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- Newsgroups: sci.space
- Path: sparky!uunet!zaphod.mps.ohio-state.edu!howland.reston.ans.net!paladin.american.edu!gatech!emory!rsiatl!ke4zv!gary
- From: gary@ke4zv.uucp (Gary Coffman)
- Subject: Re: Shuttle a research tool (was: Re: Let's be more specific)
- Message-ID: <1993Jan12.145551.6172@ke4zv.uucp>
- Reply-To: gary@ke4zv.UUCP (Gary Coffman)
- Organization: Destructive Testing Systems
- References: <C0Hun4.13t@zoo.toronto.edu> <1993Jan8.183031.12692@ke4zv.uucp> <ewright.726798042@convex.convex.com>
- Date: Tue, 12 Jan 1993 14:55:51 GMT
- Lines: 38
-
- In article <ewright.726798042@convex.convex.com> ewright@convex.com (Edward V. Wright) writes:
- >In <1993Jan8.183031.12692@ke4zv.uucp> gary@ke4zv.uucp (Gary Coffman) writes:
- >
- >>Ok, let's try it another way. NASA sells Shuttle and it's support facilities
- >>at cost to Rockwell. NASA then buys a *ticket* when it needs a launch on
- >>Rockwell Spacelines, about 8 times a year. Rockwell Spacelines sells them
- >>the tickets at about 1.5 times current Shuttle flight costs, got to recoup
- >>the investment and turn a profit. The poor taxpayer takes it in the neck.
- >
- >How about this: NASA seels the Space Shuttle to Rockwell and negotiates
- >a long-term contract at the same time. The contract calls for NASA to
- >purchase 8 flights a year, with penalties for nonperformance, at the same
- >price NASA pays now. This would be a no-profit contract if Rockwell
- >spent as much to launch the Shuttle as NASA does, but Rockwell turns
- >out to be surprisingly innovative, finds ways to bring costs down,
- >and makes a tidy profit.
- >
- >Since NASA has found it can reduce by contracting out many
- >other operations to private companies (the workforce at KSC
- >is mainly contractor these days, not NASA), why should the
- >Shuttle itself be an exception?
-
- This is basically the final scenario that I listed. NASA writes
- off development costs and sells the hardware at depreciated
- value. *Then* private operation can reduce costs enough to
- turn a profit at current pricing, or less. At worst, NASA
- breaks even, and the operations nightmare is off their
- plate. The scenario you quoted didn't allow write offs and
- depreciation because it sold *at cost*. The scenario you
- deleted and recreated does allow these write offs which makes
- profitable operations possible.
-
- Gary
- --
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