Obama Administration Spells Out Commercial Space Policy

The Obama Administration has published its National Space Policy document, laying out priorities for the nation’s civilian and military efforts. The commercial policy section is reproduced below.

Commercial Space Guidelines

The term “commercial,” for the purposes of this policy, refers to space goods, services, or activities provided by private sector enterprises that bear a reasonable portion of the investment risk and responsibility for the activity, operate in accordance with typical market-based incentives for controlling cost and optimizing return on investment, and have the legal capacity to offer these goods or services to existing or potential nongovernmental customers. To promote a robust domestic commercial space industry, departments and agencies shall:

• Purchase and use commercial space capabilities and services to the maximum practical extent when such capabilities and services are available in the marketplace and meet United States Government requirements;

• Modify commercial space capabilities and services to meet government requirements when existing commercial capabilities and services do not fully meet these requirements and the potential modification represents a more cost-effective and timely acquisition approach for the government;

• Actively explore the use of inventive, nontraditional arrangements for acquiring commercial space goods and services to meet United States Government requirements, including measures such as public-private partnerships, hosting government capabilities on commercial spacecraft, and purchasing scientific or operational data products from commercial satellite operators in support of government missions;

• Develop governmental space systems only when it is in the national interest and there is no suitable, cost-effective U.S. commercial or, as appropriate, foreign commercial service or system that is or will be available;

• Refrain from conducting United States Government space activities that preclude, discourage, or compete with U.S. commercial space activities, unless required by national security or public safety;

• Pursue potential opportunities for transferring routine, operational space functions to the commercial space sector where beneficial and cost-effective, except where the government has legal, security, or safety needs that would preclude commercialization;

• Cultivate increased technological innovation and entrepreneurship in the commercial space sector through the use of incentives such as prizes and competitions;
• Ensure that United States Government space technology and infrastructure are made available for commercial use on a reimbursable, noninterference, and equitable basis to the maximum practical extent;

• Minimize, as much as possible, the regulatory burden for commercial space activities and ensure that the regulatory environment for licensing space activities is timely and responsive;

• Foster fair and open global trade and commerce through the promotion of suitable standards and regulations that have been developed with input from U.S. industry;

• Encourage the purchase and use of U.S. commercial space services and capabilities in international cooperative arrangements; and

• Actively promote the export of U.S. commercially developed and available space goods and services, including those developed by small- and medium-sized enterprises, for use in foreign markets, consistent with U.S. technology transfer and nonproliferation objectives.

The United States Trade Representative (USTR) has the primary responsibility in the Federal Government for international trade agreements to which the United States is a party. USTR, in consultation with other relevant departments and agencies, will lead any efforts relating to the negotiation and implementation of trade disciplines governing trade in goods and services related to space.