I believe the book gave a radio module as an example. It was available for $120,000 at "space-rated" quality, but they bought something at RadioShack for around $3,000, and later replaced it with an in-house part that was smaller/lighter/more power efficient.
There is 'off the shelf', 'automotive', 'aeronautic', 'unmanned space' and 'manned space' quality gear.
If you think about it - when you're flying a plane, the 'tolerances' for everything just has to be higher - there's much more at risk.
In a complex system, there are a lot of single points of failure that can cause haywire.
Unsurprisingly, the tolerances for 'unmanned' vs. 'manned' space flight are quite different - and for good reason.
Perhaps the economics are not always quite right, it may make sense to make some small probe out of 'cheap gear' - but there is of course added risk, and usually, you 'only get one launch' attempt.
Finally - there's a reason a 'space grade' radio might cost $13K, and that's because they don't make very many :).
I interned on the Space Shuttle robot arm project - we made these aluminum 'handles' for the arm to grab onto. I mean - really, really basic stuff. $200K each. Engineering, overhead, testing, sales yada yada - we only ever made a few dozen.
That sounds ridiculous. Did your coworkers have a strong opinion of that, or not care?
It takes a lot of work and investment to design a 'space grade product'.
When you only ever sell 50 of them - total, well the price will be high.
Imagine if only 500 iPhones were ever sold - how much would they cost in order for Apple to make a profit?
It's just the weird economics of small batch products that makes the price seem bonkers, there's no volume to spread the fixed costs over.
Next time you're sat in a meeting with 5 other highly paid software developers, discussing a two line bugfix, think about how much that bugfix will have cost.
How much R&D is reasonable for some "really simple handles?"
Each step of the process involves internal review and review by the customer - i.e. Japanese space agency, and can take weeks.
Testing requires a massive 'clean room' which is expensive to maintain. And you don't just make these things anywhere - tolerances have to be perfect.
Not only is it tough engineering, it's a lot of bureaucracy.
And then overhead: IT, support, software, flights, hotels yada yada yada. It adds up.
Well, a limited-run gravy train, for 50 or so units.
By using off-the-shelf hardware, and reusing the first stage, they're on a good trajectory to undercut previews launch system by almost an order of magnitude. And NASA trusts them enough to outsource even manned flight to them.
There's literally _no way_ it had been done in the most efficient manner.
Consider how much a massive 'clean room' costs to operate.
Consider how much gear it takes to simulate the operation of massive robot arm in a 0G environment, when we live in a 1G environment.
Consider what happens when a 1 ton arm, attached to a 20 ton structure, applies toque to a 1/2 ton satellite... when the satellite is moving ...
Consider how much it costs to send 4 Engineers, a PM and a Bus Dev to Japan for three weeks for talks with Japanese Space Agency? Several times?
Consider the lawyers bill - Japanese, Canadian and American ones. Translators. Insurance estimates. Liabilities.
FYI - did you know that every single thing that goes into space is tracked? Every single screw had an ID number. It's original manufacturer, shipping, the date it was put on the station, by whom, when it was removed - etc etc. Every goddam screw :).
Now think of how much software and admin is needed to track all that.
And now consider that if one single manager, at one single subcontractor opens an 'issue report' anywhere in the world - that the 'countdown' for a shuttle launch was postponed? (Happened to my boss, opened a tiny change request on Admin Software in Toronto - went for lunch - Shuttle countdown froze, panic and hilarity ensue). And the overhead costs associated with that.
Space is expensive, especially 'manned space'.
Vert complex, one-of-a-kind system - where nothing is allowed to go wrong.
I understand the complexity of the issue at hand. I can.
Nevertheless simple handles going for 200K a piece is a vast budget. Any proper business would quickly open up an internal department to "do the handles" since it both allows them to grow for free (you get additional specialists and the handles) and allows to use the same engineers for something else. More importantly testing becomes less of an issue since now you may easily do integrated testing of several disjoined components at once.
So no - I understand where the expenses come from. But it doesn't mean that structure is in _any_ way motivated.
The idea of subcontracting and every little piece of hardware being done by a separate little entity doesn't seem to work both in terms of pricing and in terms of the amount of work it would be doing be it a merged entity.
It just doesn't work that way.
It's an area of hyper-specialization.
Everything made for space is a 'one off', there really are no economies of focus or scale. Maybe in launch.
There just aren't 'lines of business' in space really.
Once you walk in the situation and spend a few days there, and see what's going on, you get it.
I haven't even scratched the surface of it.
Every process is recorded, needs to be archived.
Every single piece of software hardware ever used needs to be 'kept around' in case something goes wrong. 20 year old computers, floppy disks, have to be managed and 'kept up' in case something from way back needs to be tested.
Purchasing requirements/limitations. Political control (governments pay for this, so they set rules, change them). Security clearances. Accounting standards. Process audits. Insurance audits. Hyper-specialization HR impossibilities (like 10 guys in the world qualified to do ABC activity).
You must wonder why it costs '100M dollars' to film a big movie, have a look at the detailed budgets. A lot comes out of the woodwork.
This should be done in many more places.
Though with 'cost plus' contracts... providers are incented to create crazy new things for every problem.
If there weren't moral questions around this - it would be amazing to see a NATO forces 'hackathon' where people create top gear/tech for soldiers with off-the-shelf components and software.
I have a funny feeling that 'if they put their hearts to it' - there'd be no competition in terms of what could be created.
Imagine the SpaceX of 'jet fighters' - 2x the capability, 5% the cost.
Anyhow, obvious moral issues there ... just a thought.