Because their model isn't based strictly on government contracting. It is based on minimizing costs to build a self-sustaining, privately operated space program

Because their model isn't based strictly on government contracting. It is based on minimizing costs to build a self-sustaining, privately operated space program. Contractors give you the space shuttle: it doesn't matter how expensive it is if it's what was in the RFP. It's the difference between the government contracting out the F22 versus going to Boeing to buy a 737. And that difference is what makes it exciting.