Why Bigelow passed on NASA bid for new ISS module

Capitalism in space: In an interview this week, Robert Bigelow provided his reasons for not bidding on the NASA agreement to build additional modules for ISS, won by passed on NASA bid for new ISS module, won by Axiom this week.

In a Jan. 28 interview, Robert Bigelow said his company decided not to bid on a NASA competition for access to an ISS docking port for a commercial module because the funding NASA offered for doing so was too low. NASA announced Jan. 27 it selected Axiom Space to use the port through its Next Space Technologies for Exploration Partnerships (NextSTEP) program.

When NASA issued the request for proposal in June for the docking port, NASA said it projected making $561 million available for both the docking port solicitation and a separate one to support development of a free-flying commercial facility. “That was asking just too much” of the company, Bigelow said. “So we told NASA we had to bow out.”

NASA now appears willing to separate the free flyer from the program, meaning that it wishes to make more money available to both, something Bigelow says is necessary because at the moment he believes there are not enough customers outside NASA for any orbital space business to make a profit.

On this last point I think Bigelow might be wrong. I also think it will be a mistake for NASA to provide these companies too much money. Keep them on a tight lease, force them to work efficiently so that they lower costs. This will make it easier for them to charge less to outside customers, thus widening their customer base more quickly.

If NASA gives them a blank check, it will remain the only customer, as the companies will then end up spending too much building their facilities, making it impossible for any other private customer to afford using it.

NASA picks Axiom to build three private commercial modules on ISS

Capitalism in space: NASA today picked the new space station company Axiom to build three modules to ISS, designed to operate as a private commercial operation.

The first segment launch is targeted for 2024. The three segments will include a node with multi-ports, a crew module, and a research module, and will be the “hotel” for private tourists that Axiom hopes to send to ISS two or three times per year. The entire section will also be designed to eventually separate from ISS when that station is retired and operate, with more additions, as an independent station.

This decision did not include the actual contract, only the choice of company to build this new section of ISS. Later negotiations will determine the fixed price amount that NASA will pay.

Why did NASA pick Axiom, which has not yet launched anything, and bypass Bigelow, which has launched two independent test modules and one that has been attached to ISS and working successfully now for several years? This quote explains:

Although Axiom is a relatively young company, having been formed only four years ago in 2016, there is no lack of experience within the company’s ranks.

Axiom’s Co-founder and CEO is Micheal Suffredini, who formerly worked at the Johnson Space Centre (JSC) as the program manager for the International Space Station project.

The Axiom team also includes Michael Lopez-Alegria, a former NASA astronaut who flew on the space shuttle three times and commanded the 14th Expedition to the ISS, as well as former shuttle commanders Brent Jett and Charles Bolden, the latter of whom served as NASA’s 12th administrator from 2009 to 2017.

Axiom is also working alongside several companies with extensive experience with the ISS program, this includes Boeing, who has made several of the modules that make up the US Segment, including Node 1 and the US Laboratory Module. Axiom is also working alongside Thales Alenia Space, Maxar Technologies and Intuitive Machines to get this project off the ground. [emphasis mine]

In other words, it appears it’s not what you know, it’s who you know. This is not to say that the individuals and companies listed above do not know much, but that the company’s real experience with building private modules is lacking. Boeing has built NASA’s modules, but those were for the government and were therefore costly. I have grave doubts they could do this inexpensively, though I could be wrong.

The key will be whether they aim to make their profits from their commercial customers, or use NASA (and the federal government) as their cash cow. The track record of most of Axiom’s partners suggests the latter. For example, Bigelow built and launched its BEAM module to ISS for $17 million, and got it done in three years. We don’t yet know the cost of Axiom’s modules, but their target build-time is already longer, at four to five years

Don’t get me wrong. I applaud NASA’s approach here. They are ceding ownership and construction to a private company, and allowing its work to be commercialized for profit, something that NASA routinely opposed for decades. I just worry that the company it has chosen will be not up to the task, and is not focused on making those profits.

Private company to offer tourist trips to its own facility on ISS

Capitalism in space: The private company Axiom has announced that it will offer tourist trips to its own facility it will add to ISS, and then eventually detach when the station is retired.

Axiom’s timeline has some flex, because it’s not yet clear how long the larger station will keep going, or what the assembly schedule will be for the company’s custom-built habitation module. But a weekend feature about the project in The New York Times cited 2022 as the supposed opening date.

In addition to the 10-day orbital stay, the $55 million would cover a 15-week training experience on Earth. Axiom is targeting space tourists as well as researchers and entrepreneurs who want to develop in-space manufacturing facilities.

Is this doable? Axiom isn’t yet laying out the complete logistical details, but the company will almost certainly rely on the likes of SpaceX and Boeing, which are developing space taxis for NASA’s use. Once those spaceships go into operation, sometime in the 2018-2019 period, there’s likely to be excess transportation capacity that Axiom could buy into.

This is the future of ISS, a privately run hotel. The Russians have announced a similar plan, attaching a module to ISS that will be designed as a hotel room for tourists. I expect others will eventually do the same. Once these profitable operations take hold, I guarantee that ISS will not be retired. There will be vested interests who will apply the right political pressure to keep it in orbit.

Will that be a good thing? It depends. From a taxpayer perspective, it might not be. ISS is very expensive to operate. Privately built and independent stations would be much cheaper, and would not involve any federal subsidy. At the same time, these private stations might not be doable at affordable prices in the near term. Maintaining ISS for these private companies might in this case be a very reasonably use of federal funds. As the profits rise, the companies will eventually be able to afford building their own stations that will serve their needs better than ISS. That will then be the time to retire ISS, when other private and profitable stations are there, ready to replace it.

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