LIFE CYCLE COST ANALYSIS OF REV1

This thesis conducts an examination to assess the life cycle costs linked to the space module with re-entry capabilities, known as "REV1." The root of the choice for this analysis stems from my internship at Thales Alenia Space, the prime contractor for the engineering and production of this cutting-edge reusable spaceplane. The work aims to satisfy the need to compare the internal cost estimation obtained through the software "PRICE" with an external "academic" method presented in this document, which leverages existing literature, academic tools from the Aerospace Engineering Department of Politecnico di Torino, and, hopefully, technical-economical knowledge contamination accumulated over five years as a management engineering student. The research is structured into phases, beginning with an introduction to the context of the new space economy in which the REV1 project aims to play a commercial role. This is followed by an overview of Space Cargo Unlimited (the product owner of REV1) and Thales Alenia Space, highlighting their past collaborations and the journey that led to the discovery of research and manufacturing potential in low Earth orbit. Next, a contextual background is provided by examining previous similar re-entry space projects such as IXV, Space Rider, Hermes, and X-37B. Subsequently, an exploration of REV1 is presented, with a focus on its design catering to roles. Here the product is decomposed and analyzed along with the functionalities and the mission to be performed. The thesis then delves into a literature review outlining the state-of-the-art cost estimation methodology, including life cycle cost allocation, the application of the Parametric Cost Model, and the use of Cost Estimating Relationships (CERs). These analytical tools, explained in detail, form the basis of the cost estimations dedicated to the REV1 project. Following this methodological framework, a detailed analysis of REV1's life cycle costs is conducted in the subsequent chapter. Adjustments are carefully made to the CERs to tailor them to the project's unique aspects, and costs are systematically broken down into various phases encompassing research and development, production, and operations. Finally, the analysis findings are presented, and their implications are discussed.