One small sentence for a NASA administrator, one giant leap for the space industry?

NASA administrator Bill Nelson suggested he wants to get rid of cost-plus contracts. If he succeeds, huge opportunities will arise for New Space players.

Bottom line

Major space programs have historically been costly, a trend that worsened in the past decade with so-called cost-plus contracts. This practice was severely questioned last week by NASA’s administrator at a Congressional hearing. Switching to fixed-cost contracts would free up a substantial budget, which will likely be redirected towards New Space players, who are best positioned, from both an industrial and financial standpoint, to come out of the current market crisis on top.

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