[sci.space] Reliability and Insurance

Wales.Larrison@ofa123.fidonet.org (Wales Larrison) (11/13/90)

Allen, you raised some interesting questions... 
 
>Of course, the government usually doesn't buy insurance for the 
>payloads it puts into orbit. 
   Actually they do.  There are differing ways of getting launch 
insurance (or more properly, assurance).  One way is placing a bet 
with a broker on the probability of success, which is the normal 
commercial insurance method.  This the government does not do.  
   However, another form of insurance is "self-insurance" where the 
payload originator typically buys an additional satellite.  
Government program managers for programs with greater than 1 
satellite constellation will typically buy an additional satellite 
and keep it on the ground in storage against a possible launch 
failure.  This was done for DSCS, DSP, Fleetsatcom, TDRSS, GPS, and 
other government programs.  Some commercial firms, Intelsat, for 
example, have elected to also do this due to large block buys of 
satellites. 
   Another way of launch "assurance" is to very intensively control 
and monitor the launch operations.  This is what is done for some 
classified programs which launch one of a kind superbly expensive 
satellites, and is the current way of doing things on Shuttle 
launches. 
 
>First of all, let's look at the cost of doing the same thing with 
>the Shuttle compared to the HLV: 
>
>Item            HLV          Shuttle
>Payload         $22.5  B       $22.5  B
>Insurance[1]    $ 1.125B       $ 1.125B
>Launch cost[2]  $ 0.150        $ 3.5  B
>EVA[3]          $ 0.0          $ 0.002B
>Engineering[4]  $ 0.0          $ 2.25 B
>                --------       ---------
>                $23.775B       $29.377
> [...Notes left out..]
    Hmmm... interesting point.  However, I think you've been very 
optimistic about the HLV, and very pessimistic about the Shuttle.  
Let me do a sensitivity analysis, and play at being optimistic 
about the shuttle, and pessimistic about the HLV. 
   The difference in cost given here is driven by three two factors:  
1) an assumption the long-term reliability of the two systems - a 
yet undeveloped, "paper" HLV will have the reliability of the 
Shuttle, 2) the difference in assumed launch costs, and 3) the 
difference for engineering costs for assembly in orbit. 
    1). Reliability - the shuttle is, I believe, currently 44/45 
(.978). Looking at the equivalent past history of ELVs, the Scout 
failed 11 of the first 49 launches (1960-66, r=.78), Delta had 3 of 
the first 43 fail (1960-1966, r=.93), and Atlas had 9 of the first 
42 spacelaunches fail (1962-1977, r=.79) [Sorry, couldn't quickly 
find the data for the Titan program history].  Since each  system is 
now showing reliabilities in the range of .94-.98, I would conclude 
the shuttle system is going through a common trend in space 
launchers, known as "infant mortality" where design flaws are found 
and fixed, and the system reliability increases.  Rather than throw 
in some mathmatical mumbo-jumbo trying to project an increased 
reliability for the shuttle, I think we can say the Shuttle system 
reliability should increase with time, if the pattern found in 
historical launch programs is followed.  
                                        (cont)



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Wales.Larrison@ofa123.fidonet.org (Wales Larrison) (11/13/90)

    However, this does pose some interesting questions.  If, as you 
say, the Delta HLV design is 7 Deltas strapped together, does this 
not imply the reliability to be .98^7 = .86?  Also, looking at the 
historical data shows that a significant design change to a launcher 
typically results in a pattern of failure for a few years (shown in 
Delta and Scout upgrades, and in the little bit of data I have on 
Titan history).  How do we avoid the "infant morality" for a major 
design change to a HLV?  
    For discussion sakes, lets say .90 for the new, untested HLV, 
and .98 from the shuttle. 
   2) The difference in launch costs.   I will accept the Shuttle is 
never get the economies of scale per individual launch available in 
a HLV.  So the price of an individual shuttle launch will be always 
higher ($/lb) than a HLV.  However, if we can increase the shuttle 
annual flight rate from 4 to the planned 12, then the cost is 
reduced by $2.3 B.  
     Similarly, your HLV costs can be claimed as very opimistic. If, 
LLNL is going to pay for a Space Station to completely recover the 
development and financing costs for a HLV, and there is no long-
term recurring market, I think the cost could be increased.  Any 
problems with early system reliability, delivery schedule, 
government funding lines (leading to program stretch-out), technical 
problems with the LLNL station, or the HLV delivery schedules would 
increase its launch costs. 
    Again, for discussion purposes, let us propose increasing the 
HLV cost by 30% (at least!) for these considerations, and showing 
the shuttle costs at a 12 per year flight rate.  $0.195B vs $1.170B. 
   3) Engineering for assembly in orbit.  I would assume the 
provisions needed to assemble something on orbit are the connections 
be simple and very easy to do/undo via EVA.  However, aren't these 
the same connections needed if the Space Station can be maintained 
on orbit by EVA?  For example, if one of the LLNL modules were to be 
damaged beyond repair by orbital debris, it would necessarily have 
to have these EVA dis-assembly provisions, so the module could be 
unhooked and a new one hooked in.  I would rate this as a wash, 
between the two. 
    Combining all this, gives a set of revised numbers... 
 
Item            HLV          Shuttle
Payload         $22.5  B       $22.5   B
Insurance       $ 2.250        $ 0.450 
Launch cost     $ 0.195        $ 1.175  
EVA             $ 0.0          $ 0.002 
Engineering     $ 0.0          $ 0.0       Same between the two
                --------       ---------
                 24.945         24.017
     Which has now reversed.... I would say the most sensitive part 
of this calculation is reliability since Shuttle total costs come 
out cheaper is HLV reliability is .94 or less (shuttle at .98).
Based upon the historical patterns for launch vehicle development, 
this might be a reasonable bet. 
 
     Anyway, I think we've beat this subject to death.  Can we agree 
to disagree on this?  My opinion is that we need a HLV capability, 
and I think it would make sense to apply such to any Space Station 
program - after a good test period (10-20 flights).  I'm just not as 
hard over on killing our current programs in favor of untested new 
programs - without a much better examination of what this entails.  
But I support activities to examine this option. 
                                               (cont)



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Wales.Larrison@ofa123.fidonet.org (Wales Larrison) (11/13/90)

     
>>>[Previous message about future space transportation system mix...]
>>I would suggest a shuttle-like vehicle with a on-pad abort 
>>system, and Liquid Rocket Boosters.  I also think it might be 
>>possible to retro-fit such a capability onto the shuttle a lot 
>>cheaper than designing a new system.
>
>Perhaps. But the resulting system would still be far too expensive 
>to operate in a free market. 
 
    True, if run by the government for the bureaucracy.  But if you 
are in favor of turning ELV launch operations over to private firms, 
why not turn the Shuttle over to a private operation? If you could 
strip the system out of the government and turn it over to an 
incentive-based private organization, I think it might be worth 
another look.  
   Based upon my experience and analyses, I think you could 
easily eliminate the top three levels of shuttle management, and at 
least 30-50% of remaining personnel, which are most of the "fixed" 
annual costs.  (There are 20 "Shuttle" people at KSC for each person 
who touches the shuttle!)  In my estimation, this would reduce the 
annual cost of operations from the current $3.5 billion to $2.0B 
within 5 years.  Then, run the system like a trucking company - not 
a limo.  That would allow smooth and standardized flows, and fixes 
several of the recurrent bottlenecks with specialized missions 
including special software loads and special training.  Among other 
things, it would also remove the desire to get every last pound of 
performance, which would increase operational margin, and in turn, 
eliminate 25-50% of the launch delays. 
  Adding LRBs would attack costs as well as operations. According to 
the MMC and GD preliminary design studies for LRBs, the estimated 
recurring costs for LRBs are about $5 M per flight, with about a $2 
B development cost. LRBs increase reliability through engine-out on 
liftoff capability and more benign failure modes.  They increase 
performance by anywhere up to an added 30-50,000 pounds.   At 
current SRB costs of about $30 M per flight (at 8 flt/yr rate), this 
pays back at 39 flights, or between 3 and 5 years of operations. 
    If we can clean house in the operations, we should be able to 
get to above 12 flights per year.  Talking this over with some of 
the operations research gurus at work, their numbers show you can 
get up to 24 flights per year out of KSC with EXISTING facilities 
and orbiters  (Note: this is merely through reducing the OPF flow 
time to 40 days from the current 95 days, and eliminating the SRB 
stacking bottleneck in the VAB. The LRBs eliminate the SRB stacking 
bottleneck by allowing the stacking of non-fueled LRB boosters, and 
the OPF bottleneck is reduced by merely eliminating the redundant 
system checks to ensure the first checkout was correct.)  
    Cranking all these numbers in gives $2000 M for 16 flights per 
year at 65 Klbs (note: I'm allowing LOTS of margin...).  This is 
about $1900/lb (annual cost), without a lot of technical, schedule, 
or financial risk.  
    Taking more optimistic numbers, $2000 M for 24 flights/yr at 
75Klbs gives $1100 /lb.  Which is getting pretty competitive to a 
$1000/lb untested HLV - and is available at about the same technical 
risk and cost. 
    Whether or not this is the best way to go, I'm not sure.  But I 
think it deserves a good look along with looks at commercializing 
other launch operations. 
-------------------------------------------------------------------
Wales Larrison                                 Space technology Investor



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aws@ITI.ORG ("Allen W. Sherzer") (11/15/90)

In article <1565.27401C39@ofa123.fidonet.org> Wales Larrison writes:
>    However, this does pose some interesting questions.  If, as you 
>say, the Delta HLV design is 7 Deltas strapped together, does this 
>not imply the reliability to be .98^7 = .86?  

No the claimed reliability is much higher. A failure which is
catostrophic with one Delta may not be as bad if there are six
others to take up the slack.

I have seen figures on HL Delta reliability but cannot state
them here. The reliability is near Shuttle levels although I
do not know how the figure was arrived at.

>Also, looking at the 
>historical data shows that a significant design change to a launcher 
>typically results in a pattern of failure for a few years (shown in 
>Delta and Scout upgrades, and in the little bit of data I have on 
>Titan history).  How do we avoid the "infant morality" for a major 
>design change to a HLV?

Maybe we don't. I don't know the answer. I do know that:

1. It will cost less than one Shuttle flight to develop the hardware
and find out.

2. For HL Delta we aren't making big changes but using well established
engineering methods.

Maybe you're right. Maybe all we get out of this is a way to send up
bulk supplies for a quater the cost of a Shuttle flight. On the other
hand, for a very small investment we just might reduce the cost to orbit
for everybody by an order of magnitude. Isn't it worth the risk?

>    For discussion sakes, lets say .90 for the new, untested HLV, 
>and .98 from the shuttle. 

Again, this does not agree with the MDAC figures.

>   2) The difference in launch costs.   I will accept the Shuttle is 
>never get the economies of scale per individual launch available in 
>a HLV.  So the price of an individual shuttle launch will be always 
>higher ($/lb) than a HLV.  However, if we can increase the shuttle 
>annual flight rate from 4 to the planned 12, then the cost is 
>reduced by $2.3 B.  

This is *VERY* unrealistic. This is three times the average launch
rate for the last *TEN YEARS*. There is no reason to think this
can be achieved.

BTW, a report in this weeks Avation week said NASA is backing off from
claiming high launch rates. There is a good graph of NASA launch
rate claims and actual for the last ten years.

>     Similarly, your HLV costs can be claimed as very opimistic. If, 
>LLNL is going to pay for a Space Station to completely recover the 
>development and financing costs for a HLV, and there is no long-
>term recurring market, I think the cost could be increased.  

I'll accept your HLV launch cost for the sake of arguement. However,
I point out that LLNL will be buying ~24 of these launches plus
more for later phases. One byproduct of this may well be enough
of an infastructure to get a real space industry started.

>   3) Engineering for assembly in orbit.  I would assume the 
>provisions needed to assemble something on orbit are the connections 
>be simple and very easy to do/undo via EVA.  

I don't think so. Just because something has field replaceable units
doen't make construction easy. For example, it may be possible to
fix the wing of a 747 at Podunk Regional Airport but that doens't
mean they could build one if given the parts.

The Zenith Star engineers considered sending the payload up on
a Titan and the Shuttle and doing assembly in orbit. This was
considered too expensive because of design changes needed. That
is why they went with the HL Delta and Titan V.

>between the two. 
>    Combining all this, gives a set of revised numbers... 
> 
>Item            HLV          Shuttle
>Payload         $22.5  B       $22.5   B
>Insurance       $ 2.250        $ 0.450 
>Launch cost     $ 0.195        $ 1.175  
>EVA             $ 0.0          $ 0.002 
>Engineering     $ 0.0          $ 0.0       Same between the two
>                --------       ---------
>                 24.945         24.017
>     Which has now reversed.... 

These two numbers are within 4% of each other. I consider that a
wash. So if we use pesamistic numbers on the HLV and optimistic
numbers on Shuttle they look the same. On the other hand, if we
can't tripple the number of Shuttle flights and MDAC is correct
on HL Delta reliability, the HLV will be the clear winner.

It will only cost us one Shuttle flight to find out.

>I would say the most sensitive part 
>of this calculation is reliability since Shuttle total costs come 
>out cheaper is HLV reliability is .94 or less (shuttle at .98).
>Based upon the historical patterns for launch vehicle development, 
>this might be a reasonable bet. 

Agreed.

>     Anyway, I think we've beat this subject to death.  Can we agree 
>to disagree on this?  My opinion is that we need a HLV capability, 
>and I think it would make sense to apply such to any Space Station 
>program - after a good test period (10-20 flights).  I'm just not as 
>hard over on killing our current programs in favor of untested new 
>programs - without a much better examination of what this entails.  
>But I support activities to examine this option. 

I can live with this. I wouldn't kill the Shuttle without having
an option in place. I just point out that there is a good chance
that that option is here.

  Allen

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