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Policy

Faster-Better-Cheaper Anyone?

By Keith Cowing
NASA Watch
August 11, 2015
Filed under
Faster-Better-Cheaper Anyone?

Lost in space? Nasa under pressure, BBC
“The most recent rover mission to Mars, Curiosity, landed successfully three years ago and has performed admirably. But the mission was around a billion over budget and three years late. These events were monitored by former Nasa scientist Keith Cowing in his blog Nasa Watch. “As upset as Nasa proclaims to be when these overruns happen, they just go off and do another one. It is an ongoing chronic issue with Nasa,” he told BBC News. “Nasa’s financial management system is still a mess. After doing Nasa Watch for 20 years it is almost like I have a key on my keyboard that I press and it says: ‘Nasa doesn’t understand what things cost’.”
So could it be time for Nasa to rethink the “faster, better, cheaper” plan? “Dan Goldin was prophetic,” says Mr Cowing. “But the way his idea was put into practice was flawed and inconsistent and insincere,” he says. “It’s like having the archetypical pictures of the little mammals running around as the dinosaurs are dying. There is always the seed of the next wave of doing things that emerges from the current way of doing things.”

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

42 responses to “Faster-Better-Cheaper Anyone?”

  1. SouthwestExGOP says:
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    This is easily at least a government-wide observation – the DoD has no idea what things cost since they have multiple, overlapping financial systems. Large corporations also routinely have over-runs, they just don’t have to tell anyone. But the Boeing 474 program is a good example, it almost killed Boeing.

    • ProfSWhiplash says:
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      “Boeing 474 program … almost killed Boeing”

      Fortunately for them, when an intern suggested switching the numbers around to 747 – following the 7#7 nomenclature, it turned everything around and the company was saved just in time!! (and the intern was then let go for being a know-it-all)

      • SouthwestExGOP says:
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        ProfSWhiplash Yes, that intern was the only one to catch the nomenclature problem and it cost him his job! Now, with the “RS-71”, it was a mistake by the President that switched things.

  2. savuporo says:
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    let it be noted that NASA has good and bad days. There are multiple examples of small programs across all the centers performing well with small budgets and having great results.
    Lunar Prospector orbiter comes to mind. The entire Morpheus program as a more recent example.
    It is the big budget, multibillion dollar programs where this financial incompetence hurts. Curiosity, JWST are big sore examples. These are too big to fail, very risk averse, spending another couple of years and couple billion to get them just right comes with institutional inertia

  3. LPHartswick says:
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    I remember several significant failures with FBC Program in the past. It may work fine if you were sending dozen’s of probes a year, but they had the same low flight rate, with even lower reliability. If I remember right they had poor telemetry making failure analysis spotty at best. With the caveat that fraud and malfeasance has always been alive and well in America, generally you get what you pay for.

  4. TheBrett says:
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    What would be the way to make it cheaper and faster? Just better financial management? More standardized probes like the Mariner Mk.II concept?

    • SpaceMunkie says:
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      What would make it faster and cheaper? Contractor accountability. Contractor will bid on a project, under bid everyone else only to come up with thousand RFI’s that add up to lot more money, and NASA does nothing just hand over more cash because they can’t waste the time to recompete the project (at least three month process). All NASA has to do is apply standard business and legal practices – did you read this work order? did you bid this much? Nothing has changed on the project – deliver at the agreed cost – don’t deliver, your estimator, engineer, and ceo go to jail for fraud.

    • fcrary says:
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      I think a different risk posture would really help. Currently, for class A missions, “failure is not an option.” Someone can, almost literally, walk in the door and tell a project manager, “I’ve just thought of a potential risk. Since no one can prove the risk is under one in a thousand, you must pay me to study it, and either show that risk is sufficiently low or come up with a way for you to spend even more money to mitigate it.” A manager is not expected to just say, “no, we’ll just take a chance.” Once a project gets big enough, this can become a cottage industry and really drive up cost. Cheaper, faster, better was predicated on the idea of accepting risk and more frequent failures.

      • Gonzo_Skeptic says:
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        The cost of JWST could have bought a nuclear powered submarine and an aircraft carrier. Much of that cost was risk mitigation/aversion as you described.

  5. EtOH says:
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    I can understand how it could be very difficult to accurately predict the cost of a mission before it is even built. But if your estimates, in retrospect, generally display a bias (say towards unrealistic frugality), this is a very easy problem to solve. It is just a matter of normalization. Perhaps a “normalization factor” is not considered an acceptable part of a detailed cost estimate, but it seems like if they were serious about delivering accurate estimates, they would include something like this.

    • Michael Spencer says:
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      I used to accept this argument- that the tech is advanced, cutting edge, blah blah blah. And I suppose it’s correct to some extent. But it sure doesn’t explain the doubling and tripling of some projects.

      This is management pure and simple.

      • EtOH says:
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        Perhaps I should have been more clear. Whatever the difficulties of estimating costs beforehand, the average cost estimate should be very close to the average final cost, because this is a simple error to address. If the average project comes out twice as expensive as the estimate, you multiply your future estimates by two. So called “normalization” is the easiest element of formulating a prediction, so if they aren’t getting that part right it’s a bad sign.

    • fcrary says:
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      This is done, and actually required, at the 30 to 40% level. Programs at the initial proposal stage (pre phase A) are required to carry a hefty budget reserve. In effect, normalizing their cost estimate by a factor of 1.4. Unfortunately, many institutions expect and even train managers to spend this reserve down to zero by the time of launch (end of phase D, actually.) So, this normalization becomes a self fulfilling prophecy.

  6. Half Moon says:
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    When NASA history continues to repeat itself, despite pronouncements that: ‘we must learn from our past failures so as not to repeat them”, you can rest assured folks have no clue what is going on that gives them the failures in the first place. They think they do, but not really.

  7. Michael Spencer says:
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    My own experience is limited to construction where it is hard enough to think of everything and where occasionally the snake finds me, turning the project upside down.

    But here’s where costs are controlled: lots of eyes. After I complete a design project I prepare a cost opinion. Then a contractor does the same. Frequently the client also has in-house eyes. And most of the time there are subs that are watching the entire thing ready to add considerable experience. In the end we are all answerable to the person paying the bills.

    So although I don’t miss cost estimates any more very often (after nearly 30 years), I know I am part of a team.

    How is Webb, for example, different? As far as I can see that’s the point of BBCs comments. By now NASA should have in place eyes on the various parts and the ability to call bullshit at the appropriate moment.

    • Gonzo_Skeptic says:
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      “By now NASA should have in place eyes on the various parts and the ability to call bullshit at the appropriate moment.”

      These projects are more about shoveling the proper amount of pork to the correct Congressional districts. Financial managers embedded in these types of programs have no incentive to call bullsh!t since this will lead to re-assignment to some lesser project, and outside observers rarely have enough insight into the program to know what the lies and games really are.

      When you can’t figure out why some ugly government train-wreck project continues to get funded year after year, just follow the money.

    • fcrary says:
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      That’s interesting. The NASA missions which stay on budget (more or less) have something in common with your personal example. Discovery and New Frontiers projects tend to have distributed management. The PI is in one place (often a university), the project manager in another (often a NASA center) and most of the work is contracted out to an industrial partner. The real budget disasters typically have most of the management under one roof. Ironically, that’s sometimes justified by saying a project is too big or important to trust anyone else to do right. Of course, there are other issues, but I’d be amazed if a problem of this magnitude had a signal cause.

  8. Gonzo_Skeptic says:
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    JWST management at Goddard (Maryland) overshot their budget in such an egregious manner because they could. Senator Mikulski (Maryland) was willing to use her considerable political clout to keep the project alive and funded, regardless of the constant parade of technical mis-steps and fumbles and re-directions. This was an open secret on the program. Annual exercises to come up with realistic cost projections were considered a time-wasting joke.

    Now, with Mikulski on her way out, such a big-ticket fiasco is very unlikely to be repeated at Goddard and survive Congressional scrutiny.

  9. AstroInMI says:
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    This is incredibly misleading:

    “Instead, Nasa seems to have lurched from bargain basement space missions back to gargantuan projects where costs have spun out of control – with the exception of the low-cost Discovery class and medium-cost New Frontiers class missions (of which New Horizons is one).”

    Huh? Except for the handful of Mars missions (and, really, only one in particular that was a huge overrun), NASA’s planetary program is dominated by Discovery and New Frontiers missions. They are not the exception. Not only that, the Discovery missions exemplify FBC.

    All I see in the article is Curiosity this and JWST that. Those are two missions (one of which is not even in the planetary program) out of many successful ones.

    As for ESA, how’s that Bepi-Colombo mission coming again? The one that is now at $1.6 billion which is 50% higher than originally estimated?

  10. Gonzo_Skeptic says:
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    It comes down to one word: “incentive.”

    What incentive do NASA managers have to tell Congress the truth about how much a project is going to cost?

    • Ben Russell-Gough says:
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      It becomes a clash between actually wanting the project to succeed against a fear that, if they tell the decision-makers the truth, either the project will be cancelled or they will be fired in favour of someone dumber and less ethical who will tell the lies that their superiors want to hear.

    • Daniel Woodard says:
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      In most R&D agencies (NIH, DARPA, NIST, parts of DOE and FAA, etc) Congress does not micromanage to anywhere near the extent they do with NASA. It doesn’t make much difference what NASA tells Congress because even with the best information Congress is unlikely to make a wise decision. It’s more important for NASA to improve its internal decisionmaking. If NASA has a success (i.e. commercial cargo and crew) Congress will be glad to take credit for it even if they fought against it.

  11. John Adley says:
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    When it is about pride and honor one can’t be cheap. NASA is the pride and honor of this country.

    • SouthwestExGOP says:
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      John Adley Maybe it was, back in the 1960s.

    • Michael Spencer says:
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      That’s certainly true- that is, it’s true amongst those not more deeply aware of NASAs struggles and of the crazy quilt of space policy.

      More informed people know differently.

      You know. Like all of us smart guys here 🙂

  12. Daniel Woodard says:
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    Generally in the private aerospace industry there is one manager with responsibility for both technical and financial aspects of a program. like Kelly Johnson, Ed Hienemann, or Elon Musk. If there is a problem, the manager can’t blame someone else. The basic concept of BFC was good, control and reduce cost, and SpaceX has done the same. Take away that goal, and you can pretty well guarantee you will not achieve it.

    • Rich_Palermo says:
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      Unfortunately, the days of Johnson and Heinemann are long gone. Look at the F35 or any other big acquisition. Industry managers of large programs don’t get those slots by rocking the boat. They’re groomed and promoted into them with each program a step to the next rung on the corporate ladder. A failing program can still generate profit. A failed program can make money through termination costs. There is no reward for careful stewardship and plenty of penalties for plain speaking.

      Musk is different but following the recent launch failure and short sheeting of commercial crew it remains to be seen what he and SpaceX will be able to do.