Capitalism in space: NASA yesterday announced that it has picked three commercial companies, Astrolab, Intuitive Machines, and Lunar Outpost, to begin feasibility design work on its new manned lunar rovers, dubbed a Lunar Terrain Vehicle (LTV), for its planned Artemis missions to the Moon.
NASA will acquire the LTV as a service from industry. The indefinite-delivery/indefinite-quantity, milestone-based Lunar Terrain Vehicle Services contract with firm-fixed-price task orders has a combined maximum potential value of $4.6 billion for all awards.
The three companies are actually each a partnership of several American companies, as follows:
- Astrolab is building its FLEX rover in partnership with Axiom Space, Inc., and Odyssey Space. Its contract is worth up to $1.9 billion.
- Intuitive Machines is building its RACER rover in partership with AVL, Boeing, Michelin, and Northrop Grumman. This initial award is worth $30 million, but future buys from NASA could exceed $1 billion.
- Lunar Outpost is building its Lunar Dawn rover in partnership with Lockheed Martin, General Motors, Goodyear, and MDA Space.
All three lead companies are essentially startups that have partnered with older established players, a likely requirement imposed by NASA to give their effort some experienced help. Though this system of dividing up the work between all the players follows the old scheme used by NASA and the established big space companies for decades in order to guarantee every company gets steady work and a continuing cash flow from the government, the difference is that the product will be designed, built, and owned by each partnership, not NASA, allowing each to sell that product to others outside the agency.
If this goes as planned, eventually the government money will become somewhat irrelevant, once a real commercial industry starts functioning in space and on the Moon. That’s what happened in the airplane industry in the 1920s to the 1950s.
