THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION

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THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
JUNE. 2020 | VOL. 1

           THE NEW ROLE OF
             COMPANIES IN
          SPACE EXPLORATION
                         EXTRACTED FROM AVILA MENTORS OBSERVER / JUNE 2020

THE EVOLUTION OF
SPACE RACE
Written by Luis A. Leon-Marino
On July 20th, 1969 mankind achieved one of the
greatest milestones so far: reaching the Moon’s
surface and setting foot on it. Getting to our only
natural satellite, at 384,400 km, was a long
dream for humans, and a large investment and
research program helped to accomplish the
mission.

This dream came true through NASA’s (National
Aeronautics and Space Administration) Apollo
missions, which ran from 1961 to 1972, ending                      "Getting to our only natural
the space race the US and the USSR started in                     satellite, at 384,400 km, was a
1957 with the launching of the Sputnik satellite                     long dream for humans"
by the latter in 1957.
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
All these missions, and thus, the whole space
                                      race between both superpowers, was entirely
                                      financed with public funds, and where the
                                      participation from private sector companies was
                                      mainly focused on the provision of hardware
                                      and the specific equipment, required for the
                                      type of mission. In fact, at the peak of the space
                                      race (around 1966), NASA’s budget alone
                                      represented 4.41% of the whole USA’s GDP
 "at the peak of the space race
(around 1966), NASA’s budget          ($5,933 million – equivalent to $43,554 million
alone represented 4.41% of the        nowadays, after adjustments for inflation),
       whole USA’s GDP"               which accounts for the importance of the space
                                      program within the budget expenditure of the
                                      US.

                                      Achieved this goal, the space program and NASA
                                      itself received less and less funding for research
                                      and development (compared to the previous
                                      mentioned figures) in the following years,
                                      although they still sent missions for exploration
                                      and developed the Space Shuttle program.
                                      However, further space exploration, technology
                                      development, going back to the Moon, or
                                      humans stepping on Mars’ surface was
   "the space program and NASA        something that could hardly be achieved relying
     itself received less and less
      funding for research and
                                      solely on government funds.
     development (compared to
       the previous mentioned
   figures) in the following years"
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
The Challenger Space Shuttle accident on
February 1st 2003 prompted the cancellation of
the this program, with the last flight taking place
in 2011, and paved the way for new proposals to
be made in regards of the transportation of
crews and cargo to and from space and beyond.

Nevertheless, a new approach was necessary to
be created. Government expenditure in the
space was probably never going to be the same
as 60 years ago, as other issues have more
prevalence than space exploration. The private
sector, on the other hand, looks eager to
adventure themselves as main protagonists in
this new era of space exploration, investing their
money and putting their development capacity
to test with the construction of new models,
                                                      "The Challenger Space Shuttle
prototypes, and ways to reach space. This was         accident on February 1st 2003
the beginning of the Private Public Partnerships       prompted the cancellation of
(PPP) between NASA and private companies.             the this program, with the last
                                                        flight taking place in 2011..."

       "Competition began with the
          signature of Space Act
       Agreements (SAAs) with two
         companies, SpaceX and
         Orbital Sciences Corp."
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
The first steps taken were towards granting
                                  alternatives to get cargo shipments regularly to
                                  the International Space Station (ISS), for what
                                  NASA developed the Commercial Orbital
                                  Transportation Services (COTS) program in
                                  2006, aiming at a larger participation of the
                                  private sector in the development of spacecrafts
                                  and rockets for this purpose.

                                  Competition began with the signature of Space
                                  Act Agreements (SAAs) with two companies,
                                  SpaceX and Orbital Sciences Corp. (later
                                  reorganised as Northrop Grumman Space
                                  Systems), aiming to start operational services in
                                  2011. This relation is now managed under
                                  Commercial Resupply Services (CRS) contracts,
                                  and includes a third company, Sierra Nevada
                                  Corporation, for the launch of cargo to the ISS.
                                  From all the vehicles developed by these
     "From all the vehicles       companies, the only one that can be reused at
developed by these companies,
                                  the moment is the SpaceX Dragon Capsule,
the only one that can be reused
 at the moment is the SpaceX      while NASA uses other non-reusable capsules
       Dragon Capsule"            for trash-disposal from the ISS, like the Progress
                                  (Russia), the ATV (European construction), the
                                  HTV (Japan) and the Cygnus capsule from
                                  Northrop Grumman.
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
Regarding commercial crews, the Obama
                               administration made the first proposal to rely
                               more on the commercial sector to travel
                               astronauts to and from low Earth orbit (LEO),
                               also carrying them to and from the ISS. For this
                               reason, the Constellation program (initiated
                               under the George W. Bush administration, and
                               aimed at finishing the ISS, reaching the Moon
                               again, and finally, Mars) was cancelled, and
                               additional budget for NASA was requested to the
                               Congress in order to subsidize companies in the
                               research and development from vehicles and
                               spaceships able to transport crew to space.

                               This program was originally named Crew
"These companies were United   Transportation Concepts and Technology
   Launch Alliance, Sierra
                               Demonstration, or CCDEV, later transitioning
  Nevada Corp., Blue Origin,
  Boeing, and Paragon Space    into the Commercial Crew Integrated Capability
     Development Corp."        (CCiCAP) program, aimed at commercial
                               companies looking actively to develop an
                               combined     crew    transportation    system
                               (spacecraft, launch vehicle, and ground
                               systems).

                                           "The next year, a second group
                                           of companies was added to the
                                               first one, among them,
                                                       SpaceX."
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
History began in 2010, when NASA awarded the first contracts for companies to
develop crew transportation concepts and technology. These companies were
United Launch Alliance (Lockheed Martin Space Systems and Boeing Defense,
Space & Security), Sierra Nevada Corp., Blue Origin, Boeing, and Paragon Space
Development Corp. The next year, a second group of companies was added to the
first one, among them, SpaceX.

Under the SAA rules, NASA pay these companies for reaching pre-arranged
milestones, with less surveillance or information from NASA to know what
companies are doing, compared with previous types of contracts employed by the
agency. Although the systems are being made by these private companies, taxpayer
money is, in a large proportion, financing these ventures, with almost $800 million
invested in the commercial cargo program (COTS), and about $4.8 and $3.1 billion
awarded to Boeing and SpaceX, respectively, for the development of a crew
transportation system. NASA is moving towards buying services from these
companies, and not the whole equipment, as it did in previous space programs.
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
On this year 2020, in the middle of
                                  unprecedented times and consequences arising
                                  from the COVID-19 pandemic, NASA continued
                                  further with its crew program and achieved the
                                  successful launch and docking on the ISS from
                                  the first time astronauts flying on a commercial
                                  capsule, the Crew Dragon from SpaceX.
                                  Although the mission is yet far from finished,
                                  and the astronauts need to return safely to Earth
                                  for NASA’s to certify the capsule for operational
                                  use, the forecast looks promising so far,
                                  something that can even open the possibility for
                                  space tourists to arrive at the ISS in the
"...docking on the ISS from the   upcoming years.
first time astronauts flying on
    a commercial capsule, the     Before the Crew Dragon capsule, NASA relied on
  Crew Dragon from SpaceX."
                                  Russian Soyuz capsules, at a cost of $82-90
                                  million per seat, which contrast enormously
                                  with the $55 million per seat that costs flying
                                  with the SpaceX capsule. That is exactly one of
                                  NASA’s goals: reducing the economic cost of
                                  space travel. Not so long ago, the Space Shuttle
                                  costed $4 billion per year to operate. The greater
                                  amount of money that can be saved from every
                                  launching, the more it can be invested in new
                                  technology and development, from spacecrafts
                                  to new telescopes, or rovers and space stations to
                                  study Mars.
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
As of today, several private companies develop
all kind of technologies for this matter, including
more advanced activities like space mining and
space stations through
independent modules.

This new space race, with private companies
running against each other to grant loans and
contracts with government space agencies, but
also to be the first achieving a regular space
tourism service down to an affordable price,              "There is a valid and
                                                       optimistic expectation to
should spark a flame of new discoveries and            growth faster in the space
rapid progress on this matter. This will also              technology field."
create a whole new industry, with thousands of
employments to be filled by a wide array of
careers, from engineering to lawyers and even
medical personnel. There is a valid and
optimistic expectation to growth faster in the
space technology field.

Next milestones to be achieved are both
returning to the Moon (probably by 2024)
surface and getting to Mars by 2033. Private
companies are destined to be main actors of
these next missions, with Elon Musk, owner of
SpaceX developing a rocket to transport people
to Mars in the near future; while Jeff Bezos,
owner of Blue Origin, says he dreams of future          "Private companies are
                                                      destined to be main actors of
space colonies for housing millions of humans.
                                                          these next missions"

LALM / l.leon@avilamentos.co.uk
THE NEW ROLE OF COMPANIES IN SPACE EXPLORATION
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