>>OK, let us then assume that the original estimates (If there is somebody here that actually knows the actual original amount, perhaps it would be good to come forward with the actual figure) were even $1.5 billion. And now six months later that estimate is now some $3 billion. <<<br /><br />The original $1.2 billion would have been for a five-segment booster for Shuttle. An extra $1 billion is needed to develop the CLV version (cost of roll control, interstage, new separation motor setup, new recovery system, new flight control systems, thrust tailoring, etc.) <br />This extra $1 billion is required whether it is a four or a five segment booster. So we're up to, what, $2.2 billion now? IMO, ATK's estimated cost increase was from something like $2.2 billion to $3 billion, a 36% increase, not a 100% jump.<br /><br />Clearly, that 36% increase was a nasty surprise for NASA, but it is anything but unprecedented in government contracting history. Perhaps NASA will find a way to cut some of these projected costs (ATK's first proposal is probably gold-plated - probably includes the cost of a new factory, etc.)<br /><br /> - Ed Kyle