Page 73 - International Space Station Benefits for Humanity, 3rd edition.

Growing the Space Economy with Public-Private Partnerships

NASA’s interest in using the International Space Station (ISS) as a commercialization platform has
been stimulated by a succession of funding and policy bills that have progressively changed the space
station’s role. In 2004, President George W. Bush announced the “Vision for Space Exploration” that
emphasized development of new exploration technologies and human missions to the moon, Mars
and deep space. A year later, the NASA Authorization Act of 2005 designated the U.S. segment of the
ISS as a National Laboratory to maximize its use by federal agencies and the private sector. The same
act also mandated the development of a commercialization plan to support LEO activities. The act
required that NASA place at least as much emphasis on encouraging the transfer of NASA technology
to the private sector as on encouraging use of private sector technology by NASA. It also directed
NASA to develop a plan to maximize the number of contracts awarded to small business concerns.
As a result of these changes in policy focus, the space station—as a laboratory in the vanguard
of research in microgravity—increasingly relies on a new and growing number of commercial service
providers. Rather than follow the traditional approach of government-funded, contractor-provided
hardware or capability, commercial firms develop capabilities that are offered to government as one
of many potential users of the ISS as a research platform. The space station gains important new
(or updated) capability, while the service provider gains a new market in which to offer its services.
From commercial resupply contracts to contractor-provided research facilities, ISS procurement
policy changes are enabling a diverse and growing marketplace with new commercial, governmental
and academic entities participating in ever-greater numbers.

Enabling Commercial Launch Providers The commercial launch market has benefited from
changes in contracting mechanisms intended to
Although the commercial space launch market
encompasses less than 2% of the growing space promote affordable, reliable access to space, with
economy, it has become a high-visibility herald of the ISS as just one of many customers. In 2006,
the growing space economy in the eyes of the global NASA initiated the Commercial Orbital Transportation
public. Launch capabilities at both the small and large Services (COTS) program and, in 2008, the
Commercial Resupply Services (CRS) program.
ends of the spectrum have expanded significantly,
while reusability of boosters and vehicles is becoming These programs were designed as a demonstration
a common occurrence. of a public-private partnership model using a fixed-
price, pay-for-performance structure.

This reduction in cost-to-orbit

opens the door for more
participation in the space
marketplace, thereby increasing
the likelihood for space tourism,
space manufacturing and other new

The SpaceX Dragon 15 cargo craft capture services to make a realistic business
by the ISS Canadarm2 on July 2, 2018. case for sustained profitability.
Image credit: NASA

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