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Friday September 20, 2024 10:05am - 10:35am EDT

Link to Paper

Abstract:
What will NASA’s future communications demand and expenditure look like? In this paper we consider this question, as NASA moves towards commercial procurement for Direct-To-Earth and Space Relay communication services. As part of this task, we undertake a literature review which considers the potential for internal market-based management accounting options for optimizing budgetary and network resources. Then we develop a new Techno-Economic Assessment (TEA) model capable of evaluating the incremental cost over time to NASA of utilizing commercial communication services, for different mission and market scenarios. Three key conclusions are found. Firstly, NASA should explore activity-based cost accounting for managing internal communication resources, to ensure behavioral incentives are aligned with underlying delivery costs. Secondly, current and future NASA demand is a viable option from commercial services, with the potential to reduce cost through the use of non-exclusive networks and the sharing of fixed costs. Finally, in terms of market procurement, NASA should seek to award service contracts to 3-4 providers, as this level optimizes economies of scale benefits, while mitigating possible market collusion. These recommendations will enable NASA to successfully achieve its scientific mission over the next decade, while managing limited financial and networking resources.
Authors
EO

Edward Oughton

George Mason University
EW

Erica Weir

Teltrium Inc.
JD

Jeffrey Dobereiner

Teltrium, Inc.
PW

Phoebe Wetherbee

Teltrium Inc.
Discussants
avatar for Erik Bohlin

Erik Bohlin

Professor, Ivey Business School
Erik Bohlin (Professor and Ivey Chair in Telecommunication Economics, Policy and Regulation, BEPP) is an expert in telecommunications policy, an inter-disciplinary topic concerned with the impact of digitalization in the economy and society. He is Editor-in-Chief of Telecommunications... Read More →
Friday September 20, 2024 10:05am - 10:35am EDT
Room Y403 WCL, 4300 Nebraska Ave, Washington, DC

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