Contracting Out the Space Race

Photo credit: NASA

by Dick Hall-Sizemore

Because the focus of this blog is on Virginia politics and public policy, I am loath to venture beyond those boundaries. However, I have recently become concerned about an issue (nonpartisan, I hope) that has ramifications beyond the Commonwealth. I am interested in the opinions of those on this blog who may have much more expertise in the issue than I have.

An American private company recently succeeded in landing a payload on the moon. This was the first American moon landing in 51 years. This feat highlights a change in space policy by the United States: the government has turned much of space activity over to the private sector.

The director of NASA’s planetary science division summarized this change in space policy this way:

This is a really a significant shift in how we do business. “The fact that NASA is not actually building or responsible directly for these missions or their launches is an opportunity to invest in the commercial industry to build a new capability. NASA can then purchase the delivery service, and the intent hopefully being that we can increase the frequency of deliveries and reduce the cost to NASA of doing science.

Do we really want to do this? In order to do things on the cheap, do we really want to put the government in the position of having to go to the private sector to obtain services vital to our security and scientific advancement?

It is not as if NASA did not rely on the private sector for the Mercury, Apollo, and space shuttle programs. It contracted with private companies to build those rockets, capsules, moon landers, and shuttles. But the government was intimately involved in the design of those space vehicles and oversaw their manufacture. It was in control of the ultimate project.

That is significantly different from providing seed money for a group of private companies to go do their thing and then contracting with one or more of them to carry out NASA missions. The control over the process has shifted.

As a case in point, consider Starlink. This is a system of satellites launched by Elon Musk’s Space X corporation that has established an international internet system. One of its primary benefits is provision of high speed internet services to areas that do not have access otherwise. But the power to provide access includes the ability to deny access.

Last year, Elon Musk threatened to cut off Starlink access to Ukraine, but relented when the Pentagon committed funding for the service. As reported in The Wall Street Journal, early in the Ukranian war, Musk refused to activate Starlink access in Crimea on the grounds that doing so would have his company complicit with a plan to attack the Russian fleet. He did not explain how that would be different from allowing Ukraine access to Starlink in other military operations.

Recently there have been reports that Russia has “thousands” of Starlink terminals in occupied parts of Ukraine. Musk has declared, “To the best of our knowledge, no Starlinks have been sold directly or indirectly to Russia.” However, the terminals are readily available on the open market and could easily have been bought and passed on to the Russian military. Furthermore, regardless of whether Space X sold the terminals to Russia, the company has the power to deactivate any unsanctioned terminals. As pointed out by The Wall Street Journal, “Reports on Russian use of Starlink come as Musk has spoken out against further aid to Ukraine, saying on Monday that it would prolong the war and cause more deaths as ‘there is no way in hell’ that Russian President Vladimir Putin could lose the war.”

Perhaps Musk did not sell Starlink access to Russia. But what would prevent him from doing so? And what would prevent him from deactivating access in countries whose policies he did not agree with, regardless of whether such actions would be in accordance with Unites States foreign policy?

Whatever one thinks of Elon Musk or the United States’ policy towards Ukraine, the potential for one private person or company to thwart this county’s foreign policy should be a major concern.

When I started writing this article, I was concerned about one or two companies in the U.S. space industry gaining the ability to act counter to American policy. However, some research conducted along the way has allayed most of those fears. No company can launch rockets in the United States without a license from the Federal Aviation Authority (FAA). Government policy restricts the export of rocketry technology to foreign governments. The United States provides subsidies to many space-related companies to encourage competition. After all, it was not one of the “big boys” such as Space X (Musk), Blue Origin (Bezos), or Virgin Galactica, but Intuitive Machines, hardly a household name, that achieved the recent moon landing. With this approach, innovation is encouraged and financial risk is borne by the private sector. Maybe we are safe from any future Elon Musks being able to dictate U.S. space policy and defense policy, although the FAA still allows Space X to launch Starlink satellites into space and there is apparently no U.S. control over who can get Starlink terminals and use that system.


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46 responses to “Contracting Out the Space Race”

  1. Randy Huffman Avatar
    Randy Huffman

    I have less expertise on the matter than Dick so my response is totally visceral, but do overall agree with his assessment. My first thought was to think of Defense. Sure, give contracts to large well run companies with experts to design and build the rockets and equipment, etc. but control of the mission lies with Government officials, not a license.

    Having said that, I would think it very appropriate for private satellites to be treated different with private sector in control (and licensing), then a scientific mission.

  2. LarrytheG Avatar

    I don’t know for a fact but I don’t think these private company’s are solely investor-financed and suspect they are more like govt contractors, i.e. the govt is paying them.

    For STARLINK, I would think it super-easy to disable any terminals that are in latitude/longitudes not in Ukraine or other legitimate locations. They should be able to disable them easy.

    One thing one can say, no matter how they feel about Musk, STARLINK seems to be a one-of-a-kind thing at least for now, and he’s probably going to be the richest man in the world if he is not already so, and given his disdain for the govt and status-quo, he
    will likely be able to make changes in the way we do things unless the govt decides to rein him in.

    THis is yet another example of how the govt reacts very slowly to
    new and evolving technologies. By the time the govt figures it out and takes action, everybody and their dog already well knows it.

  3. f/k/a_tmtfairfax Avatar
    f/k/a_tmtfairfax

    They also need radio licenses from the FCC. The Commission recently reorganized, creating a Space Bureau.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      Interesting. Thanks.

  4. DJRippert Avatar

    Technology that was Whiz-bang in the 60s becomes humdrum in the 2020s. Once that happens, I see no reason why the private sector should be precluded from participating. Amazon has Project Kupier which is very similar to Starlink.

    The US military owns and operates Milstar, constellation of military communications satellites in geosynchronous orbit, which are operated by the United States Space Force. They will be replaced by Advanced Extremely High Frequency (AEHF) satellites, which will also be owned and operated by the US military.

    I suspect (but don’t know) that if Musk had decided to pull back the use of StarLink from the Ukrainians, the US government could have put the Ukrainians on the same network as our fighting forces use. I also suspect that, in return for payment, the US government could have forced Musk to supply Ukraine – either directly or by making Starlink’s life so miserable that Musk would have capitulated.

    To his everlasting credit, Musk supplied Starlink free of charge to the Ukrainian military.

    I found it interesting that people found it strange that Intuitive Machines used AI to autonomously land Odysseus on the Moon. I would found it far stranger if Intuitive Machines would have allowed a human to pilot the craft.

  5. David Bither Avatar
    David Bither

    I spent over twenty years with US companies doing R&D and system production for national security customer requirements. All items to include “dual use” must be approved for export by the Department of State and receive an ITAR (the International Traffic in Arms) license. Despite its name, items listed under ITAR (especially those designated as “dual use”) are extremely extensive. Chapter 1, Subchapter M, Part 121 covers “Spacecraft and Related Articles.” Unless it was through a US government contract, items such as advanced sensors to Israel, cryptosecurity tech to Ukraine, or airships to Afghanistan had to get ITAE approval before any commercial sale. Also, important to note is that ITAR also covers services and technical information exchange during pre-contract discussions.

  6. LarrytheG Avatar

    THis may well be a pretty good discussion item with respect to whether or not private sector companies are conducting activities in space purely as at-will free-market, private sector activity or if
    the govt is funding some of it.

    Are we at the state where the private sector, without govt involvement, can form for-profit enterprises for space?

    Is that what Elon Musk has done with STARLINK?

    In case anyone is wondering, the availability of STARLINK in rural areas that don’t have cable internet- has totally changed the game including whether or not the govt itself should be providing subsidies to companies to lay cable to rural areas – if anyone in a rural area can pay Mr. Musk for high quality internet service.

    What can or should Virginia do , to get it’s share of space commerce and taxes?

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      The government has poured billions into subsidies for private space companies, including Space X. https://www.theverge.com/2019/6/18/18683455/nasa-space-angels-contracts-government-investment-spacex-air-force

      1. LarrytheG Avatar

        They have and do – which is interesting because the obvious question is should the govt be doing this?

        Is this something the govt should be doing or private sector, that “free market” ?

  7. Paul Sweet Avatar

    “Indeed! Which is why Ludditeism with regard to the world should be recognized for what it is – the same old same old Conservative fear of the future!”

    Conservatives just like to see the worst of the bugs and negative side effects worked out before embracing new technologies. We’re realistic enough to know that nothing developed by humans is perfect.

    1. LarrytheG Avatar

      but it never works that way Paul. It comes with warts that need to be dealt with as we go!

      Indeed – show me ANY technology that is “perfect” but we do know the difference between making one the enemy of the other!

      We go forward, not without stubbing our toes sometimes, but we DO go forward!

      All you have to do today, is watch the spectacular rocket failures … and then read about STARLINK… they both happen.

    2. Nancy Naive Avatar
      Nancy Naive

      That’s the Challenger.

  8. Paul Sweet Avatar

    “Indeed! Which is why Ludditeism with regard to the world should be recognized for what it is – the same old same old Conservative fear of the future!”

    Conservatives just like to see the worst of the bugs and negative side effects worked out before embracing new technologies. We’re realistic enough to know that nothing developed by humans is perfect.

  9. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    NASA may have become a thing of the past. It never has recovered from the space shuttle disasters. A visit to Cape Canaveral? It’s a theme park now! I wouldn’t be surprised to see Space Force overshadow NASA in this century. I had to chuckle about the space force logo. Right out of Star Trek.
    https://uploads.disquscdn.com/images/c4fa6943bfdccc7ea09d029ace5475fcafb81d243c3aec5ebb63bfa9bf6dcd99.jpg

  10. NASA has long been a large scale employer of excess engineers, mathematicians, etc. Private sector for profit organizations are not likely to maintain that excess overhead. I would not bet on the Feds getting out of the employment business.

    Federal launch/operations licensing is a two way street. Once authority is granted to regulate it is just a policy decision to permit or prohibit. You may feel better that it now could prohibit launches you don’t favor, but tomorrow it could well be your ox that is gored. Exposure of Fed funding of “disinformation” services that went after conservative web content is a recent example. I’d be no happier if those practices flipped the other way. Be careful what you wish for…

    1. Nancy Naive Avatar
      Nancy Naive

      Pound for pound, DoD is the big research driver.

    2. Matt Adams Avatar

      People often forget our race to space was fueled by operation paperclip.

  11. DJRippert Avatar

    The four headless horsemen of the technology apocalypse (or nirvana) galloping alongside us into the future are AI, fusion, quantum computing, and advanced biologics.

    AI. AI is not yet at the Artificial General Intelligence level where it can perform any and all tasks that an average human can perform. 1,700 experts were polled. 98.9% thought AGI would occur. The average date when it was predicted to occur was 2050. However, some notable experts, such as Ray Kurzweil, predict that it will happen this decade. The impact of software having the general intelligence of a human being is literally unimaginable. I’ll be 91 in 2050. My youngest son will be 44.

    Fusion. Fusion has the potential to make energy 100X more efficient than it is today with nearly no carbon. The IAEA expects a prototype fusion reactor to be built by 2040.

    Quantum computing. Vastly more powerful computers able to solve problems that even today’s fastest computers can’t touch. If anything pushes AGI sooner that 2050 it will be quantum.

    According to a 2023 survey, 72% of tech executives, investors, and academics expect to see a fully fault-tolerant quantum computer by 2035.

    Biologics. The combination of AI and quantum computing will push the boundaries of areas of engineering like materials science. But biochemistry might be the biggest gainer. Quantum computing and AI will revolutionize biology and medicine by significantly enhancing data analysis and simulation capabilities. Quantum computing will improve personalized medicine by optimizing treatment plans based on individual genetic information, leading to more effective and tailored healthcare solutions.

    1. LarrytheG Avatar

      Indeed! Which is why Ludditeism with regard to the world should be recognized for what it is – the same old same old Conservative fear of the future!

      Further, the last man on the planet to be a leader in this fast advancing world is named TRUMP!

      1. DJRippert Avatar

        I am a conservative. Do you really think I’m a Luddite?

        What are you talking about?

        Is Elon Musk a Luddite?

      2. DJRippert Avatar

        I am a conservative. Do you really think I’m a Luddite?

        What are you talking about?

        Is Elon Musk a Luddite?

        1. LarrytheG Avatar

          I don’t think you are a Luddite at all! You mentioned several advancing technologies that are without a doubt not going to go from now to perfect without stumbles. And that’s the way technology advances whether it’s fusion or EVs or wind/solar or storage batteries or public health and vaccines, etc.. Let it happen, don’t oppose it because it’s not “ripe”. Stand back and let it go forward. Don’t make it part of the culture war.

        2. Nancy Naive Avatar
          Nancy Naive

          Musk is very good at applying current technology to old ideas with a good deal of success.

        3. Nancy Naive Avatar
          Nancy Naive

          Same day? Or mail-in? I dunno, are you a Luddite?

    2. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      This is fascinating. I did not realize that we were that close to these developments, although I had read about the mammoth particle accelerator built by CERN in Europe and the hope of it being able to develop energy from fusion on an economic scale.

      The other items I worry about and don’t want to live in a world in which they predominate. In 2050, I would be 102, so I probably won’t have to deal with it, but my oldest grandson will be only 47.

      1. Fusion has been 20 years out for at least the last 50 years. Don’t hold your breath. AI on the other hand is on an exponential tear. Us meat brains may well be obsolete and discarded long before fusion gets here. The bright boys and girls at Ft. Meade have undoubtedly been busy with quantum computing. It has profound consequences for their business. Progress there may be closer than we think. They’ve tended to stay about 3 or 4 Moore cycles ahead of the rest of us since they started computing about 75 years ago,

    3. Nancy Naive Avatar
      Nancy Naive

      I’ll step out. All of those by the end of this decade, or within the first half of the next. The rate of advancement is increasing at an increasing rate.

      The Singularity approacheth! But then, so too, The Upload.

  12. The open question is whether any government agency, absent political leadership that captures public sentiment, has the imagination to shape policy at the frontier of initiative. I don’t see that space exploration is an exception to the general rule that important national policy initiatives should be executed, at least in the formative stages, by the government. We all understand that government can be stodgy and inefficient, that government agencies can be money pits and bureaucratic nightmares. We must also acknowledge that from a policy perspective there are as many tales of private-sector abuses of market power and failures to give priority to the public interest. We support government-funded basic R&D in astronomy and physics and energy simply for the sake of knowledge. We fund countless NIH projects in medicine, and yet we protect the drug companies that bring their products to market so they can remain profitable. We support NASA yet encourage SpaceX and Blue Horizon. Like the military, NASA seems out to fight the last war, solve the last space mission’s problems, not tackle reusable launch rockets or cater to paying civilian customers..

    I grew up on Arthur Clarke sci-fi and was thrilled by John Kennedy’s space initiatives and the thought that NASA would continue to produce miracles. After WWII’s V1s descended on London the public strongly supported going back into space for a good cause. My first exposure to AI was in the likes of Capek’s play “RUR” but reinforced by Stanley Kubrick’s “2001: Space Odyssey” with its infamous shipboard computer “Hal” – why should we trust the private sector with such technology. Yet who else but the private sector could have accomplished the transformation of the aviation industry that occurred in the United States after WWI and laid the groundwork for our remarkable aviation productivity during WWII.

    With Mr. Musk’s worldwide Starlink system our government’s control of Starlink’s military uses through licensing may have stumbled badly, but that is no reason to abandon the public-private interaction and collaboration that has brought us this far into space exploration. The real obstacle, I fear, is declining domestic support for NASA from voters who never read sci-fi comics as a kid.

    1. Nancy Naive Avatar
      Nancy Naive

      The internet may have been a DARPA project, but it was only DARPA funded project. The work was done by researchers at universities. Within a decade, the porn industry exploded.

      Money, ideas, benefits.

      1. The semi conductors and computers our world is built on today were likewise government funded and massively supported. Bell Labs, Fairchild and TI sparked the semi conductor revolution. ENIAC at Penn is an example of university contribution to the birth of computing. All of it greased with copious amounts of Federal funding.

      2. The semi conductors and computers our world is built on today were likewise government funded and massively supported. Bell Labs, Fairchild and TI sparked the semi conductor revolution. ENIAC at Penn is an example of university contribution to the birth of computing. All of it was greased with copious amounts of Federal funding.

        1. Nancy Naive Avatar
          Nancy Naive

          Plato educational system. Way ahead of its time. U of Illinois with CDC. On and on. Pfiser may have gotten the Covid vaccine out in record time, but not without UPenn.

  13. Nancy Naive Avatar
    Nancy Naive

    NASA is a collection of contract managers. Relatively few are actively performing research nowadays.

    1. LarrytheG Avatar

      It’s not that hard to figure out the govt role. If would-be investors in a technology don’t see a good return anytime in the near term future – that technology will twist and turn in development until more research is done (govt funded often) or the govt itself via Darpa or Navy Labs or similar get involved. things like autonomous cars, GPS, weather, and other satellites , packet switching, EVS, nukes, SMRs, etc, almost always in concert with the private sector.

      Investors typically don’t invest their money into enterprises that won’t benefit them but instead their grandchildren.

      1. Nancy Naive Avatar
        Nancy Naive

        That’s exactly right. The government funds a lot of research whose benefits are needed immediately, i.e., weapons, drones, satellites, sensors,…. No way would civilian industry benefit that quickly from the R&D expenses, but when industry is ready to use the technology, it’s off-the-shelf for them.

        OTOH, government can also handle a lot more risk. The V-22 would be a wonder transport system for use from inner city to suburban airports. No way could Boeing handle that much blood on the runway however.

        1. LarrytheG Avatar

          V-22 is literally an accident waiting to happen IMO. If I were a solider, I’d have great hesitation catching a ride on it! If they ever get it optimized, it will be a boon but at this point, it’s a bridge too far.

  14. Nancy Naive Avatar
    Nancy Naive

    Columbus was a contractor. And too, Blackbeard.

    1. I feel that’s a very uncharitable comparison…for Edward Teach.

  15. Eric the half a troll Avatar
    Eric the half a troll

    “…NASA awarded Intuitive Machines a $118 million contract to carry six instruments to the lunar surface…”

    $118 million… could have paid for quite a few solar panels with that. Invest in our future here and now, imo.

    1. Nancy Naive Avatar
      Nancy Naive

      Alabama embryos have the same rights as children.

      “Quick! Someone call CPS and thaw those poor children out!”

      1. Eric the half a troll Avatar
        Eric the half a troll

        I recall a certain contributor here telling me that absolutely nobody is targeting fertility clinics… I think he used the hysterical word a few times… alas…

        1. LarrytheG Avatar

          It’s always some guy in another tent, not theirs!

          lemme guess… the one’s against birth control are also in the same tent?

        2. Nancy Naive Avatar
          Nancy Naive

          Well, that doesn’t surprise me. Bet he uses the word “morality” a lot too.

          Where is there a person who lives without food at -200 degrees? Where’s the morality in forcing a person to live under such conditions?

          1. Eric the half a troll Avatar
            Eric the half a troll

            Well, here is the quandary Conservatives find themselves. Trump and other Republicans came out in support of IVF treatments in response to the Alabama ruling. That means that they support abortion because no matter how you couch it, IVF often involves implanting multiple embryos and selectively aborting all but the most viable. There is no way to get around this fact and one of the many reasons the Catholic Church is unequivocal about its opposition to IVF.

            https://www.usccb.org/issues-and-action/human-life-and-dignity/reproductive-technology/begotten-not-made-a-catholic-view-of-reproductive-technology

            The headline: “Who Is Surprised That Trump Actually Does Support Abortion?”

          2. LarrytheG Avatar

            Folks should not misunderstand Trump. He knows how to motivate his base with hot-button issues but he also can and does maintain contradictory positions that same base will let him slide on – because he is their guy no matter what he does. They trust him to
            do whatever “needs” to be done.

            He has been ok with abortion even as he did appoint SCOTUS that would overturn it.

            No harm no foul with his supporters.

      2. LarrytheG Avatar

        Once again, technology outpaces religion!

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