Commercial Space Activities
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Defining "Commercial" Space Activities
U.S. commercial space policy has been part of national space policy for decades and today is defined by President Barack Obama's 2010 National Space Policy, which supersedes President George W. Bush's 2006 National Space Policy.
On November 21, 2013, the Obama Administration released an updated National Space Transportation Policy and an associated fact sheet.
Commercial Crew. President Obama proposed a dramatic change to the U.S. human spaceflight program in his FY2011 budget request to Congress, released February 1, 2010. He proposed relying on the commercial sector instead of NASA to build and operate systems to take people to and from low Earth orbit (LEO). That includes taking NASA astronauts to and from the International Space Station (ISS). He requested $6 billion over 5 years (FY2011-2015) in NASA's budget to subsidize companies to develop "commercial crew" launch vehicles and spacecraft for LEO missions. He also wanted to cancel the Constellation program, begun under President George W. Bush, for NASA to build new launch vehicles (Ares I and V) and a spacecraft (Orion) to take astronauts back to the Moon and on to Mars, as well as to and from ISS. Instead, President Obama proposed that the United States rely on the commercial sector to build new crew space transportation systems for use in LEO, which would free NASA to focus on developing technologies that could someday be used to take astronauts to more challenging destinations beyond LEO. He wanted NASA to spend several years investing in "game-changing" technologies before deciding on what systems to build.
The lack of a specific destination and timetable for these "beyond-LEO" human spaceflight missions made his proposal especially unpopular and on April 15, 2010, he elaborated on his plans in a speech at NASA's Kennedy Space Center in Florida. At that time he made clear that he saw no need for U.S. astronauts to return to the Moon, but landing people on Mars remained the eventual goal, and he said he expected that to happen in his lifetime. Meanwhile, he wanted NASA to focus on sending astronauts to an asteroid by 2025 as his initial beyond-LEO destination, and send them to orbit (but not land on) Mars in the 2030s.
The proposal was very controversial and vigorously debated in Congress. The 2010 NASA Authorization Act (P.L. 111-267), signed into law in October 2010, is a compromise wherein NASA is directed to develop its own crew space transportation system -- the Space Launch System (SLS) and a Multi-Purpose Crew Vehicle (MPCV) -- as well as fund the commercial crew concept, but at a lower funding level. The law requires that the SLS/MPCV system also be able to function as a backup for commercial crew in case those systems do not materialize or if they fail. NASA selected the Orion spacecraft that was being developed in the Constellation program as the MPCV, so the system now is usually referred to as SLS/Orion.
President Obama's FY2012 budget request for NASA, released in February 2011, was similarly controversial because the congressional committees that oversee NASA believed that it contravened the compromise reached in the 2010 NASA Authorization Act. NASA requested more money than was authorized for commercial crew and less money than was authorized for SLS/MPCV.
Meanwhile, with the termination of the space shuttle program in 2011, NASA no longer can launch astronauts to the ISS. How long this "gap" between the end of the shuttle program and the availability of commercial crew services will last is unclear, but at least for several more years. NASA now purchases crew transportation services from Russia at a cost of approximately $450 million per year.
Congress and the White House continue to have tense relationships over the commercial crew initiative, although with the general success of commercial cargo missions (see below), those relationships are easing. However, for FY2011, FY2012, and FY2013, Congress provided sharply less funding than the Administration requested. The request for FY2013 was $830 million, for example, but Congress approved only $525 million. The request for FY2014 was $821 million. The final version of NASA's appropriations for FY2014, part of the Consolidated Appropriations Act (usually called "the omnibus") provides $696 million. Though it is $125 million less than the request, it is more than the agency has received in the past and the percentage cut is less, leading many commercial crew advocates happy with the result nonetheless. The request for FY2015 is $848 million. In a sign of continued thawing of relationships between the White House and Congress on this issue, Congress is poised to approve a healthy amount -- though not the full request -- for FY2015. (See our fact sheet on NASA's FY2015 budget request for details.) Congress has made clear that funding for the NASA-developed SLS and Orion should have higher priority than commercial crew, however, and some still question why NASA needs to fund two instead of just one company.
NASA initially awarded contracts to five companies for Crew Transportation Concepts and Technology Demonstration, or CCDEV (commercial crew development) in February 2010: Blue Origin, Boeing, Paragon Space Development Corp., Sierra Nevada Corp., and United Launch Alliance. Another round of winners of the CCDEV2 competition were announced in April 2011: Blue Origin, Boeing, Sierra Nevada, and SpaceX. Those contracts were awarded as Space Act Agreements (SAAs) where NASA can pay companies for meeting agreed-upon milestones, but has little oversight or insight into what the companies are doing. NASA planned to adopt traditional procurement methods under the Federal Acquisition Regulations (FAR) for the next phase of commercial crew development -- specifically, fixed price contracts -- but changed course in December 2011 because of budget uncertainties in future years that it concluded made fixed price contracts unrealistic.
The CCDEV program transitioned into the Commercial Crew Integrated Capability (CCiCAP) program for the commercial companies to develop an integrated crew transportation system (spacecraft, launch vehicle, and ground systems). In August 2012, NASA selected "2 1/2" proposals, meaning it is fully funding two companies' proposals (SpaceX and Boeing) and partially funding a third (Sierra Nevada Corporation, or SNC). The SpaceX proposal is to use its Falcon rocket for commercial crew as it does for the commercial cargo program and a crew-capable version of its Dragon capsule, dubbed Dragon V2. Boeing is developing a capsule also, called CST-100. SNC's design, Dream Chaser, is a winged vehicle that resembles a small version of the space shuttle and, in fact, is based on a NASA design (HL-20) for an ISS crew rescue vehicle that the agency cancelled in the 1990s. Initially, Boeing and SNC planned to use Atlas V rockets built by the United Launch Alliance (ULA) to launch CST-100 and Dream Chaser, but those plans may change because of concerns about the Atlas V because it uses Russian rocket engines and the U.S.-Russian geopolitical situation has deteriorated.
On September 16, 2014, NASA made awards under the final phase of the commercial crew development program, Commercial Crew Transportation Capability (CCtCAP). It chose Boeing and SpaceX, with Boeing receiving $4.2 billion and SpaceX receiving $2.6 billion. However, Sierra Nevada filed a protest of the awards on September 26 with the Government Accountability Office (GAO) saying there were "serious questions and inconsistencies in the procurement process." Consequently, NASA issued a stop-work order to Boeing and SpaceX for the CCtCAP contracts, but later rescinded it. Sierra Nevada filed a lawsuit against the government for that decision, but a judge verbally indicated that she would not overturn it.
Estimates vary as to when a commercial crew capability will exist. NASA is planning on 2017, but some of the companies assert they could be ready sooner. At a September 2012 congressional hearing, NASA Associate Administrator for Human Exploration and Operations Bill Gerstenmaier conceded that the government is paying 80-90 percent of the costs for the development of these "commercial" systems.
Commercial Cargo. Before the Obama "commercial crew" proposal was announced, NASA already had initiated a "commercial cargo" program to rely on the commercial sector to take cargo to ISS. Called COTS (Commercial Orbital Transportation Services), it is needed because the Bush Administration decided to terminate the space shuttle program once ISS construction was completed. Originally the shuttle was intended to take both crews and cargo to ISS throughout its lifetime. Instead, the last space shuttle mission took place in July 2011, while the Obama Administration wants to keep the ISS operating at least until 2024. Two companies, SpaceX and Orbital Sciences Corp., were awarded Space Act Agreements to develop spacecraft and rockets to take cargo to the ISS beginning in 2011.
That date slipped, but both systems are now operational and have transitioned into the operational Commercial Resupply Services (CRS) phase. The COTS program has ended. NASA held a press conference in November 2013 heralding its success and later released a report. NASA purchases the cargo services from SpaceX and Orbital under the Commercial Resupply Services (CRS) contract. NASA signed contracts with each company to launch 20 tons of cargo to the ISS through the end of 2016. SpaceX plans to accomplish that with 12 flights, while Orbital Sciences would do it with eight (but see below).
SpaceX conducted its test flight of the Falcon 9 launch vehicle and Dragon spacecraft to the ISS in May 2012. The first SpaceX operational CRS flight took place in October 2012 and they have become more or less routine. SpaceX launches from Cape Canaveral, FL. The Dragon spacecraft returns to Earth and splashes down in the Pacific Ocean off of California. Dragon is the only cargo spacecraft that services ISS capable of returning cargo to Earth. All the others (Russia's Progress, Europe's ATV, Japan's HTV and Orbital Sciences Corporation's Cygnus) are not designed to survive reentry and burn up in the atmosphere. They therefore are used for trash disposal - a less glamorous, but still critical task.
Orbital Sciences conducted its test flight of the Antares rocket and Cygnus spacecraft to the ISS in October 2013. The first operational CRS flight (Orb-1) was launched in January 2014 and Orb-2 in July 2014. Orbital launches Antares from the Mid-Atlantic Regional Spaceport (MARS) at NASA's Wallops Flight Facility on the coast of Virginia. On October 28, 2014, the third mission, Orb-3, failed about 15 seconds after liftoff, destroying the rocket and Cygnus, and damaging the MARS facility and surrounding area, though not as badly as first feared. Orbital quickly announced a recovery plan under which it will consolidate its remaining cargo requirements into four rather than five more launches using an upgraded version of Cygnus that can accommodate more cargo per flight. Some of the four flights will use third-party rockets; Orbital said only that it was talking to two U.S. and one European launch services company. Beginning in 2016, Orbital will resume flights from MARS using an upgraded Antares rocket with a different engine for the remaining flights. Thus, the company asserts that it will still fulfill its contractual commitments with no increased costs to NASA under the CRS contract.
Two important points are that commercial cargo was a Bush Administration initiative and well underway by the time President Obama took office, and that although the names "commercial cargo" and "commercial crew" imply that the systems are being built at the expense of the private sector, the companies are supported by taxpayer dollars. NASA spent about $800 million on the COTS commercial cargo program for system development (services are paid for separately). The CCtCAP awards are for a total of $6.8 billion of taxpayer money. How much the companies themselves are investing is proprietary information. The government will be a major customer for the services the companies offer, providing more funds. It might be more accurate to refer to these endeavors as public-private partnerships than "commercial."
OTHER COMMERCIAL SUBORBITAL AND ORBITAL VEHICLES AND MODULES
Other companies also are interested in the commercial suborbital market for experiments, people, or both. On August 9, 2011, NASA announced the selection of seven companies for indefinite-delivery indefinite-quantity (IDIQ) contracts under its Commercial Reusable Suborbital Research (CRuSR) program to provide suborbital launch services for NASA technology experiments. The total value of all the contracts is $10 million. The companies selected are: Armadillo Aerospace, Near Space Corp., Masten Space Systems, Up Aerospace Inc., Virgin Galactic, Whittinghill Aerospace LLC, and XCOR.
Some companies also have announced plans to build systems to take people into orbit on a commercial basis separate from NASA's commercial crew program. Virgin Galactic is one. Another is Stratolaunch, an air-launched concept announced in December 2011 by Microsoft co-founder Paul Allen, SpaceX founder Elon Musk, and Burt Rutan, who is now retired from Scaled Composites, but was a major contributor to the SpaceShipOne effort. In October 2014, Stratolaunch and Sierra Nevada Corporation (SNC) announced that they are considering a partnership where Stratolaunch would be used to launch SNC's Dream Chaser winged spacecraft into orbit on either crew or cargo missions.
Separately, Robert Bigelow, owner of Budget Suites of America hotels, has been working for several years on a commercial space station using inflatable modules. Two subscale prototypes --Genesis I and Genesis II -- were launched on Russian rockets in 2006 and 2007 respectively. Bigelow Aerospace has been working with Boeing for several years to create a transportation system to take people back and forth to full scale space stations when they are launched. The Boeing spacecraft is the CST-100, which is now being considered as part of NASA's commercial crew initiative. It would be launched aboard an Atlas V launch vehicle. In May 2012, Bigelow Aerospace announced an agreement with SpaceX to market their combined capabilities to launch people to space where they could stay aboard Bigelow space stations. The services will be marketed only outside the United States. In January 2013, NASA announced that it signed a $17.8 million contract with Bigelow Aerospace to adding one of Bigelow's inflatable modules to the International Space Station (ISS). The Bigelow Expandable Activities Module (BEAM) is now scheduled for launch to the ISS in 2015. Bigelow's inflatable structures effort traces its roots to NASA's cancelled Transhab project to provide crew quarters on the ISS using an inflatable module.
OTHER COMMERCIAL SPACE CONCEPTS
Several well known U.S. billionaires working with experienced space entrepreneurs announced plans in April 2012 to mine asteroids. The company, Planetary Resources Inc., reportedly was three years old at that point, but its founders decided to publicize it only in 2012. Backers of the company include movie producer and explorer James Cameron, Google executives Larry Page and Eric Schmidt, former Microsoft executive Charles Simonyi who flew into space twice as a space tourist on Russian Soyuz spacecraft, and space entrepreneurs Peter Diamandis and Eric Anderson. More recently the company emphasizes that it wants to prospect, not mine, asteroids, which would come later.
Deep Space Industries, another new entrepreneurial space company that wants to mine asteroids, announced its plans in January 2013.
In December 2012, Alan Stern, a space scientist and human spaceflight advocate, announced the formation of a new company, Golden Spike, that is selling human trips to the Moon. Stern is a former NASA Associate Administrator for Science. He and a number of other former NASA officials, including Gerry Griffin, an Apollo flight director who later was the Director of NASA's Johnson Space Center, along with former House speaker Newt Gingrich, entrepreneur Esther Dyson, and former Governor of New Mexico Bill Richarson are backers of the project. The group provided few details of the project at a press conference at the National Press Club on December 6, 2012, such as what rockets or spacecraft would be used. The cost would be $1.4 billion per mission, which would take two people to the lunar surface and back.
Dennis Tito, another billionaire, who was the first "tourist" to fly to the International Space Station on a Russian spacecraft in 2001, has formed another venture called Inspiration Mars. His initial proposal was to send two people, preferably a married couple, to Mars in 2018. They would not land on the planet, but fly on a free-return trajectory where, once launched from Earth, few maneuvers (and therefore fuel) are needed to get them to and around Mars and return to Earth. Their closest approach to the Martian surface would be 100 miles. The year 2018 is important because Mars and Earth are correctly aligned only every 26 months to permit spacecraft to make the journey. Some opportunities are better than others in terms of the amount of propellant needed; 2018 is one of the best. The next equivalent opportunity is not for another 15 years. In November 2013, however, Tito testified to Congress and revealed that he now wants this to be primarily a NASA mission. NASA replied that it is "unable to commit to sharing expenses" with him. However, the idea has evolved into a "Mars Flyby 2021" concept championed by House Science, Space and Technology Committee Chairman Lamar Smith (R-TX), for example, which would be a NASA mission. Launching in 2021, it would need to fly first towards Venus to get a gravity assist from that planet to reach Mars since the Earth and Mars are not aligned properly for a direct flight that year.
U.S. AEROSPACE COMPANIES
In addition, Boeing and Lockheed Martin co-own
Other major U.S. aerospace companies that manufacture spacecraft, instruments and/or launch vehicles and/or provide launch services include:
Major U.S. companies that sell space-related products or services include:
MAJOR NON-U.S. AEROSPACE COMPANIES