WASHINGTON – NASA has sharply increased the prices charged by commercial users of the International Space Station for cargo and other resources, a move that has left some companies confused and frustrated.
NASA announced on February 25 that it would review the commercial marketing pricing policy it published in June 2019 as part of a new strategy for the commercial low-Earth commercial. The policy, which set aside a fraction of station resources for commercial applications other than research and development, included a price list for resources such as freight to and from the station and time for crew to perform work.
In the statement, which was published with little excitement on the agency’s website, NASA said the price list was being updated “to reflect the full compensation for the value of NASA resources.” The decision to do so, NASA said, was based on “stakeholder discussions, current market growth and in anticipation of future commercial entities that could provide similar services.”
By removing the subsidy, the prices of those services have risen significantly. The cost of transporting one kilogram of cargo to the station, known as ‘upmass’, increased from $ 3,000 to $ 20,000. The cost of bringing that one kilogram down from the station, downmass, has risen from $ 6,000 to $ 40,000. One hour time of the crew member, previously $ 17,500, is now $ 130,000.
The sudden change in prices, which took effect immediately, surprised some ISS users. A manager with one company, who spoke in the background because the company was still evaluating the effects of the price change, was unaware of NASA’s decision to raise prices before being contacted by SpaceNews.
“NASA has not done a good job of communicating with stakeholders,” said Nanoracks CEO Jeffrey Manber. “We are in conversation with customers and suddenly we are notified of a big increase.”
The sudden rise in prices, he said, forced Nanoracks to suspend discussions with two potential customers, who he said were “priced outside their budget” by the increase.
Another CEO, speaking in the background, was not aware of any discussion by NASA about changing the pricing policy prior to the announcement. The increase, according to the executive, could lead some customers to look for alternatives.
NASA did not elaborate on its decision to go for what it calls ‘full value’ pricing beyond its statement, and the agency did not respond to questions about pricing policy. Manber said such a change first had to be discussed by the NASA Advisory Board’s Regulatory and Policy Committee, for which he serves, but that the issue was not raised at his meetings.
Manber said NASA may be responding to language in a report accompanying the final budget bill for fiscal year 2021, which provided NASA with only $ 17 million for LEO commercialization efforts, compared to its $ 150 million request. The report instructed NASA to provide congressional data on projects selected through its LEO commercialization effort at the station, the total cost NASA incurred for its delivery and execution, and how much NASA will be reimbursed.
The report also prohibited NASA from using money to subsidize the cost of any project intended primarily for marketing, advertising or entertainment purposes. It appears in response to criticism the agency has faced for commercial ISS initiatives, such as flying Estée Lauder cosmetics to the station for a photo shoot or the possibility of making a film with actor Tom Cruise at the station to film.
Manber argued that NASA should “refine” the pricing policy by charging the full price for the marketing and entertainment activities, but continue to subsidize resources for other commercial work, such as activities that also have an education angle. ‘I believe there are commercial projects, together with education companies and partners, that bring value to the International Space Station. “They show American leadership,” he said. “There is a nuanced discussion that needs to be held with Congress and NASA.”
The LEO commercialization policy also enabled private space missions to the ISS, and provided a price list for resources required for such missions. That included $ 22,500 per person per day for crew supplies and $ 11,250 per person per day for life support.
The revised list no longer includes prices for services for private space missions. “NASA is re-evaluating the value and quantity of resources available for private space missions and plans to update the pricing policy in the near future,” the agency said.
Axiom Space, which will fly a four-person private astronaut mission to the station in early 2022, is not worried about possible price changes. “Axiom never relied on NASA to provide all the services they listed, so this development will not affect us,” said company spokesman Beau Holder. “It’s Axiom’s intention to take care of himself and his crew on a track.”
Manber said he hopes the revised policy is not NASA’s last word on the issues. “I hope this is the beginning of a conversation about more mature support for commercialization.”