Bankrupted companies is not necessarily bad for society overall. Besides SpaceX, there was also Kistler in the running for COTS commercial cargo. They failed an

Bankrupted companies is not necessarily bad for society overall. Besides SpaceX, there was also Kistler in the running for COTS commercial cargo. They failed and were replaced by Orbital. Also, you seem to be implying that cost plus contracts will allow much smaller companies since they won’t have to absorb as much risk, but in reality, it’s the big boys who win cost plus contracts. SpaceX was tiny when they won COTS/CRS (Elon wasn’t a billionaire and Tesla was looking more like a dead end novelty than the most valuable car company in the world). Also, Iridium and Orbcomm and OneWeb all went bankrupt but all are still operating today. Bankruptcy doesn’t always mean the business disappears off the face of the planet, and even when it does, often their assets end up being used productively by others (that’s how SpaceX got their McGregor test site).