Privatizing NASA
nytimes.com
nytimes.com
Hopefully their approach will be to further encourage private space travel. A quote from Rand Simberg, an aerospace engineer: "It’s not NASA’s job to send a man to Mars. It’s NASA’s job to make it possible for the National Geographic Society to send a man to Mars."
It's probably good in the long run though to work towards privatizing it all, it seems so political the way it is now, it seems like the support for the program comes more from certain states making tax dollars off the program rather than a real thirst to explore the unknown.
And NASA has been a public works project ever since the end of Apollo, there's nothing new there.
To mitigate this, the government will pay a company their actual cost plus a reasonable profit. This transfers the risk to the government, reducing their overall cost. To prevent abuses, the government must approve all costs, so they will place an engineering team with the contractor to perform this task. Contrary to popular belief, this system makes a great deal of sense as it relates to bidding risk, and is actually quite difficult to abuse.
For example, the money SpaceX has spent to almost complete the development of their new NASA-funded launch system is approximately 1/20 of the projected cost overrun of the internal manned launch system NASA has been working on (the Aries I).