rocket design. Their engines are just small modifications of the RD-180. I do give Elon Musk and Jeff Bezos credit (especially their rocket design/build team) for the getting us a step close to the re-usable rockets era by enabling Methane fuel.

  39. Lobbiests by Anonymous Coward · · Score: 0

    I went to DC to a private DARPA meeting to propose innovative rocket designs. I have been making rockets for almost 40 years now. My experience was right when I left the building I started receiving calls from lobbyists who wanted to charge me $10k per month to get my project as a line item on the budget. The "assured" me they could do it.

    That made me wonder, given they have ethics rules too, they probably can do just that. This means the budget is largely determined by paid middlemen and in no way technical merit.

    SLS is a "swamp creature", just as Shuttle was. In fact it is mostly the same vendors and employees extending their pay checks to a new program. SLS has no technical merit. SpaceX and Blue Origin are filing the void and doing so at lower cost and with not much FEDGOV funds. A few. I know tons of folks working on SLS and its components. The crew capsule propulsion system is tested at our private site!

    JJ

  40. In most of the business world by rsilvergun · · Score: 1

    that's not how it works. You make a guess about how likely you are to get in trouble for those people's deaths and use that to decide how many times to measure. If somebody's irreplaceable (either because they're a genius or just really,really rich) you don't risk them. I'm not being flippant. That really is how it works. And we've got centuries of business rules and relations to fall back on as proof. Hell, looks at Flint MI's water supply. Or the process of approving drugs and the high profile failures there. Or if you want to get really famous that monologue from the beginning of Fight Club.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  41. Let's consider this.... by whitroth · · Score: 1

    1. From a late friend who was a rocket scientist, she was an engineer at the Cape, and used
                to complain mightily that the last years she was there, upper management were time servers,
                and didn't want to sign anything.
    2. How much of that "overhead" is administering contracts? Here's a working example: I work,
                right now, for a federal contractor (civilian sector). I have my fed direct manager... and
                another manager who administers our contract. And I *know*, for a fact, that I am paid
                right in the GS range I'd be paid if I were a fed. And our taxes are paying me, and they're
                paying my corporate manager, and his, and, oh, yes, for my company to make a good profit.

                I've been here almost eight years. I work with someone who's been here well over 20... as
                a contractor. But the Republicans don't want to *hire*, they want to outsource... so their
                corporate buddies can make a profit (that's not pork, no, no....) And before any of you
                say more, there are Title 42 reds, who have to reapply for their own jobs every five years.

    Maybe NASA's paying so much overhead because they can't *hire* people to do the actual work?

    1. Re:Let's consider this.... by Anonymous Coward · · Score: 0

      This. That's how "privatization" works in the United States. It's actually more expensive than direct hire government employees (even when accounting for the benefits and retirement), but it's "private sector" so automatically more "efficient."

  42. NASA is not a bus company by Anonymous Coward · · Score: 0

    Speaking as someone who used to work for a NASA contractor and got to see the sausage-making up close and personal, I think many of the commenters here are correct: NASA is the right way to go for exploration, research, standards, infrastructure, regulation and other things that naturally fall to government. It is worthless as a transportation company; SpaceX, et al, are much more efficient at simply delivering payload to orbit. Let NASA explore and research; let private companies compete on delivering cheap services.

  43. Comment by WallyL · · Score: 1

    It better all be over head, because after all they're the freakin' National Aeronautics and Space Administration!

  44. Check the source... by Anonymous Coward · · Score: 0

    A company founded by former Lockheed employees claims that NASA is spending too much money directly instead of funneling it through private contracts. Including contractors like Lockheed.

    Am I not supposed to question this? Because it's mighty questionable.

  45. Not Overhead by Anonymous Coward · · Score: 0

    Planning, design, testing, and other program-related expenses are not "overhead." If one is going to undertake an audit it would behoove one to understand basic principles of accounting first. Since the organization producing the report aren't amateurs, it can only be presumed that their "error" was intentional and designed to mislead.

  46. And who verified the think tank was non-partisan? by Anonymous Coward · · Score: 0

    One should aleays question the use of "non-partisan". TFS states it as a matter of fact, but I have yet to encounter a single "think tank" that is not biased and not backed by special interests.

  47. They did not ignore inflation, you ridiculous ass. by Anonymous Coward · · Score: 0

    From the article:
    "According to two separate estimates, the Apollo program cost between $100 billion and $110 billion in 2010 dollars."

    No, Apollo 8 didn't cost $110 billion. The entire Apollo program cost $110 billion, including inventing everything necessary to land men on the moon with 1960s technology, then actually doing it, repeatedly.

    NASA gets nearly $20 billion/year lately. The most it ever got in inflation-adjusted dollars is a little over $40 billion. Are they doing things anywhere near half of their efficiency and competence as they were in the Apollo era?

  48. Think Tank = Propaganda with academic support by bussdriver · · Score: 1

    Think Tanks are almost entirely purposed with creating biased academic like support for propaganda purposes. They do not seek truth, only as much truth that supports their paid positions and maybe invent clever fake science to undermine confuse actual science -- smoking is actually good for you! Some people they hire are honest but believe in the same things and if that changes they are fired. Others are just intellectual whores who sell their minds out for money, arguably worse than a whore.

    Think Tanks owe their huge numbers to the Vietnam era where the elite and their corporations realized the power of academic institutions to influence public policy with troublesome facts, cogent arguments, and tenure protected free speech. An effort was put together to counter the mostly selfless honest intelligent free speech and a Nixon man led the charge in a warped paranoid view only a religious zealot could have.

    A professor somewhere should get news time even more for a group of them but a think tank shouldn't get anymore attention than corporate spokes person... and they get too much attention already.

  49. The Companies by Anonymous Coward · · Score: 0

    The companies mentioned (Boeing, Orbital ATK, Aeroject Rocketdyne) and others not mentioned, view NASA as something of a cash cow. NASA pays it's bills promptly and reliably and can be sold on huge, expensive new technologies.

    "You can have anything you want, it's a cost plus contract!" would be one way they might view it.

    Therefore, adding more private sector contractors to NASA projects isn't automatically going to reduce costs or overhead. Make the private sector 100% responsible and then you'll see real motivation to greater efficiency. However as long as NASA is the sugar daddy to the contractors, it won't happen.

  50. Your attention please.... by Anonymous Coward · · Score: 0

    When you typed "And inefficient or not, private companies like VW, Wells Fargo, Enron, Merck, they have all done harm in ways that aren't covered by the Iron Law, but far exceed it." you apparently missed a tidal wave of irony.

    VW, Wells Fargo, Enron, etc all got spanked by the government. Enron is gone. Wells Fargo and VW are unlikely to ever repeat their errors which have cost their share holders enourmous quantities of money.

    When government runs amok, who spanks it? Who forces it to reform? Does it EVER get smaller? Do its bad actors EVER get punished?

    The lady in Obama's IRS who abused her power and unleashed her agency on the TEA People got "punished" with paid leave (civilians would say "rewarded with an extra paid vacation") and then got transferred (most civilians wouls say "promoted to a better location"). This sort of "punishment" actually rewards bad behavior and guarantees more of it. Just imagine if, after VW got caught cheating smog tests, the government gave all the VW execs additional paid vacations and then ordered them transferred to better jobs at nicer locations. Do you think VW would be deterred from further bad actions? Would you like to buy a bridge in Brooklyn on the cheap?

  51. Having wars of adventure without paying by sjbe · · Score: 1

    And took the blame for the increased deficit, even though it wasn't their expense. The next time you hear some idiot hyperventilating over Obama's increase of the deficit, remember that.

    Correct. We went to war and unlike every other time we've done that we did not raise taxes or take other extraordinary measures to fund our little wars of adventure because modern republican politicians break out in hives if you even mention the words "tax increase". In fact congress (republicans) lowered taxes because doing that is always politically popular even though only the wealthy saw meaningful benefit. In doing so our congress gave the bill for the pointless and expensive war to our children and grand children instead of behaving like responsible adults. Most of the money the US government borrows every year comes from the American people in one form or another. We are literally letting the government write IOUs to us while we have the delusion that the bill will never come due.

  52. Space is hard... by Anonymous Coward · · Score: 0

    Get smart, not indignant...some of this can be outsourced...but you still need a source of sober second thought...