Commercialization: October 2015 Archives

Keith's note: CASIS (The Center for the Advancement of Science in Space) is a non-profit 501(c)(3) organization chosen by NASA in 2011 to manage the portion of the International Space Station that has been designated as a U.S. National Laboratory. Non-profit organizations are established to do things in the public interest and not to generate a profit - or enrich their employees or advisors. Recently the IRS has started to look more deeply into compensation of non-profit executives and staff. CASIS likes to pay a lot of its employees hefty salaries - the top ten employees make much more than virtually everyone at NASA - including the NASA Administrator.

According to the Foundation Group: "There are legitimate, charitable organizations whose executives make up to, and sometimes more than, $250,000. For a very select few, a lot more. But let me put it like this if you have an employee whose compensation package exceeds $100,000, you better be prepared to defend it. Needless to say, Wall Street-style perks and bonuses are out of the question. And, depending on your organization's budget, a $10,000 salary package could be considered unreasonable."

According to a report "Nonprofit Organizations Salary and Benefits Report", published in 2014 by the NonProfit Times "The average salary for a nonprofit chief executive officer/president last year was $118,678. The median salary was $100,000 while the maximum found was $666,266. The average tenure for a nonprofit CEO was almost 12 years and almost 40 percent of participating organizations paid their CEO some type of bonus."

Let's look at the reportable compensation and nontaxable benefits for the top employees at CASIS as listed on their 2013 Form 990, Part VII: Gregory Johnson, President and Executive Director: $148,333 + $5,375; Duane Ratliff, Chief Operating Officer: $225,000 + $31,689; Jorge Fernandez, Chief Financial Officer: $200,000 + $18,689; Charles Resnick, Chief Economist: $220,000 + $30,701; Warren Bates, Director of Portfolio Management: $200,008 + $19,370; James Royston, Interim Executive Director (Until 9-9-14): $228,012 + $11,312, Eddie Harris, Director of Development: $197,000 + $29,986; Melody Kuehner, Director of Human Resources, $160,000 + $27,277; Brian Harris, Director of Business Development, $153,000 + $26,756, and Kenneth Shields, Director of Operations and Education: $131,220 + $32,117. That's 6 employees making over $200,000 a year and 4 others making over $170,000 a year. By comparison the NASA Administrator made $179,700 in 2014. 99.96% of CASIS funds come from NASA. Note: The fiscal year for CASIS ends on 30 September - so they have a while to file their next return with the IRS. Sources report that the 2014 Form 990 for CASIS will show a salary for Greg Johnson in the $300,000 range.

NASA Review of Orbital ATK Accident Released, NASA

"The team determined the proximate cause of the Antares launch vehicle failure was an explosion within the AJ-26 rocket engine and identified three credible technical root causes, any one or combination of which could have resulted in the engine failure. The team outlined six technical findings and made seven recommendations to address those technical findings. In addition, since Orbital ATK was in the process of procuring and testing new engines to replace the AJ-26 for future Antares flights while the investigation was ongoing, the team provided several recommendations for Orbital ATK and the ISS Program that were used to support those testing activities and to reduce overall risk for Antares return-to-flight and follow-on mission efforts. The NASA team's findings are consistent with the AIB's findings."

House and Senate Reach Agreement on Commercial Space Legislation, SpacePolicyOnline

"House and Senate negotiators have reached agreement on a compromise version of commercial space legislation that passed the House and Senate earlier this year. Details of the compromise have not been made public, but the revised bill could be voted on soon. The Senate bill, the Commercial Space Launch Competitiveness Act (S. 1297) passed in August. The House bill, Spurring Private Aerospace Competitiveness and Entrepreneurship (SPACE) Act (H.R. 2262), passed in May. The House and Senate versions have many differences, but Rep. Brian Babin (R-TX), the new chair of the Space Subcommittee of the House Science, Space and Technology Committee, recently characterized them as minor during an appearance before the FAA's Commercial Space Transportation Advisory Committee (COMSTAC).."

Coalition for Space Exploration takes steps to ensure broad support for deep-space exploration

"The Coalition for Space Exploration, an ad-hoc organization of space industry businesses and advocacy groups, today announced it is taking formal steps to provide a single, unified voice for the deep-space exploration industry. The organization is seeking 501 (c) 6 status, appointing an executive director and changing the name of the organization to the Coalition for Deep Space Exploration."

Keith's note: The Coalition for Space Exploration was originally created by many aerospace companies to promote all aspects of space exploration and they managed to do a good job at being balanced and enthusiastic. That effort has now been taken over by the so-called "Four Amigos": Boeing, Lockheed Martin, Aerojet, and Orbital ATK and will now be a de facto lobbying effort in Washington DC for SLS and Orion. It will be interesting to see how its new executive director Mary Lynne Dittmar deals with conflict of interest issues given that she also works for CASIS (which gets 99.9% of its funding from NASA) and is a member of the National Academies of Sciences Space Studies Board Executive Committee. Given the broad and overlapping aspects of all these jobs/positions, it is a little hard to see where government, private sector, and advisory aspects of her employment would not overlap at least once a day.

The Four Amigos and The Future of Competition in Space Commerce, earlier post

Keith's update: Congress has been moving ahead with a budget today. Does this new organization speak out against the cuts to NASA commercial crew (which affects the 4 Amigos) or stay silent and only praise funding for SLS/Orion (which benefits the 4 Amigos)? Stay tuned.

Keith's 27 Sep note: Golden Spike Company (http://goldenspikecompany.com/) was going to do all sorts of commercial stuff on the Moon with lots of illustrious names attached. Their website went dark a week and a half ago and no one seems to have noticed. Not a good way to maintain a business presence. Oh well.

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Keith's 29 Sep update: After being offline for several weeks someone at Golden Spike finally noticed that their website was down an hour or so ago. It now says "under construction". Either no one at the company pays much attention to their website - or no one outside of the company visits the site often enough for its absence to be noted. Take your pick, I guess.

Keith's 27 Oct update: A month later and the website still says "under construction". This is what it looked like in August 2015 when they were asking for non-tax deductible donations. Business must be a little slow if a functional website is such a low priority. Just sayin'.

Keith's note: The organization chosen by NASA to promote the scientific utilization of the International Space Station has been unable to raise funds it planned to raise. The Center for the Advancement of Science in Space (CASIS) chosen by NASA in 2011 to manage the portion of the International Space Station that has been designated as a U.S. National Laboratory. Developed at the direction of Congress, CASIS was to be given NASA funds to promote research on the ISS while seeking to generate additional funds from the private sector to augment this research. The maximum annual value of this arrangement with NASA is $15 million per year.

According to the CASIS Strategic Plan, one of their operational strategies is to: "Develop a robust financial model to supplement government funding. CASIS funding from NASA is currently projected at $15M per year, to cover operating costs and to provide seed money for promising R&D. To meet the variety of demands on personnel, infrastructure, business processes and outreach that will grow over time, CASIS must develop additional resources in the form of partnerships and funding and create rigorous business and economic models in order to sustain these. Sources will include private financiers, corporate sponsorship, philanthropists and federal grants that may leverage cost sharing and equity investment in new ventures. Additionally, CASIS will practice management excellence in its operating models to ensure costs are minimized while ISS utilization is maximized effectively toward mission success."

Well CASIS has failed miserably in this regard. If you look at their IRS 990 forms from 2011, 2012, and 2013 (the only returns available) you will see that for at least the past 3 years 99.9% of CASIS' income was from NASA.

NASA Awards Venture Class Launch Services Contracts for CubeSat Satellites

"The three companies selected to provide these new commercial launch capabilities, and the value of their firm fixed-price contracts, are:
- Firefly Space Systems Inc. of Cedar Park, Texas, $5.5 million
- Rocket Lab USA Inc. of Los Angeles, $6.9 million
- Virgin Galactic LLC of Long Beach, California, $4.7 million"

Keith's note: This is really strange. NASA KSC PAO is having a press event today - one they announced last week - to announce the selection of these three companies when in fact, as noted on NASAWatch on 7 October these awards were already announced and posted on NASA's procurement website on 1 October. So why wait 2 weeks to announce something that has already been announced?

What Is NASA's Venture Class Launch Service Announcement?, earlier post (with links to NASA contract awards)

Stinger Ghaffarian Technologies Announces Appointment of Michael Suffredini as President, Commercial Space Division

"Michael T. Suffredini will lead the Commercial Space Division, a new enterprise for SGT. The Commercial Space Division will focus SGT's and its affiliated companies', spaceflight engineering, operations and hardware development capabilities on space related commercial opportunities. Through private and public/private partnerships the division expects to play a significant role in the development of low Earth orbit capabilities to support and foster the growing economy and commercialization of space. Dr. Kam Ghaffarian, the CEO and President of SGT stated "Mike's experience and accomplishments are the perfect match for our Commercial Space Division and he will build a new future for SGT as we embark on the commercialization of space."

About Those SpaceX Rumors

Pentagon denies ULA waiver on Russian engines, Washington Post

"The Pentagon announced Friday that it would not grant the United Launch Alliance a waiver allowing it to bypass a congressional ban on Russian-made engines that the company has said it desperately needs to compete in the multibillion-dollar national security launch market. ULA, the joint venture between Lockheed Martin and Boeing that had a monopoly on national security satellite launches for a decade, had pleaded with the Pentagon for a waiver that would allow it to use more RD-180 engines to power its Atlas V rocket. The company has four of the engines in its inventory that it could use for national security launches, ULA chief executive Tory Bruno recently told reporters. But he said ULA needs at least 14 to compete to launch national security payloads, such as spy and communications satellites, before it is able to use a new, American-made engine it is developing with Jeff Bezos's Blue Origin. (Bezos owns The Washington Post.)"

SpaceX raps ULA bid to get U.S. waiver for Russian engines, Reuters

"Space Exploration Technologies, or SpaceX, has slammed a bid by United Launch Alliance, a joint venture of Lockheed Martin Corp and Boeing Co, to get a waiver from a U.S. ban on Russian rocket engines for military use. Elon Musk, the billionaire founder of Tesla Motors and chief executive of SpaceX, told Defense Secretary Ash Carter that federal law already allowed ULA to use "a substantial number" of engines. ULA's threat to skip an upcoming Air Force competition to launch a GSP satellite unless it got a waiver was "nothing less than deceptive brinkmanship for the sole purpose of thwarting the will of Congress," he wrote in a letter dated Oct. 5. A copy was obtained by Reuters on Thursday."

Previous RD-180 posts

NASA to Announce Selections for Small Satellite Launch Contract

"NASA will host a news conference at 1 p.m. EDT on Wednesday, Oct. 14, at the agency's Kennedy Space Center in Florida to announce the outcome of the Venture Class Launch Service (VCLS) competition. The news conference will air live on NASA Television and the agency's website."

Keith's note: NASA issued these Venture Class Launch Service contract awards last week. Rocket Lab got $6,950,000, Firefly got $5,500,000, and Virgin Galactic got $4,700,000 (or is there a missing decimal point?). What else is NASA going to announce?

- NASA KSC Contract Award: Venture Class Launch Service - Rocket Lab USA
- NASA KSC Contract Award: Venture Class Launch Service - Firefly Space Systems
- NASA KSC Contract Award: Venture Class Launch Service - Virgin Galactic

"VCLS is a Firm-Fixed Price contract for a dedicated launch service for U-Class satellites with NASA having sole responsibility for the payload on the launch vehicle. NASA Launch Services Program (LSP) supports the CubeSat Launch Initiative (CSLI) by providing launch opportunities for CubeSats that are currently on the manifest back log."

As an Emerging Space Nation Israel Makes a Statement in Hosting the International Astronautical Congress, SpaceRef

"Israel's space program was born out of military need, but in recent years the civil space program has received an infusion of funding and next week it will host the annual International Astronautical Congress in Jerusalem."

Marc's note: Charlie Bolden will take part in the annual Heads of Agencies plenary next Monday.

I will be at Congress covering it with stories to be posted here.

Related: Q&A with Isaac Ben-Israel, Chairman of the Israel Space Agency, SpaceNews

Israeli Google Lunar XPrize Team is First to Sign Launch Agreement for Private Mission to the Moon on SpaceX Falcon 9

"At a press conference held in Jerusalem today, alongside Israeli President Reuven Rivlin, and Bob Weiss, vice chairman and president of XPRIZE, SpaceIL announced a significant milestone in its race to the moon: securing a "ticket to the moon" on a SpaceX Falcon 9 launcher, with a mission scheduled for the second half of 2017. With this, SpaceIL becomes the first team to produce a verified launch contract in the US$30 million Google Lunar XPRIZE competition, and aims to accomplish not only the first Israeli mission to the moon, but also the world's first private lunar mission."

Marc's note: With this contract SpaceIL now has until December 31, 2017 to win the competition. It is also good news for the remaining teams in the competition. The deadline for teams without a contract is now extended to December 31, 2016. They have to show a verified contract by that date to stay in the competition.

This news comes just over a week after Moon Express announced it had a launch contract. However, unlike SpaceIL, their contract has yet to be verified by the Google Lunar X Prize.

Previously:

Google Lunar X Prize to Verify Moon Express Launch Contract, SpaceRef Business

Chanda Gonzales, Senior Director, Google Lunar XPRIZE said on the contract issue "Our decision is based on a holistic assessment of whether the launch contract is genuine, whether there are any legal issues that might pop up, whether there are any obvious non-compliances with the rules, and whether a substantial commitment was made by both the team and the launch provider (e.g. non-refundable deposit of some certain minimum value)."

Russia's New Rocket Won't Fit in Its New Cosmodrome, Moscow Times

"Work at Russia's new $ 3 billion spaceport in the Far East has ground to a halt after a critical piece of infrastructure was discovered to have been built to the wrong dimensions, and would not fit the latest version of the country's Soyuz rocket, a news report said."

- Russia's Vostochny Cosmodrome Has Big Problems, earlier post
- More Negative Progress at Vostochny Cosmodrome, earlier post
- Vostochny Cosmodrome First Launch Slips 3 Years, earlier post
- Man Driving Diamond-encrusted Mercedes Caught Embezzling Cosmodrome Funds, earlier post

ULA needs relief on Russian engines before GPS launch bid -CEO, Reuters

"United Launch Alliance, a joint venture of Lockheed Martin and Boeing, on Friday said it cannot bid in a U.S. Air Force competition to launch a GPS satellite unless it gets some relief from a ban on use of Russian rocket engines. ULA Chief Executive Officer Tory Bruno told reporters in Cape Canaveral, Florida, that the company was seeking a partial waiver on trade sanctions enacted last year that ban U.S. military use of the Russian RD-180 engine that powers ULA's primary workhorse Atlas 5 rocket. The issue is now in the hands of Defense Secretary Ash Carter, Bruno said. Without the waiver, he said, ULA could not compete for that launch or any other new national security launches until a new American-built engine is ready in 2019."That's not a viable business model," he told reporters."

United Launch Alliance under pressure from Elon Musk's SpaceX upstart and Congress, Washington Post

"ULA is facing a challenge from SpaceX, the hard-charging upstart founded by billionaire entrepreneur Elon Musk, which just won certification by the Air Force that would allow it to compete against ULA for the next Pentagon launch contract. And ULA faces an even bigger problem: the Russian-made rocket engine it relies on has been entangled in a messy political fight that could threaten its ability to compete at all."

Moon Express Launch Contract to be Verified by Google Lunar XPRIZE, SpaceRef Business

"Yesterday Moon Express became the first Google Lunar X PRIZE participant to sign a launch contract with a launch service provider, albeit one who has yet to launch a rocket."

"The contract with Rocket Lab, a New Zealand startup based in Los Angeles but with a launch site in New Zealand, still needs to be verified by the Google Lunar X PRIZE authorities."

Marc's note: For the competition to be extended beyond this year the Google Lunar X PRIZE needs to verify the launch contract signed between Moon Express and Rocket Lab. If Moon Express had signed a contract with SpaceX, I think this would be a formality. However Rocket Lab has yet to launch their Electron rocket. Does that play into the decision process? Or is it just a matter of verifying the legality of the contract? I'm waiting for a response from the Google Lunar X Prize on this question.

Marc's update: Here's what Chanda Gonzales, Senior Director, Google Lunar XPRIZE said on the contract issue "Our decision is based on a holistic assessment of whether the launch contract is genuine, whether there are any legal issues that might pop up, whether there are any obvious non-compliances with the rules, and whether a substantial commitment was made by both the team and the launch provider (e.g. non-refundable deposit of some certain minimum value)."

Lockheed Martin Eliminated From NASA's Cargo Competition, Wall Street Journal

"NASA has quietly eliminated Lockheed Martin Corp. from a pending multibillion-dollar competition to ship cargo to the international space station starting in roughly three years, according to people familiar with the details."

Lockheed Martin Solution For NASA's Commercial Resupply Services Designed For Reliable Space Cargo Delivery, Lockheed Martin

"The Lockheed Martin CRS-2 solution brings many affordability benefits with it. Not only does it employ a reusable spacecraft and create the option to host commercial payloads, it's also designed to support future exploration missions in deep space."

Keith's note: This certainly has to factor into Lockheed Martin's thoughts about whether they want to try and sell their interest in ULA.


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