Are Private Companies More Efficient Than NASA?

See Stargazers See a Business Plan by Randall Stross, a professor of business at San Jose State University. He reviewed two books for The WSJ. Excerpts:

"Both books show how SpaceX and Blue Origin have been impressively creative in reducing design and production costs far below what NASA and defense contractors are accustomed to. SpaceX builds its rockets horizontally, for example, so that it can use ordinary warehouse space instead of building expensive “high bay” space. SpaceX and Blue Origin are similar in their approach to reusability as well, constructing rockets, not planes, that rely on retropropulsion for landing. By flipping the descending rocket so that the nose points upward, and by switching on the rocket engine in the final stage, a cushion of hot gas provides a gentle landing.

Practical reusability also entails reducing the need for extensive refurbishing after each flight, something that SpaceX seems to have achieved. The space shuttle did not. After each flight, it required 1.2 million procedures and many months before it was ready to fly again."

"Virgin Galactic and Blue Origin have trained their sights on space tourism, preparing to offer wealthy passengers the chance to experience microgravity. “Entertainment turns out to be the driver of technologies,” Mr. Bezos says, noting the barnstormers in the early days of aviation who would land in farmers’ fields and sell tickets for short rides. SpaceX need not tarry with such trifles. It seems tantalizingly close to being the first startup to supply reliable, reusable rocket technology to take U.S. astronauts up to their orbiting workplace. Most gratifying, it will mean an end to NASA’s generous payouts to hitch rides with the Russians."