Unfair GapsπŸ‡ΊπŸ‡Έ United States

Space Research and Technology Business Guide

5Documented Cases
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All 5 Documented Cases

Chronic Cost Overruns in Space Acquisition Programs Due to Inaccurate Estimates and Technical Risks

$4.3 Billion total for AEHF; $7.6 Billion across NASA portfolio in 2023

Space research programs like DoD's AEHF satellite and NASA's major projects experience massive cost overruns in the Cost Overrun Analysis and Reporting process due to flawed initial cost estimations, endogenous factors such as technical complexity, requirements changes, and lack of design maturity. Root cause analyses reveal skewed cost escalation curves from unmitigated risks and optimistic forecasting. These overruns recur across programs, leading to billions in excess spending before corrective reporting.

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Chronic Cost and Schedule Growth in Mission Development

Billions annually across NASA programs (e.g., individual missions exceed budgets by 50%+ confidence levels)

Space missions experience persistent cost overruns due to inadequate up-front engineering, unstable funding leading to program stops and starts, and overly optimistic initial cost estimates. These issues compound throughout the lifecycle, as funding discontinuities and poor cost data visibility drive up expenses well beyond original budgets. NASA reports highlight integrated effects of process failures in project selection, risk mitigation, and reviews as systemic causes.

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Idle Capacity and Bottlenecks from Single Supplier Reliance in Space Supply Chains

Delays costing millions per month in program schedules

Prime contractors in space procurement face capacity loss from over-reliance on single suppliers for critical components, leading to long lead times, bottlenecks, and delayed deliveries in high-stakes missions. This is amplified in human spaceflight where year-long delays on parts like life support systems are intolerable. Diversification is recommended but systemic single-sourcing persists, causing lost production capacity.

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Non-Compliance with Subcontract Reporting in Prime Contractor Oversight

Risk of fines and disallowed costs in millions

Prime contractors without NASA-approved purchasing systems must report certain subcontractors by federal law, but limited enforcement and visibility lead to recurring compliance breaches in award and oversight processes. This affects decisions on vendor selection, price negotiation, and order administration under FAR regulations. Systemic gaps expose programs to audit failures and potential penalties.

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