Procurement Policies in the Space Sector: A Review of Different Procurement Mechanisms in the United States and Europe

Abstract

Procurement (or in the broader term, acquisition) is a standardized sequence of administrative acts implemented within the context of public or private bodies aimed to obtain the acquisition of goods or services, as part of the supply management process of that particular actor. Public procurement can be more specifically understood as the relationship between public entities and private industry to ensure the reliable transfer of goods or services using public funds. Historically, space-related procurement has been a tool deployed by space agencies. Alongside their mandate to carry out research and development activities, space agencies have acted as public procurement bodies, acquiring hardware, infrastructure, and services from industry to conduct their space programs. The use of procurement has allowed public bodies to stimulate the emergence of a space industry with the overarching goal to satisfy their public program demands while aiding the space sector in its journey to commercialization. Thus, public procurement represents a strategic part of the public sector policy and systems, and an administrative function that can contribute to a higher policy objective. In the broader sense, three types of public procurement models are usually envisaged within the space field: contract, anchor tenancy agreement, and public–private partnerships. This article provides a comparative analysis of these different procurement mechanisms deployed in the U.S. and European contexts and defines their relative relevance in the current space landscape. It demonstrates that an appropriate space acquisition model supported by agility and a shorter chain of command is mandatory to enable innovative space capabilities and preserve and strengthen national space leadership. Eventually, it provides evidence that a solid acquisition culture is indeed fundamental to leveraging commercial capabilities and services to accelerate the fielding of important capabilities.