SpaceX: More NASA Launches, Less Money
December 29, 2008
I attempt to cover the news without bias, but privately I cheered NASA’s selection of startup SpaceX and innovative Orbital Sciences over The Big Three collaborative (not automakers, aerospace contractors) bidding on $3.5 billion of government work to deliver stuff to the International Space Station.
I thought it was a little weird that SpaceX’s share, totaling $1.6 B to start, covered 12 missions, while Orbital, which got an additional $300 million, was responsible for eight. In a conference call with reporters to announce the award, NASA’s spaceflight chief Bill Gerstenmaier said the agency didn’t see anything out of line with Orbital’s bid.
I was curious what SpaceX founder Elon Musk
thought about the split and caught up with him Sunday afternoon via cell phone. He was in a car -- not the Tesla (I asked) -- going someplace that required GPS guidance. In the background, I could hear the incessant voice of Grown-Up Barbie, gushing with helpfulness. As one of my sisters once put it “Technological innovation is what will annoy us in 10 years.”
NASA may have a really good reason for splitting the contract the way it did, such as doubting that SpaceX will be able to deliver the goods as advertised. The company, after all, has had exactly one perfect mission to date. Orbital, if nothing else, has a longer track record.
I’ve asked, and will update this column if I get a response. (So far, I’ve gotten automated “I’m out of the office” email replies from two NASA press officers each referring further inquiry to the other person.)
Musk said he plans to ask as well. Here’s a partial transcript of our chat. The full interview will be posted soon at space.discovery.com
Congratulations, first of all. I’m sure you all were very delighted to get the news last week about the NASA contract.
Yeah, absolutely.
I was a little struck by the number of launches that SpaceX is offering to do compared what Orbital is going to do and was wondering if that caught your eye as well.
Hah-ha (laughing). Well … of course. The difference is bigger than even the number of launches because our Dragon spacecraft has 50 percent more payload capability than Orbital. It’s actually, if you were to multiple it out, it’s as if we were doing 18 launches and they were doing eight launches.
Do you consider Orbital a competitor for the whole contract? Do you think that you should have gotten the whole thing?
I want to be careful what I say here because I don’t what to look a gift horse in the mouth. We’re super excited that we got a $1.6 billion contract. I do think it’s a bit of question mark -- and I don’t know the answer to this because we’ve not had a chance to debrief with NASA -- but it is a little confusing why even though we’re cheaper and we’re further along than Orbital … it is a little confusing that we’re delivering two-thirds of the cargo and getting slightly less than 50 percent of the money -- or more than two thirds of the cargo. We’re doing 12 of the 20 launches and then on a per launch basis, we do 50 percent more than Orbital.
I don’t want to be quoted as saying anything negative about NASA because we’re incredibly grateful for the $1.6-billion contract, I mean who wouldn’t be? But I do think that the question should be asked. We’ll ask the question privately and it may make sense for you to ask the question of NASA, why is it that Orbital, who’ll cost more than twice per kilogram as SpaceX, why did they win a slight majority of the money? It’s worth raising the question publicly.
I can understand from a NASA standpoint that because they’re dealing with a critical issue with resupplying the space station that they want to have two suppliers. I can completely understand that. But it just seems strange to give the supplier that gave the better bid and got higher marks on a technical basis and has the lowest cost-per-kilogram by far, why wouldn’t they get at least the majority of the funds? It’s all a little confusing.
(Photo credit: Brian Solis/BrianSolis.com)



















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