TRANSFER OF THE CIVIL SPACE REMOTE SENSING SYSTEMS TO THE PRIVATE SECTOR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00363R001102400018-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: September 13, 2007
• Sequence Number: 18
• Publication Date: January 25, 1983
• Content Type: MEMO

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THE WHITE HOUSE
WASHINGTON
January 25, 1983
MEMORANDUM FOR THE PRESIDENT
FROM: THE CABINET COUNCIL ON COMMERCE AND TRADE
SUBJECT: Transfer of the Civil Space Remote Sensing Systems
to the Private Sector
Issue
Should the Administration twaatber satelliteisystemsytor the
civil operational land and e
Background
The current U.S. program in operational civil space remote
sensing consists of a single land satellite and four operational
weather satellites in orbit. A number of private entities have
expressed interest in assuming responsibility for portions of the
civil space remote sensing system. Some firms are interested in
the land satellite systems; another is interested in both the
land and weather satellite systems.
Foreign governments have recognized the value of this technology.
Civil space remote sensing systems are being advanced by France,
Japan, the European Space Agency, India, Canada, the Federal
Republic of Germany, and the Soviet Union. To date, only France
has actually invested in a land remote sensing system (SPOT);
others have invested only in weather systems.
There is agreement among all parties that a self-supporting,
successful private venture or ventures can evolve in land, and
weather. The Government provides a steady market for weather
data. The value of land satellite data to the U.S. Government
has not been rigorously established. Federal user agencies have
been happy to use data now provided at subsidized costs, but, if
required to pay the full cost of land satellite data, they
indicate an intention to consider other means to meet their
needs.
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Other than Federal users, the land satellite data market has not
grown as rapidly as it could have because of
limitations on the Government in developing fd orela
s nd remote
ng-term outlook appears
international growing and e the o lothe market
sensing data is s 8 rivate sector is given the
promising, provided an aggressive p
opportunity to develop and expand the market base for this
product. more than $14 billion
The O.S. Government is currently spending
pet year on the civil and national defense space programs. of
enttbudget includes million i
i
h nominally $1S0-
d
s
i
curr
c
wh
s
tion
Adm
nistra remote sensing. The term operation and replacement of the civil
funding for the long the current policy
weather satellite. For land remote sensing, purchased
until 1988.
are expected which h last were
is to continue with the two
Thus, th this Admi operating costs and does not include
Thus, the budget has only oto procure additional land satellites.
additional Federal funding
The budget assumes that any future land iremotensensing systems
would have to be owned/operated by a p
The United States has created high-te1achnndology g field, but
remote sensing
acltioseon its s taken to peserve it. Transfer to a private
uitnlecsous could
entity without any government assurinces would preferable and
a commercial
will be actively sought. However, p
stem may involve some form of government-assured
a brief time, e.g., a guaranteed minimum purchase
market for or system
m
agreement, until the private entity is firmly established. The
level of need for such support, if any, will be considered
carefully in the evaluation of proposals actually submitted.
Federal interests will require a continuing oversight tosany
private entity involved in civil spaceuremotersensing,aied out
outlined in the Outer Space Treaty,
with interagency coordination and contractuassprovisions between
the Government and the andaforeignsupplier,
relations concerns are
defense, , intelligence,
satisfied.
two principalextensively
rev options for
The Cabinet Council naasmidentifiedTrade
reviewweedd th the issue and has
consideration:
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rivate sector
lll
Option 1: Transfer to the
I!!b4r100t1f0T iDt ss Or
the the transfer o theecivil
The Department of Commerce will oversee
operational weather and land, satellites . guided b the
sector as soon as possible. The transfer will be g y
following principles:
(1)
and foreign policy concerns wgu'ld be
National security
legislation,
appropriately addressed in preparing legitslheatpirion, private
requesting proposals, andf=t overseeing
entity or entities.
The selection of the private entity would occur under_
(2)
competitive conditions. Private firms would have the
option of bidding separately for the land or weather
b ion for J
preparing a joint submiss
satellite system or pprogram justifications would
both. The financial and p g
be presented in such a manner thateparate submissions
can be appropriately compared to joint s
(3) The Department of Commerce would establish asible.
inter-agency coordinating body as soon as possible.
o Stimulates technology development by the private sector
in response to new market demands and expands the role of
private industry.
o Demonstrates commitment to the private sector role in
spacee
o Reduces the size and scope of Government activities.
Disadvantage
entityprior
o May require increasing Federa=ivatefunding
firmly
h
e p
commitment levels until t
established.
b com etitive
ILLEGIB
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p
!cl er ational land remote seasin s stems
ose nominall b 1988 (or sooneivi11,1! r
l weather satelliteasunderin
to Late it over) and retain the c
Government control.
0 Lion 2: Continue the current u 15
i the Government to a
d et olic of brie in the
Advantage .
o Option is within current budget.
Disadvantages
o Only minimally reduces the size and scope of Government.
o Would result in the relinquishment of land remote sensing
to foreign competitors by U.S..
Decision
Option 1 Transfer to the private sector, via competitive
means the current operational civil weather and
land satellites. Separate bids would be
permitted for h or singleibid,
or a firm could
Council on Commerce and Trade
for all.
Option 1 unanimously supported
by the Cabinet
Option 2 Continue the current budget policy of bringing
the operational land remote sensing systems in
the Government-to a close nominally by 1988 or
sooner if private industry is willing to take
it over, and retain the civil weather
satellites under Government control.
L:nai rmn-
Cabinet Council on Commerce and Trade
cdim Baldrige
ILLEGIB
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