Fig. 3.15 Development Costs of the SPS (Source: Ref. 26) • Investment: development of industrial infrastructure, e.g., transportation, photovoltaic, and klystron manufacturing facilities. • Construction and implementation: the first 5-GW SPS unit put into place. It is important to note that these cost estimates assume that all effort is specific to the SPS. The benefits from generic research or from cost sharing (e.g., industry or other federal program support for photovoltaics manufacturing facilities) have not been considered. Such cost modifications could amount to 50-70Z of the $102.5 billion.27 Since comparable cost data for the other six technologies were not available, side-by-side comparisons of costs or of the benefits or disadvantages of public expenditures were not attempted. The SPS development program would consist of five phases and include basic research, engineering verification, prototype demonstration, investment requirements, and commercial production of the satellites. A cost estimate compilation based on 1977 dollars was presented on February 20, 1980, by R.J. Harron and R.C. Wadle of NASA.28 The estimates were updated to 1978 dollars by a factor of 1.08 and are shown in Table 3.9. The required investment in facilities to produce satellites and related equipment is unique to this program and will enter into the commercial operation costs as an allocated expense, i.e., depreciation of investment for each satellite. In accordance with the reference accounting method, developing and establishing the space fleet for transport of materials, supplies, and personnel are not considered part of the depreciable satellite investment and, accordingly, have been excluded from capital recovery. The cost estimates of the work breakdown structure include provisions for price escalations and for project management and integration, which are included herein, in addition to the applied contingency and owner’s costs added for this review.
RkJQdWJsaXNoZXIy MTU5NjU0Mg==