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Subject: SPACE Digest V9 #537

SPACE Digest                                      Volume 9 : Issue 537

Today's Topics:
          Space Transportation Services Purchase Act
              Re: Don't mess with NASA?
    Re: space news from May 15 AW&ST (replacing computers)
           Remarks on HR 2674 (Rep. Packard, R-CA)
----------------------------------------------------------------------

Date: 2 Jul 89 22:05:53 GMT
From: [e-mail]  (Bill Ganoe)
Subject: Space Transportation Services Purchase Act


Draft HR 2674: 101st Congress, 1st Session
Space Transportation Services Purchase Act of 1989
House of Representatives
June 15, 1989.

(For more information call Mark Voelker, [phone] (Tucson)
or Andrew Cutler, [phone] (San Diego).)

Committee on Science, Space, and Technology
US House of Representatives
Washington, DC 20515.


Sponsor: Ron Packard.
Original Co-Sponsors: Jim Kolbe, Dana Rohrabacher, George E. Brown,
   Ralph M. Hall, Tom Lewis.


Title: To encourage the development and full capability of a
competitive US space transportation industry by requiring the Federal
Government to contract for commercially provided space transportation
services with certain exceptions.


Mr. Packard introduced the following bill:


Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled:


Section 1. Short Title.
        This Act may be cited as the "Space Transportation Services
Purchase Act of 1989".

Section 2. Findings. The Congress finds that--
        (1) the US commercial space transportation industry is
technically capable of providing reliable and cost-efficient access to
space and is an essential component of national efforts to assure
access to space for government and commercial users;
        (2) the Federal Government should encourage, facilitate, and
promote the US commercial space transportation industry, including the
development of commercial launch facilities, in order to ensure US
economic pre-eminence in space, and should do so with minimum Federal
subsidy;
        (3) the US commercial space transportation industry must be
competitive in the international marketplace;
        (4) commercial vehicles, not government vehicles, will be the
most effective means to challenge foreign competition;
        (5) the requirements of government specifications relating to
vehicle design, construction, and operation impose an unwarranted
burden on the engineering and operational freedom necessary to achieve
substantial cost savings in the provision of space transportation
services;
        (6) the procurement of space transportation services by the
Federal Government rather than the procurement of space transportation
vehicles would permit a reduced level of Federal Government regulation
and oversight, which would result in significant cost savings to the
Federal Government;
        (7) the procurement of space transportation services by the
Federal Government in a commercially reasonable manner would result in
significant cost savings to the commercial space transportation
industry and to the Federal Government;
        (8) it is the general policy of the Federal Government to
purchase needed services from the private sector to the fullest extent
feasible, and this policy should include space transportation services
as well;
        (9) application of similar policy by foreign governments has
greatly assisted their respective space transportation industries;
        (10) predictable access to Federal Government space
transportation markets would encourage continuing US private sector
investment in space and related activities; and
        (11) the National Aeronautics and Space Administration should
concentrate its resources on the development of new solutions to the
problems of space flight and on the continued manned and unmanned
exploration of space rather than on the operation of mature space
transportation technologies.


Section 3. Definitions. For the purpose of this Act--
        (1) the term "commercial provider" means any person providing
space transportation services, but does not include the Federal
Government;
        (2) the term "payload" means anything which a person
undertakes to transport to, from, or within outer space by means of a
space transportation vehicle, and includes components of the space
transportation vehicle specifically designed or adapted for that
payload;
        (3) the term "Secretary" means the Secretary of
Transportation;
        (4) the term "space transportation services" means activities
involved in the preparation of a space transportation vehicle and its
payload for space transport and the conduct of transporting a payload
to, from, or within outer space;
        (5) the term "space transportation vehicle" means any vehicle
constructed for the purpose of operating in, or transporting a payload
to, from, or within, outer space,and includes any component of such
vehicle not specifically designed or adapted for such a payload; and
        (6) the term "United States person" means--
                (A) any individual who is a citizen of the US; or
                (B) any corporation, partnership, joint venture,
    association, or other entity, if the controlling interest(as
    defined by the Secretary in regulations) in such entity is
    held by individuals who are citizens of the US.
Section 4. Requirement to Procure Commercial Space Transportation
Services.
        (a) IN GENERAL--Except as otherwise provided in this section,
the Federal Government shall purchase space transportation services
from commercial providers whenever such services from commercial
providers whenever such services are required in the course of its
activities.
        (b) EXCEPTIONS--The Federal Government shall not be required
to purchase space transportation services as provided in subsection
(a) if, on a case by case basis--
                (1) the Secretary of Defense certifies to the National
    Space Council that national security  reasons require otherwise;
                (2) the Administrator of the National Aeronautics and
    Space Administration certifies to the  National Space Council
    that the space shuttle are required; or
                (3) the Secretary finds that the space transportation
    services required are unavailable at a  reasonable cost from
    commercial providers.
        (c) FEDERAL GOVERNMENT SPACE TRANSPORTATION VEHICLES--Space
transportation vehicles shall be acquired, owned, maintained, or
operated by the Federal Government only if such space transportation
vehicles are manufactured or produced primarily in the US of primarily
US-made components, and only--
                (1) as required under circumstances described in
    subsection (b); or
                (2) by the National Aeronautics and Space
    Administration for conducting research and  development on, and
    testing of, space transportation technology.
        (d) PHASE-IN PERIOD--Subsections (a) and (c) shall not apply
to space transportation services and space transportation vehicles
purchased by the Federal Government before the date of enactment of
this Act. Any such space transportation vehicles purchased by the
Federal Government before the date of enactment of this Act may be
sold to commercial providers if such sale would result in a more
economical acquisition by the Federal Government of space
transportation services.
        (e) HISTORICAL PURPOSES--This Act shall not be interpreted to
prohibit the Federal Government from acquiring, owning, or maintaining
space transportation vehicles solely for historical display purposes.

Section 5. Provision of Space Transportation Services.
        (a) COMPETITIVE BIDDING-- (1) Except as provided in paragraph
(2), contracts to provide space transportation services to the Federal
Government under section 4 shall be awarded in a process of full,
fair, and open competitive bidding among US persons who use space
transportation vehicles manufactured or produced primarily in the US
of primarily US-made components.
        (2) Paragraph (1) shall not apply if the Secretary determines
that to award a contract under its provisions would be unreasonably
disadvantageous to the Federal Government.
        (3) Submission of cost data either for the purposes of
supporting the bid, or for the fulfillment of the contract, shall not
be required of the bidders.
    (b) SPECIFICATION SYSTEMS--Conformance with the
military Specification (Milspec)  system or NASA specification systems
with respect to the design, construction, or  operation of equipment
used in providing space transportation services to the Federal
Government shall not be a requirement for a commercial provider
bidding to provide such  services, except with respect to emergency
flight termination (range safety) equipment  when flights are made fom
launch sites owned by the Fedreal Government. Section 6. Other
Activities of the Federal Government--
        (a) COMMERCIAL PAYLOADS ON THE SPACE SHUTTLE--No commercial
payloads may be accepted for launch on the space shuttle with the sole
exception of payloads which the Administrator of the NASA, in
consultation with the Secretary, determines require unique
capabilities of the shuttle.
        (b) GRANTS--Grants of funds by the Federal Government to US
persons for activities which use space transportation services shall
carry as a condition of grant the requirement to purchase such
services through a process of full, fair, and open competition, giving
preference to commercial providers who are US persons. In the case of
each such grant, the grantee shall certify to the Secretary that such
a full, fair, and open competition led to the purchase of those
services. This subsection shall not apply to grants made before the
date of enactment of this Act.
        (c) INTERNATIONAL EXPENDITURES--Expenditures of funds by the
Federal Government for the purpose of supporting international
cooperative activities or international organizations utilizing space
transportation services shall be made with the condition that all
commercial providers who are US persons are given a fair and equitable
opportunity to compete for provision of those space transportation
services. In the case of each such expenditure, the head of the agency
making the expenditure shall certify to the National Space Council
that such opportunities exist before the release of funds for such
purposes. This subsection shall not apply to expenditures to be made
under agreements reached before the date of enactment of this Act.
        (d) STUDIES--Expenditures of funds by the US for studies of
means of meeting future space transportation services requirements of
the Federal Government shall be made with the condition that due
attention will be given to the potential of commercial providers to
meet such requirements, and to the need to avoid deterring private
space investment by any future government action affecting space
transportation. In order to facilitate such attention, the head of the
agency conducting the study shall consult with the National Space
Council.

------------------------------

Date: 2 Jul 89 21:12:54 GMT
From: jarvis.csri.toronto.edu!utgpu!utzoo![e-mail]  (Henry Spencer)
Subject: Re: Don't mess with NASA?

In article <[e-mail]> [e-mail] writes:
>>... If you want class when climbing into an aircraft, it has to have
>>afterburners.
>
>Better watch it, Henry--you'd have to do it in a government-sponsored,
>government-funded aircraft!  :-) :-)

Ouch.  Touche. :-)

Actually, you can find non-government birds with afterburners, but there
aren't very many of them and often they aren't very accessible.
--
$10 million equals 18 PM       |     Henry Spencer at U of Toronto Zoology
(Pentagon-Minutes). -Tom Neff  | uunet!attcan!utzoo!henry [e-mail]

------------------------------

Date: 2 Jul 89 14:12:50 GMT
From: phri![e-mail]  (Roy Smith)
Subject: Re: space news from May 15 AW&ST (replacing computers)

In <[e-mail]> [e-mail] (Henry Spencer) writes:
> the Atlantis crew replaced one of the orbiter's five general-purpose
> computers after it failed [...] it took about four hours because the
> computers are behind some of the middeck lockers and are not easy to get at.

    I don't understand.  I thought that the various computers were all
constantly checking each other and if one failed, it would be taken off line
automatically and the others would continue to operate without it.  Why the
need to rummage around behind the furniture for 4 hours?
--
Roy Smith, Public Health Research Institute
455 First Avenue, New York, NY 10016
{allegra,philabs,cmcl2,rutgers,hombre}!phri!roy -or- [e-mail]
"The connector is the network"

------------------------------

Date: 2 Jul 89 22:08:32 GMT
From: [e-mail]  (Bill Ganoe)
Subject: Remarks on HR 2674 (Rep. Packard, R-CA)



Extension of Remarks of Hon. Ron Packard (R-CA): Space Transportation
Services Purchase Act of 1989 Thursday, June 15, 1989

Mr. Packard, Mr. Speaker, I rise today to introduce the Space
Transportation Services Purchase Act of 1989, legislation to enhance
the viability of the US space transportation industry.

The primary objective of the US space transportation policy should be
to encourage the emergence of a strong competitive US commercial space
industry. The Space Transportation Services Purchase Act furthers this
objective through enhanced competitiveness in the US space
transportation industry.

Obtaining this objective will give the US two important benefits, one,
the safe and successful launching into orbit of government and private
payloads at the lowest possible cost. Free competition among private
companies will promote competitive pricing without sacrificing
performance. Two, NASA can focus on its original objective of space
exploration and research. NASA can use its resources to increase our
knowledge of space and leave commercial development of space to the
private sector.

The space transportation services companies are at a severe
competitive disadvantage with foreign launch companies because the
foreign governments either subsidize the launch cost or provide a
portion of third-party liability coverage. It is true that the
intensity of world competition for the launch services market will
depend in part on the level of demand for services. Yet, the fact
remains that the European Arianespace and the Chinese Long March offer
increasingly competitive space transportation services, and the
Japanese are currently planning to begin operation of their space
transportation services in 1992.  Mr. Speaker, only commercialization
will permit a restructuring of US space activities necessary and
sufficient to establish a viable US space transportation industry
capable of competing internationally. The US Government should
encourage this privatization by purchasing launch services in a
commercially reasonable manner from the private sector.

The bill I am introducing today addresses these two key areas which
will greatly affect the viability and privatization of the American
space transportation industry.

First, the government would be required to purchase all space
transportation services from the private sector, except for
currently on a very limited basis. Presently, the government usually
purchases space transportation vehicles from a company, then later
purchases space transportation vehicles from a company, then later
purchases launch services from that same company.

By contrast, a private sector payload operator always purchases a
complete package--space transportation services--never the vehicle,
then the services. As a buyer of the vehicles, the US government has
maintained unnecessary regulatory and oversight authority over the
construction and operation of the vehicle which results in
substantially higher costs incurred and lack of engineering and
operating freedom.

To be internationally competitive in the long term, the US industry
must be launching competitively designed and priced vehicles, not
vehicles designed by government regulation. Major launch companies
have a commercial division and a government division. There should be
no difference between the two. The commercial division's product
design is supposed to reflect marketplace demands such as cost,
efficiency, and reliability. By contrast, the government division's
design is governed by the Federal Acquisition Regulations, milspecs,
and the procuring agency's needs. The more that the government buys
commercially rather than in the traditional manner, the more
commercial features will appear in these vehicles, the lower the cost,
and the greater the efficiency of the company.

The second key area which will affect privatization is the
government's space transportation services procurement policy. This
legislation mandates that all federal agencies procure space
transporttion systems in a commercially reasonable manner which would
result in a significant cost savings to the government and to the
space transportation industry. The traditional procurement methods of
the government impose burdensome and unnecessary cost controls and
accounting procedures at great cost to the industry.

Mr. Speaker, the US private sector has the capability and
entrepreneurial spirit needed to expand its role as a major competitor
in the world commercial space market. The economic, technological,
scientific, foreign policy, and national security benefits the nation
would reap from this achievement are great. I invite my colleagues to
join me in supporting the Space Transportation Services Purchase Act
of 1989 as an important step toward enhancing the commercial
environment for the US space transportation industry.

------------------------------

End of SPACE Digest V9 #537
*******************