Page 30 - International Space Station Benefits for Humanity, 3rd edition.

Space Access new services to make a realistic business case for
sustained profitability.
The commercial launch market has benefitted from
changes in contracting mechanisms, discussed Results to date indicate that both COTS and CRS have
previously, intended to promote affordable, reliable had the intended positive impact to the space launch
access to space with the ISS as just one of many marketplace. Advances in the commercial sector’s
customers. In 2006, NASA initiated the Commercial ability to provide cargo and crew transportation services
Orbital Transportation Services (COTS) program and to LEO have included increased capabilities for both
in 2008 the Commercial Resupply Services (CRS) large and small payloads, and an increasing number
program. The COTS program was designed as a of options in launch providers. Both companies involved
demonstration of a public-private partnership model directly in providing launch services for ISS resupply
using a fixed-price, pay-for-performance structure. missions as of 2018 have gained significant market
share. SpaceX is reportedly the fourth most valuable
The results have been positive. Both SpaceX and
Orbital (now Northrop Grumman Innovation Systems), privately held technology company in the United States,
growing from a $100 million investment in 2002 to a
the two initial commercial transportation providers,
financed over half of the development costs for their valuation of more than $27 billion in 2018. From 2006
systems. All told, NASA invested approximately to 2013, Orbital Sciences Corporation annual revenues
$700 million while its commercial partners invested nearly doubled, reaching $1.37 billion in 2013.
approximately $1 billion, meaning the private sector After merging with Alliant Techsystems to form
Orbital ATK in 2015, Orbital ATK was purchased
outspent the public sector in developing new space
launch capabilities. Using internal cost estimates, by Northrop Grumman in 2018 for $7.8 billion and
NASA’s cost for developing the SpaceX launch vehicle rebranded as Northrop Grumman Innovation Systems.
and capsule alone would have approached $4 billion.
As an additional benefit, the published commercial Commercial Research, Research
launch cost to lift a pound of cargo to LEO has fallen Facilities and Integration Services
significantly from early 2000’s levels of $8,000-$10,000
per pound. As of July 2018, SpaceX advertises the The research environment in LEO has evolved over
standard cost for its Falcon 9 launch services at $62 the past decade from one that almost solely involved
million, with a maximum payload capability of 50,265 government funding and operations to one that involves
pounds to LEO. Using these figures, the Falcon 9 cost- a variety of players. The ISS has contributed to this
trend by hosting commercial research and commercially
per-pound to LEO is approximately $1,200. The Falcon
Heavy, at $90 million and 140,660 lbs, would cost operated research facilities. In addition, recent contracts
under $700 per pound to LEO. This reduction in cost- allow for commercial payload and integration providers.
to-orbit opens the door for more participation in the As highlighted in the partner perspectives to follow,
space marketplace, thereby increasing the likelihood commercialization objectives are diverse, with some
for space tourism, space-manufacturing and other of the most important being to drive future revenues,
market/segment growth, higher levels of employment,
and new innovation pathways. Commercial research is
fundamental to achieving these objectives. Processes
are in place to aggressively target, monitor and manage
lab capacity to ensure the ISS maximizes the impact it
The commercial launch market has on economic, social and innovation outcomes.
has benefitted from changes The evolution in the management structure for the

in contracting mechanisms, U.S. segment of the ISS exemplifies this focus on
commercial research. In 2005, the U.S. segment of
discussed previously, intended the ISS was designated as a U.S. National Laboratory
to promote affordable, reliable to maximize its use by other federal agencies and the
private sector. In addition to the shift in procurement
access to space with the ISS philosophy discussed previously, this led to NASA’s
as just one of many customers. partnership with an independent organization, the
Center for the Advancement of Science in Space
(CASIS), to manage the ISS National Laboratory.
Under this arrangement, the ISS National Laboratory

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