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NASA, Manufacturers Benefiting From Private Space Sector

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NASA, Manufacturers Benefiting From Private Space Sector

While many look at the efforts of companies like SpaceX, Orbital ATK, Boeing, and even Blue Origin as the work of technologists dreaming of space exploration, the reality is that the work being done by these companies is having a dynamic financial impact. According to a report by NASA analyst Edgar Zapata, these private sector companies are saving NASA as much as $183,000 per kilogram per launch.

These figures are focused on cargo deliveries to the International Space Station (SS). Specifically, SpaceX charged NASA about $89,000 per kg. of cargo delivered to the space station, while Dulles, VA-based Orbital ATK charged about $135,000 per kg. Contrast these costs to those of NASA’s legacy costs for similar projects which priced out at over $270,000 per kg.

Cost savings such as these have led the agency to expand the use of commercial companies in other areas of space operations. In 2019, SpaceX and Boeing will provide transportation services for astronauts to the ISS via their Dragon and Starliner reusable aircraft. The next step will be combining the transport of crew and supplies, with early projections indicating that commercial programs could cost 60 percent less than if NASA conducted these flights.

It’s worth noting that these savings also represent a return on some of NASA’s investments. The agency continually assists in the development of these space-bound aircraft and rockets as firms look to develop new solutions. For example, Zapata’s report shows that NASA invested $140 million in the Falcon 9 rocket. This rocket led to SpaceX launching more than 20 payloads for private customers that might have otherwise been awarded to space agencies in Asia or Europe.

In addition to helping U.S. manufacturers grow and compete on a global scale, these projects allow more companies to develop potentially game-changing technologies. According to the report, over $1 billion in U.S. economic activity has been stimulated by commercial space missions that would have previously gone overseas due to NASA’s higher operating costs.

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