PRIVATE SECTOR OPERATION OF CIVIL METSAT PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B00181R000400390031-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 23, 2016
• Document Release Date: August 8, 2013
• Sequence Number: 31
• Publication Date: July 17, 1981
• Content Type: MEMO

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4.
NOTE FOR:
FROM:
SUBJECT:
INTELLIGENCE COMMUNITY STAFF
DD/ICS
DD/PAO
17 July 1981
Private Sector Operation of Civil
METSAT Program
REFERENCE: My Memo, dated 9 June 1981; Same
Subject
A copy of the COMSAT General letter proposing
consideration of a concept for transition of
government civil remote sensing programs to the
private sector has been obtained and is attached
for your information.
Attachment-a/s
cc: D/PAO w/o att.
0/PTO w/o att.
D/PBO w/o att.
D/OCS w/o att.
INFORMATION
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STAT
STAT
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Pr-t-s.iccil; end Cf-..ief Lit-.711:1s.r Offircr
The Honorable
David Stockman'
Director
Office of Management and 'Budget
Washington,
? Dear Mr. Stockman:
On behalf of COMSAT General Corporation, I am pleased
to submit for your consideration a concebt for the reduction
of the Federal budget and increase of the Federal tax base
through the initiation of a major new civilian space policy.
We propose that the Administration adopt and implement a
policy for the transfer of the Government meteorological
and earth resources civilian satellite remote sensing.
programs to the private sector by selling the satellites.
and certain related equipment and procuring remotely sensed'
data.
COMSAT General believes it is in a.unique position to
p=hase the satellites and consolidate the procrams into a
single integrated commercial system which would supply the
GovernTent data rec1lLremen=. A more detailed eY.-lanatich
of this CD.T1C= whoh would
redound to the a:,verr.mant js set forth :L.n, the enclosed
concept paper.
We look forward to discussing this concept with vou
and to working with the Administration to imPlement the'
oropcsed
Enclosu,-e
DOj .
SL.n,cerely,
--7
Richard S. Sodman.
c
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Apr-;1 9, 1921
CONCEPT FOR
REDUCTION OF 7iE FEDERAL BUDGET
THROUGH T:iE TRANSITION OF
GOVERNMENT CIVIL REMOTE SENSING PROGRAMS
TO THE PRIVATE SECTOR ?
=SAT General Corporation believes there are important
economic and, national interest reasons why the Government
proceed promptly .with- the commercialization of its
civilian remote sensing activities in the fields of. meteo-
rolocv and earth resOurces. The Government currently
collects meteorological and earth resources data throughthe
GOES, NOAA, and LANDSAT civilian remote sensing satellite
pro--as. The Department. of Commerce's ? National Oceanic and
Atmospheric Administration (NOAA) and the National Aero-
nautical and Space Administration (NASA) .share responsibil-
.itv for the .development and 'operation of the GOES and NOAA
Programs, and NASA presently has responsibility for LANDSAT.
We estimate that the Government will spend in excess of $1.4
billion on these procrams aurinc the period .19S2 through
1954 as summarized n Attachment 2-
II. Concept
President Reagan has the opportunity in his Adminis7
tration to initiate a major new civilian space policy by
directing the prompt transfer of the Government's
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le_ented in them3nnerwe
-
Ths p^licy, i-
cector?
su==est1. would further President Reagan's- Economic Plan by
reducing the FederalBudget for these activities and
increasing the Federal tax base. This policy would also
significantly enhance U.S. leadership in the commercial
application of space activities.
COMSAT General believes it is in a unique position to
? contribute to the successful implementation of :this policy
by purchasing the satellites and certain related equipment
from the Government and consolidating the three programs
into a single integrated commercial remote sensing satellite
system.
COMSAT General would, in turn, supply the Government's
civilian remote sensing data requirements under a commer-
cially reasonable contract with the Government. In
addition, COMSAT General would utilize the system to 6evelop
and market the products and data services to meet the needs
of other users, domestic and foreign, on ?non-discriminatory,
reasonable commercial terms and conditions.
TII.? Benefits
The Proposed. arrangement would benefit the Government
in the followine major ways:
o .The Government's overall cost of obtaining
necessary civilian remote sensine data could
be reduced by as much as $530 million over
the period 1982 throuah 1984.
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recoup as much as .$400 million previously
expended for equipment procured prior to
1982.
o . The Federal income tax base would be broadened
by the commercialization Of Civilian remote
sensing activities.
The commercial development of satellite
remote sensing would be assumed by COMSAT
General, including the major risks ana
responsibilities of planning, operating,
managing, and marketing.
The Government can refocus on activities
which are more properly the province of the
Government.
o The commercialization of civilian remote
sensing services would be accelerated, a
stated but unimplemented Government policy.
o The United States leadership in commercial
space applications would not only be preserved
but could be significantly enhanced.
TV. Why the'Programs Should be Transferred
Civilian satellite remote sensing is ready for commer-
cial development... The GOES and ?NOAA satellite Drogravis are.
no longer experimental but are -fully. operational. The
LANDSAT program, which has been experimental, is now.
scheduled to become operational after the launch of the
LANDSAT-D satellite in 1982.
These programs are ready for the efficiencies that a.
commercial entity can bring to their operatibn? and for the -
future market growth which must come from the development of
the commercial market. The development and growth of the
commercial markets would reduce the future costs of data
proaucts and serviCes to all customers, includinc the
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.the private sector as it is .not an. activity which the
Government has historically done well.
Not only are .these programs ready for transfer to
commercial ownership and operation,- but the Government would
achieve the economic benefits listed above through the sale
? of 14 Government satellites (identified -in Attachment 2) as
well as certain other Government-related- equipment and
facilities, and through the removal from the budgets of the
Department .of Commerce andNASA, the. requirement for appro-
priations to cover the cost of operating 'these programs.
The transfer would also result in significant improve-
ment in the quality of data and the reliability and
timeliness of service as these would be important factors
bearing directly on the profitability of the system.
Improved data and services would enable. Government agencies
to carryout their statutory duties more efficiently and
effectively.
The transfer of these Government programs would
result in- real economic growth through the creation of new
jobs and opportunities in the commercial data processing and
environmental- and meteorological earth resource industries.
Additional tax ? revenues could be anticipated as a result of
new .comPanies entering the -market as well as increased
earnincs by existinc
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in a race with other
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count:-es to develop commerci I space app lications. Both,
France and Japan are scheduled to, launch in the. mid1990's
remote Sensing satellites employing advanced technology for
commercial applications. U.S users of remotely sensed
, -data, including Government agencies, may have no. choice but
to become customers of these foreign programs if commercial -
U.S: competition using advanced technology is not developed.
V. Why COMSAT General
COMSAT General is uniquely qualified to acquire and
integrate the three existing Government programs into a
single commercial system serving both Government and
non-Government needs. We were established in 1973 by our.
parent, Communications Satellite Corporation (Comsat),
primarily to apply the benefits of. satellite technology to
the U.S. domestic and specialized communications markets.
In addition to developinc and operating the domestic COSTAR
system of satellites, COMSAT General is the only company
that has established a commercial communications satellite
system which successfully met both a special Government
recuirement and initiated a new mode of communications to
meet the needs of the public. The MAR1SAT satellite system
integrated the urgent requirement of the U.S. Navy for
dedicated global maritime communications with the maritime
communitys need for instantaneous, highly reliable global,
maritime communications, a need which had never before been -
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corporation established pursuant to the Communications
Satellite Act of 1962. For neatly 20 years, Comsat has
successfully met the public needs and furthered national
objectives through the establishment, operation, and use of
international coMmercial communications satellite systems.
Comsat has accomplished this without any financial assis-
tance or subsidy from the Government, and its efficiencies
have allowed it to make four successive rate reductions of
48.5, 15.5, 5, and 11.8 percent, respectively, for inter-
national satellite communications within the last three
year's'.
Altogether, the companies possess unparalleled,
experience and knowledge in the development, establishment,
operation and marketing of satellite systems and services as
well as in the furnishing of environmental data services.?
We have successfully bridaed the transition of space
technology from the research and development mode to highly
beneficial Commercial applications. ? COMSAT General under-
stands and is able to assume the economic risks associated
with development, construction, ?launch, and operation of the
system. We are prepared to examine the. development of a new
generation of solid state technology, affording, greater
reliability at lower costs, much earlier than currently pro-
jected in the Government's procrams- In addition, we would
seek to implement new types of sensor techniques, such as
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stereoscopic sensors, to enable.. the gathering and interpre-
? tation of data with significant benefits in -oil and mineral
exploration. . The Government's obligation would be to pay
only for the data received.
VI. Need for Prompt Action '
As we see it, the Administration is at an important
crossroad with regard to its civilian remote sensing.
programs. There is a unique opportunity to initiate a new
and important national space policy- which is consistent with
the Economic-Plan of the Administration. Prompt action is
required .to establish this policy at the outset and to avoid.
the delays in the commercialization of Civilian remote
sensing inherent in the policy established by the previous
Administration in Presidential Directive 54. Prompt action
is also required to realize, in.the early budgets of this
Administration, the economic advantages we have outlined.
Absent prompt action, the continuity of data from the
U.S. land remote sensing programs will be endangered and, as
noted earlier, Government agencies may become customers of
these foreign programs. Not only will many of the benefits
described above, including U.S. leadership in Civilian
applications of remote sensing technology, be lost, but
greater barriers-to-entry for U.S. firms seeking to enter
the market in the middle of this decade in competition with
the foreign programs will result. On the other hand, a
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decisaon now to move forward with the concept which we have
proposed will, we believe, best assure that these conse-.
cuences are avoided.
VII. COMSAT General is prepared to make a proposal.
We believe the concept outlined above would greatly
benefit the Government and enhance the leadership of the
United States in. the commercial application of space. To
implement this concept will, of course, take time.and may
require legislative consideration. COMSAT General, however,
is prepared to proceed promptly. with discussions and, should
the Government decide that it is interested in receiving a
proposal, dedicate the necessary resources to bring about'
the proposed transfer.
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sz,-s of crnsiction or (-)Peration as illi)strated in
char-: 1. C=S.:-.7 General would acr:uire and operate the existinp and
cr-,ntrar-td :or satelli:Les and provide for continuity of service with
new desions and ,procurements.
? Chart 1
SATELLITE
PFOJECTED
DESCF_IPT:ON
SYSTEM
. STATUS
LAUNCH
ccEs Gebstationary
GOES 2
Operating
In Orbit
Weather 1=J:sing
3
Operating
In Orbit
? Syste=s
4
Operating
In Orbit
Current Buy for
1983
Future Launches
1985
NOAA Polar Orbiting
weather Monliorin;
NOAA 6
Operating
In Orbit
Syste=s-Multi Sensor
I--inent Launch
1981
PaylCad
1982
Current Buy for
1933.
. F
Future Launches
1984,
1985
240A.A. H
_Upgrade -Buy _for.
1986
Future Launches
1987
1988
RASA LKKDSAT'Pclar
LAXDSAT
D-1
Nene Satellite/Sensor
1982
Orbiting Land Observing
0-2
and Ground System
1985
Imaging System
o The GOES satellites are ceostationary?orbit-inc satellites- owned
and menaced Ov the Department of Commerce. The GOES 'satellites have
a constant hemispheric view of the earth from an altitude of 24;500
kilometers. The GOES satellites provide visible and infrared images
of Earth and cloud formations ?and relay data from remote. weather ?..7:c2
other environmental sensors located on the Earth. The GOES protram
plan is for two satellites to be -operational at all times- There
are currently two GOES satellites in full operation.
o The NOAA satellites are sun synchronous, low orbiting
satellites. The. :OAA satellites carry four atmospheric sensors and
a, data collection system,. The NOAA Program plan is for two sat=.1-
lites to be in operation at all times. There is currently. one NOAA
satellite in operation. In addition to. data and communications
provided to Government acencies, NO and GOES data is provided .to
the public for the cost of reproduction.
O The 1_,,Ti-DSA7' satellites are sun synchronout, low orbiting
satellites which carry visible and infrared sensors. LANDSAT data
.
is used to provide dicital and photocraphic representations of the
_ _
Earth's lano areas. There is one LANDSAT satellite in service, Out
it is virtually non-operational.- There are plans to launch the :-14,w
caneration LANDSAT-D. spacecraft in 1982. The LANDSAT satellites are
currently operated by NASA.- However, the former Administration .
directed the transfer of the oPeration of these satellites to the
of Commerce PursUant to ?residential Directive 54. In
.addition to data provided to Government agencies, a small amount of
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CI;STS ($ln Millions)
19R1
3982
19r7-;
GOZS
1. NDAA-::ational Environ:7ental
Satellite Service Costs
o Satellite Support and Develop-
ment Costs-Org. . Code SA - S.
$ 45
$ 47
$ 52
$ 57
Administration, Satellite
Operations. Data Services,
Systems Development and Research
o Ground System Upgrade
12 -
6
7.
2
o Satellite System Acisttion
and Launch -Costs
.9
62
70.
80
2- NASA Satellite Syste=s and
22
8
9
9
Payload- Development Costs
3. SUBTOTAL
$138
$123
$138
$148
LA1ZDSAT EARTH OBSERVATION SATELLITES
4. NASA Costs
o Space and Ground Syst.ems
sitions Costs and Launch Costs
4,
o Applied R&D and Technolocy
110
50
119
50
50
35
25
35
Utilization Including Agrstars*
o Civil Service Support Costs
looludina Goddard and Other
50
50
25
25
Centers (not retorted as a
program cost)*
5. NOAA? Cost
o Transition. of Operational System
40
120
150
200
6. SUBTOTAL
5250
5339
S260
5265
7. TOTAL, (Lines 3 & 6)
$388
.5462
5298
5433
8. Government Personnel Benefits**
45
46
33
.33
9. TOTAL (Lines 7 & 8)***
5433
$508
54'1.
5466
NASA does not include civil service and application
support
costs
associated with the LANDSAT program in the LANDSAT line
item budget.
Calculated pursuant' to onD Circular A-76 which establishes criteria
costs of procuring extended services with Government produced
comparing
services.
..* cf
.?is total is conservative: it does nat include the or:oort.:nity costs
capital invest:nent provided far in C:-:B Ciroulur A-7U.
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