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Space startups warming to U.S. government as investor, customer

January 17, 2020 By Andrew Smith

Space startups are becoming more acquainted with the U.S. government as a customer and an investor, though the pathways to both remain difficult, a panel of experts said Jan. 14.

“2019 was the year of government,” Carissa Christensen, CEO of analyst firm Bryce Space & Technology, said at a Washington Space Business Roundtable event here.  “We saw many firms overtly or less overtly turn towards government as a potential customer.”

Christensen said there are several reasons for the stronger interest in U.S. government contracts among startups.  The creation of the Space Force and an increase in study contracts from the National Reconnaissance Office and other agencies is making government business more interesting to startups, she said.  Some startups could also be facing slow development of their target commercial market, she said.

“To me, the government as a customer is pretty important and an increasingly critical element of the potential success of venture-funded space startups,” Christensen said.

Continue reading at:  SpaceNews

Filed Under: Contracting News Tagged With: space, Space Force, startups

Commercial space companies have received $7.2 billion in government investment since 2000

July 16, 2019 By Andrew Smith

Early investments from a government agency, like NASA or the Air Force, can be a crucial step in the evolution of commercial space companies from scrappy startups to successful businesses.  That’s according to a new report from Space Angels, an investment firm focused on the space industry, which quantified how much money government agencies have invested in private aerospace firms over the last 18 years.

The analysis reveals just how important a role the government still plays in the private space industry.  It found that early public investment can sometimes be the difference between life and death for a company.  “I think it’s really important for people to recognize that it isn’t just the private sector deciding to do something,” Chad Anderson, CEO of Space Angels, tells The Verge.  “The government has played a key role in the development of entrepreneurial space companies.”

Continue reading at:  The Verge

Filed Under: Contracting News Tagged With: Air Force, NASA, space

Small launch vehicle companies seek improvements in government contracting

July 4, 2019 By Andrew Smith

As Rocket Lab prepares the next launch of its Electron rocket, it and other small launch vehicle developers say the U.S. government can be a better and smarter customer for their services.

A Rocket Lab Electron is scheduled to lift off from the company’s launch site on New Zealand’s Mahia Peninsula during a two-hour window that opens at 12:30 a.m. Eastern June 27.  The mission, dubbed “Make It Rain,” is a dedicated rideshare mission for Spaceflight Industries carrying several small satellites, including BlackSky’s Global-3 imaging satellite, with a total payload mass of 80 kilograms.

Rocket Lab’s last two launches, though, were directly for U.S. military customers.  A May 5 launch placed three technology demonstration satellites into orbit for the U.S. Air Force, while a March 28 launch placed DARPA’s Radio Frequency Risk Reduction Deployment Demonstration (R3D2) into orbit.

Despite the success in winning business from U.S. government customers, the company says it’s much easier dealing with commercial customers for its launches.  Those customers often email the company asking if they can accommodate a particular satellite, said Lars Hoffman, senior vice president of global launch services at Rocket Lab, during a June 6 panel discussion at the National Space Society’s International Space Development Conference.

The company can then provide a quote to that customer within days, he said.  “We can be on contract within a matter of a week or two weeks.”

If a government customer seeks a similar launch, though, the contracting process takes longer.  “It can take months, and that’s on a streamlined” or rapid acquisition approach, he said.  That can stretch out to more than a year for a more traditional acquisition.

Continue reading at:  Space News

Filed Under: Contracting News Tagged With: DoD, launch vehicle, space

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