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Commercialization

NASA Study: Why SpaceX Can Build A Rocket Cheaper Than NASA

By Keith Cowing
NASA Watch
September 26, 2011
Filed under , , ,

Falcon 9 Launch Vehicle NAFCOM Cost Estimates (presentation), August 2011, NASA Associate Deputy Administrator for Policy
“The objective of the analysis was to estimate the cost to develop the Falcon 9 launch vehicle using two different approaches: 1) traditional NASA environment/culture, and 2) a more commercial development culture approach. … Results: “The activity estimated Falcon 9 would cost $3.977B based on NASA environment/culture. NAFCOM predicted $1.695B when all technical inputs were adjusted to a more commercial development approach.”

NASA Watch founder, Explorers Club Fellow, ex-NASA, Away Teams, Journalist, Space & Astrobiology, Lapsed climber.

2 responses to “NASA Study: Why SpaceX Can Build A Rocket Cheaper Than NASA”

  1. Bongstar420 says:
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    Wow…SpaceX is cheaper by decreasing work force, decreasing management, and increasing redundancy and exploiting more off the shelf parts. I don’t see why NASA can’t do that.

    But also, all that reduced spending is economic activity lost…. Unless you count a few fat cats with bigger pockets an “increase” in economic activity.

  2. Jonathan Caro says:
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    There are two issues resulting in any private sector company doing cheaper work than NASA.

    1. Is the rule, that any government project will cost more and result in lesser quality than a private project. There’s no risk reward, no profit and loss in government work.

    2. Like the military, NASA has a stated goal, then it has the unstated purpose to exist of spreading as much government funds to as many congressional districts as possible.