NASA - National Aeronautics and Space Administration

The forecast shortfall in ISS logistics needs after the Shuttle retires provides a significant opportunity for commercial space transportation services. Former NASA Administrator Mike Griffin committed NASA to support the ISS by purchasing commercial services once they are available. Dr. Griffin said:

“I believe that, with the advent of the ISS, there will exist for the first time a strong, identifiable market for 'routine' transportation service to and from LEO, and that this will be only the first step in what will be a huge opportunity for truly commercial space enterprise, inherent to the Vision for Space Exploration. I believe that the ISS provides a tremendous opportunity to promote commercial space ventures that will help us meet our exploration objectives and at the same time create new jobs and new industry.

"The clearly identifiable market provided by the ISS is that for regular cargo delivery and return, and crew rotation, especially after we retire the shuttle in 2010, but earlier should the capability become available. We want to be able to buy these services from American industry to the fullest extent possible. We believe that when we engage the engine of competition, these services will be provided in a more cost-effective fashion than when the government has to do it.“

C3PO has established a two-phased approach to implement this strategy.

COTS Capabilities Concept. Image Credit: NASA
Phase 1: Development and Demonstration
Phase 1 is called the Commercial Orbital Transportation Services (COTS) Demonstrations project. Under COTS, NASA helps industry develop and demonstrate its own crew and cargo space transportation capabilities. Industry leads and directs its own efforts with NASA providing technical and financial assistance. NASA is investing approximately $500M from 2006 thru 2010 toward cargo space transportation flight demonstrations which are planned for 2009 and 2010. NASA payments are made only upon completion of progress milestones by its industry partners.

The first COTS competition lasted 10 months and was completed in August 2006. Two COTS Commercial Partners (CPs) were selected to participate in Phase 1: Space Exploration Technologies (SpaceX) and Rocketplane-Kistler (RpK). The agreement with RpK was later terminated after it failed to complete financial and technical milestones. A second competition was held to select a new funded commercial partner which resulted in selection of Orbital Sciences Corporation in February 2008.

Phase 1 Crew Transportation Option
C3PO plans to work with industry to develop and demonstrate crew transportation capabilities once significant progress is demonstrated in cargo transportation. SpaceX has an option with NASA for funding of crew capability demonstration. NASA may also conduct a new competition for one or more crew demonstration partners. Detailed planning will occur once funding for crew transportation demonstrations is approved.

C3PO/COTS Notional Schedule. Image Credit: NASA
Phase 2: ISS Commercial Resupply Services
In Phase 2, the government is conducting a competitive procurement for cargo services to support the ISS. NASA plans to award one or more contracts for transportation services in late 2008.

Space Act Agreements
C3PO uses NASA’s Space Act authority to establish industry agreements and provide the legal flexibility necessary for the program. These agreements are known as Space Act Agreements (SAAs). SAAs which include NASA financial assistance are known as Funded Space Act Agreements. The winners of the COTS competitions received Funded SAAs. Other industry teams are developing commercial space transportation systems and some have Unfunded SAAs for technical assistance from NASA. In cases where industry compensates NASA for performing work on itsr behalf, a Reimburseable SAA is used. In all of these cases, companies with SAAs are not contractors; they are known as Commercial Partners (CPs).

To encourage innovation, C3PO is broadly targeting technical goals for the projected crew and cargo space transportation markets rather than specific spacecraft design solutions. Firm requirements and processes are specified by NASA only where necessary for safety and ISS certification. Private investments are encouraged by enabling companies to retain the maximum rights to intellectual and personal property allowed by law. The CPs' operations will be licensed by the FAA and will use cross-waiver liability provisions. The government’s rights to unilaterally terminate its support were restricted to the maximum extent possible to help encourage private investment. Congressional legislation is required to terminate the COTS projects.

A key feature of the Funded SAAs is that NASA will make fixed-price payments only when performance based milestones are completed according to objective success criteria. NASA’s investments will not result in the government assuming any equity in the participating companies. NASA’s return on investment will be in the form of lower costs to service the ISS, freeing up funding for space exploration.

Commercial Partner Roles & Responsibilities
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 Space Act Agreements and consistent with the COTS ISS Service Requirements Document (ISRD), the COTS Human Rating Plan, and the ISS to COTS Interface Requirements Document (IRD).

NASA Roles & Responsibilities
NASA has intentionally limited its participation in the commercial partners' programs to enable maximum use of innovative, cost-effective commercial practices. NASA’s primary role is to monitor the progress of its CPs through an assessment of the SAA milestones and to make payment for successfully completed milestones. NASA provides expert technical assistance as requested or where considered necessary via the NASA COTS Advisory Team (CAT), discipline experts drawn from across the Agency. The CAT selectively supports CP reviews and consults on technical issues as requested. More extensive NASA support requires reimbursement for services or facility use via Reimbursable Space Act Agreements. Commercial Partners will also receive ISS integration and certification support for their visiting vehicles.

NASA resource limitations require restrictions on the level of support that can be provided to Commercial Partners with unfunded SAAs. Unfunded CPs are not permitted to conduct demonstration flights to the ISS. However, 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.

Summary
The Commercial Crew & Cargo Program is responsible for challenging private industry to establish capabilities and services that can open new space markets, support the crew and cargo transportation needs of the International Space Station, and provide future services for exploration. NASA plans to competitively purchase these services once they are available. By successfully providing reliable, cost-effective cargo and crew transportation services, C3PO's commercial partners can serve existing markets and develop new markets, launching a new era for commercial space.