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- Newsgroups: sci.space
- Path: sparky!uunet!wupost!emory!wa4mei!ke4zv!gary
- From: gary@ke4zv.uucp (Gary Coffman)
- Subject: Re: Stupid Shut Cost arguements (was Re: Terminal Velocity of DCX?
- Message-ID: <1992Dec25.014627.4982@ke4zv.uucp>
- Reply-To: gary@ke4zv.UUCP (Gary Coffman)
- Organization: Destructive Testing Systems
- References: <71877@cup.portal.com> <1992Dec22.160715.28828@iti.org> <9gt204c@rpi.edu> <1992Dec23.132824.14131@iti.org>
- Date: Fri, 25 Dec 1992 01:46:27 GMT
- Lines: 34
-
- In article <1992Dec23.132824.14131@iti.org> aws@iti.org (Allen W. Sherzer) writes:
- >In article <9gt204c@rpi.edu> strider@clotho.acm.rpi.edu (Greg Moore) writes:
- >
- >>If this is teh case, than
- >>you have to treat the shuttle development costs as sunk costs.
- >
- >I have no problem treating the research vehicles which supported
- >Shuttle (like X-24) being treated as sunk costs but I don't think
- >development costs should be. That simply makes commercial development
- >that much harder.
-
- In military procurement, the development costs are charged against
- the prototypes, X, Y, etc, and the operational vehicles of the procurement
- are charged at "flyaway" cost. Following this model, Enterprise ate the
- development costs, and it's retired. Current Orbiters are only liable for
- their $1.5 billion flyaway cost and their operational costs.
-
- Payload costs, including mission specialists and their ground support
- staffs, belong to the customer for the payload, Now in NASA's case,
- these costs all come out of the same pocket, but you're making faulty
- conclusions when you insist on lumping them for Shuttle while separating
- them, and ignoring large parts of them, for your favorite projects.
- Remenber that the data gathered, and techniques developed by the Shuttle
- program, the RL-10 development program, NASP materials, etc are available
- free to McDD for their program. Are you going to charge these costs against
- DC? To be consistent with the way you treat Shuttle, you should, but of
- course this is nonsense accounting.
-
- Gary
- --
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