> >>LM should be banned from even engaging in space tourism.<br /><br /> /> <i><font color="yellow">HUH ?? What do you care who provides the cheaper launch option ?</font>/i><br /><br />One argument goes as follows: In a private sector business, the cost of the product has to include the cost to <font color="yellow">build</font>the product PLUS some amortized cost to <font color="yellow">develop</font>the product. For something with low production rates, the amortized costs can be quite high. So for a SpaceX launch, SpaceX costs will have to factor in their development costs.<br /><br />In many cases, the government has borne the development costs, so the company does not need to include those costs when pricing their product (e.g., a launch). Thus, since the government provided lots of funding to LM to develop the EELV, LM could theoretically undercut the price of a privately funded effort.<br /><br />Unfortunately, life is always more complex than this. For example, SpaceX has $100 million from the DOD for buying launches. Now this is for buying product (a launch) and not a development effort, but it does help SpaceX spread their development costs over more launches. Furthermore, SpaceX is receiving nearly $300 million from NASA in <i>development</i> funding as part of COTS. Finally, although the government has ponied up money to help develop the EELV, LM has invested and will continue to invest their own money to develop the Atlas V.<br /><br /><br />The same argument for launch vehicles could be made for the spacecraft element too. NASA will fund LM to (1) hire and develop expertise in manned vehicles, (2) develop tools, (3) develop software, etc. Should LM then be allowed to use those same experts, tools, software on a second system and sell it in the private market?<br /><br />Any ways, its a complex situation.</i>