COMMERCE PROPOSED TESTIMONY FOR 3/6/84 ON H.R. 4836/LAND REMOTE-SENSING COMMERCIALIZATION ACT OF 1984

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01370R001101530024-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 21, 2016
• Document Release Date: December 23, 2008
• Sequence Number: 24
• Publication Date: March 2, 1984
• Content Type: MEMO

Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
Office of Legislative Liaison
Routing Slip
Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 ? Approved For Release 2008/12/23: CIA-RDP90BO1370R001101530024-5
EXECUTIVE OFFICE OF THE PRESIDENT Kecuru
OFFICE OF MANAGEMENT AND' BUDGET
? WASHINGTON; D.C., 20503
LEGISLATIVE,REFERRALMEMORANDUM:.
TO: Legislative Liaison Officer
Department of Defense
Department of State
Office of Science and Technology Policy
Federal Commuiications Commission
General Services Administration
Department. of Justice
Department of Agriculture
Central Intelligence Agency WOOOOO'
National Aeronautics and Space Administration
National Security Council.
Department of Transportation
Department of the Interior
SUBJECT : Commerce proposed testimony for 3/6/84 on H. R. 4836/Land Remote-Sensing
Commercialization Act of 1984
The Office of Management and Budgetrequests the views of your
agency on the above subject before-advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
Please provide us with your views no later than
NOON MONDAY, Ng1RCH 5, 1984. ORAL =4 ENTS ARE ACCEPTABLE.
Direct your questions to William A. Maxwell (39,-3890), the
legislative analyst in this office.
Jam C . Mirri Xk r
Ass stant Director for
Legislative Reference
Enclosures
cc: J. Dyer T. Sprehe J. Struthers
D. Taft A.'Donahue P. Szervo
B. Hughes
Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
MR. CHA i RMAN AND MEMBERS OF THE SUBCOMMITTEES:.
MY NAME I S WILLIAM P. BISHOP. I . AM. THE CHAIRMAN OF THE
DEPARTMENT OF COMMERCE'S SOURCE EVALUATION BOARD ON C I V I L
SPACE. REMOTE SENSING (THE "SEB"). I?AM PLEASED TO BE HERE
TODAY TO TESTIFY ON SEHALF OF,THE ADMINISTRATION CONCERNING
H.R. 4836, "THE LAND REMOTE SENSING COMMERCIALIZATION ACT OF,
SINCE SECRETARY BALDR I GE AND MY PREDECESSOR, RAY KAMMER,
HAVE TESTIFIED TO Y J.ON'SEVERAL OCCASIONS CONCERNING THE
COMMERCIALIZATION OF CIVIL LAND REMOTE SENSING, I WILL NOT
D',,'7-LL ON THE ACTIVITIES OF THE SEB DURING THE PAST SEVERAL
MONTHS, EXCEPT TO SAY THE RFP WAS RELEASED ON JANUARY 3,
1984, AND RESPONSES ARE DUE BY NOON, MARCH 19,?1984.. TODAY I
WOULD LIKE TO FOCUS MY COMMENTS SPECIFICALLY ON H.R. 4836.
FIRST, MR. CHAIRMAN,, LET ME FIRST CONGRATULATE THE
COMMITTEES ON THEIR LEADERSHIP REGARDING THIS ISSUE. THE
COMMITTEES HAVE, IN H.R. 4836, DEVELOPED AN EXCELLENT BASIS
FOR COMMERCIALIZATION. WE APPRECIATE HAVING HAD THE OPPOR-
TUNITY TO WORK CLOSELY WITH YOUR STAFFS ON THIS MATTER, AND
WE FEEL THAT IN H.R. 4836, AN EXCELLENT START HAS BEEN MADE.
IT'IS THE DESIRE OF THE ADMINISTRATION TO ACHIEVE
-._ .: T', OF CIVIL REMOTE SENSING FROM SPACE AS SOON
Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
AS POSSIBLE, ','1H I LE MA I NTA 114:1 NG ' TKE U. S.. 'LEAD I N LAND` REMOTE
SENSING. BOTH OPERATIONALLY AND FROM AN R&D STANDPOINT.
H.R. 4836, WITH SOME TECHNICAL CHANGES WHICH I WILL DISCUSS
IN A I. OMEt T, v! I LL GO AFAR- TOWARD ACH I EV I NG'THESE' GOALS .
14R. CHr, I Rt?i~.N, OUR CO'41?1ENTS ON H . R . 4836 REFLECT, I N LARGE
PART THE EXPERIENCE OF THE ADMINISTRATION IN CONDUCTING THE
?FP PROCESS OVER THE LAST SEVERAL MONTHS. ONE OF THE LESSONS
WE HAVE. LEARNED IN THIS..PROCESS IS: WE DON'T WANT TO HAVE TO
DO IT AGAIN -- AT LEAST R?I.GHT AWAY. IT IS THEREFORE OF
EXTREME IMPORTANCE TO THE ADMINISTRATION THAT LEGISLATION
ENACTED BY THE CONGRESS BUILD UPON, AND NOT DISCARD, THE
WORK OF THE SEB.
THE RFP PROCESS CONSTITUTES WHAT WE BELIEVE TO BE THE
MOST THOROUGH AND EXHAUSTIVE EFFORT TO DATE TO DETERMINE
WHICH "NEXT STEPS" IN THE LANDSAT PROGRAM WILL ASSURE CONTIN-
UED U.S. LEADERSHIP IN REMOTE SENSING. IT HAS ALSO BEEN AN
i't? MENSELY COMPLICATED AND TIME-CONSUMING PROCUREMENT ACTION.
I N OUR VIEW, I T WOULD BE EXTREMELY UNFORTUNATE I F THE WORK OF
THE SEE WE=E TO BE DISCARDED OR REPEATED. - IT CERTAINLY WOULD
RESULT I N SIGNIFICANT AND COSTLY DELAYS I N THE COMt+1ERC IAL? I ZA-
PROCESS, A RESULT WE BELIEVE WOULD BE UNFORTUNATE.
Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
,,,. I TH THESE THOUGHTS, MR. CHA I RRM.!,AN, I WOULD LIKE TO OFFER
THE ?FCLLCW I NG COI MENTS ON H. R.* 4:85. THESE COI?',!,1ENTS REPRESENT
THE \' I E',W,'S OF THE ADMINISTRATION, AND ARE GROUPED AROUND
PRINCIPAL ISSUES RAISED BY THE BILL. IN ADDITION TO THESE
V I E'W,'S . '4E ARE PREPARING A NUMBER -OF ?TECHN KCAL C01M1MENTS AS
',FELL rS LANGUAGE IMPLEMENTING THE SUGGESTIONS WHICH FOLLOW.
I HO E TO TAKE THESE AVAILABLE TO THE COMMITTEES IN THE VERY
"E` FU T LIRE .
SCOPE OF THE BILL
FIRST, /AW?'ORD CONCERNING THE SCOPE OF THE BILL. THE
SHORT TITLE AND FINDINGS REFER TO "LAND REMOTE SENSING",
WHILE THE OPERATIVE PORTIONS OF THE BILL APPARENTLY REFER TO
BOTH LAND AND OCEAN REMOTE SENSING.
THERE IS NO GENERALLY RECOGNIZED OPERATIONAL CAPABILITY
IN OCEAN REMOTE SENSING AT THE PRESENT TIME. INCLUDING OCEAN
.SENSING WITHIN THE SCOPE OF THE BILL WILL HAVE THE EFFECT OF
SPECIFYING THE GOVERNMENT'S CONDITIONS FOR THE COr1MERCIALIZA-
TI`N7OF OCEAN REMOTE SENSING LONG BEFORE THE PARAMETERS OF
SUCH SYSTEM - OR THE NEED FOR COMMERCIALIZATION - HAVE BEEN
ESTAELISHED. T H I S MAY HAVE THE EFFECT OF I N H I B I T I N G INNOVA-
I S THE V I E1,,' OF THE ADMINISTRATION THAT
T I GP; I N T I S AREA. 17
Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
-E BILL'S APPLICATION KHOULD THEREFORE BE LIMITED TO LAND
E .OTE SENSING.
:C','?AT B I L-I TY 1,' I TH THE! RF?
MR. CHA I R!MIAN, ONE OF OUR PRINCIPAL CONCERNS, AS I
",DiC.A-ED ABOVE, IS THAT HE BILL DO NOTHING THAT WOULD
I, ,%AL i GATE THE RESULTS OF THE ONGOING RFP PROCESS. SEVERAL
OF THE PROVISIONS I N THE BILL MAY HAVE THIS RESULT AND I
WOULD LIKE TO DISCUSS THESE FOR A MOMENT I F I MAY.
SEOJiREV MARKETING. SECTION 201(A) OF THE BILL WOULD
REQUIRE THE SECRETARY TO CONTRACT FOR THE MARKETING OF
DATA GENERATED BY THE CURRENT LANDSAT SYSTEM. WHILE WE
ARE NOT OPPOSED IN PRINCIPLE TO THE CONCEPT OF PRIVATE-
SECTOR MARKETING OF LANDSAT DATA, THERE IS NO SIMILAR
REQUIREMENT IN THE RFP. THUS, IF THE SUCCESSFUL BIDDER
IN THE RPF PROCESS DOES NOT UNDERTAKE TO MARKET THE
DATA, AN ADDITIONAL PROCUREMENT ACTION WOULD BE REQUIRED
FOR THE I.IARKET I NG? CO!,'PONENT. NOT ONLY WILL THIS PROCURE-
MENT BE TIME-CONSUMING AND BURDENSOME, BUT IN OUR VIEW,
17 WOULD NOT PRODUCE RESULTS COMMENSURATE WITH COST.
TFE. TIME A SECOND PROCUREMENT ACTION WERE COMPLETED,
THEE W0ULD PROBABLY BE NOT BE MORE THAN 18 TO 24 MONTHS
E _ L . F_ . I MG IN THE LANDSA.T SYSTEM. ANY
Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 Approved For Release 2008/12/23: CIA-RDP90BO1370R001101530024-5
,..CTIVITIES UNDERTAKEN BY A MARKETER ON BEHALF OF-THE
GOVERNMENT DURING THAT -PER I'OD WOULD ALMOST CERTAINLY NOT
PRODUCE RESULTS JUSTIFYING THE PROCUREMENT EFFORT.
\'E ?\'OULD THUS LIKE TO SEE THE *LANGUAGE REGARDING THE
I.IARKETING OF LANDSAT DATA BE AMENDED TO GRANT THE
SECRETARY DISCRETION IN THIS AREA.
? TERI OF THE TITLE III CONTRACT. SECTION 302 OF THE
BILL PROVIDES THAT THE CONTRACT ENTERED INTO BY THE
SECRETARY UNDER TITLE III SHALL REASONABLY ASSURE THE
PROVISION OF REMOTE SENSING DATA FOR A PERIOD OF SIX
YEARS, TERMINATING ONE YEAR AFTER THE EXPIRATION OF THIS
SIX-YEAR PERIOD. IT IS OUR OPINION THAT THE SIX-YEAR
PERIOD CONTEMPLATED BY THE BILL MAY BE OVERLY RESTRICTIVE.
IT IS DIFFICULT TO SPECIFY OR RECOMMEND A MORE APPROPRIATE
PERIOD OF TIME PRIOR TO RECEIPT AND ANALYSIS OF ALL THE
ANALYSIS OF ALL THE RESPONSES TO THE RFP. HOWEVER, OUR
PRELIMINARY FINANCIAL MODELING INDICATES THAT A MORE
LIKELY PERIOD FOR SUCCESSFUL CONVERSION TO FULL COMMERCIAL
OPERATION WOULD BE EIGHT YEARS RATHER THAN SIX. FURTHER,
THE EIGHT-YEAR PERIOD WOULD NOT INCLUDE THE TIME PRIOR
TG THE LAU;:CH OF TH_E. FIRST CO1.1;4ERC I AL SATELLITE,, WHICH
IS L ! KELP TO BE THREE TO FOUR YEARS.
. Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
 Approved For Release 2008/12/23: CIA-RDP90B01370R001101530024-5
6
THE :"FP SETS A CONTR.~CT PER I'OD OF NOT MORE THAN, TWELVE
ri THE T'r,'ELVE-YEAR PERIOD WOULD START WITH THE
iNITIAL'PHASE OF SATELLITE CONSTRUCTION -- NOT WITH.THE
L. LNCH OF THE FIRST -SATELLITE. A -:CORRESPOND I NG PERIOD
FOR THE CONTRACT DESCRIBED IN TITLE III WOULD THEREFORE
_E E .'r=`' PEARS RATHER THAN S.I X, I N ORDER TO BE FULLY
C3NN;S ! STENT WITH THE RFP.
TITLE TO LANDSAT DATA. SECTION 202(A) OF THE BILL
PROVIDES THAT THE TITLE TO ANY AND ALL DATA GENERATED-BY
THE LA`JDSAT SYSTEM SHALL REMAIN WITH THE GOVERNMENT,
WHILE PROVIDING THAT THE TITLE II'CONTRACTOR BE ENTITLED
TO REVENUES FROM THE SALE OF COPIES OF DATA FROM THE
SYSTEM.
THIS APPROACH VARIES SOMEWHAT FROM THAT ADOPTED BY THE
SEB. THE RFP OFFERS BIDDERS THE OPPORTUNITY TO BID ON
THE ENTIRE CURRENT LANDSAT SYSTEM, INCLUDING BOTH THE
SPACE AND GROUND SEGMENTS. IF A BIDDER WERE TO PROPOSE
TAKING OVER THE OWNERSHIP AND OPERATION OF THE SYSTEM,
ACCEPTANCE OF H.I S PROPOSAL WOULD APPARENTLY BE' PROHIBITED
SY THE LEGISLATION AS CURRENTLY DRAFTED.
;5 A TECHNICAL LL ATTER , WE ALSO BELIEVE THAT RETENTION BY
GO'.=E