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WASHINGTON – NASA has sharply increased the prices it charges commercial users of the International Space Station for freight and other resources, a move that has left some businesses confused and frustrated.
NASA announced on February 25 that it was revising the commercial marketing pricing policy it first published in June 2019 as part of a new low Earth orbit marketing strategy. This policy, which reserved a fraction of the station’s resources for commercial applications beyond research and development, included a price list for resources such as freight to and from the station and time to travel. the crew to carry out the work.
In the statement, posted with little fanfare on the agency’s website, NASA said it was updating this price list “to reflect full reimbursement of the value of NASA’s resources.” The decision to do so, NASA said, was based on “discussions with stakeholders, current market growth and anticipation of future business entities capable of providing similar services.”
By removing the subsidy, the prices of these services have increased significantly. The cost of transporting one kilogram of freight to the station, called “upmass”, has dropped from $ 3,000 to $ 20,000. The cost to bring that kilogram back from the “downstream” station has dropped from $ 6,000 to $ 40,000. One hour of crew member time, previously $ 17,500, is now $ 130,000.
The sudden price change, which took effect immediately, surprised some ISS users. An executive at a company, who spoke in the background because that company is still evaluating the impacts of the price change, was unaware of NASA’s decision to increase prices until SpaceNews contacted him.
“NASA hasn’t done a good job of communicating with stakeholders,” said Jeffrey Manber, chief executive of Nanoracks. “We are in discussion with customers and suddenly we are informed of a major increase.”
This sudden price increase, he said, forced Nanoracks to suspend discussions with two potential customers, who he said were “off budget” by the increase.
Another executive, speaking in the background, was unaware of any NASA discussions about changing the pricing policy before the announcement. The increase, the executive said, could lead some customers to seek 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 the pricing policy. Manber said such a change should have been discussed first by the Regulatory and Policy Committee of the NASA Advisory Council, on which he sits, but that the issue was not raised in its meetings. .
Manber said NASA may respond to wording in a report accompanying the latest FY2021 appropriation bill, which provided NASA just $ 17 million for LEO’s marketing efforts, up from $ 150 million. of dollars. The report asked NASA to provide congressional data on the projects selected as part of its LEO commercialization effort on the station, the total costs incurred by NASA for their delivery and execution, and the amount reimbursed by the NASA.
The report also prohibited NASA from using funds “to subsidize the cost of any project primarily intended for marketing, advertising or entertainment purposes.” This emerged in reaction to criticism the agency has faced for some ISS business initiatives, such as flying Estée Lauder cosmetics to the station for a photoshoot or the possibility of filming a movie with actor Tom Cruise. on the station.
Manber argued that NASA should “fine-tune” the pricing policy, charge full price for these marketing and entertainment activities, but continue to subsidize resources for other commercial work, such as activities that also have an angle. educative. “I believe there are commercial ventures, as well as education and partner efforts, that bring value to the International Space Station. They are showing American leadership, ”he said. “A nuanced discussion must be conducted with Congress and NASA.”
The LEO commercialization policy also allowed private astronaut missions to the ISS and provided a price list for the resources these missions would require. This 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 astronaut missions. “NASA is reassessing the value and quantity of resources available for private astronaut missions and plans to update this pricing policy in the near future,” the agency said.
Axiom Space, which is conducting a four-person private astronaut mission to the station in early 2022, is not concerned about possible price changes. “Axiom never relied on NASA to provide all of the services it listed, so this development would not affect us,” company spokesman Beau Holder said. “Axiom’s intention is to take care of itself and its crews in orbit.”
Manber said he hopes the revised policy isn’t NASA’s final say on these issues. “I hope this is the start of a dialogue on more mature marketing support.”
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