SpaceX 3 and NASA
SpaceX 3 and NASA
Jim Rauf
Booster Manufacturers
1 LTV
2 Douglas
3 Douglas
4 Convair
5 Convair
6 Martin Marietta
7 Convair
8 Chrysler
9 Martin Marietta
10 Chrysler
11 Boeing
Redstone IRBM Atlas ICBM Titan ICBM Saturn IB Saturn V Space Shuttle
Mercury Suborbital Mercury Orbit Gemini Orbit Apollo Orbit Apollo Moon LEO and ISS
Army Missile USAF Missile USAF Missile NASA Rocket NASA Rocket NASA Rocket
Chrysler Convair Martin Marietta Chrysler Boeing Rockwell Intl
Origins of the Commercial Space Industry
• Between 1963 and 1982, U.S. expendable launch vehicle • The U.S. government essentially served as the only
(ELV) manufacturers produced vehicles only under provider of space launch services to the Western world
contract to the National Aeronautics and Space
Administration (NASA) or the Department of Defense • Seeing an opportunity to provide launch services, the
(DOD) European Space Agency (ESA) developed its own ELV,
Ariane, which became the first competitor to NASA for
• When private companies and foreign governments commercial launches
purchased communications satellites, they had to
contract with NASA to launch their payloads • The first Ariane launch occurred in 1979
• Through NASA, launches could be procured on any one of • In 1984, a private company, Arianespace, took over
four ELVs: commercial operation of the vehicle
• Titan, built by Martin Marietta • In the late 1970s, the U.S. government decided to phase
out all ELVs, except Scout, in favor of the U.S. Space
• Atlas, built by General Dynamics Shuttle
• Delta, built by McDonnell Douglas • The Space Shuttle would take all U.S. government
satellites, as well as commercial satellites, into orbit
• Scout, built by LTV Aerospace Corporation
• NASA would purchase a launch vehicle through
traditional government procurement practices, and the
launch would be conducted by a private-sector contractor
under NASA supervision
• Space Shuttle made its first flight in 1981 • House Bill (HR 1011) introduced in the House by
Congressman Daniel Akaka (D-HI) would have designated
• It was declared operational in 1982 the Department of Commerce as lead agency
• Government funding of ELV production ceased in 1983 • Senate bill (S 560), introduced by Earnest “Fritz”
• The flight schedule of the Space Shuttle could not meet Hollings(D-SC), intended to give the lead role to the
all of the U.S. security, civil, and commercial launch Federal Aviation Administration (FAA)
requirements • Others suggested the lead go to the Department of State
• As the need grew for more launches, some launch vehicle or NASA
manufacturers expressed interest in offering commercial • July 4, 1982, President Ronald Reagan issued national
launch services security decision directive (NSDD) 42, “National Space
• In 1982, the first successful private launch in the United Policy,
States took place – a test launch of the Space Services’ • It stated that expansion of U.S. private sector
prototype Conestoga rocket involvement in civil space activities was a national goal
• The procedures required to gain approval for that launch,
however, proved time-consuming and led to the
introduction of legislation to make it easier for
companies to pursue commercial launch activities
• The directive created an interim space working group on • At a meeting of the Council on November 16, 1983,
commercial launch operation co-chaired by the President Reagan announced his intention to designate
Department of State and NASA the Department of Transportation (DOT) as the agency
with principal responsibility for fostering the private
• FAA and the Federal Communications Commission also commercial ELV business
had representatives in the group
• His rationale centered on the fact that DOT, as a
• The President mandated the group develop and department that understood the regulatory process and
coordinate the requirements and processes for the with experience as a deregulator (airline, railroad,
licensing, supervision , and/or regulations applicable to etc.),was uniquely suited to remove regulatory barriers
commercial launch operations and recommend the and to streamline regulations necessary to create a
appropriate agency with the U.S. government responsible commercial space industry
for commercial launch activities
• She said that companies trying to operate in space must
• The group submitted its report on September 15, 1983 go through as many as 17 agencies to get appropriate
• It did not recommend a lead agency, but, instead, permits and licenses and that the President wanted to
deferred to the Cabinet Council for Commerce and Trade streamline the process
• Maintaining an industrial base • “U.S. Government fully endorses and will facilitate the
commercialization of U.S. Expendable Launch Vehicles
• Providing jobs for thousands of workers, thus
adding to the federal tax base • The U.S. Government will license , supervise, and/or
regulate U.S. commercial ELV operations only to the
• Spawning numerous spinoff and supporting extent required to meet its national and international
activities obligations and to ensure public safety”
• Strengthening the U.S. global position
• Providing a potential market for excess flight
hardware, special-purpose tooling, test equipment,
and propellants
• Creating a market for U.S. government and facilities
• DOT would give companies one-stop service to help them • Congress affirmed and expanded these actions through
“cut through the thicket of clearances, licenses, and the Commercial Space Launch Act, enacted on October
regulations that keep industrial space vehicles tethered to 30, 1984
their pads.”
• This legislation addressed three substantive areas:
• On February 24, 1984, Executive Order 12465 formally • Licensing and regulation
designated DOT as the lead agency for encouraging,
facilitating, and licensing commercial ELV activities • Liability insurance requirements
• Access of private launch companies to government
• DOT entrusted these duties to a new Office of facilities
Commercial Space Transportation
• Despite the legislation, U.S. launch firms remained largely
uninterested in offering commercial launch services,
finding it difficult to compete against the government
subsidized Space Shuttle
• U.S. policy changed in the wake of the January 28, 1986, • The U.S.-licensed commercial space industry made its
space shuttle Challenger accident first launch in March 1989 when Space Service, Inc., sent
a scientific payload on a suborbital trip aboard a Starfire
• The government reversed its policy of phasing out ELVs rocket
and instead adopted a mixed-fleet approach where both
ELVs and the Space Shuttle were available for commercial • Later in 1989,McDonnell Douglas made the first U.S.-
users licensed commercial orbital launch on August 27, using a
Delta I launch vehicle
• On August 15, 1986, Reagan issued NSDD 254, “United
States Space Launch Strategy,” which limited NASA’s role • August 7, 1995, DOT announced that the Office of
in providing commercial launches to only those satellites Commercial Space Transportation would move from the
that required the unique capabilities of the shuttle or for Office of the Secretary to FAA, effective October 1, 1995,
which there were unusual foreign policy considerations as part of a larger DOT reorganization
• The resulting unavailability of NASA as a domestic civilian • The transfer of the office was delayed until sanctioned by
launch service, coupled with the already enacted legislation
legislation, led to the emergence of the U.S. commercial
launch services industry • The fiscal year 1996 DOT appropriations bill, signed by
President Bill Clinton, cleared the way for the transfer of
• On February 11, 1988, President Reagan issued the the Office of Commercial Space Transportation from
“Presidential Directive on National Space Policy,” which DOT’s Office of the Secretary to FAA
required U.S. government agencies to purchases launch
services from commercial companies
• SpaceX (Space Exploration Technologies Corp.): They • United Launch Alliance (ULA): joint venture between
operate the Falcon family of rockets, including the Boeing and Lockheed Martin. They operate the Atlas V
Falcon 1, Falcon 9, and Falcon Heavy. SpaceX is known and Delta IV rockets, which have been used for a wide
for its reusable rocket technology and has launched range of missions, including launching satellites and
numerous payloads, including crewed missions to the interplanetary probes.
International Space Station (ISS)
• Rocket Lab: a private aerospace manufacturer and small
• Blue Origin: Founded by Jeff Bezos, Blue Origin is satellite launch service provider, operates the Electron
another significant player in the commercial space rocket. They specialize in launching small satellites into
launch industry. They are developing the New Shepard space.
suborbital vehicle for space tourism and the New Glenn
orbital launch vehicle. • Arianespace: a European launch service provider that
operates the Ariane, Vega, and Soyuz rockets from the
• Northrop Grumman Innovation Systems (formerly Guiana Space Centre in French Guiana. They offer
Orbital ATK): Now part of Northrop Grumman, this launch services for a wide range of customers
company operates the Pegasus, Minotaur, and Antares worldwide.
launch vehicles, which are used for various space
missions, including satellite deployment and cargo • Firefly Aerospace: Firefly Aerospace is developing the
resupply to the ISS Alpha and Beta launch vehicles to provide affordable
access to space for small and medium-sized payloads.
• Virgin Galactic: founded by Richard Branson, focuses on
suborbital space tourism with their SpaceShipTwo • Relativity Space: Relativity Space is working on the
vehicle. development of the Terran 1 rocket, which is notable for
its use of 3D printing technology in rocket
manufacturing.
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NASA and Commercial Funding
• The first COTS competition lasted 10 months and was • Phase 2: ISS Commercial Resupply Services
completed in August 2006
• Phase 2 is a competitive procurement for cargo services
• Two COTS Commercial Partners (CPs) were selected to to support the ISS
participate in Phase 1:
• NASA awarded two contracts for transportation services
• Space Exploration Technologies (SpaceX) in December 2008 to SpaceX and Orbital
• Rocketplane-Kistler (RpK) • The Cargo Resupply Services (CRS) contracts are
managed by the ISS Transportation Office
• The agreement with RpK was later terminated after it
failed to complete financial and technical milestones • The CRS contracts procured a total of 20 cargo
transportation missions to the ISS through 2015
• A second resulted in selection of
• Orbital Sciences Corporation (Orbital) in February
2008
• The COTS projects are managed by the Commercial Crew
& Cargo Program Office (C3PO)
• NASA has intentionally limited its participation in the • More extensive NASA support requires reimbursement
commercial partners' programs to enable maximum use for services or facility use via Reimbursable Space Act
of innovative, cost-effective commercial practices Agreements
• NASA’s primary role is to monitor the progress of its CPs • Commercial Partners also receive ISS integration and
through an assessment of the SAA milestones and to certification support for their visiting vehicles
make payment for successfully completed milestones
• NASA resource limitations require restrictions on the
• NASA provides expert technical assistance as requested level of support that can be provided to Commercial
or where considered necessary via the NASA COTS Partners with unfunded SAAs
Advisory Team (CAT), discipline experts drawn from
across the Agency • Unfunded CPs are not permitted to conduct
demonstration flights to the ISS
• CATs selectively support CP reviews and consult on
technical issues as requested • They can provide alternative orbital test beds which
simulate the ISS and its interfaces
• Unfunded CPs have access to ISS interface data and NASA
technical support as resources permit
The Commercial Crew & Cargo Program is responsible for challenging private industry to establish
capabilities and services that can open new space markets while meeting the logistics transportation needs
of the International Space Station
• By successfully providing reliable, cost-effective cargo and crew transportation services, Commercial Crew &
Cargo Program Office’s (C3PO) commercial partners can serve existing markets and develop new markets
https://www.youtube.com/watch?v=XiB2m51Nfw0
• SpaceX spent its own capital to develop the Falcon 1 • The overall contract award was US$278 million to provide
three demonstration launches of Falcon 9 with the
• Development of the Falcon 9 was aided by partial NASA SpaceX Dragon cargo spacecraft
funding and commitments to purchase flights once
specific capabilities were demonstrated • Additional milestones were added later, raising the total
contract value to US$396 million
• SpaceX operated on a total of about $1 billion for its first
ten years • In 2008, SpaceX won a Commercial Resupply Services
• About half came from government contract (CRS) contract to deliver cargo to ISS using Falcon
progress payments 9/Dragon
• Funding started with seed money from the Commercial • Funds were disbursed only after the demonstration
Orbital Transportation Services (COTS) program in 2006 missions were successfully and thoroughly completed
• Milestones
• The contract was structured as a Space Act Agreement
(SAA) "to develop and demonstrate commercial orbital • The contract totaled US$1.6 billion for a minimum of 12
transportation service , including the purchase of three missions to ferry supplies to and from ISS
demonstration flights
• In 2011, SpaceX estimated that Falcon 9 v1.0 • A statistical analysis of NASA and SpaceX programs:
development costs were on the order of US$300 million
• In 118 space missions, NASA averaged a cost
• NASA estimated development costs of US$3.6 billion had overrun of 90%
a traditional cost-plus contract approach been used
• During the 2016 fiscal year, SpaceX increased its
• A 2011 NASA report "estimated that it would have cost operating costs by an average of 1.1%
the agency about US$4 billion to develop a rocket like the
Falcon 9 booster based upon NASA's traditional • NASA projects typically take seven years on average
contracting processes" • SpaceX projects typically take four years
• “A more commercial development" approach might have
allowed the agency to pay only US$1.7 billion”
The COTS commercial partners are responsible for the overall design, development, manufacturing, testing, and operation
of their COTS system
• In order to receive NASA financial assistance, the COTS partners must conduct the COTS demonstrations according to the
terms and conditions in their SAAs and consistent with the COTS ISS Service Requirements Document (ISRD) and the ISS-
to-COTS Interface Requirements Document (IRD)
• It has hired two companies to develop new space suits for astronauts under an agreement that could cost
NASA up to $3.5 billion over the next 20 years. The Ukrainian space industry is divided as a result of the war
with Russia, and their lives have been disrupted. Machine learning is being used by researchers to identify
asteroids that have been spotted but have yet to be identified. The United Nations has appointed the United
Arab Emirates to serve as chair of the organization’s Space and Space Development Committee. SpaceX’s
internet satellite network will arrive in Nigeria and Mozambique as soon as it receives local government
approval.
• Small Business Innovation Research (SBIR) and Small • On average, the 35 companies who received SBIR/ STTR
Business Technology Transfer (STTR) programs awards are funding attracted $6 in private investment for every $1 of
the most common forms of public funding for public funding
entrepreneurial space companies that are eight years and
younger, accounting for 44% of all awards • Comparatively, the complete set of 67 entrepreneurial
space companies that received awards from the
• This funding acted as a source of non-dilutive, early-stage government averaged $1.1 of private investment for
capital and has provided over $135M in public funding every $1 of public funding
across 345 unique awards to 35 companies located in 27
different U.S. states between 2002 and 2018 • NASA and the DOD have awarded, on average, 2% and
1% of their annual SBIR / STTR budget to equity-backed
• Department of Defense (DOD), Department of Energy entrepreneurial space companies, respectively
(DOE), and NASA’s SBIR / STTR programs tend to support
entrepreneurial space companies earlier in their life cycle
• In 2014, SpaceX released combined development costs for • NASA’s non traditional contracting with SpaceX has
Falcon 9 and Dragon allowed significant financial savings as well as reduction
in development times
• NASA provided US$396 million, while SpaceX provided over
US$450 million
• Congressional testimony by SpaceX in 2017 suggested that
the unusual NASA process of "setting only a high-level
requirement for cargo transport to the space station [while]
leaving the details to industry" had allowed SpaceX to
complete the task at a substantially lower cost
• "According to NASA's own independently verified numbers,
SpaceX's development costs of both the Falcon 1 and
Falcon 9 rockets were estimated at approximately $390
million in total."