SpaceX wins another NASA launch contract
Capitalism in space: NASA yesterday awarded SpaceX the launch contract, estimated to cost about $80 million, to launch its Plankton, Aerosol, Cloud, ocean Ecosystem (PACE) climate mission.
That cost number seems high for a SpaceX launch, especially because, according to this Space News article, the launch will be using a reused first stage. For such launches SpaceX has generally been charging less than its standard $67 million, usually about $50 million. The press release says the contract covers both the launch and “other mission related services” but I cannot see how those additional services could raise the price almost 40%.
Unless someone at NASA is willing to prove me wrong, I suspect this is merely the case of our vaunted federal government overpaying for a service, simply because it isn’t their money and they are willing to spend extra for no reason other than it makes their job easier. Or possibly they are now playing favorites, and throwing extra money SpaceX’s way to help the company in its other endeavors, a method of funding that is really inappropriate.
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Capitalism in space: NASA yesterday awarded SpaceX the launch contract, estimated to cost about $80 million, to launch its Plankton, Aerosol, Cloud, ocean Ecosystem (PACE) climate mission.
That cost number seems high for a SpaceX launch, especially because, according to this Space News article, the launch will be using a reused first stage. For such launches SpaceX has generally been charging less than its standard $67 million, usually about $50 million. The press release says the contract covers both the launch and “other mission related services” but I cannot see how those additional services could raise the price almost 40%.
Unless someone at NASA is willing to prove me wrong, I suspect this is merely the case of our vaunted federal government overpaying for a service, simply because it isn’t their money and they are willing to spend extra for no reason other than it makes their job easier. Or possibly they are now playing favorites, and throwing extra money SpaceX’s way to help the company in its other endeavors, a method of funding that is really inappropriate.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
…I suspect this is merely the case of our vaunted federal government overpaying for a service, simply because it isn’t their money and they are willing to spend extra for no reason other than it makes their job easier.
Or perhaps they just accepted the lowest bid. Perhaps SpaceX decided to soak the government for some extra millions knowing no other bidder could come close to their bid. I’m not sure why you have an issue with SpaceX trying to maximize their profit. They have a duty to their shareholders, after all.
In the case of Air Force launches, and I assume similar to NASA, the cost of extra paperwork is formidable.
However, 20-40 million dollars worth of paperwork is a terrifying prospect. Of course, the cost is in salaries and peoples time.
Jim Davis: I have an issue with the federal government, not SpaceX. If they can soak the government, they should do so. I suspect here however NASA could have driven a harder bargan.
Guessing, but it might be that the satellite is so heavy or headed for an unusual orbit and SpaceX figures they aren’t going to recover their 1st stage. I.e, they’re billing NASA for an expendable launch.
I suspect here however NASA could have driven a harder bargan.
Bob, I’m not seeing that they had any leverage. Since NASA is restricted to domestic launch providers SpaceX would be bidding against ULA, Northrup-Grumman/Orbital Sciences, and maybe Blue Origin. I can’t see any of those giving SpaceX any pressure to lower their bid. With the ongoing issues with Boeing’s CST-100, I can’t see that NASA can use commercial crew to force SpaceX to cut them any slack. NASA is not holding a strong hand.
Jim Davis: You are correct of course. Nonetheless, considering the amount of money that NASA is sending SpaceX on its many other deals, most especially its manned Dragon contract, they did have some leverage.
I know that any sane businessman in NASA’s position would have pushed SpaceX for a reduction, and probably gotten something. I think NASA probably didn’t even try.
You haven’t offered any information other than what you assume to be the price of this mission, an assumption not established in any way, and then you start criticizing the government. Show us the actual contract or at least an actual official statement of the payout first. Then write about it. You want donations for this? My ISP just charged my over $150 yesterday in fees for my non-profit, no money requested, no ads blog that almost no one reads, and I’m on Social Security. I post opinions too, but at least I back them up with links and research.
Black Sheep: You are welcome to your opinion. Mine is based on a long life of experience watching (and reporting on) how our federal government operates, or doesn’t.
Moreover, you are welcome to explore my website. I back up my opinions with numerous links, repeatedly. And have been doing so for just under ten years.
Robert: I agree…. Government “expenditures” are always suspect, considering the wealth of evidence regarding ANY past disregard of OUR money.
I doubt that the government is being overcharged. I suspect that the extra costs cover what the two articles phrase as “other mission related costs” and “related services.” What these services and costs are and whether these are pre-launch, post launch, or both is not stated by these articles, which is too bad. Undoubtedly, these were included in the bid package to all the eligible launch companies, and each company bid appropriately.
So what I found as it says PACE is 1700kg fully fueled. Not particularly heavy. The target orbit is 98° inclination. A near polar, retrograde orbit. I do not have the orbital data of previous sats launched by SpaceX. Could be this is a new one for them. Please feel free to correct me if I am wrong.
sippin_bourbon,
It seems that sun-synchronous orbit is new for SpaceX, but not unplanned. Robert had a story, a while back, that linked to a Space News article:
https://behindtheblack.com/behind-the-black/points-of-information/spacex-s-decision-to-slash-prices-provide-reliable-launch-schedule-upends-smallsat-industry/
From the linked Space News article:
“The original program also offered a limited number of dedicated Falcon 9 launches to sun-synchronous orbit (SSO) from Vandenberg Air Force Base in California, with the first scheduled for between November 2020 and March 2021. Subsequent launches were tentatively scheduled for early 2022 and early 2023.”
It seems that PACE adds another launch, this one scheduled for late 2022.