> <i><font color="yellow">Does anyone know?</font>/i><br /><br />You can listen to the audio broadcast posted at the beginning of the thread. An often cited reason is that SpaceX designed their system so that an army of people are not needed. They also have a reusable first stage which helps some (the DOD has also hyped the idea of "two-stage to orbit" where the first stage (hypersonic plane, large booster, whatever) is reusable). But Musk mentioned in the broadcast (repeated on their web site) is that there is no single silver bullet -- they are driving down costs at every stage.<br /><br />Here is some text from SpaceX's FAQ:<br /><blockquote><font class="small">In reply to:</font><hr /><p>The cost of a rocket is driven by five factors: overhead, propulsion, structures, avionics and launch operations. SpaceX has a flat management structure and singular product focus, resulting in lower overhead costs than other launch vehicle providers and a significant cost advantage for any given rocket design.<br /><br />Regarding propulsion, structures and avionics, Falcon has the advantage of being a clean sheet design focused purely on reliability & cost (we view two as inseparable) and the first rocket developed in the 21 st century, taking advantage of the latest technologies. Through countdown automation and simplicity of design, our rocket requires an order of magnitude smaller launch crew than other US rockets.<br /><br />While we have many original innovations and patents pending on elements of the vehicle, there is no single silver bullet breakthrough responsible for our low costs (just as there is no single reason why Southwest Airlines is so much more cost efficient than other airlines).<p><hr /></p></p></blockquote><br /><br />One other note: Musk said he has <i>heard</i> that refurbishing the Shuttle's SRBs between launches cost about 90% of a new SRB, so there isn't a lot saved on that part (any truth SG?).</i>