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Case Study: Does Anybody Actually Know the Cost of the ISS?

The International Space Station is one of the greatest technical achievements of our
recent history. Built on the collective expertise of Russia, the United States, Europe,
Canada, Japan and other international partners, its design, construction and opera- operations
are not just a testament to engineering but also to international cooperation.
tions Although there have been some criticisms regarding the amount of science coming
out of the ISS, one of the main points of contention has been its cost.
As part of his administration’s strategy to establish U. S. dominance in space,
President Reagan kicked off the program in 1984, aiming to counter the ambitious
Soviet space station program. The original cost estimate was $8 billion (or $16.8
billion in 2010 dollars), and it was to be completed by 1992. 9 Dubbed “Space Station
Freedom,” the main purpose of the program was a show of force, rather than con- conducting
space science experiments. In 1989, the George Bush Administration
ducting changed the plan slightly and positioned the station as a stepping stone for a subse- subsequent
human exploration mission to Mars. Partners from Europe, Canada and Japan
quent were also invited to contribute to the station in exchange for usage rights.
The fall of the Berlin Wall the same year fundamentally changed the political
landscape and forced the United States to revisit the primary purpose of the station.
By inviting Russia to join the program in 1993, the United States aimed to achieve
two ambitious goals – preventing the Russian know-how in space technologies from
falling into wrong hands (such as North Korea or Iran) and decreasing the overall
cost of the program by tapping into cheaper technology and launch costs in Russia.
The station was also rebranded as the “International Space Station” to emphasize its
new nature.
However, the diplomatic burden of an international partnership and the sheer
challenge of merging space heritage from multiple countries dramatically increased
the overall complexity of the program. By 2002, the cost of the ISS to the United
States increased to about $30 billion. 10 Schedule slippages were a ke key factor y in los losing ing
control of the budget. It was estimated that every month of delay cost about $100
million in the form of salaries, contractor overhead and sustaining engineering.
In 1993, the completion of the in-orbit assembly was planned to take place in 2002.
After nearly a decade of delays and 37 space shuttle fl ights, the ISS assembly was
completed in 2011. International partners agreed to keep the station operational
until at least 2020.
Since the ISS operations are ongoing, it is not possible to estimate its life-cycle
cost with great accuracy. Furthermore, budgetary fi gures provided by NASA are
generally not adjusted for infl ation. As of 2010, NASA estimated that it invested
more than $48 billion on the development and construction of the ISS since the
beginning of the program. 11 Adjusted to 2010 dollars, this represents an investment
of about $70 billion. However, this is only one of the cost elements.
Additional costs include (all in 2010 dollars):
• $53.3 billion (the cost of 37 shuttle fl ights at $1.44 billion each)
• $24 billion (the estimated cost of contributions from Europe, Russia, Japan,
Canada and other international partners)
• $27 billion (estimated cost of operations about $3 billion per year until 2020)
Thus, the estimated life-cycle cost of the ISS is around $175 billion (in 2010 dol dollars),
although the “offi cial costing” provided by NASA and ESA for the International
Space Station is $140 billion.