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BOEING is a trademark of Boeing Management Company.
Copyright © 2009 Boeing. All rights reserved.
Commercial Space Transportation James R. (Russ) McMurry Principal Senior Counsel Space Exploration The Boeing Company
AIAA CASE Track 3 12 September 2012
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Space Shuttle Apollo Command & Service Module
Space Station
Apollo Launch Mercury
Lunar Rover Apollo-Soyuz Test Project
Skylab
Saturn V
Gemini
Boeing’s Human Rated Space Legacy
Our Vision is to Enable a Broad Human Space Flight Market
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Boeing Commercial Crew Overview
Simple capsule design on proven rocket with a focused mission
– Safe and reliable
– Low operations cost
– Low development risk
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Commercial Crew Transportation Operations Concept
Pre-launch processing
Manufacturing and test Recovery
Pad operations
• Atlas V
Launch
Landing
Mission control
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
CCDev Demonstrations
Life Support Demonstration
Uprighting Test
Landing Bag Drop Tests
Crew Module Mockup
VIDEO
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
CCDev Demonstrations
Abort Engine Test Firing
Arc jet test
Integrated Automated
Rendezvous & Docking Sim
Pressure Vessel structural test Heat Shield Fab VIDEO
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Benefits of Commercial Crew Market
We believe a commercial LEO market will ultimately develop, enabling new business opportunities for industry, lower costs for NASA, and a new venue for global access to space
NASA funding for development of a commercial crew system will maintain U.S. leadership in HSF and hasten the emerging commercial LEO platform market
– Commercial market incubation will result
– Commercial LEO platform customers
beyond NASA will launch (Bigelow)
– Human presence drives commerce
– Global utilization of LEO market
Once commercial LEO platforms become operational, NASA will benefit from reduced crew transportation service costs (economies of scale)
A commercial focus on LEO will enable NASA to expend the majority of its attention on “Beyond LEO” missions for deep space exploration
NASA Will Benefit Directly From a Commercial LEO Market
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Copyright © 2010 Boeing. All rights reserved.
BDS Network & Space Systems | Space Exploration | NASA Crew Transportation
Potential Commercial Customers
Orbital Technologies
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Summary
As pioneers of commercial aviation, Boeing is excited to be a part of pioneering a new commercial space venture
– Boeing can do in space what we’ve done in commercial aviation
We see no technical barriers to the design, development & build of a low-cost commercial crew system
NASA funding provides the impetus to increase the potential for development of the commercial HSF market
9/23/2012 9
We Stand Ready to Support NASA in Their New Vision as the Provider of Commercial Crew Services to LEO
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Challenges for Commercial Space
Liability Challenges
– No established Risk Management Regime as in traditional Launch
– Unknown Potential Plaintiffs
– New insurance market
Regulatory Challenges
– NASA “commercial” program---NASA or FAA control?
– ITAR considerations---What must be considered a defense service?
– Balancing Safety and Innovation in early regulatory schemes
Programmatic and Acquisition Challenges
– NASA “commercial” program---NASA or FAA control?
– ITAR considerations---What must be considered a defense service?
– FAR vs. SAA
– Number of viable Competitors
– Industry business case
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
BREAK
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
NASA Liability Risk Allocation Status
Shuttle Era--85-804 Indemnification provided
Defense nexus originated with early DoD missions and Vandenberg Launch
Defense missions prohibited post Challenger
Indemnification determination issued in perpetuity 15 June 2006
Current traditional NASA cost type programs (Space Launch
System {SLS} and Multipurpose Crew Vehicle {MPCV})
Contact clauses enabling Contractors’ requests for 85-804 indemnification
85-804 granted under these clause for limited specific events (Ares 1X test)
NASA concerned with defense nexus requirement
Commercial Programs (Commercial Crew Development {CCiCap})
No NASA acceptance of third party liability risks
Contractors left with commercial risk management protocols – CSLA
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
NASA Risk Allocation Shift Impacts
Moving Human Space Flight (HSF) from a Government to
commercial model changes liability risk allocation
– Shuttle contractors enjoyed full Governmental indemnification and the
Government Contractor Defense
– Commercial model subjects HSF contractors (designers, OEMs and operators)
to liability exposure
Risk Management for commercial HSF challenging:
– New risk mitigation protocols
• New industry; minimal regulation at present
• Insurance coverage and price uncertain; no claims history
• Grounds for legal action and legal venues uncertain
– Potentially enterprise threatening risk in event of catastrophic loss
– High net worth Plaintiffs abound
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Commercial Crew Transportation Operational Risk
Pre-Launch • Checkout (on-pad)
• Hazardous Operations (on-pad)
• Crew Ingress/Egress
• Facility Damage
• 3rd Party Liability
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Boost • Crew Safety
• 3rd Party Liability (staging debris)
Docking • Crew Safety
• Damage to Space Station
• ISS Crew Safety
• 3rd Party Liability (Station/CST-100 de-orbit) Re-Entry • Crew Safety
• 3rd Party Liability (service module debris)
Landing • Crew Safety
• 3rd Party Liability
• Recovery Operations
Abort • Crew Safety
• 3rd Party Liability (service module
debris)
Integration & Test • Integration/Transportation
Issues
• Hazardous Operations
• System Test/Checkout
• Facility Damage
• 3rd Party Liability
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Commercial Crew Transportation Liability Risk Mitigation Road Map
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Regulatory Challenges
Regulatory Environment
NASA only USG agency with expertise in human space flight safety (NASA owns HRR)
Some uncertainy around CSLA regime extension into CY-13
FAA empowered in 2015 to regulate crew launch and re-entry
Is that appropriate for Orbital Flight?
Is that appropriate for Suborbital Flight?
NASA/FAA role uncertainty increases risk
Mitigated by recent MOU; working relationship
Complexity: NASA owns expertise; FAA has authority
No one has on-orbit regulatory authority
FCC and communications protocols
HIPPA
ITAR
ITAR compliance generally
Passenger experience sufficient?
Export of Space Vehicle viable?
Unresolved Issues will Deter Market Entry
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Acquisition and Programmatic Issues
FAR vs. SAA
Misnomer
About level of oversight rather than legal authority
Only one current customer for crew to LEO: NASA
NASA ISS market size inadequate to support multiple suppliers
Sole Source to Russians today
Additional development extends lack of competition and NRE recoupment
Waste of industry and Government funds for those not selected
NASA can compete domestic vs. Russian transportation for competitive assessments
Unknown revenue base from potential commercial users over which to spread investment
International competition from government-subsidized systems can limit market capture
Government solution to ISS would end program and divert BEO resources
Unresolved Issues will Deter Market Entry
Page 18
Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
A Broad Spectrum of Potential Paths Forward
Boeing funds non-recurring (assumes cost risk) Over 200 customers provide input to design Boeing retains design authority FAA certifies compliance with well understood and
tested certification requirements
Navy funds non-recurring (assumes cost risk) Navy is only customer – owns requirements Navy retains design authority Navy approves compliance with unique/first-use
set of requirements
NASA & Boeing share non-recurring (CCDev) NASA & commercial customer (Bigelow) provide input to design; NASA owns HRR Boeing retains design authority with NASA insight only NASA reviews and approves compliance with HRR (unique/first use requirements)
Challenge: Finding a business model that bounds industry risk in bidding a fixed price development contract with NASA ownership of HRR and TBD level of insight
Commercial Development Cost-Plus Fixed Fee Development
Navy P-8 Poseidon 737 Airliner
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Opportunities for NASA to Ensure Market Entry
Mitigate obstacles with SAA fixed price development contracts
– Verify that our commercial crew design architecture will satisfy NASA human rating requirements (HRR) prior to fixed price DDT&E bid
– Define RAA for determining and approving HRR between NASA and FAA
– Resolve concerns around financial, liability and regulatory risks so that industry can close a business case for this new market
– Provide appropriate liability relief for each risk category
– Eliminate Termination for Convenience clause without TL
– Fund the significant portion of DDT&E of commercial systems
– Invest in required infrastructure and maintain ownership of major assets
– Execute the appropriate level of NASA insight required for a commercial-type contract
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Need resolution of these issues
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Copyright © 2009 Boeing. All rights reserved.
The Boeing Company | Space Exploration Division
Additional Business Case Issues/Concerns
Emerging, unpredictable markets involve high risk
TBD revenue base from potential commercial customers
– Inability to rely on commercial market to recoup up-front investment and start-up costs
– Future commercial market limited due to subsidized international competitors – India, China, Russia
– Potential competition for internal NASA funding and external venture capital against a fully funded Deep Space capsule development program
ISS is the only LEO platform requiring crew transportation services
– Business case will have to close on those mission requirements alone
– Even NASA market is not sufficient to recoup private investment – Max NASA market entails 2-4 flights/year with multiple providers
Resolution of new market liability and regulatory standards
– Expand CSLA indemnification to cover crew and in-orbit ops
– Need time for a private insurance regime to mature to cover industry risk
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Integrated Defense Systems
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with the statement that 'It can't be
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