Leveraging Commercial Space for Earth and Ocean Remote Sensing (2022) / Chapter Skim
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5 Benefits and Challenges of New Business Models
5 Benefits and Challenges of New Business Models
Pages 58-70
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From page 58... ...
a government procurement of commercially marketed capability such as data products, satellite buses, satellite components, or payload hosting. New Space commercial growth has the potential to provide government managers with opportunities to leverage the private investment in these capabilities to meet their needs at a lower cost.
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From page 59... ...
It is understandable that government managers would be reluctant to put their program and high-priority missions at risk by dependence on a commercial resource, especially in places where the marketplace has many new players and is changing rapidly at a pace that is out of sync with traditional space procurement practices. In the early stages, the challenge was even greater with the emergence of commercial providers that, in many cases, were limited to one or two suppliers that were considered fragile at best and unproven and/or untrusted at worst.
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From page 60... ...
Commercial Services, Products, and Data-Buys This model utilizes commercial services and products developed through private investment developing capabilities and providing services to the government as one of many customers. Growing engagement of the private investment community combined with increased demand by nongovernment customers is driving the New Space ecosystem in many new ways that are making products and services increasingly affordable.
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From page 61... ...
The recent inclusion in the latest Rapid IV catalog of emerging New Space commercial satellite bus product lines expands this concept by providing the opportunity for rapid and cost-effective platforms to support HSA objectives as well as NOPP and other government payload technology demonstration flights. Many of the commercial satellite bus providers also offer full mission integration and on-orbit operations services -- further simplifying the technical and business arrangements needed to support payload technology development and operational mission needs.
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From page 62... ...
NASA's October 2020 State-of-the-Art Small Spacecraft Technology report5 provides insight into many of the existing capabilities of both private- and government-funded commercial SmallSat component, buses, launch, and mission services available to meet government mission needs. BENEFITS AND CHALLENGES OF NEW BUSINESS MODELS The breadth of commercial capabilities is rapidly growing and evolving, making it challenging for government program managers to gain information on their varying states of technical and business maturity needed to make cost-benefit trades against risk.
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From page 63... ...
• As-needed buy of optimum and/or calibrate established and • Sensor/data • Dual source characterized source calibration insight • Provider sustainability • Data transparency/ open science Technology Government buys • Potential for significantly • Coordination and • Ensuring Development (Orbital commercially hosted lower cost and risk for matching of orbit/ government Development Test and payload and support orbital test/validation and schedule/data security/ requirements are Validation) services on free flyer or operational accommodations/ well defined, a space station technical resources and potential is difficult and where providers' match found, result capabilities are may not be optimum well understood • Host sustainability • Understanding potential host Government integrator • Potentially lower cost • Potential capability in mission buys commercial with potential for reduced availability and/ conceptual phase bus(es)
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From page 64... ...
providers may drive dedicated launch prices down over time Government buys • Dependent on class of • Finding a rideshare • Mission flexibility rideshare launch satellite; rideshare can be opportunity, of orbit and a significantly lower cost compatible orbit deployment than dedicated launch and launch schedule schedule needed vehicle needs, and managing on-time payload delivery schedules Government buys • Fee for service business • Provider sustainability • Dual source ground station network arrangement cost savings • Potential operational services schedule conflicts Government buys • Fee for service business • Provider sustainability tracking/collision arrangement cost savings avoidance services
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From page 65... ...
On the positive side, multiple commercial providers are emerging for most products and services, which allows for dual source options to be considered in the commercial sourcing decision process. Government Customer Culture Few, if any, legislative or regulatory mandates or prohibitions impede government from the procurement of commercial services.
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From page 66... ...
As noted in the GAO reports for HOPS and CHIRP, if ONR decides to initiate a hosted payloads or in fact any multi-user PPP, it will be important to ensure cultural buy-in from the stakeholders together with consistent leadership guidance and recognition of potential funding challenges. Contracting Mechanisms Sufficient leverage exists within and outside the FAR to enable contracting structures to support a long-term sustainable New Space activity driven by government needs.
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From page 67... ...
DoD and the government civil space agencies are successfully using hosted payloads, Earth Remote Sensing constellation data-buys, and commercial SmallSat technology, all of which could also be used meet ONR technology development and mission data needs. For example, there are commercially available services to help 7 Formore information, see U.S.
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From page 68... ...
While the breadth and continued emergence of commercial capability offerings make understanding their suitability for creating effective partnerships a potentially daunting challenge for government managers, the broad scope of the government civil and defense space programs, funding challenges, and organizational contracting practices present a reciprocal challenge for industry. The substantial potential benefits for the government and its commercial partners justify finding a way to bridge these challenges through a broker or some other acquisition approach capable of enabling a trusted partnership.
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From page 69... ...
The National Aeronautics and Space Administration's Rapid Spacecraft Development Office has addressed this forecasting problem related to indefinite delivery/indefinite quantity satellite bus acquisitions through the development of its Rapid Spacecraft Catalog satellite catalog. RECOMMENDATION: The Office of Naval Research should leverage the National Aeronautics and Space Administration's Rapid Spacecraft Catalog for its current needs and should also work with NASA's Rapid Spacecraft Development Office and the Air Force Research Laboratory's AFWERX to incorporate its forecasted future needs.
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From page 70... ...
or a similar impartial agent as a trusted intermediary between interested government and commercial business entities to identify appropriate public–private partnership mechanisms and structure them to achieve a successful alignment of technical and procurement capabilities; and 4. Similarly employ an FFRDC or similarly trusted agent to develop guidelines for technical and business engagement to actively bridge existing gaps and new gaps as they occur between government and industry.
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