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Government Space The Almighty Buck

Senate Preparing $10 Billion Bailout Fund For Jeff Bezos Space Firm (theintercept.com) 136

An anonymous reader quotes a report from The Intercept: Now that Jeff Bezos's space flight company Blue Origin has lost a multibillion contract to Elon Musk's SpaceX, Congress is prepping the ground for Bezos to win a contract anyway, ordering NASA to make not one but two awards. The order would come through the Endless Frontier Act, a bill to beef up resources for science and technology research that's being debated on the Senate floor this week. An amendment was added to that legislation by Sen. Maria Cantwell, D-Wash., to hand over $10 billion to NASA -- money that most likely would go to Blue Origin, a company that's headquartered in Cantwell's home state.

Cantwell's amendment is no sure bet though: Sen. Bernie Sanders, I-Vt., introduced a last-minute amendment Monday to eliminate the $10 billion. "It does not make a lot of sense to me that we would provide billions of dollars to a company owned by the wealthiest guy in America," Sanders told The Intercept Tuesday. Cantwell's measure wouldn't rescind the grant to SpaceX but would create an additional contract that Bezos's company would be in line to win. A third company, Dynetics, had also bid for the moonshot, but the author of the new amendment offers a strong suggestion of which company it's likely to benefit. The measure has been attached to the Endless Frontier Act as part of a manager's amendment and authorizes $10.032 billion through the year 2026 for the moon program. Authorization alone does not fund the program, and Congress would still need to appropriate the money, or the executive would need to find other appropriated funds.

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Senate Preparing $10 Billion Bailout Fund For Jeff Bezos Space Firm

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  • Meet the new boss, (Score:4, Insightful)

    by niftydude ( 1745144 ) on Tuesday May 25, 2021 @05:05PM (#61421644)
    same as the old boss.

    I love the smell of welfare for billionaires.
    • by fermion ( 181285 ) on Tuesday May 25, 2021 @07:22PM (#61422016) Homepage Journal
      It has been been US policy for a long time to insure certain technology stays at home and certain manufacturer processes remain under US control. For instance, we have escalating military fighter jet costs because we need to subsidize our aircraft builders. We divide the funds among Lockheed, F-35 2006, and Northrop, B-2 1989, so the shareholders always get a good profit. The US is going to have issues if we only one space firm.
      • Pray tell, what unique technologies does Blue Origin have to offer?

        As others have said - so far they only look like they are a tax minimization strategy for Bezos.

        Anyone can *claim* to start an aerospace company, but to the best of my knowledge Blue Origin is yet to demonstrate anything real or useful.
        • by fermion ( 181285 )
          Contractors tend to provide the need to meet the expectations of the customer. Technology comes from elsewhere. What may be happening, if look at the past, is to avoid a situation where we only have one US contractor. There was a danger of this in the not too distant past for fighter jets. It would be best for the US if we had three competent contractors.
          • It would be best for the US if we had three competent contractors.

            Yes it would be. But we don't. The bailout money would be better spent on a competent contractor, not as a reward for failure.

          • by oh_my_080980980 ( 773867 ) on Wednesday May 26, 2021 @10:43AM (#61424184)
            You do realize this is not the same right? NASA already does that. You are adding overhead to something that government already does. The private sector CANNOT do space flight cheaper than NASA. That's the problem Bezos and Musk face. Try as they might they cannot get around the costs. That's why they need government handouts.
        • by fermion ( 181285 ) on Tuesday May 25, 2021 @09:15PM (#61422274) Homepage Journal
          I hate to reply a second time but it was recently brought to my attention that the space shuttle blew up because the SRB had to built in sections for shipping purposes. They had to be shipped because a certain Congress person demanded that they be built by a certain contractor in the district. It is not just pork, it is keeping critical manufacturing in the US, though that was likely a bad decision.
      • If only there was some sort of United Alliance that Launched stuff.

        • by ceoyoyo ( 59147 )

          The "Blue Origin Team" is ULA, minus Boeing, plus Northrop Grumman. Oh yeah, and that space hobby started by the Amazon guy.

      • It has been been US policy for a long time to insure certain technology stays at home

        Blue Origin has literally zero useful technology. They cannot get a payload to orbit. They can barely get into anything worthy of being called space. They are the one-legged man at the ass-kicking contest, and their one leg has a bad knee.

        The only thing they appear to be good at is sucking pork.

    • by UID30 ( 176734 )
      So true. Senators throwing $10b contracts at companies they are heavily invested in. At least SpaceX won the bid fair and square, by being the lowest bidder. If this bill passes, it should be open for bids just like any government contract, giving SpaceX a chance at it, rather than just giving it directly to Bezos for "reasons".
    • What new boss? The Senator putting this amendment forward has been in Congress for 20 years.

      Just because you get a new CEO doesn't make your line manager any less of a turd.

  • by ytene ( 4376651 ) on Tuesday May 25, 2021 @05:12PM (#61421660)
    The contract that SpaceX won - for the lunar missions - was for $2.9 billion. Are they seriously saying that Blue Origin is going to get a significant slice of $10 billion after missing out on the main bid?

    But more than that

    SpaceX have a proven track record How many ISS re-supply missions have they completed? Aren’t they currently the only US contractor certified for crewed flights to the ISS? And Blue Origin hasn’t even put anything in orbit

    Yes, yes, I see it now. This makes perfect sense. Snort.
    • The contract that SpaceX won - for the lunar missions - was for $2.9 billion. Are they seriously saying that Blue Origin is going to get a significant slice of $10 billion after missing out on the main bid?

      That appears to be how things would have played out if NASA had received the $10 billion for HLS it originally requested. They weren't going to buy more of one provider or give the rest of the money back to the tax payers. It just so happened that the other two options cost more for less capability.

    • by rahvin112 ( 446269 ) on Tuesday May 25, 2021 @06:33PM (#61421922)

      Blue origin took a defense contractor measure last year or the year before, i don't recall exactly when, and invested in significant numbers of jobs in traditional NASA locations (Alabama, Houston, etc) to try to get congressional support behind some pork.

      It appears to have worked as the congress-critters are trying to force DOD and NASA to give them money.

      Nothing like a little red state welfare for billionaires.

      • by raymorris ( 2726007 ) on Tuesday May 25, 2021 @08:22PM (#61422138) Journal

        Hey here's a cool thing. Have you ever wondered what those letters mean that they always write after a Congresscritter's name? Like the fine summary says "Sen. Maria Cantwell, D-Wash" is trying to give $10 billion of your money to Bezos. That D-Wash means "Democrat from Washington". Cool, huh!

        So about that "Nothing like a little red state welfare for billionaires." :)
        Washington is not a red state, and she's a Democrat.

        On a different topic, if you haven't heard, check out what happens when you put Mentos into a bottle of Diet Coke!

        • by Hodr ( 219920 )

          Not Coke! That's a red-republican drink from Georgia. He needs to use a good democrat soda like Dr. Pepper.

        • Your point stands in this instance. HOWEVER, the point of the old space-age method of spreading jobs and money across is so that many politicians get behind the graft, not just this one D-Wash.

  • by timeOday ( 582209 ) on Tuesday May 25, 2021 @05:17PM (#61421678)
    The natural endstate of the market for space launch is a monopoly, at least at this stage. This is a constant trap for defense and space contracting, if they only select the single best proposal, within a few years they have about 1 provider and no good proposals to choose from.
    • The natural endstate of the market for space launch is a monopoly, at least at this stage. This is a constant trap for defense and space contracting, if they only select the single best proposal, within a few years they have about 1 provider and no good proposals to choose from.

      True, when there's only one customer that customer needs to make sure they don't have only one vendor.

      Still, it doesn't smell quite right basically handing a specific vendor a contract at the legislative level though I'm not sure what the proper approach is.

  • by unixcorn ( 120825 ) on Tuesday May 25, 2021 @05:19PM (#61421682)

    I can't believe I agree with Bernie Sanders. Blue Origin has done very little to impress me and yet the Feds want to pay them? It's no wonder why we are Trillions in debt.

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      Wars and artificially low taxes (specifically for the super rich), that's why we're in dept.

    • by inode_buddha ( 576844 ) on Tuesday May 25, 2021 @06:17PM (#61421878) Journal

      And yet this is just the tip of the iceberg. 4 billion per week, every week, in Afghanistan. You don't hear anyone asking "How are we gonna pay for that?" do you? Sanders has a long, long list of shit like this. Meanwhile we have homeless shitting in the streets. In the wealthiest nation the world has ever known. And *that* is why Sanders message has been so consistent since Day One that he was first elected.

      • by Hodr ( 219920 )

        The homeless shitting in the street should be a fed problem? From what I have heard (and please correct me if I am wrong) the biggest homeless problem areas in the US are in nice wealthy liberal States. Why not take care of it locally?

    • It's no wonder why we are Trillions in debt.

      This is not why you're trillions in debt.

    • I can't believe I agree with Bernie Sanders.

      I don't agree with most of his proposals. However, there is a sincerity about him that I don't get with most politicians. He seems to legitimately care about every American in the most radically left wing way possible.

  • Given the track record of most of the manned space projects over the past four decades, it would be better to rename this bill "Endless Boondoggle".

  • Let's See... (Score:5, Insightful)

    by Jerrry ( 43027 ) on Tuesday May 25, 2021 @05:28PM (#61421716)

    SpaceX has put hundreds, perhaps thousands, of satellites in orbit, delivered tons of cargo to the ISS, and launched three crewed missions to the ISS.

    Remind me now--exactly what has Blue Origin done?

    • Re:Let's See... (Score:5, Informative)

      by SirSpanksALot ( 7630868 ) on Tuesday May 25, 2021 @05:38PM (#61421746)
      They made a sub orbital rocket go straight up and down, and had the audacity to say "welcome to the club" to spacex when they did it with an orbital rocket 10x the size delivering a real payload to orbit.
    • SpaceX has 1400+ starlink Satellites in orbit and will exceed 1500 with the, iirc, May 25th launch. It's an astonishing feat.

      This doesn't include any of the commercial or government launched satellites which probably adds another double digit.

  • Corporate welfare (Score:5, Insightful)

    by VeryFluffyBunny ( 5037285 ) on Tuesday May 25, 2021 @05:29PM (#61421718)
    That's all I came here to say.
  • First sue Amazon [slashdot.org], then bail out his other company. #yourTaxDollarsAtWaste

  • by oldgraybeard ( 2939809 ) on Tuesday May 25, 2021 @05:39PM (#61421748)
    their gaggle of owned political assets swoops in to award victory.
  • by gweihir ( 88907 ) on Tuesday May 25, 2021 @05:59PM (#61421820)

    You know, the thing that ruins absolutely everything in the long run.

    • by hey! ( 33014 )

      It's the kind of corruption that's so commonplace people involved don't see it as corruption. Look at the most corrupt societies on Earth, and people doing the corruption don't feel corrupt because everyone around them is doing it. It's only from the outside that the corruption is apparent, because from the outside it is shocking.

  • by know-nothing cunt ( 6546228 ) on Tuesday May 25, 2021 @06:11PM (#61421854)

    Is the ghost of L. Ron Hubbard [wikipedia.org] running that one?

  • ... from the Boeing playbook.

  • I don't get it (Score:5, Interesting)

    by NormalVisual ( 565491 ) on Tuesday May 25, 2021 @06:14PM (#61421868)

    So I *might* have been able to understand why they would have done this if Blue Origin was one of only two companies doing orbital/deep space launches, as we do the same kind of thing for Newport News Shipbuilding in Virginia and Electric Boat in Connecticut in the interest of national security - maintaining two facilities that can produce nuclear-powered submarines makes sense, although it costs a lot. However, as others have mentioned, Blue Origin doesn't really bring much to the table (other than some engine designs with ULA and giving us all a laugh with their penis-shaped vehicles), and the U.S.'s launch scheduling is adequately met by ULA and SpaceX. There's no articulable need at all for public support of Blue Origin, much less $10B worth.

    • by ceoyoyo ( 59147 )

      Blue Origin is part of the team. The other members are Lockheed Martin, Northrop Grumman, and Draper.

      Make more sense now? Blue Origin is like the little kid the big boys have a picture with on their Tinder profile so women think they're nice guys.

  • Yes, SpaceX benefited from government contracts, but:

    - They always have strived to be revenue positive, and fund their own research (hence Starlink funding potential private Mars missions, etc)

    - They have actually *reduced* costs for NASA. NASA used to pay much more to send astronauts to ISS buying seat from Roscosmos, compared to Dragon capsules. And they can ferry more people too.

    Yes, they were lucky, and were at the right place at the right time. And, yes we should not depend on a single entity for all f

  • Dynetics used to be a plucky little company back in the day. Not sure what they're like now after the SAIC (Leidos) acquisition, but I'd much rather see them get a piece of this vs. Bezos.
  • money flows. It doesn't matter which administration is in power. Bezos, you big fucking baby. My heart does not bleed for you.
  • Messed up Capitalism (Score:5, Interesting)

    by ironicsky ( 569792 ) on Tuesday May 25, 2021 @07:01PM (#61421982) Homepage Journal

    This is what is messed up with American society...

    a $10 BILLION bailout for Jeff Bezos - The worlds RICHEST man.

    Based on his net worth, he earns about $13.4 million dollars per HOUR. - that is, Jeff would need to work 746 hours to make that $10 billion dollars.
    That is 93 days...

    Jeff will make back that $10 BILLION dollars by time summer is over.

    Instead, they should take that $10 Billion and invest it, in health care - or food sustainability - or the environment

  • Is not optional anymore. While SpaceX looks to be on top, maybe we shouldnt put ALL our eggs in that basket. SpaceX is special because Musk is the rare combo of scientist,businessman, engineer, visionary, and luckydude that doesnt come around often. If Musk smokes a bad batch and kicks off, his companies will no longer be special in any way whatsoever. Best to have make a backup bet.
    • by tragedy ( 27079 )

      Having a backup is fine, but there's no particular reason it needs to be Blue Origin. Let's not forget that NASA is still being used to funnel money to the traditional contractors as well.

      • And in my business (computers) a backup is not a backup until you can test it and it does it's job. I doubt Blue Origin as a backup considering how little they have done after spending so much money
      • Yeah, but the traditional contractors seem to have aged out. What exactly are they doing nowadays? They're like the 70-year old runners who used to be world-class racers. "Back in the day when I was young...". SpaceX is the up-and-coming young athlete with health, energy, and room to grow. At least as far as large launch vehicles and manned flight goes.

        Robotic science missions are a different matter. The traditional space flight people seem to have landed on that as their specialty, and they do it well
        • by tragedy ( 27079 )

          Sure, I was just pointing out to the GGP post that Blue Origin is not in any way the default choice to avoid putting all our eggs in one basket. If we really must funnel a bunch of money into companies and projects that don't deliver, Boeing, Lockheed, ATK and Rocketdyne are already really great at that. They've been building the SLS for a decade and there's still only a "reasonable chance" that they will launch this year. Meanwhile, the odds of SpaceX actually getting Starship to orbit sometime this year h

    • While SpaceX looks to be on top, maybe we shouldnt put ALL our eggs in that basket

      Maybe there could be some sort of United Alliance that Launches things...

  • Don't we have enough hyperbolas in the media?
    One may not like Bezos, one may disagree with the government, but it's not a "bailout" - I think we all can agree on this.

    Some time ago NASA opened for offers to provide a human rated Moon lander for the Artemis. There were 3 candidates, originally they intended to select 2, but due to budged constraints they selected only one - SpaceX, no doubt the best offer (the most advanced, the most capable, the least expensive). Both remaining bidders filed complaints - I

  • I get the need to make sure there are more than one launch provider for important NASA or DoD missions. Monopolies rarely works out for the customer over time.

    But this is for the moon lander. We only need more than one provider if there is going to be a long term permanent presence on the moon. It seems a bit premature to plan for that now.

  • Does this mean I can get money too?

  • A taxpayer funded flying dildo. Corporate welfare at it's finest.

    Maybe there is some infrastructure, like bridges, that could be fixed with that tax revenue?

  • by rnmartinez ( 968929 ) on Tuesday May 25, 2021 @09:03PM (#61422224)
    Bezos does not pay tax, than gets a $10B handout for vapourware? Or am I missing something here?
  • Bezos gets his bailout if Amazon agrees to accept any self-publish book that would be admissible under the ‘public square’ standard for political speech as defined by SCOTUS First Amendment decisions.

  • by tiqui ( 1024021 ) on Wednesday May 26, 2021 @12:42AM (#61422688)

    Bezos is only aiming for the moon and he has long had more money than Musk, who is aiming at Mars. Bezos needs no bailout for his rocketry hobby, but some other people absolutely DO, and THEY have PR firms and lobbyists paid to get them a bailout and get YOU not to notice.

    Bezos is just the camouflage; Blue Origin is the magician's right hand, upon which you are meant to fix your gaze while his left hand deceives you.

    Blue Origin was a high profile member of "The National Team", but critical other members were Northrop Grumman and Lockheed Martin - two companies that have largely abandoned the free market and its consumers, becoming addicted to defense industry "cost-plus" contracts where failure is rewarded. "The National Team" submitted the bloated bid for a grossly minimal lander solution not much better than the Apollo hardware of the '60s, and they did it under the name "The National Team" rather than something more honest like "Two of the Three Biggest Defense Contractors Plus that Hyper-Successful Book Salesman". Companies that get cost-plus contracts from the pentagon become fat, dumb, and lazy thanks to the contracts that guarantee a certain percentage profit over program costs; with such contracts every failure and every delay that drives up the cost of a contract also drives up the profits of the company since the profit is guaranteed to be based on the total cost of the program. These companies get very used to under-delivering while being over-compensated, and they do not tolerate losing a contract competition as long as they have members of congress on the payroll.... err... as long as they are contributing to campaigns for members of congress.

    Keep thinking this is about Bezos if you want to...while you're at it, keep dreaming that Bezos is aiming at the moon because he craves cheese. Such thinking just does not make this stuff so.

  • Usually not a great idea to put all your eggs in one basket. In this case, it appears that Congress wants to put its one egg into two baskets.

Their idea of an offer you can't refuse is an offer... and you'd better not refuse.

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