Category: Commercial

House Subcommittee Highlights Benefits of NASA-Derived Technologies

House Subcommittee Highlights Benefits of NASA-Derived Technologies

An oft-asked question in Congress is how to explain to constituents the value of spending tax dollars on NASA.  At a congressional hearing today, NASA’s chief technologist and representatives of four companies talked about their partnerships with the agency in technological spin offs or spin ins.

Ask almost anyone and they will tell you — mistakenly — that NASA developed Tang, Velcro and Teflon.  In fact, the chair of the House Science, Space and Technology Committee’s Subcommittee on Space and Aeronautics, Steve Palazzo (R-MS), started today’s hearing by saying that NASA’s “contributions to society are often distilled down to Tang and Teflon.” 

NASA was only a user of those discoveries and creations, however, not an inventor of them.  Tang was a commercial product already available when the human spaceflight program began in 1961.  Velco was developed by a Swiss engineer in 1948.   Teflon was discovered in 1938 and given its name in 1945. 

The agency is rightfully credited with creating a wide range of other technologies that led to products in wide use today, however.  NASA publishes an annual book, Spinoffs, that details some of them and has a website devoted to the topic.

Spin offs as a justification for NASA spending are controversial among economists and even within the space community.  Some argue that the connection between the NASA investment and the final product often is tenuous or that the new product would have been developed with or without NASA involvement.  Be that as it may, when searching for explanations of why spending money on NASA benefits people on Earth, the idea has a lot of staying power and a reasonable track record to back it up.

Mason Peck, NASA’s Chief Technologist, offered a number of examples during the hearing, while other witnesses discussed the overall benefits of the nation’s investment in NASA technologies.  John Vilja of Pratt & Whitney Rocketdyne talked about the application of the company’s expertise in “materials, temperatures, speeds and pressures” derived from building rocket engines to the energy field, including solar energy and coal gasification.  Richard Aubrecht of Moog, Inc., summarized Moog’s decades-long relationship with NASA, particularly in human spaceflight programs, that led to the company becoming “the world’s leading aerospace flight control company” and creating “more business at Boeing, more efficient passenger aircraft, better flight controls on military aircraft, and more reliable, less expensive launch vehicles.”

Two other witnesses offered examples of spin in.   George Beck of Impact Instrumentation recounted how his company, which develops life support equipment for the defense department and others, has benefited from partnering with NASA through Space Act Agreements that allow NASA engineers access to his company’s technology early enough in the development phase to identify changes that would make it useful for NASA missions.  Brian Russell of Zephyr Technology similarly discussed his small business’s succcess in working with NASA on remote physiological status monitoring systems.  “Working with NASA gave us the information and feedback we needed to move from the realm of science fiction to the mainstream,” Russell said, and aided NASA when it was working to help save the 33 Chilean miners who were trapped last year.   In a ringing endorsement, Russell ended his statement by saying that “nothing but good – and [a] great deal of good — can come from funding NASA and its programs.”

A webcast of the hearing, the hearing charter, and prepared statements are available on the committee’s main website and Democratic website. 

 

U.S. Experts on China's Space Program Agree There Is No Race

U.S. Experts on China's Space Program Agree There Is No Race

China’s successful Shenzhou-9 mission seems to have stirred interest in what impact, if any, China’s space program should have on the U.S. space program.  Several experts on Chinese space activities have spoken at public meetings or published op-ed pieces in the past two weeks weighing in on the topic.   One issue on which they all agree is that there is no U.S.-China space race.

Some U.S. space program advocates have been attempting to reinvigorate NASA’s activities by trying to resurrect the U.S.-Soviet space race paradigm of the 1960s that shaped the Apollo program. 

At a Marshall Institute-TechAmerica Space Enterprise Council symposium on June 29, hours after Shenzhou-9 landed, Leslee Gilbert, Vice President, Van Scoyoc Associates, took the opposite view, pointing out that the American people do not seem to care about China’s human spaceflight program.   “China will have to do something new to get Americans’ attention,” she said, perhaps building a base on the Moon, but just going there would not be sufficient.  The former staff director for the House Science, Space and Technology committee argued that China is “not leading, but following.”   Noting that many people paint U.S.-China space relationships in an either-or framework — either racing or cooperating — she concludes neither is likely in the near future, especially with the strong opposition to cooperation voiced by Members of Congress like Rep. Frank Wolf (R-VA).   Gilbert’s major concern is that the American public lacks an “appetite for space” in general and “spurring a race with China won’t fix it.”   That interest “has to come from within.”

Kevin Pollpeter, Deputy Director, East Asia Program, Defense Group, Inc., gave China credit for “hitting on all cylinders” over the past ten years.  He described a broadly based space program encompassing civil and military objectives, although the Chinese space program is under the purview of the People’s Liberation Army (PLA) where such a distinction is not obvious.  Still, “China is not out to eat our lunch — yet,” he said.  Although China conducted one more launch than the United States last year, he said, we launched more satellites and Chinese satellites have “shorter lifetimes and are less capable.” 

The Heritage Foundation’s Dean Cheng agreed with Gilbert and Pollpeter that there is no U.S.-China space race.  “If they are racing with anyone, it’s with Japan and India,” and it is “a marathon not a sprint,” he said.  That is not to say that the Chinese space program does not pose challenges to the United States, he added.  China’s successes in the Shenzhou program, for example, pose a strategic challenge by signalling to the rest of the world that China has sufficient technological confidence to take the risks associated with human spaceflight, he explained.  On an operational level, China has learned lessons from U.S. conflicts such as the Persian Gulf War that future conflicts will be fought under “modern informationalized conditions” and gathering information and quickly exploiting it is critical.  “Space is how you do that,” he argued.  The United States and China are “not racing, but staring at each other warily.”

At the symposium and in an op-ed in the Washington Times on July 4, Cheng went on to rue the fact that the United States does not trumpet its own successes, such as the Voyager spacecraft leaving the solar system or the X-37B landing after more than a year of automated flight.   “One thing we do badly is using space in a non-space context,” he told the audience.  He reiterated that position in his op-ed, stating that “NASA’s products are a de facto refutation of claims of American decline, and should be used as such.”  He also warned against space cooperation with China and, domestically, advocated more engagement with the commercial sector.

Cheng also spoke to the National Research Council’s Committee on NASA’s Strategic Direction on June 25 along with Greg Kulacki from the Union of Concerned Scientists.   The two often clash on China space issues, but both agreed that there is no space race.  On that occasion, Cheng said “China is not racing the United States, it is building what it needs.”  

Kulacki sounded the same theme, that China “has been a follower, not a leader, in space,” adding that China “doesn’t have the confidence to be a leader” in this area.  He argued strongly in favor of U.S.-China space cooperation, however, calling current U.S. policy “uninformed, misguided and counterproductive.”

On the other hand, an individual who appears to have little expertise related to China’s space program or anyone else’s, argues that there is a space race and China is winning.   Douglas MacKinnon writes in the New York Times that “the humans who are now winning the space race come from the People’s Republic of China.”  MacKinnon says in the op-ed that he worked as a “consultant for NASA and the Space Shuttle team” after he left the government and has “always been a fan of humans in space.”  Apart from that, he was a press secretary to former Senator Bob Dole, a writer for Ronald Reagan and George H.W. Bush, worked at DOD, and now is a columnist and author.  Focusing more on China’s military space capabilities and objectives, his theme is that President Obama and Republican presidential candidate Mitt Romney should make American preeminence in space a campaign issue.  He asserts that early in his presidency Obama “contemplated combining the best of the space programs at the Pentagon and NASA to compete with the rapidly accelerating Chinese space program” and should “dust off those plans.”

 

 

 

United Technologies Admits to 576 Export Violations; Will Pay $75 Million

United Technologies Admits to 576 Export Violations; Will Pay $75 Million

The State Department announced a consent agreement today under which United Technologies Corporation (UTC) and three of its operating units or subsidiaries will pay $75 million in fines and penalties and take remedial actions for hundreds of civil violations of export control laws and regulations in its dealings with China.   UTC subsidiary Pratt & Whitney Canada  (P&W Canada) additionally pleaded guilty in a Connecticut court to a criminal violation.

UTC voluntarily disclosed most of the 576 violations to the U.S. Government beginning in 2006 according to the State Department.  Some of the violations took place in 2002-2003 and involved the sale of engine software by P&W Canada that is being used in Chinese military attack helicopters.  The software was of U.S. origin and governed by the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR).  Because it voluntarily disclosed violations and cooperated with the investigation, the State Department did not debar the defense contractor.  However, it did impose a statutory debarment on some P&W Canada activities.

The State Department asserts that the consent agreement addresses not only the illegal exports, but “false and belated disclosures to the U.S. Government about these illegal exports, and many other compliance failures.” While acknowledging the voluntary disclosures as mitigating factors, it decided to charge the company with 576 violations “given the harm to national security and the systemic, longstanding and repeated nature of certain violations,” it said in a proposed charging letter.

The consent agreement will remain in effect for four years.  UTC will pay $20.7 million in fines, forfeitures and other penalties to the Justice Department, and $55 million to the State Department as a penalty.  The State Department suspended $20 million of the $55 million on the condition that it be used for remedial compliance measures.

Export control reform is a major goal of the aerospace industry, particularly satellite manufacturers.  Progress was recently made in that regard with release of the “Sec. 1248” report by the State and Defense Departments, and House-passage of an amendment to the FY2013 National Defense Authorization Act to ease export controls for certain satellites. The export violations revealed today do not appear to involve satellites and under the House-passed language satellite exports to China would continue to be denied in any case.  

Thus, today’s announcement may not complicate the satellite export debate, although it may undermine confidence that the aerospace industry has learned from the mistakes of the 1990s that led to the current strict export limits on satellites.

In an unrelated development, Canada’s MacDonald, Dettwiler & Associates (MDA) purchased Space Systems/Loral today for $875 million.   It was a Loral employee sending a letter to China without export approval in 1996 that initiated the chain of events that became known as the “Loral/Hughes” affair.  It led to a congressional investigation chaired by then-Rep. Christopher Cox.  The Cox Committee report concluded that Loral and Hughes Aircraft (a satellite manufacturer later bought by  Boeing) violated export laws in helping China determine why its satellite launches failed.  In response, Congress passed language in the FY1999 National Defense Authorization Act that put satellites back on the State Department’s Munitions List with its ITAR regulations.  It also removed the President’s authority to decide whether satellites are governed by ITAR or the dual-use Commerce Commerce List administered by the  Commerce Department.  The aerospace industry has been trying to undo that language ever since, claiming that ITAR restrictions put them at a significant competitive disadvantage with foreign companies and thereby harm the U.S. economy.

Events of Interest: Week of June 25-29, 2012

Events of Interest: Week of June 25-29, 2012

The following events may be of interest in the week ahead.  The House and Senate both are in session this week.

Monday, June 25

Monday-Wednesday, June 25-27

Monday-Thursday, June 25-28

Tuesday, June 26

Tuesday-Thursday, June 26-28

Wednesday, June 27

Thursday, June 28

Friday, June 29

 

EnhancedView News Not so Rosy for GeoEye

EnhancedView News Not so Rosy for GeoEye

The deal apparently is not yet done on the next year of funding under EnhancedView after all, at least for one of the two commercial satellite imagery companies that depend on that government contract as a major revenue source.  GeoEye submitted two letters to the Securities and Exchange Commission (SEC) on Friday that spell out National Geospatial-Intelligence Agency (NGA) plans for funding existing contracts with GeoEye.  The news is not as rosy as it could be, though it is not necessarily dire either.

GeoEye submitted two letters to the SEC that it received from NGA.  Both are dated June 22, the same day GeoEye sent them to the SEC.  The first informs GeoEye that the government may not exercise the full contract option for year 3 (September 1, 2012 – August 31, 2013) unless it gets additional funding, while the second notifies the company that the government will not fully fund a cost-share agreement for acquiring the next GeoEye satellite, GeoEye-2.  Space News reported the existence of these letters in its on-line edition this morning.

Enhanced View is a 10-year NGA contract (one-year with nine one-year options) with GeoEye and DigitalGlobe to purchase imagery on a Service Level Agreement (SLA) basis.  The contract was signed in 2010 as a follow-on to earlier contracts that date back to 2003.  Constrained funding and reduced imagery requirements now that the Iraq war has ended and the Afghanistan conflict is winding down are leading NGA to reconsider the deal. 

It was reported earlier this week that both DigitalGlobe and GeoEye were told by NGA on June 15 that their year 3 contracts would be renewed.  DigitalGlobe issued a press release saying its contract was renewed for the entirety of year 3 under the terms of the EnhancedView contract.  GeoEye was silent and still has not issued a press release on this topic.  Instead it notified the SEC and thus stakeholders of its changed outlook for the future.

The first letter from NGA says that “due to funding shortfalls” it will not fully exercise the option for year 3 of the SLA.  NGA instead proposes negotiating a new arrangement with GeoEye under which it would fund the SLA for three months (through November 30, 2012) with a separate option for the remaining nine months of year 3.  NGA would exercise the three-month option only if GeoEye’s SIPRNET and NIPRNET Web Hosting Service is operational and validated by August 15, 2012.  The nine-month option would be exercised only if that service is operational and NGA receives additional funding.  

 “Assuming the company agrees to this proposal … total service revenue would be $159.0 million.  There can be no assurances, however, that funding will be available to NGA to exercise both options as proposed,” GeoEye cautioned the SEC.

NGA’s budget is classified, so the amount of funding it requested for FY2013 is not known publicly, but the Senate Armed Services Committee (SASC) wants to increase it by $125 million to ensure that both companies stay in business.

The second letter says that the government will not provide all of its share for building and launching GeoEye-2, currently scheduled for launch next year.  NGA originally indicated it would pay up to $337 million of the approximately $835 million cost of the satellite (including launch and insurance), according to Space News. 

GeoEye told the SEC that NGA has already obligated $181 million of the $337 million and NGA’s letter confirms it will meet that obligation, but no further funds will be provided.   GeoEye recently met a milestone that triggers payment of $111 million of the $181 million and GeoEye reported to the SEC that it expects those funds within 30 days.  To get the remaining $70 million, GeoEye will have to meet additional new milestones levied by NGA that include proving it has the financial resources to complete the satellite.  But the $181 million will be the end of government support for the satellite.  GeoEye will have to find other sources to make up the $176 million shortfall between that and the $337 million it was expecting.

The NGA letters do not doom GeoEye — in fact, it could still get all of its year 3 SLA money if Congress provides sufficient funding.  The outlook for full government support of GeoEye-2 seems dim based on the letter, but Congress could change that, too.   GeoEye told the SEC that it will negotiate with NGA as the agency requested.  The answer to its financial future, however, will probably have to await final congressional action on the defense authorization and appropriation bills and there is no clear timetable for when that will occur.

Holdren: U.S. is Number One in Space and Intends to Stay That Way

Holdren: U.S. is Number One in Space and Intends to Stay That Way

Presidential Science Advisor John Holdren told the House Science, Space and Technology Committee yesterday that despite what some people say, the United States is the world leader in space activities. 

The space program was only one of many topics debated at the hearing, which focused on the White House Office of Science and Technology Policy (OSTP) and President Obama’s science policies and priorities.  Holdren also serves as Director of OSTP.

“We continue … to lead the world in space, although sometimes the contrary is asserted,” he told Rep. Lynn Woolsey (D- CA).   “Our planetary exploration programs have absolutely no peer.  …. some people say China is overtaking [us].  China just put its first woman in space a few days ago.  We put our first woman in space, Sally Ride, in 1983.  One can go through the list.  China is talking about maybe being able to land someone on the moon in 2020.  We did it in 1969.”

Later, Rep. Randy Hultgren (R-IL) cited a recent article in Space News as saying that in the past four years the country has gone from first to third place in space exploration and “I think that’s a shame.” 

The June 18, 2012 issue of Space News published a lengthy op-ed piece by Frank van Rensselaer that harshly criticizes the Obama Administration and NASA’s leaders for “having taken the U.S. from world leadership in space to third-place status in less than four years.”  Van Rensselaer is a former NASA and aerospace industry executive who worked at the White House Office of Science and Technology Policy during the Reagan Administration according to a brief biography available on the Internet.

Holdren strongly disagreed. “By any respectable set of metrics I know of, the United States is still number one in space and intends to stay that way.”

On more specific NASA issues, Holdren told committee chairman Ralph Hall (R-TX) that he and President Obama are confident NASA can specify and oversee safety requirements for commercial crew systems even though NASA currently is using Space Act Agreements instead of Federal Acquisition Regulation (FAR)-based contracting.  Rep. Steve Palazzo (R-MS), chair of the space and aeronautics subcommittee, asked what would happen if the companies did not perform or went out of business — what would NASA own for the money it is expending.   Holdren replied that NASA’s funding is an investment in the private sector that will yield more efficient and less expensive space missions and the idea is not for NASA to “own” anything.

Hall and Palazzo both wanted to know when the White House would announce its plans for obtaining a congressional waiver from the Iran-North Korea-Syria Nonproliferation Act (INKSNA) so NASA can continue to pay Russia for hardware and services for the International Space Station (ISS).  The current waiver lasts only through 2016. Holdren punted, saying only that the Administration is assessing the options even though “it’s clear that it’s going to be needed [and] sooner is better than later.”  He declined to provide a timeline on when the administration would send a request to Congress. 

Holdren defended NASA’s planetary science budget, which was cut 20% in the President’s FY2013 budget request.  Repeating what others in the administration have been saying, Holdren told Rep. Donna Edwards (D-MD) the Mars program is “robust” despite the budget constraints and “we have not, by any means, given up our leadership in planetary exploration.”  Edwards responded by emphasizing the need for predictable budgets not only for planetary science but science in general.  She said it is “unacceptable” to do research by “jumping in and out,” and just ends up costing more in the long run.  Holdren agreed.  

Commercial Crew Critical for ISS, but SLS/Orion Needed for Future, Senators Stress

Commercial Crew Critical for ISS, but SLS/Orion Needed for Future, Senators Stress

At a Senate Commerce subcommittee hearing today, three Senators directed mostly friendly questions at a panel of government and private sector witnesses regarding the risks and opportunities of commercial spaceflight.  Senator Kay Bailey Hutchison (R-TX) emphasized that while commercial crew is needed for the near term, NASA should not “shortchange the future.”  NASA needs to adequately fund the Space Launch System (SLS) and its Orion capsule, she insisted.  As for that future, subcommittee chairman Bill Nelson (D-FL) and Michael Gold of Bigelow Aerospace were bullish on the future of microgravity research for the pharmaceutical industry in particular.

Hutchison sternly chastised NASA Administrator Charlie Bolden at an earlier hearing for, in her view, baldly taking $300 million from the SLS/Orion effort to put into commercial crew in the FY2013 budget request.  Today, she wanted an assurance from NASA’s Associate Administrator for Human Exploration and Operations Bill Gerstenmaier that NASA would not do that again.  He said his job was to deliver commercial crew as well as SLS/Orion in a timely manner “and we’re working hard to do that” within existing budget constraints. He agreed that NASA is committed to move both forward and to “find the balance to keep human spaceflight in this nation strong.”   While that was not an explicit “yes,” Hutchison appeared to accept the answer as the assurance she requested.  Her focus was on ensuring that “in 2020, when ISS will go away, most likely,” the United States does not face another gap in human spaceflight like today.

Hutchison is retiring this year.  She was a key figure in designating the International Space Station (ISS) as a national laboratory, and in passing the 2010 NASA Authorization Act.  The Act struck a compromise between allowing the Obama Administration to proceed with its plan to turn crew transportation to low Earth orbit (LEO) over to the private sector and Congress’s desire to keep NASA in the human spaceflight business by building “beyond LEO” systems — SLS and Orion — to take astronauts further into space.   

Nelson also talked about what would happen when “we get to 2020 and ISS is deactivated,” but in the sense of lamenting that no one is paying attention to the important research being done there already, especially in vaccines.

How long ISS will operate is important for the business plans of companies developing commercial cargo and crew systems since many anticipate NASA will be the major customer for those services.  Gerstenmaier said that NASA needs two crew flights a year, four people each time, to support ISS.   If a spacecraft can carry more than four, NASA will decide how best to use the remaining capacity for cargo or additional people.  He said NASA hopes to increase the ISS crew size to seven, the number for which it was originally designed.  It is currently limited to six because of the capacity of the Russian Soyuz spacecraft that ferry crews back and forth.   Nelson pressed Gerstenmaier on when commercial crew services will be available if Congress provides only $525 million instead of $830 million as the Administration requested for FY2013.   Gerstenmaier said that NASA is planning on 2017 if it receives that level for FY2013, but a higher level in future years.

If commercial crew became available in 2017 and the ISS ends operations in 2020, that is a very limited NASA market.   However, Michael Gold of Bigelow Aerospace stressed that his company is building inflatable space modules also as research facilities in orbit and hopes to attract countries like Japan and Singapore to use them.  He said their business model is not all that different from the ISS and sought to “get rid of some misperceptions” that Bigelow is building a space hotel or a space casino.  It is not building either, he emphasized.

Instead Bigelow’s business model is signing up foreign governments to do microgravity research and development.   He joined with Nelson in extolling the promise of microgravity research.   “We are grossly underestimating the impact on our economy” initially in “pharma and biotech,” he exclaimed (using pharma as shorthand for the pharmaceutical industry).  He cautioned that the “microgravity revolution will happen in pharma and other sectors.  The question is will it happen in America or in China.”   First, however, routine, affordable access to space is needed, at dramatically lower prices than the approximately $60 million per seat Russia charges NASA.  “We are extraordinarily dependent on the success of the commercial crew program,” Gold said. 

Gold also stressed that regulatory issues are just as important as price.  He ranted against the International Traffic in Arms Regulations (ITAR), saying that Bigelow had to spend about $1 million to comply with ITAR when it launched two test inflatable modules on Russian launch vehicles.  What really irritated him, he said, was that he doubted any sensitive technology was protected.   Nelson reminded him that China acquired sensitive technology when U.S. companies exported satellites to China for launch and “balance” is needed.

Despite the publicity on Monday about the FAA-NASA agreement on each agency’s roles and responsibilities for ensuring the safety of commercial human spaceflight, the topic got little attention at the hearing.  Instead, FAA’s Pamela Melroy focused on the need for an extension to the government’s authority to indemnify commercial launch companies against third party liability claims resulting from launch or reentry accidents.  The authority has been extended several times over the years and currently expires on December 31, 2012.  The House Science, Space and Technology Committee devoted an entire hearing to that topic two weeks ago.  The Government Accountability Office’s (GAO’s) Gerald Dillingham said today that GAO supports a short term extension while a complete review of the issue is conducted.  The Obama Administration wants a 5-year extension.  At the House hearing, industry witnesses wanted the authority  made permanent.  GAO also wants to look at whether the indemnification should be broadened to include on-orbit activities in addition to launch and reentry.  Nelson said “we’ve simply got to contiune” that regime and subcommittee ranking member John Boozman (R-AR) seemed to agree.  (The House committee also appeard supportive of an extension.)

As for the safety of commercial crew flights, Michael Lopez-Alegria of the Commercial Spaceflight Federation (CSF) said CSF agrees that “the principle that NASA should have the final say so in safety is key.”  He is a former astronaut.  Melroy, another former astronaut, said the FAA is restricted in what discussions it can have with industry about pasenger safety until it has a formal rulemaking underway.   The FAA is currently prohibited by law from imposing new passenger safety regulations for commercial spacecraft until 2015.   Gerstenmaier said NASA has publicly released its safety requirements so companies know what they must do to comply with them.

Boozman asked about the need for NASA to get another waiver from the Iran-North Korea-Syria Nonproliferation Act (INKSNA).  Gerstenmaier repeated what he has said in other hearings that whether or not NASA purchases crew flights from Russia after 2016 when the current waiver expires, ISS operations are interdependent and another waiver is needed.  The law prohibits NASA from paying or making in-kind agreements with Russia for anything related to the ISS.  The law is intended to restrain Russia from providing certain technologies to those three countries.   Nelson said “we don’t have any choice” about passing another waiver.

Prepared statements and the webcast are available on the Senate Commerce, Science and Transportation committee’s website.

Battle's Not Over, but the War Seems to be Won — EnhancedView Funding OK for Another Year

Battle's Not Over, but the War Seems to be Won — EnhancedView Funding OK for Another Year

Congress has yet to complete action on the relevant authorization or appropriations bills, but GeoEye and DigitalGlobe reportedly both have been told that their funding under the EnhancedView contract is OK for another year.

Chris Quilty, Senior Vice President for Equity Research at Raymond James & Associates, reports that the two companies were notified on Friday by the Director of the National Geospatial-Intelligence Agency (NGA) that their EnhancedView contracts will be renewed for year 3 (September 1, 2012-August 31, 2013).  The companies have Service Level Agreements to provide commercial satellite imagery to NGA at $250 million per year.  The EnhancedView contract, signed in 2010, is a one-year contract with nine one-year options. 

DigitalGlobe issued a press release announcing NGA’s decision on Friday.  GeoEye has not issued a similar release yet.

The Senate Armed Services Committee  (SASC) added $125 million to the President’s request for the EnhancedView contract when it marked up the FY2013 National Defense Authorization Act (NDAA) in May.  A lengthy section in its report provided more detail than previously available publicly on the battle that has been underway for months behind classified doors. 

Congress has not completed action on the NDAA or the associated defense appropriations bill that would actually provide funding.   Nor has the intelligence authorization bill cleared Congress.   It remains unclear, therefore, as to where the money will come from — either NGA is expecting Congress to provide more than the request or it will have to reprogram the money from other accounts.

Quilty is not ready to break out the champagne quite yet.  “Overall, we view the NGA’s announcement as a clear positive for both companies,” but “even if both companies’ EnhancedView contracts are renewed on favorable terms, the stocks may yet languish in the current trading range due to lingering uncertainty about the longer-term disposition of their EnhancedView contracts…”, he cautions. 

House Appropriators Favorable to FAA Commercial Space Office

House Appropriators Favorable to FAA Commercial Space Office

The House Appropriations Committee marked up the FY2013 bill (Transportation-HUD)  that funds the Department of Transportation (DOT) and its Federal Aviation Administration (FAA).  The committee not only provides the full request for the FAA’s Office of Commercial Space Transportation (AST), but says that it will “encourage” a reprogramming request if more is needed.

AST usually receives scant treatment in the appropriations bill, which funds all of DOT as well as the Department of Housing and Urban Development (HUD).    This year, however, the committee includes a paragraph explaining its decision to fully fund the $16.7 million request for AST and commenting on the importance of what AST does to U.S. leadership in space.

Saying that the commercial space transportation industry is “nearly certain to increase its activities,” especially in support of the International Space Station, the committee states that it “wishes to ensure that the FAA has the ability to provide these permits and licenses effectively and efficiently so that the U.S. can emerge as the world leader in space transport.”  It then adds that it “will encourage a reprogramming of funds” if AST needs more than the $16.7 million “to keep pace with this growing industry.”

That’s good news for AST, though other parts of DOT may wince at the thought at their money potentially being shifted to AST.

Yesterday, the FAA and NASA announced what they called an “historic” agreement on which agency is in charge of what when it comes to commercial human spaceflight.  The Senate Commerce Committee will hold a hearing on commercial space issues tomorrow at 10:00 am.

 

NASA and FAA Agree on Who Ensures Passenger Safety on Commercial Space Taxis

NASA and FAA Agree on Who Ensures Passenger Safety on Commercial Space Taxis

NASA and the Federal Aviation Administration (FAA) announced an “historic” agreement today laying out each agency’s roles and responsibilities for ensuring the safety of people who fly on commercial space vehicles, or “space taxis,”  to and from low Earth orbit (LEO).

The announcement by NASA Administrator Charlie Bolden and FAA Acting Administrator Michael Huerta comes two days before an important Senate hearing on commercial spaceflight risks and opportunities.  The hearing before the Space and Science subcommittee of the Senate Commerce, Science and Transportation Committee is scheduled for Wednesday at 10:00 am ET. 

Senator Bill Nelson (D-FL), who flew on the space shuttle in 1986, chairs that subcommittee.  Nelson is not shy about his skepticism over any role that the FAA should have in ensuring the safety of people flying into space on behalf of NASA.   Under the Intergovernmental Agreement that governs the International Space Station (ISS) program, NASA is responsible not only for launching its own astronauts to the ISS, which is in LEO, but those of the other non-Russian partners in the ISS progrram.  The original plan was that NASA’s space shuttle would service the ISS throughout its lifetime.  President George W. Bush’s 2004 decision to terminate the space shuttle program once ISS construction was completed — a decision affirmed by President Obama — changed those plans dramatically, but the United States remains responsible for getting astronauts from the non-Russian partners to and from the ISS.

President Obama decided that commercial companies, not NASA, should take people to and from LEO — including the ISS — in the future.  NASA’s commercial crew program funds companies to develop systems to accomplish that goal.  The companies may launch government astronauts from NASA or other non-Russian ISS partners, or people completely unconnected to the government program. 

Which agency is in charge of regulating how those companies ensure passenger safety has been an open question.

The FAA’s Office of Commercial Space Transportation regulates and facilitates commercial space launches and reentries like those of the successful SpaceX test mission last month, which was part of NASA’s commercial cargo program.  No people were aboard that flight.

The FAA’s responsibility is to protect public safety.  For space missions, historically that has meant the safety of “third parties” — people living near launch or reentry sites who could be hurt because of a launch or reentry accident.   The FAA is responsible whether the launch is putting a satellite in orbit, taking cargo to the ISS, or launching a space tourist.  The open question has been who ensures the safety of passengers aboard commercial space vehicles as opposed to the uninvolved public on the ground.

Congress passed a law in 2004 that assigns the safety of commercial space passengers to the FAA.  It directs the FAA to have a light regulatory hand initially as the business develops.  Basically the companies are required to tell prospective passengers about the risks and the passengers sign a waiver acknowledging they were told.  Originally the FAA was precluded from imposing stricter regulations for eight years, but in February Congress extended it to 2015.    The idea is that burdensome regulations might stifle the nascent commercial human spaceflight industry and the government should wait to see how the business develops to better assess its risks before imposing stronger safety requirements.

Senator Nelson has made clear beginning with a March 18, 2010 hearing that he does not think the FAA should be in charge of ensuring the safety of NASA astronauts, however.  In a testy exchange with George Nield, FAA’s Associate Administrator for Commercial Space Transportation, Nelson said that he was the one who got the original law passed in the 1980s (when he was a member of the House of Representatives) that created Nield’s office  “and I never intended for the FAA to be getting into” the safety of NASA astronauts.  “I don’t want … extra layers of bureaucracy … just to get a crew up to the International Space Station,” Nelson said.  He has repeated that theme subsequently.   The hearing on Wednesday will be an opportunity for him to publicly express his views about the agreement signed today.

That agreement seems to comport with his views.   It says that companies have to get a license from the FAA for all commercial human spaceflight launches and reentries, but as for passenger safety, NASA is in charge for its own astronauts and those of other ISS partners.  During a media teleconference this morning with Bolden and Huerta, Bolden said that “if we’re paying for the service, NASA standards apply.”  Huerta said that from the FAA’s side, “our assurance of public safety is the same, whether it’s NASA or commercial.”

Passengers who are not part of a NASA-sponsored mission are subject only to the FAA’s rules.  Several companies are developing systems to take people on short suborbital trips, or into orbit to non-NASA space stations.   Bigelow Aerospace, for example, is planning its own space stations.  A passenger flying on a commercial space taxi to a Bigelow space station would not be covered by NASA’s safety standards.

The NASA-FAA Memorandum of Understanding (MOU) released today identifies former NASA astronaut Pam Melroy, who now works for Nield at the FAA, as the designated point of contact for the agreement.  She is scheduled to be one of the witnesses at Wednesday’s hearing.  NASA’s point of contact in the MOU is Phil McAlister, Director of Commercial Spaceflight Development for the agency. He works for Bill Gerstenmaier, NASA’s Associate Administrator for Human Exploration and Operations.   Gerstenmaier will testify on NASA’s behalf.  Another former astronaut, Michael Lopez-Alegria, is another witness.  He is now head of the Commercial Spaceflight Federation.  Gerald Dillingham from the Government Accountability Office (GAO) and Michael Gold from Bigelow Aerospace also will testify.

During the media teleconference this morning, Bolden was asked when the agency would choose which companies to support in its next round of awards under the former Commercial Crew Development (CCDEV) program.  Now called the Commercial Crew Integrated Capabilities (CCiCAP) program, Bolden and a key House appropriator, Rep. Frank Wolf (R-VA), recently agreed that NASA would select no more than “2 1/2” companies to get CCiCAP awards.  Bolden said today that NASA will make a decision by mid-July and clarified that “2 1/2” means that two companies will get full funding and one company will get partial funding.

Wolf chairs the House Appropriations Commerce-Justice-Science (CJS) subcommittee, which funds NASA.  Bolden stressed today that he told Wolf that NASA needs as much money as possible to fund commercial crew development this year, and will need a significant increase for future years to attain the goal of having such services available by 2017.

Although the term “commercial crew” implies that companies are funding the development of these systems, they are dependent on NASA funding for part of the costs.  NASA requested $830 million for FY2013.   The House approved only $500 million when it passed the CJS bill in May.  The Senate Appropriations Committee approved only $525 million.  In the exchange of letters between Wolf and Bolden, Wolf said he would work towards getting a figure closer to the Senate number during conference negotiations, but that is still substantially less than what NASA says it needs.