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NASA Government Space The Almighty Buck

Sierra Nevada Corp. Files Legal Challenge Against NASA Commercial Contracts 127

New submitter Raymondware sends an update to last week's news that NASA had awarded contracts to Boeing and SpaceX to provide rockets for future manned spaceflight. Now, one of their competitors, Sierra Nevada Corp, has announced it will launch a legal challenge to the contracts. The company claims the government is spending $900 million more than it needs to for equivalent fulfillment, and they're demanding a review. They add, Importantly, the official NASA solicitation for the CCtCap contract prioritized price as the primary evaluation criteria for the proposals, setting it equal to the combined value of the other two primary evaluation criteria: mission suitability and past performance. SNC’s Dream Chaser proposal was the second lowest priced proposal in the CCtCap competition. SNC’s proposal also achieved mission suitability scores comparable to the other two proposals. In fact, out of a possible 1,000 total points, the highest ranked and lowest ranked offerors were separated by a minor amount of total points and other factors were equally comparable.
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Sierra Nevada Corp. Files Legal Challenge Against NASA Commercial Contracts

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  • by banbeans ( 122547 ) on Saturday September 27, 2014 @06:16PM (#48011203)

    Leaving out Boeing would be budget suicide for NASA.

    • by ShanghaiBill ( 739463 ) on Saturday September 27, 2014 @06:39PM (#48011303)

      Leaving out Boeing would be budget suicide for NASA.

      No one should be left out because there should be no contract. Instead, NASA should be fostering a spot market for launches. They should have a separate bid for each launch: "We want X satellite in Y orbit, and insured for Z dollars." Then give the launch to the lowest bidder. That way each company can work continuously to cut costs and improve services, knowing that if they leapfrog the competition, they can win the next launch, instead of being locked out for years.

      • by mtaff ( 772210 )

        No one should be left out because there should be no contract. Instead, NASA should be fostering a spot market for launches. They should have a separate bid for each launch: "We want X satellite in Y orbit, and insured for Z dollars." Then give the launch to the lowest bidder. That way each company can work continuously to cut costs and improve services, knowing that if they leapfrog the competition, they can win the next launch, instead of being locked out for years.

        For values of 'satellite' that include human-carrying s/c, and exlcude what would colloquially be called 'satellites'. And even if the contract was for a single launch, there would still be a contract, unless you are advocating for handshake deals.

        • by AK Marc ( 707885 )

          And even if the contract was for a single launch, there would still be a contract, unless you are advocating for handshake deals.

          When you read with context, you are wrong, and he's right. A spot contract would be done, but not a sole-source contract (the usual one) or other exclusive longer-term contracts.

      • by Karmashock ( 2415832 ) on Saturday September 27, 2014 @07:02PM (#48011363)

        I'd love to see that too. The companies tend to argue that sans some sort of contract down the line it isn't cost effective to invest in a system when they might not ever see a return from it.

        There is some validity in that especially if no company takes you offer which might be the case.

        That said... I too would like it to work as you describe. On a launch by launch basis. As to cost being the primary critiera... I agree it should be a very important or even primary one. I only worry about safety etc. Yeah, the insurance costs could help manage things but the insurance industry can't predict failure rates without statistics and that requires a significant amount of data that would not exist. To that end, you would have to audit the safety and reliability of each design as best you could. Yes, they could be corrupt and say designs are bad when they're not. But the alternative is to just let everything be determined statistically which would require a significant number of failures to give you some baselines on each design.

        Anyway, generally favorable... just think you'd have to be careful about it. People tend to be very intolerant to failures in this industry. Remember NASA crashed a few probes into Mars under its "better, faster, cheaper" model... and then retired that policy with the result that now they do everything very slowly and quite expensively to make sure everything is perfect. If you have too many crashes people are going to insist the damn things be better built and that will change the model back to what we have now. So... just keep that in mind.

        • I suspect we're moving rapidly towards that state, but for now NASA and a few other government agencies abroad are the primary customers for orbital lanches. I suspect the various commercial interests are too poorly organized and risk-averse to book many flights with the new kids, and I certainly wouldn't want to be the entrepreneur in the position of building a hundreds-of-millions dollar throw-away bottle rocket on the *hope* that somebody would pay for a launch, not to mention enough additional launc

      • but how could companies justify plowing in a whole bunch of cash if they don't have assurances in place that the cash will be recouped?
        • but how could companies justify plowing in a whole bunch of cash if they don't have assurances in place that the cash will be recouped?

          How could companies justify plowing money into oil wells, semiconductor plants, toy factories, apple orchards, etc. if they don't have assurances in place that the cash will be recouped? Yet people invest in those things everyday. What makes launch services any different?

          • what makes it different is that there is only ONE organization in the united states that is putting people in the sky. and you're not going to go far in business if you spend a bunch to woo a customer that may give up next year.
            • by stiggle ( 649614 )

              There are a number of other organisations who are interested in putting people up.
              SpaceX has signed an agreement with Bigalow to launch their habitats and send people up to them.

              I'm sure the Europeans would buy rides on US launches

              So while NASA is the primary customer, there are others who will also use the facility once it exists.

          • by sjames ( 1099 )

            Since there is more than one customer for the things you mentioned, they can be reasonably assured of being able to sell their product and making a return.

            Here, we are talking about manned space launches. There aren't enough customers in that market to enter without a contract.

          • by TWX ( 665546 )

            How could companies justify plowing money into oil wells, semiconductor plants, toy factories, apple orchards, etc. if they don't have assurances in place that the cash will be recouped? Yet people invest in those things everyday. What makes launch services any different?

            Because all of those things were able to start small, relatively speaking, where only a handful of people were necessary to get the initial ball rolling. Even semiconductors; We looked at a house for its detached garage and the previous

      • by demachina ( 71715 ) on Saturday September 27, 2014 @07:49PM (#48011513)

        This contact is for carrying people in to LEO, not satellites or cargo. Your argument doesn't work for human rated launchers.

        First, it is difficult and expensive to human rate a launch vehicle so not very many companies are going to do it without a reasonable chance of getting business.

        It is also probably not a place you want a company cutting corners to low ball a contract bid. The first priority is keeping the cargo alive, not saving a few dollars by going with launch-by-night Rockets-R-US.

      • by ihtoit ( 3393327 ) on Saturday September 27, 2014 @09:07PM (#48011775)

        I don't think low-bidding should ever be a consideration. That's how Thiokol got in to the STS and boardroom creep killed Challenger. The bottom line overrode safety considerations - the engineers said "You launch, the vehicle will explode", the board disagreed. They wanted to save however many thousands of Dollars on yet another launch hold and just fucking light that thing off. The ultimate price in human life was collected.

        • I don't think low-bidding should ever be a consideration. That's how Thiokol got in to the STS

          Baloney. That is the opposite of what happened. The boosters were made in Utah because a senator from Utah headed the appropriations committee that dealt with NASA. The explosion had nothing to do with low-ball capitalism, and everything to do with sleazy pork barrel politics.

          • The engineers new ahead of time that the gasket was likely to fail. They informed management in a timely manner. At that point where the thing was built was no longer relevant, the question was simply do we delay the launch and replace/reengineer the gasket, or not?

            • by sjames ( 1099 )

              He was alluding to the fact that the booster was only segmented because it had to be shipped from a land-locked state. Originally it was to be built in one piece and sent by water.

            • In order to evaluate this, we really need to know how many times the engineers advised against launch, and how serious they were. If there were engineers advising against most launches, this protest is much less significant.

              BTW, the engineers were not advising replacing the O-rings. They were saying that the O-rings were not rated for launches at the temperature predicted for launch time. Delaying the launch for warmer weather would presumably have averted the disaster.

      • Leaving out Boeing would be budget suicide for NASA.

        No one should be left out because there should be no contract. Instead, NASA should be fostering a spot market for launches. They should have a separate bid for each launch: "We want X satellite in Y orbit, and insured for Z dollars." Then give the launch to the lowest bidder. That way each company can work continuously to cut costs and improve services, knowing that if they leapfrog the competition, they can win the next launch, instead of being lo

        • by khallow ( 566160 )

          You have to build not only the rocket, but a tower to carry the crew to the top of the rocket along with an arm to get the astronauts into the vehicle (which is not compatible/spacecraft). Escape systems need to be installed. It's very expensive, and it would never be built without assurance that the demand is there.

          Then guarantee the demand. It still doesn't require contracts. Notice here that Boeing isn't actually getting a long term contract or guarantee of business in the first place. They're building all that expensive stuff just because NASA gave them four billion dollars (well, will give them, over the course of the next few years).

      • Then give the launch to the lowest bidder.

        No that's a totally dumbass idea because it's so easily gamed. I can always undercut the competition. Sure the launch will fail, and they might even try to get their money back. But by that stage, it's all been spent so the company will simply fold.

        Going for the lowest bidder no matter what is a great way to get screwed over by someone unscrupulous and frankly very few companies operate such a policy either. I actually had some building work done a while back and en

      • by TWX ( 665546 )

        No one should be left out because there should be no contract. Instead, NASA should be fostering a spot market for launches. They should have a separate bid for each launch: "We want X satellite in Y orbit, and insured for Z dollars." Then give the launch to the lowest bidder. That way each company can work continuously to cut costs and improve services, knowing that if they leapfrog the competition, they can win the next launch, instead of being locked out for years.

        This won't happen either; it's very exp

      • In this scenario only SpaceX would play. The total cost of developing just the spacecraft runs in the hundreds of millions of USD.
        Only SpaceX is committed to building their spacecraft regardless of NASA due to their Mars ambitions.
        Human transport into space is a very low volume, high cost market, it's not like the looser will pickup some business anyhow.
        The system just doesn`t work like that.
        That being said, technically I would prefer Boeing were eliminated. Too expensive a solution, riding on top of an exp

      • by bledri ( 1283728 )

        Leaving out Boeing would be budget suicide for NASA.

        No one should be left out because there should be no contract. Instead, NASA should be fostering a spot market for launches. They should have a separate bid for each launch: "We want X satellite in Y orbit, and insured for Z dollars." Then give the launch to the lowest bidder. That way each company can work continuously to cut costs and improve services, knowing that if they leapfrog the competition, they can win the next launch, instead of being locked out for years.

        Except there is not an existing manned spaceflight market, just like prior to the commercial cargo contracts their was not a commercial cargo market. If you award a contract to the lowest bidder (or for that matter, any other criteria) before any hardware exists, then only one company will develop the hardware. This is how it used to work, and is exactly what these contracts are meant to avoid. If you only have a single winner, and that winner is developing the hardware based on the contract they won, th

      • That would add inefficiencies to the process as well as limit investment in long term higher capability solutions in favor of playing it safe.

        At this point a certain amount of customization is generally required to be made for the payloads going up. Some missions offer more flexibility than others, but generally you have to know the launch system ahead of time, not pick it after the fact.

        From the launch company's perspective, they can only reach as far as they can be assured they can afford. From the inve

    • Re: (Score:3, Interesting)

      by Anonymous Coward

      right!! the country of India just proved how they can get the job done, with a satellite that cost less then some moronic movie, and it turned out to be a success.

      I'm not yelling at you, but the entire NASA program is a waste of money and time. How one nation can do what NASA does with a cheap but effective solution.

      NASA gives out contracts to companies that are infective and expensive, compared to companies that are cheaper but still get the job done. Boeing is a laughing joke to begin with cutting ties wi

      • by Luckyo ( 1726890 )

        The difference being that they saved on everything. The main reason why it was so cheap was because payload was positively tiny. It's not actually very expensive to get a light payload into space.

        The costs increase as the weight of payload and accuracy requirements go up. They increase further as durability requirements on hardware, reliability requirements (very stringent on manned flights for example) and other similar factors go up.

        India did an excellent job with their project. But it was still quite exp

  • by Anonymous Coward

    Sounds so exciting until you realize that low Earth orbit is closer to me than New York City is to Montreal, and I can go there by bus and explore something infinitely more fascinating than a sucking void.

    • by Dzimas ( 547818 )

      The Atlas V rocket that Boeing will use to launch the CST-100 has launched the Lunar Reconnaissance Orbiter, the Mars Reconnaissance Orbiter and the Mars Science Laboratory. It's not just about LEO and maintaining the ISS, although that is a short-term goal. SpaceX also has their sights set on more ambitious goals, but sadly they are restricted by NASA's budget and goals -- there simply are no commercially viable space missions beyond satellite launches right now.

  • by Anonymous Coward

    Is this going to hurt the beer supply?

  • I love their beer!

    Really they want to challenge because the government favored Boeing by 1.5B over SpaceX which they favored by 900M over SV?

    It's all fair in a corrupt faux government.

    Cure the "bitcoin replaces fiat currency and that's what makes the yoke of governments work" music.

    E

  • It couldn't possibly be the fact that the two companies that got approved use a simple capsule like the Russians and Sierra Nevada uses a spaceplane. After the issues with the Space Shuttle I can see why NASA rejected that plan.

    • Re:Another Factor? (Score:5, Interesting)

      by harperska ( 1376103 ) on Saturday September 27, 2014 @08:46PM (#48011697)

      Maybe, probably not. All of the problems with the shuttle were not due to it being a spaceplane per se, but due to it being a sideways stack rather than a vertical one. Dream Chaser is designed instead to be on top of a rocket, either an Atlas V or Falcon 9.

      Challenger failed because the failed o-ring between the segments of an SRB caused a jet of flame that impinged on the external tank. Falcon 9 doesn't use any SRBs. Atlas V doesn't use multi-segment shuttle style SRBs, and may not use SRBs at all for manned launches. Either way, that particular failure mode would be the fault of the booster and not the vehicle. In addition, by being on the top of the stack, if there is any sort of catastrophic failure of the booster, the vehicle is equipped with a launch escape system that was impossible on the shuttle.

      The Columbia accident, as well as countless near-misses that could have resulted in a Columbia style accident, was due to debris detaching from the external tank and striking the orbiter. If the vehicle is on top of the stack, nothing that breaks off of the rocket can physically come into contact with the vehicle.

      Therefore Dream Chaser isn't vulnerable to either of the causes of loss of a shuttle orbiter, and being a spaceplane has nothing to do with it.

      • > Challenger failed because the failed o-ring between the segments of an SRB caused a jet of flame that impinged on the external tank.

        Challenger and Columbia both failed for procedural reasons, not really the mechanical ones that in the end destroyed them.Richard Feynman exposed a lot of them in his biography where he discussed the investigation into the Challenger disaster. Management had one view about the reliability of the craft, and the engineers had another, which they were prevented from saying. T

        • The GP argument was that Dream Chaser was rejected simply because it was a spaceplane like the shuttle, implying that the issues with the shuttle were due to it being a spaceplane. Yes, there were plenty of procedural issues that caused the mechanical issues to be a problem. If management had listened to the engineers about the limitations of the o-rings, it could have prevented the challenger disaster. Regardless, the point is that the shuttle had that particular point of failure, which Dream Chaser would

          • I'm afraid that analyzing those disasters in terms of the _specific_ mechanical failures misses the point. It's possible to spend a project's entire budget, and go profoundly over budget to the point of complete failure, by trying to find and resolve each individual bug as it turns up. I'm afraid that the frequency of space shuttle failures was _amazingly_ low considering the flaws in the overall manufacturing and design process, and I do applaud the individual engineers and inspectors who did their best to

      • The Columbia accident, as well as countless near-misses that could have resulted in a Columbia style accident, was due to debris detaching from the external tank and striking the orbiter. If the vehicle is on top of the stack, nothing that breaks off of the rocket can physically come into contact with the vehicle.

        I always wondered after the fact if the first runs with the painted tank had the foam issue or if the paint kept it contained. I know we stopped painting it for cost and weight concerns, but sometimes, it makes more sense to spend the money. Again I dont know if it would have helped but its a question ive always wondered and never seen really discussed by people in the know

      • Therefore Dream Chaser isn't vulnerable to either of the causes of loss of a shuttle orbiter,

        Those were the dramatic failures. There were other issues with the Space Shuttle. There were other issues as well. One big one being that, due to the complex shape of a lifting body, the insulating tiles were very complex themselves. Even in an "uneventful" flight many tiles were damaged and needed to be manufactured and replaces. This caused extended turnaround and delayed flights. It also increased the cost of each flight significantly. It is much easier to replace panels on a simple form like a capsule t

    • Boeing was going to get one of the contracts regardless. They have the favor of Congress and a very long history in aerospace. Sierra Nevada had to compete with SpaceX to which they fail miserably. At this point compared to SpaceX, Sierra Nevada has proven precious little to NASA and are asking for substantially more money. Not only is SpaceX already successfully delivering and returning payloads for NASA but their proposal for manned transport is merely an evolution of their already flying equipment.
  • Past performance? (Score:3, Insightful)

    by Insanity Defense ( 1232008 ) on Saturday September 27, 2014 @07:07PM (#48011373)
    So how is the Dream Chaser on past performance for orbital flights? No such flights? I see why it was not chosen because of past performance or lack there of.
    • by Guspaz ( 556486 )

      Neither Boeing's CST-100 nor SpaceX's Dragon v2 (which is substantially different from Dragon v1) have any past performance for orbital flights either.

      • by ihtoit ( 3393327 ) on Saturday September 27, 2014 @09:01PM (#48011751)

        Boeing and SpaceX have BOTH demonstrated technological ability in space, SN have not.

        Are you going to buy an untested car from an unknown manufacturer, load your kids in it and drive it cross country?
        Or are you going to buy a Ford?

        • by Guspaz ( 556486 )

          Untested? SNC has been around for half a century, and has extensive experience building satellites. They're the ones who built all those Orbcomm satellites that SpaceX is launching.

        • by Rhyas ( 100444 )

          Uhh,

          Your argument is the definition of weak, and your analogy is terrible. You should do more research before spouting off about stuff you clearly know nothing about. You'll get modded down, so most people won't see this, but I'll just leave this here for your benefit anyway.
          Sierra Nevada is a *group* of companies [sncspace.com], not a single entity. And the people and companies involved absolutely have track records for "technological ability in spac

          • "technological ability in space"
            bears very little resmeblence to
            "technological ability getting into space"

            Once you've caught a ride into orbit on someone else's rocket it's just a matter of surviving radiation, thermal fluctions, and micrometeorite impacts, and making minor, low-G orbital adjustments. All important, but not really relevant to making a massive rocket to get you out of the atmosphere and up to 17,000 m/s

        • by servant ( 39835 )
          Given that Chrysler is basically owned by Fiat, GM is still 'government motors' and the unions didn't sell stock as required by the settlement agreement, Ford is the last of the 'big 3' to be a domestically based business. So yes, I drive a Ford.

          .

          I loved Saturn, but GM shot them in the head in the 'settlement'. But even they turned into 'just another GM brand' after a super first half dozen years, once the unions took over, and 'regular GM management' didn't run them at arm's length like they were

  • by Dereck1701 ( 1922824 ) on Saturday September 27, 2014 @08:08PM (#48011573)

    NASA didn't really have any other choice. They couldn't give the entire contract to Boeing without risking falling into the same defense contractor cost plus revolving door situation that has held back our space program for decades. They couldn't give the entire contract to SpaceX without causing an uproar in the "space belt" congressmen/women that could possibly scuttle the entire CCtCap/CCDev/CCDev2 program (which they've been trying to do anyway). So they took a middle of the road approach, with both SpaceX and Boeing providing launch services they keep enough political support to keep the program afloat but down the road having the two compared side by side either encourages Boeing to keep its prices reasonable to stay in the game or gives NASA the evidence to say "hey, we've got two proven launch systems and one is costing us a whole lot more than the other, why are we still using them" in a public congressional budget hearing. SNC just had the position of being the lesser of the two second chair choices, not saying its right but that's politics unfortunately.

  • Wait... So they're serving a different beer on rockets?
  • To me, the fact that I don't know who they are tells me all I need to know about how successful they've been at launches...

    • by Anonymous Coward

      SNC has a solid track record in satellites, but is probably better-known in aerospace for its aircraft work - they take production aircaft of ALL types (from small prop-jobs to big jets) and do modifications to their structures and systems to adapt them to very special (generally) government missions. As such they have excellent teams with solid experience in all aspects of all types of aerospace structures and systems as well as aerodynamics. You have not heard about them because you do nou buy satellites

      • Neither satelites nor aircraft are directly relevant to surface-to-orbit scale rocketry. Show me that they can actually deliver a payload to orbit and *then* we can talk about awarding them a contract to do so.

  • who the fuck are Sierra Nevada??

    I know who Boeing are: they have a long history and a fantastic pedigree in aerospace engineering. Including STS components.
    I know who SpaceX are as well, they're the guys who have already demonstrated the viability of a private concern running shuttle to the ISS.

    Answers on a postcard, please.

  • by Required Snark ( 1702878 ) on Saturday September 27, 2014 @10:18PM (#48011989)
    Sierra Nevada Corporation, aka SNC [sncspace.com] has a real nice web page with a whole lot of very pretty pictures.

    They also have a very extensive Wikipedia entry for the Dream Chaser [wikipedia.org] which goes into minute detail about every contract they have received and every milestone they have achieved. It is so detailed and gleaming that it was obviously crafted by someone in the pay of SNC.

    However, it you read the whole thing you can find some very interesting information in he very last section listing their technology partners [wikipedia.org].

    It turns out that Lockheed-Martin is responsible for "airframe construction and human rating of the spaceplane". SNC has designed a lifting body capsule, and hybrid rubber/NO rocket engine. Based on the partners list, it seems that they are acting as a systems integrator, and everything outside the design and rocket is not in house technology.

    So if NASA is making the step to commercial human rated spaceflight, are they better off choosing companies who have already demonstrated orbital launch capabilities, or someone that does not even have the ability to build their own space capsule? When something goes wrong (and something will) imaging the finger pointing in the SNC scenario. This explains why NASA made the safe choice.

    This suit, although filed by SNC, seems like an attempt by Lockheed-Martin to get a chunk of the billion dollar pie. What do they have to loose? Their name isn't on any of the legal paperwork, so they can pretend to be out of the loop. Meanwhile the congress-critters from Lockheed will be fighting it out with their counterparts from Boeing behind closed doors. This won't be decided in the courts, or in any public forum.

    It's not about public policy or access to space, it's about corporate profit. If you want to know why NASA seems so screwed up, just follow the money.

  • Comment removed based on user account deletion
  • "...the highest ranked and lowest ranked offerors were separated by a minor amount of total points and other factors were equally comparable."

    AKA: "We were bottom, but dammit, not by that much!"

  • Oh yeah, private industry is more efficient, cheaper, and always better than government based stuff.

    Enter the lawyers. It will end up costing more in the end, after they extract their many pounds of flesh. In the true tradition of the private market, money that might have gone into research or equipment goes to Marcus and Mack.

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