It is a for profit company. Therefore profit margin must be achieved. What is profit margin but waste? Government is allowed to actually run at cost or under cost. Contracting with for profit entities therefore makes no sense, other than to further the profit of those entities.
Look, you’re absolutely technically right, but SpaceX is one of capitalism’s best examples.
Because… is the Falcon launch business profitable? SpaceX has spent massive amounts of money to launch their rockets hundreds of times to bring the cost this low. Because they have economies of scale and can learn from their mistakes at a volume no rocket manufacturer has ever achieved.
So your question should actually be: can NASA build a rocket that can do 18 cargo launches for less than $1.6B? The answer is probably no. Because Falcon 9 isn’t a one-off design, it’s the cheapest launch system ever designed. By a massive margin.
A bigger point here is that, sure, you’re right, there are many late-stage capitalistic businesses which basically only exist to increase profit and cut corners as much as possible, to customer detriment. And probably scam the government out of huge amounts of money.
But SpaceX isn’t a late-stage business like that.
>What is profit margin but waste?
Compensation for the risks taken and opportunity cost lost by doing this instead of something else.
Are you serious? I suggest you re-evaluate your priors because you're spouting things that demonstrate a severe lack of consideration for 1st, 2nd and 3rd order effects.
Brother the government just labels "profit" differently. Most people would call it grift, pork, or "inefficiency". Government waste dwarfs private sector waste by orders of magnitude. The utopia where governments efficiently and wisely put our tax dollars to their best use doesn't exist, never has, and likely never will.
So your argument is that NASA, by virtue of being a government entity unburdened from profit seeking, could launch 18 rockets for less than $1.6B total or $88 million per launch?