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Published by: Harvard Kennedy School
Published in: 1988
Length: 25 pages
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Abstract

This case details the contractual negotiations surrounding a replacement for NASA's Challenger, which had exploded in 1986, killing all seven crew members. Despite government-wide budget cuts, as per the 1985 and 1987 Balanced Budget Act, NASA was eventually given USD2.1 billion in funding. The allocation of funds represented a vote of confidence, despite backlash after the Challenger disaster, and the use of 'up-front' funding as a means of reducing total program costs.

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Abstract

This case details the contractual negotiations surrounding a replacement for NASA's Challenger, which had exploded in 1986, killing all seven crew members. Despite government-wide budget cuts, as per the 1985 and 1987 Balanced Budget Act, NASA was eventually given USD2.1 billion in funding. The allocation of funds represented a vote of confidence, despite backlash after the Challenger disaster, and the use of 'up-front' funding as a means of reducing total program costs.

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