Evaluating and purchasing a communications satellite system - Operational Costs

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Operational costs



Bidders should be evaluated on the operational support they provide over the typical 15-year life of a spacecraft. What is the extent of the manufacturer’s post-launch customer services? Are they available 24/7 to assist with anomaly analysis and resolution? Does the manufacturer charge extra for this support or is it included in the price of the spacecraft?
A study by the Futron Corp., “GEO Commercial Satellite Bus Operations: A Comparative Analysis, 2003”, found that ongoing operations and program management costs such as staff, hardware and software vary greatly depending on the satellite. This ‘consumer report’ on the commercial satellite industry found that the major components of total operations costs over the life of a satellite are those for staff and the hardware and software for spacecraft monitoring and maneuvering.

According to the Futron study, “Operators report that their operations staff spend 20 to 40 percent of their time on anomaly-related activities, with the rest spent on routine maneuver planning, development of new procedures and preparations for new satellites.” This finding suggests that by increasing the onboard autonomy of their satellites, buyers can more efficiently manage anomalies and reduce annual operating costs through lower staffing needs over the life of the satellite.
The cost of operating a satellite is the aggregate of many factors, such as the complexity of components, ease of spacecraft pointing and the effectiveness of onboard autonomy. The complexity of hardware and the sophistication of the software are intrinsically related. Achieving a balance between these elements is essential to providing an “operator friendly” satellite. The Futron Study , illustrates this relationship among current spacecraft models. The more difficult a satellite is to keep stable and maneuver, the more likely it is to cause operator errors. The analyses and resolution of these errors, as well as hardware anomalies, drive up staffing demands and consequently, operating costs.
The age of the satellite is another key consideration impacting costs. While 21st Century technology can achieve satellite lifetimes longer than 15 years, it should be noted that longer lifetime could increase operational costs. First, older satellites are less effective moneymakers owing to limited bandwidth and transponders compared to newer models. Secondly, the operating procedures will be different for the newer, high quality software-controlled satellites now available, thereby increasing an operator’s burden.
Furthermore, customer support by the manufacturer almost two decades after satellite delivery, but certainly beyond contract life, is not a reasonable expectation. [1]



References

[1] Satmagazine.com - January 2004
Satellite System Acquisition: A Fresh Approach to Evaluating and Purchasing a Communications Satellite System

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