Going South: Warnings from the Largest Project Engineering Failure in Modern History
NASA’s successful conduct of the Apollo Program greatly enhanced the prestige of the United States and remains broadly accepted as America’s gift “for all Mankind.” NASA’s Artemis Program to return humanity to the Moon promises to again reveal America’s leadership in this field. In preparation for the initiation of Artemis and its predecessor project Constellation, NASA thoroughly examined space program precedents. There remains, however, another relevant precedent which has not been examined in this context. Though this project involved technology radically different from that managed by NASA, its scope and environment in many ways parallel NASA’s large programs. This project was initiated by a private sector team that had, ten years before, successfully completed an effort that, at a cost of $275 billion (in 2021 USD), had stimulated new technology, had brought economic growth, had established their country as the world leader in engineering innovation, and, though it was a commercial success, had been broadly accepted as their nation’s gift “to all Mankind.” The new project was inspired by popular belief that private capital could again be marshalled to enhance national prestige and make yet another major contribution to the progress of Humanity. This new effort was predicted to require eight years and $258 billion. However, after the passage of nine years, achievement of only 45% complete on the baseline design, and expenditures 96% beyond the baseline cost, the project collapsed amid bankruptcy, political scandal, and criminal prosecution. While the private sector team that carried out this project was exceptionally well educated and experienced in the field, their efforts resulted in what remains (in terms of the money wasted) the largest project engineering failure in modern history. This paper examines what went wrong.