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The Military Businesses Government Space

US Air Force Overstepped In SpaceX Certification 71

Rambo Tribble writes: An internal review commissioned by Air Force Secretary Deborah James has concluded that Air Force personnel tasked with evaluating SpaceX's certification treated it as a design review, going so far as to dictate organizational changes in the company. This was judged contrary to the intention of promoting a competitive environment. The report, prepared by former Air Force Chief of Staff General Larry Welch, concluded, "The result to date has been ... the worst of all worlds, pressing the Falcon 9 commercially oriented approach into a comfortable government mold that eliminates or significantly reduces the expected benefits to the government of the commercial approach. Both teams need to adjust."
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US Air Force Overstepped In SpaceX Certification

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  • LOL .... (Score:5, Funny)

    by gstoddart ( 321705 ) on Friday March 27, 2015 @11:17AM (#49355045) Homepage

    Government bureaucracy reviews private corporations, implements government bureaucracy?

    LOL .. Congratulations, gentlemen, you're exactly what we've come to expect from years of government training.

    • Re:LOL .... (Score:5, Funny)

      by halivar ( 535827 ) <bfelger@gmai l . com> on Friday March 27, 2015 @11:21AM (#49355077)

      "This isn't right. You only paid $20 for this hammer? Bros, do you even bureaucrat? Here, lemme show you..."

      • by Kjella ( 173770 )

        "This isn't right. You only paid $20 for this hammer? Bros, do you even bureaucrat? Here, lemme show you..."

        Ah, but that's just the regular bureaucracy, you can add another order of magnitude if you want a military grade hammer.

        • Re: (Score:3, Insightful)

          by Anonymous Coward
          As a public servant, I feel there's a lot of truth to wasted money and inefficiencies in government processes but most of it is the doing of politicians who hold all the real power. Contradictory legislation and the fear of taking risks by senior officials forces the public service to protect themselves with a ridiculous amount bureaucracy.
          • I think the waste of too much bureaucracy is a direct result of voters/pols wanting to "prevent" waste.
            Counting anything costs money. If we're going to make people apply for something, we need to read all the damned applications. And we need to have rules for what is successful and what isn't on the application. And we need to advertise it to everybody who might be eligible. The laws about hiring contractors and putting out bids are stultifying.

            But in a democracy, we make rules based on fantasy and belie
      • You don't actually think they spend $20,000 on a hammer, $30,000 on a toilet seat, do you?

        • Re:LOL .... (Score:5, Interesting)

          by Firethorn ( 177587 ) on Friday March 27, 2015 @01:43PM (#49356429) Homepage Journal

          I remember reading that the $20k 'hammer' was actually a set of tools, including a spade & pick, made of a special set of alloys(can't remember what) designed to be non-magnetic, non-sparking, and a few other nons for use in helping to clean up stockpiles of explosives that were destabilizing, getting more sensitive. Given the location and amounts, they couldn't just set them off in location.

          The toilet seat was actually a whole toilet system, I can't remember if it was for a plane or submarine. Still not cheap, but something that had to be custom designed and produced for that vehicle, and they were including design costs.

          • Its probably a line item off a program accounting invoice, where everything purchased for the program is billed at the same amount - 1/xth of the total program cost. So that toilet seat might have come out at $30k, but so would have the jet engine on the next line.

          • by Anonymous Coward

            It was for the P2 plane (based on the Lockheed constellation), and the reason why it happened was because the DoD expected that the P3 would be in service by a certain date, and they felt they had enough spare toilet seats in stock for maintenance. The manufacturer of the seats destroyed the moulds and other tools used to create the seats.

            When the P3 (based on the Electra) entered service late, the Navy ended up having to contract manufacture of more toilets for the planes, and because the toilets were very

        • by GTRacer ( 234395 )
          More insight from Independence Day, the film that taught me about plausible deniability.
        • It's a bit of exaggeration, but exaggerations are based on truth. To think any part of the government is efficient is laughable at best.
          • With the military, is not about being efficient. It's about winning. On battlefield.

            And it's chapter than losing.

            • Your lack of grammar alone should make your argument invalid, but we spend more than the next 20 countries combined, on our military. At some point it's wasteful.
              • When you can see past spellchecker errors and the effects of the miserable Slashdot mobile pages, then you will be able to engage in meaningful dialog. Until then you will be dismissing contrary opinions for no good reason.

                Other than that, your island seems nice.

          • To think any part of the government is efficient is laughable at best.pTo think that ANY LARGE ORGANIZATION is efficient is laughable at best. FTFY.

            • The US government has over 4 million employees, so by your logic, they should be way more inefficient because hey are so much bigger.

              The next closest is Walmart (2 million), and while they are a terrible company with terrible customer service that I will never shop at, I wouldn't call them inefficient. Their supply chain management system was revolutionary.
      • Re: (Score:1, Flamebait)

        by BlueStrat ( 756137 )

        "This isn't right. You only raised medical insurance premiums by $X-thousands for a year of lower quality medical insurance? Bros, do you even Obamacare? Here, lemme show you..."

        Wow, that works for pretty much anything US Federal Government-controlled/regulated.

        Strat

    • Re:LOL .... (Score:4, Informative)

      by ColdWetDog ( 752185 ) on Friday March 27, 2015 @11:54AM (#49355335) Homepage

      Now, now. Yes, that's funny - and not a little true - but TFA goes into a bit more detail noting that there is a (rather expected) culture class between SpaceX and the Air Force / YoYoDyne / Lockheed (DBA as the United Launch Alliance).

      And nominally intelligent people on both sides of the issue are working in what appears to be good faith to deal with it.

      Sounds like a plan.

  • by Thud457 ( 234763 ) on Friday March 27, 2015 @11:21AM (#49355085) Homepage Journal
    Air Force auditors start experiencing mysterious "accidents". Others get it hot water for unexplainable large deposits to their bank accounts.
  • But.. (Score:5, Insightful)

    by sasparillascott ( 1267058 ) on Friday March 27, 2015 @11:47AM (#49355289)
    "The result to date has been ... the worst of all worlds, pressing the Falcon 9 commercially oriented approach into a comfortable government mold that eliminates or significantly reduces the expected benefits to the government of the commercial approach."

    But this is what Boeing and Lockheed wanted. Keeping in mind Boeing/Lockheed have a space launch vehicle non compete consortium in partnership with the U.S. government. The Air Force has done absolutely whatever it could to prevent them from using Space X - and the very cosy relationship with Lockheed and Boeing probably has something to do with this. Just look at who's profits might be threatened and follow the money.
  • But, but... (Score:5, Interesting)

    by YrWrstNtmr ( 564987 ) on Friday March 27, 2015 @11:50AM (#49355307)
    How will the Colonels and GS-15's justify their existence? They must put their mark on it in multiple places.

    There should be 3 lines on the proposal:
    I need payload weight and size X, in orbit Y.
    Can you do it? Y/N.
    How much will it cost?
  • by sjbe ( 173966 ) on Friday March 27, 2015 @11:52AM (#49355321)

    One of our customers for my company is a medical device company regulated by the FDA. The FDA a few years ago came down hard on them with fines and a consent decree whereby they couldn't sell products due to issues in their quality control systems. We are very familiar with this company and while they did have issues, the FDA has essentially forced a complete reorganization on them, some of which will be good but much of which is utterly pointless.

    I'm in the middle of doing a bunch of Control Plans, FMEAs and other documents for products we've been making for well over a decade to support this customer. These documents will serve no useful purpose and in all likelihood never get looked at again. I'm also validating test equipment which I assure you at the end of the day will prove nothing. It's necessary to help our customer stay in the good graces of the FDA but really is pretty much a waste of everyone's time since these sort of documents are supposed to be done when the product is being developed, not ten years later without any evidence of an actual problem.

    • It's necessary to help our customer stay in the good graces of the FDA but really is pretty much a waste of everyone's time since these sort of documents are supposed to be done when the product is being developed, not ten years later without any evidence of an actual problem.

      On the other hand, might it be a good thing to make them go through the costly process so that they lose the competitive advantage over the companies that did it usefully at the beginning of development?

      • On the other hand, might it be a good thing to make them go through the costly process so that they lose the competitive advantage over the companies that did it usefully at the beginning of development?

        The documentation I'm referring to has nothing to do with any competitive advantage. If anything, not doing it is a competitive disadvantage in their particular marketplace. The potential liability costs, warranty/service costs, reputation costs, etc easily outweigh the cost of the paperwork and structure. This particular company was badly structured and was actually incurring all sorts of needless costs and problems by not having their house in order. If anything the FDA will make them more competitiv

        • ...This particular company was badly structured and was actually incurring all sorts of needless costs and problems by not having their house in order. If anything the FDA will make them more competitive in the long run.

          Interesting. I hate bureaucracy as much as anyone, but I guess I have a love-hate relationship with it. I can see its advantages even as I curse its practitioners. They'll probably get rid of all the cowboys that solved most of their problems (and caused some). Hopefully the bureaucrats will convert the knowledge to processes before they drive them off.

  • by sunking2 ( 521698 ) on Friday March 27, 2015 @12:25PM (#49355599)
    The only difference between the new 'commercial space' guys and Boeing and LM, etc are the rules. How is it fair to the established space industry that was forced to play the government game to lose business because SpaceX doesn't have to.
    • by Anonymous Coward

      Nobody was holding a gun to Boeing/Lockheed's heads to force them to do government business. They got paid handsomely for it.

      "Fair" has nothing to do with it.

    • by cjameshuff ( 624879 ) on Friday March 27, 2015 @01:05PM (#49355989) Homepage

      The "established" guys were compensated for having to follow those rules by being given cost-plus contracts that guaranteed profits and provided incentive to inflate costs whenever it could be justified, and actively punished reductions in costs.

      So: they were applying the same restrictions to SpaceX, without giving them the same benefits, since SpaceX operates under fixed-price contracts: they sell a product, get paid, and their ability to make a profit and continue existing is dependent on keeping expenses low. What was that about fairness?

    • Wrong. The "rules" are set by the customer in this scenario. If they aren't followed the customer (government) is perfectly able to choose another bid (provided pork seeking senators allow it). Thus, this is not an Uber situation where the customers don't know/care about the rules that competitors are legally forced to play by.

      The difference between new and old "space guys" is how they choose to follow rules set by the customer. In one case, decades of lobbying has resulted in unwieldy bureaucracy that only

    • by perpenso ( 1613749 ) on Friday March 27, 2015 @01:59PM (#49356591)

      The only difference between the new 'commercial space' guys and Boeing and LM, etc are the rules. How is it fair to the established space industry that was forced to play the government game to lose business because SpaceX doesn't have to.

      Actually ULA (boeing, lm, etc) gets sweetheart contracts too. For example their launch contracts don't include fixed costs like launch facilities and many other parts of the "infrastructure". ULA gets a separate contract to pay for all the fixed costs. That may be a good idea to make sure this infrastructure is ready and available independently of what the launch schedule may be but the fact remains that SpaceX includes such infrastructure costs into their launch contracts. And SpaceX launch contracts are still far less expensive than ULA.

    • by bledri ( 1283728 ) on Friday March 27, 2015 @03:45PM (#49357511)

      The only difference between the new 'commercial space' guys and Boeing and LM, etc are the rules. How is it fair to the established space industry that was forced to play the government game to lose business because SpaceX doesn't have to.

      Not true. The "New Space" companies self-fund long term research and experimentation with an eye toward making space flight less expensive. Even if Boeing, Lockheed-Martin, McDonald Douglas, et al, were "forced" to jump through government hoops, they were also exceedingly well payed to jump through those hoops. They could have used that money to fund their own research to stay competitive in the commercial market but they did not. They pocketed the money and completely gave up the commercial market to Russia and Europe.

      McDonnell Douglas was working on a VTVL rocket (the DC-X) in 1991. As soon as the DoD and NASA stopped funding that research, they dropped it. SpaceX uses their profits to continue developing reusability, there is no reason that McDonnell Douglas could not have done that. The government did not prevent any of the "Old Space" companies could from developing reusable rockets. Nor did the government prevent them from investing their own money in improving production techniques to lower production costs. They choose not to do that work in any long term sustainable way unless the government directly payed for it.

  • by rahvin112 ( 446269 ) on Friday March 27, 2015 @12:46PM (#49355841)

    How will ULA survive if the government doesn't force SpaceX to operate like a traditional defense contractor sucking at the cost plus fixed fee teet. The Airforce has to help them get there because this commercial competition non-sense will mean the loss of plenty of high paying executive jobs and ULA.

    • Exactly. Where you you think these Colonels and Generals will be getting cushy jobs at when they retire. SpaceX? Not bloody likely.

    • by Anonymous Coward

      I think ULA knows their days are numbered if they don't cut the pork, SpaceX's prices are so much lower than ULA that they can't talk their way past it. Their recent press release that they're developing a partially reusable launcher seem to indicate that they're afraid of getting booted out of the launch vehicle market. That said I'm sure that they are pulling every string they can trying to get favorable treatment in contract negotiations and hoping every time a Falcon 9 launches that there is some cata

  • by Koreantoast ( 527520 ) on Friday March 27, 2015 @01:18PM (#49356117)
    If anyone ever wondered why government contracting is so expensive, this is it. The government customers demand customization of commercial products that drive up development costs and complicate manufacturing while the bureaucracy's demand for documentation and "transparency" places a massive overhead burden on contractors to meet the requirements. Add on to it the government's lack of discipline in developing requirements and making changes, and your "cheap" program triples in cost with delivery moving two years to the right. As someone who worked in a business that dealt with both commercial and government clients, the former looks for a product that fits their needs then buys it whereas the latter looks for a product, modifies it, then continuously alters the requirements over and over right up to production.

    Sometimes, I think this is also the reason why the government clings to cost-plus contracting: with fixed price, they have to be disciplined about the requirements because once the fixed price contract is in effect, they can't tinker with it any further. Cost-plus, they can keep changing requirements, and the contractor will simply roll it into the bill.
  • This is the fundamental flaw with bureaucratic thinking. Define metrics, design criteria but let the contractor build it. This is why government projects are so fucking expensive. Rules, Laws, Legislators and stupidity get in the way of innovation.

  • by PPH ( 736903 ) on Friday March 27, 2015 @02:09PM (#49356673)

    If it can't be seized and placed under control of the military during times of war*, its not going into space. Gotta make sure we know the key people and which pieces we'll need to grab should we need to mount weapons on it and send it up.

    *That means pretty much any time. As we are always conducting a War Against Something.

  • What if Elon gave the AF the bird and started selling the Falcon 9 to the ESA and India? Would the AF back down then?

    • SpaceX couldn't get an export license then. Rockets fall under the "International Traffic in Arms Regulations" (ITAR) and need a license to export. We even had to follow those rules for the Space Station modules being built by Boeing. That's despite it being an international station occupied by lots of foreigners, Russians even.

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