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Shaw, Eric J.

Publications and source records attributed to Shaw, Eric J..

Launcher Systems Development Cost: Behavior, Uncertainty, Influences, Barriers and Strategies for Reduction

This paper will report on the activities of the IAA Launcher Systems Economics Working Group in preparations for its Launcher Systems Development Cost Behavior Study. The Study goals include: improve launcher system and other space system parametric cost analysis accuracy; improve launcher system and other space system cost analysis credibility; and provide launcher system and technology development program managers and other decisionmakers with useful information on development cost impacts of their decisions. The Working Group plans to explore at least the following five areas in the Study: define and explain development cost behavior terms and concepts for use in the Study; identify and quantify sources of development cost and cost estimating uncertainty; identify and quantify significant influences on development cost behavior; identify common barriers to development cost understanding and reduction; and recommend practical, realistic strategies to accomplish reductions in launcher system development cost.

Shaw, Eric J.↗

Economic Metrics for Commercial Reusable Space Transportation Systems

The success of any effort depends upon the effective initial definition of its purpose, in terms of the needs to be satisfied and the goals to be fulfilled. If the desired product is "A System" that is well-characterized, these high-level need and goal statements can be transformed into system requirements by traditional systems engineering techniques. The satisfaction of well-designed requirements can be tracked by fairly straightforward cost, schedule, and technical performance metrics. Unfortunately, some types of efforts, including those that NASA terms "Programs," tend to resist application of traditional systems engineering practices. In the NASA hierarchy of efforts, a "Program" is often an ongoing effort with broad, high-level goals and objectives. A NASA "project" is a finite effort, in terms of budget and schedule, that usually produces or involves one System. Programs usually contain more than one project and thus more than one System. Special care must be taken in the formulation of NASA Programs and their projects, to ensure that lower-level project requirements are traceable to top-level Program goals, feasible with the given cost and schedule constraints, and measurable against top-level goals. NASA Programs and projects are tasked to identify the advancement of technology as an explicit goal, which introduces more complicating factors. The justification for funding of technology development may be based on the technology's applicability to more than one System, Systems outside that Program or even external to NASA. Application of systems engineering to broad-based technology development, leading to effective measurement of the benefits, can be valid, but it requires that potential beneficiary Systems be organized into a hierarchical structure, creating a "system of Systems." In addition, these Systems evolve with the successful application of the technology, which creates the necessity for evolution of the benefit metrics to reflect the changing baseline. Still, economic metrics for technology development in these Programs and projects remain fairly straightforward, being based on reductions in acquisition and operating costs of the Systems. One of the most challenging requirements that NASA levies on its Programs is to plan for the commercialization of the developed technology. Some NASA Programs are created for the express purpose of developing technology for a particular industrial sector, such as aviation or space transportation, in financial partnership with that sector. With industrial investment, another set of goals, constraints and expectations are levied on the technology program. Economic benefit metrics then expand beyond cost and cost savings to include the marketability, profit, and investment return requirements of the private sector. Commercial investment criteria include low risk, potential for high return, and strategic alignment with existing product lines. These corporate criteria derive from top-level strategic plans and investment goals, which rank high among the most proprietary types of information in any business. As a result, top-level economic goals and objectives that industry partners bring to cooperative programs cannot usually be brought into technical processes, such as systems engineering, that are worked collaboratively between Industry and Government. In spite of these handicaps, the top-level economic goals and objectives of a joint technology program can be crafted in such a way that they accurately reflect the fiscal benefits from both Industry and Government perspectives. Valid economic metrics can then be designed that can track progress toward these goals and objectives, while maintaining the confidentiality necessary for the competitive process.

Shaw, Eric J.↗

Economic Analysis on the Space Transportation Architecture Study (STAS) NASA Team

The National Aeronautics and Space Administration (NASA) performed the Space Transportation Architecture Study (STAS) to provide information to support end-of-the-decade decisions on possible near-term US Government (USG) investments in space transportation. To gain a clearer understanding of the costs and benefits of the broadest range of possible space transportation options, six teams, five from aerospace industry companies and one internal to NASA, were tasked to answer three primary questions: a) If the Space Shuttle system should be replaced; b) If so, when the replacement should take place and how the transition should be implemented; and c) If not, what is the upgrade strategy to continue safe and affordable flight of the Space Shuttle beyond 2010. The overall goal of the Study was "to develop investment options to be considered by the Administration for the President's FY2001 budget to meet NASA's future human space flight requirements with significant reductions in costs." This emphasis on government investment, coupled with the participation by commercial f'trms, required an unprecedented level of economic analysis of costs and benefits from both industry and government viewpoints. This paper will discuss the economic and market models developed by the in-house NASA Team to analyze space transportation architectures, the results of those analyses, and how those results were reflected in the conclusions and recommendations of the STAS NASA Team. Copyright 1999 by the American Institute of Aeronautics and Astronautics, Inc. No copyright is asserted in the United States under Title 17, U.$. Code. The U.S. Government has a royalty-free license to exercise all rights under the copyright claimed herein for Governmental purposes. All other rights are reserved by the copyright owner.

Shaw, Eric J.↗

Benefits of Government Incentives for Reusable Launch Vehicle Development

Many exciting new opportunities in space, both government missions and business ventures, could be realized by a reduction in launch prices. Reusable launch vehicle (RLV) designs have the potential to lower launch costs dramatically from those of today's expendable and partially-expendable vehicles. Unfortunately, governments must budget to support existing launch capability, and so lack the resources necessary to completely fund development of new reusable systems. In addition, the new commercial space markets are too immature and uncertain to motivate the launch industry to undertake a project of this magnitude and risk. Low-cost launch vehicles will not be developed without a mature market to service; however, launch prices must be reduced in order for a commercial launch market to mature. This paper estimates and discusses the various benefits that may be reaped from government incentives for a commercial reusable launch vehicle program.

Shaw, Eric J.↗

Technology Development Benefits and the Economics Breakdown Structure

This paper describes the construction and application of the EBS (Economics Breakdown Structure) in evaluating technology investments across multiple systems and organizations, illustrated with examples in space transportation technology. The United States Government (USG) has a long history of investing in technology to enable its missions. Agencies such as the National Aeronautics and Space Administration (NASA) and the Department of Defense (DoD) have evaluated their technology development programs primarily on their effects on mission performance and cost. More and more, though, USG agencies are being evaluated on their technology transfer to the commercial sector. In addition, an increasing number of USG missions are being accomplished by industry-led or joint efforts, where the USG provides technology and funding but tasks industry with development and operation of the mission systems.

Shaw, Eric J.↗

Macroeconomic Benefits of Low-Cost Reusable Launch Vehicles

The National Aeronautics and Space Administration (NASA) initiated its Reusable Launch Vehicle (RLV) Technology Program to provide information on the technical and commercial feasibility of single-stage to orbit (SSTO), fully-reusable launchers. Because RLVs would not depend on expendable hardware to achieve orbit, they could take better advantage of economies of scale than expendable launch vehicles (ELVs) that discard costly hardware on ascent. The X-33 experimental vehicle, a sub-orbital, 60%-scale prototype of Lockheed Martin's VentureStar SSTO RLV concept, is being built by Skunk Works for a 1999 first flight. If RLVs achieve prices to low-earth orbit of less than $1000 US per pound, they could hold promise for eliciting an elastic response from the launch services market. As opposed to the capture of existing market, this elastic market would represent new space-based industry businesses. These new opportunities would be created from the next tier of business concepts, such as space manufacturing and satellite servicing, that cannot earn a profit at today's launch prices but could when enabled by lower launch costs. New business creation contributes benefits to the US Government (USG) and the US economy through increases in tax revenues and employment. Assumptions about the costs and revenues of these new ventures, based on existing space-based and aeronautics sector businesses, can be used to estimate the macroeconomic benefits provided by new businesses. This paper examines these benefits and the flight prices and rates that may be required to enable these new space industries.

Shaw, Eric J.↗