Page 74 - International Space Station Benefits for Humanity, 3rd edition.

Enabling commercial cargo and payload launch services of more than $27 billion in 2018. Orbital Sciences
development through a public-private procurement Corporation grew in annual revenue from $765 million
model has proved to be beneficial, with both in 2006 to $1.37 billion in 2013—prior to merging
companies—Orbital Sciences, now Northrop Grumman with Alliant Techsystems to form Orbital ATK in 2015.
Innovation Systems (NGIS), and SpaceX—financing the Northrop Grumman purchased Orbital ATK in 2018
majority of their development costs. During the COTS for $7.8 billion and rebranded as Northrop Grumman
partnership, NASA contributed $396 million toward Innovation Systems.
the development of the SpaceX commercial cargo The initiation of new contract vehicles and policies
transportation systems (i.e., Dragon spacecraft and in 2006 and 2008 to support the ISS had the effect
Falcon rocket), while SpaceX estimates contributing of creating a market with predictable and attractive
approximately $450 million. Likewise, NASA contributed characteristics. Advances in the commercial sector’s
$288 million toward the development of NGIS (then ability to provide launch services to LEO have included
Orbital Sciences) systems (i.e., Cygnus spacecraft and increased capabilities for both large and small
Antares rocket), while company contributions were payloads, and an increasing number of options in
estimated to be about $500 million.
launch providers. Both companies involved directly in
The COTS effort proved to be cost effective for NASA providing launch services for ISS resupply missions as
when compared to traditional development approaches. of 2018 have gained significant market share. With the
All told, NASA invested approximately $700 million ISS as just one of many customers, the U.S. share of
while its commercial partners invested approximately the commercial launch market has grown from 9% in
$1 billion, meaning the private sector outspent 2006 to 64% in 2017. Without ISS procurement policy
the public sector in developing new space launch innovation, the space-access sector may not have
capabilities. NASA compared the SpaceX Falcon 9 matured as quickly as it has.
launch vehicle development costs using the estimated
costs of a traditional cost-reimbursement contract
versus the COTS milestone-based effort. The NASA
models predicted that cost would approach $4 billion.
Increased competition has benefited all customers of
commercial launch services. The published commercial
launch cost to lift a pound of cargo to low-Earth orbit
(LEO) has fallen significantly from early 2000’s levels
of $8,000 to $10,000 per pound. As of July 2018,
SpaceX advertises the standard cost for its Falcon 9
launch services at $62 million, with a maximum payload
capability of 22,800 kilograms (50,265 pounds) to LEO.
Using these figures, the Falcon 9 cost-per-pound to
LEO is approximately $1,200. The Falcon Heavy, at
$90 million and 63,802 kilograms (140,660 pounds),
would cost under $700 per pound to LEO.
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 services to make
a realistic business case for sustained profitability.
(www.spacex.com/about/capabilities)
While benefits have accrued to both the government
(e.g., NASA’s reduced costs in the development of new
launch systems) and other customers taking advantage Northrop Grumman’s Cygnus space freighter
of lower launch costs, both companies involved in ISS poised for release from the Canadarm2 robotic
resupply have benefitted as well. SpaceX is reportedly arm back into Earth orbit, ending a 52-day cargo
the fourth most valuable privately held technology mission at the ISS on July 15, 2018.
company in the United States, growing from a Image credit: NASA
$100 million investment in 2002, to a valuation

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