NASA is gearing up for a pivotal decision that will determine the future of America’s lunar exploration program. The space agency aims to finalize its choice for the Lunar Terrain Vehicle (LTV) by the end of December 2025. As the procurement process nears its conclusion, leaders are advocating for a “warm backup”, a secondary contractor who could step in if the primary supplier cannot deliver. This decision matters not only for the mission itself but also for setting standards in how public/private partnerships shape space exploration. Let’s take a closer look at why this matters and what lessons we, as entrepreneurs, can draw from it.
Why NASA is Considering a Backup
NASA’s Artemis Program has ambitious goals: it includes establishing a sustainable lunar base and deploying cutting-edge technology for exploration. The lunar rover, known as the LTV, will play a vital role. By 2029, astronauts will need this rover to traverse Moon’s rugged terrain, search for resources, and conduct scientific research. Perfection isn't just an aspiration, it’s required.
One supplier should seem ideal for simplicity, right? Not necessarily. Recent missteps in procuring spacesuits and commercial crew vehicles have underscored the risk of trusting a singular supplier. NASA has already burned time and resources due to vendors faltering mid-project. With the stakes so high, leaders are pushing back on the idea of awarding this $4.6 billion contract to one company without any contingency plan.
NASA's interim leadership has proposed that a second supplier receive partial funding to stay ready, just in case the primary contractor can’t execute. That backup could offer the flexibility needed to adapt plans without catastrophic delays.
Insights for Female Entrepreneurs
Entrepreneurs often rely on decisions that involve balancing risk and efficiency, just as NASA does right now. Here’s what stands out:
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Regret Minimization: There’s value in asking, “How can I prevent worst-case scenarios?” NASA’s backup idea directly tackles this concept. For business owners, spreading risk across partnerships or products minimizes potential regrets.
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Flexibility for Growth: NASA’s “keep another supplier alive” mindset is a reminder to nurture options, even the ones that feel secondary. Similarly, founders should keep backup strategies for new collaborations or revenue streams while focusing on existing ones.
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Resilience in Uncertainty: The Artemis Program’s approach isn’t just about racing to the Moon; it’s about creating a framework that thrives in unpredictable conditions. For startups, resilience means building models that can pivot when partners, clients, or suppliers fail.
Statistics to Consider
Studies in procurement strategies highlight one ongoing truth, single-supplier reliance can backfire:
- A 2023 McKinsey report suggests 78% of organizations facing supplier failures lacked contingency plans, resulting in delays exceeding six months.
- NASA’s Commercial Crew Program delays, triggered by singular reliance on Boeing in early stages, have cost the agency over $1 billion more than initial budget predictions.
- Companies that diversify their supplier base experience 30% fewer delays on average during scaling phases.
Numbers aside, this tells us one key thing: redundancy isn't just a luxury, it's an investment in long-term success.
Steps to Apply NASA's Mindset in Your Startup
Here’s how to take lessons from NASA’s procurement approach and apply them to your entrepreneurial ventures:
1. Audit Your Risks
Is your business dependent on one function, supplier, or customer? Dig into weak links that look strong now but could crumble later. If you only have one major client keeping revenue alive, plan alternatives immediately.
2. Explore "Warm Backup" Models
Consider funding secondary strategies. This doesn’t mean splitting all resources; it simply means finding ways to keep options available. For example, investing a small monthly budget into validating an alternative sales channel could save your business in the future.
3. Collaborate for Competitiveness
Like NASA keeping multiple vendors in its pool, entrepreneurs should aim to foster diverse collaborations. Partnerships that serve more than one purpose, like tech providers who also double as advisors, can reduce unexpected operational risks.
Avoiding Common Mistakes
Failing to diversify is not just risky, it’s unnecessary. Here’s where entrepreneurs go wrong:
- Neglecting Options: Suppliers, collaborators, or software that aren’t producing immediate revenue may still hold long-term importance. Completely ditching secondary plans creates blind spots.
- Over-committing Too Early: For startups, NASA’s full-dollar commitment model isn’t practical. Learn to test small before scaling collaborations fully.
- Ignoring Warning Signs: NASA is proactive in responding to past procurement failures. Entrepreneurs should do the same, don’t ignore signals of instability in key relationships.
Lessons from NASA's Approach
As you watch NASA navigate this bold but careful procurement strategy, there’s an undeniable takeaway: safeguards matter. Whether in space missions or business strategy, the principle rings true, valuing the resilience of partnerships means respecting a mix of speed and safety.
Female entrepreneurs in Europe might face tougher funding landscapes compared to others globally. Crafting multiple paths, including backup supplier contracts, alternative financing routes, or secondary innovation pipelines, isn’t just “risk management”, it’s smart leadership. This mindset doesn’t just build better businesses; it also sends a message: success doesn’t require perfection, just preparedness.
Final Thoughts
NASA might break new ground with the lunar rover program, but their approach is a message to entrepreneurs everywhere. Growth without resilience is just vulnerability wrapped in optimism. Strong decision-making stems from planning beyond the best-case scenario.
For startup founders balancing tight budgets, the idea of backup might seem wasteful. But if NASA, with billions at stake, finds it necessary, maybe it’s time we don’t dodge these conversations ourselves. Whether you're bootstrapping in tech or scaling a consulting empire, take these lessons from the Moon and shape them to reach your stars.
Also, curious about ways to improve risk management for early-stage startups? Learn more at NASA Press Release on VIPER Moon Rover Partner.
FAQ
1. What is NASA's Lunar Terrain Vehicle (LTV) and its role in the Artemis program?
The Lunar Terrain Vehicle (LTV) is a crewed lunar rover that NASA intends to deploy as part of the Artemis program. The LTV is designed to traverse the Moon’s terrain, support prolonged astronaut exploration, and assist in scientific research on the lunar surface. Discover details about NASA's Lunar Terrain Vehicle
2. When will NASA select the primary contractor for the Lunar Terrain Vehicle?
NASA plans to finalize its selection of the Lunar Terrain Vehicle contractor by the end of December 2025, with the first operational rover expected to be deployed by 2029.
3. Why is NASA considering a “warm backup” supplier for the LTV project?
NASA seeks to minimize the risks of relying on a single contractor. A second, partially funded contractor would act as a backup, ready to step in if the primary supplier fails to deliver, ensuring program resilience and avoiding catastrophic delays. Learn more about NASA's backup plan
4. What are the challenges associated with selecting a single LTV contractor?
The reliance on one primary contractor creates a single point of failure. Past NASA projects, like spacesuit procurement and the Commercial Crew Program, faced significant delays and cost overruns due to single-vendor reliance. Read about similar examples from NASA’s history
5. Which companies are competing for the LTV services contract?
Three major companies are in contention for the LTV services contract: Intuitive Machines, Lunar Outpost, and Astrolab. These companies submitted final designs, prototypes, and bids by mid-2025.
6. How is the “warm backup” plan benefiting smaller private companies?
Funding a secondary supplier helps smaller companies like Lunar Outpost and Astrolab remain viable in the commercial lunar sector. This approach maintains competitive pressure and innovation within the industry. Understand NASA’s partnership model
7. What lessons can entrepreneurs learn from NASA's backup procurement strategy?
Entrepreneurs can learn valuable lessons in minimizing risks, maintaining partnerships, and building alternative plans. NASA’s approach demonstrates the importance of balancing efficiency with flexibility to navigate uncertainties.
8. What is the significance of the NASA Artemis program for the U.S. space agenda?
The Artemis program represents NASA’s efforts to return humans to the Moon, establish a sustainable lunar presence, search for resources, and advance space technology and exploration capabilities. Explore NASA's Artemis program goals
9. What were the outcomes of NASA’s reliance on single suppliers in past programs?
NASA faced delays and additional costs due to single-supplier issues in programs like the Commercial Crew Program and spacesuit contracts, a situation they aim to avoid by considering a “warm backup.” Learn from NASA’s project challenges
10. How might NASA’s LTV procurement approach shape future public/private space partnerships?
NASA’s procurement strategy emphasizes resilience and redundancy while fostering innovation among private companies. It could serve as a blueprint for managing risks and maximizing outcomes in future partnerships. Dive into the role of private partnerships in space exploration
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
