Craig Weston is President and Chief Executive Officer of U.S. Space, LLC, a U.S.-owned provider of dedicated, commercial space solutions to serve the interests of the nation and its coalition partners and commercial enterprises worldwide. He also holds these same positions with ViviSat LLC, a joint venture dedicated to life extension of on-orbit satellites, and U.S. Space Mobile Communications LLC, a joint venture that provides end-to-end mobile satellite communications solutions. Previously, he was Vice President and Deputy Director of a business unit with SRA International, a $1.5 billion information technology and services company based in Fairfax, Virginia.

A retired Air Force Major General, he spent a large part of his career developing, launching and operating communications, infra-red warning and reconnaissance satellites. At various points in his career, General Weston was involved in the development and fielding of air launched munitions, airborne high energy laser weapons, airborne and ground warning and surveillance systems, command and control information systems, as well as foreign military sales and international security assistance.

His last active duty assignment was in Kabul, Afghanistan, where he brokered international collaboration to rebuild the Afghan defense, police and legal sectors, as well as to disarm militia forces and begin counter-narcotics operations.

General Weston earned a Bachelor of Science degree in Engineering Mechanics and a Master of Science in Aeronautical Engineering.

He is an Associate Fellow of the American Institute of Aeronautics and Astronautics and serves on the board of directors of the National Capital Area Council of the Boy Scouts of America.

MSM
General Weston, U. S. Space LLC has branched out in a variety of different directions since it was formed two years ago ….satellite life extension, mobile communications, military satellite communication…Why have you selected these particular business lines? What’s the common denominator?

General Weston
U. S. Space was formed as a call to service — to serve the nation. We believed from the start that by combining the best attributes of commercial and military satellite communications business practices we could provide our government a financially and operationally advantageous solution to a critical need. Fortunately, we had some of the best minds from both the commercial and government sectors working on the concept and the service — people like Ed Horowitz, Mark Piegza and Mark Albrecht. We have since been joined by other terrific people — Dr. Dany Harel, Randy Brinkley, Bryan McGuirk, Prof. Ed Wright, to name a few.

Drawing on their insights, we have expanded into satellite life extension and mobile communications — two business areas in which we have found new and better ways of delivering high-value services. I’ll give you two common denominators — we will only stand up a new business if it provides an essential service and if we have found a way to provide that service that delivers value in a different manner. We’re in business to change the game.

MSM
An area of great interest for you and U.S. Space is that of In-Orbit Servicing. Other companies as well as government agencies are intrigued enough with this approach to extending satellite life that they, too, have joined in this market segment. Would you please explain exactly what In-Orbit Servicing is, and how U.S. Space plays its major role in this effort? Why is such so important?

General Weston
In-orbit servicing is actually several decades old but I see this as a mission area that can experience explosive growth. It is an expensive and complex undertaking to place a satellite in orbit, so once there, it would be great if we could extend its life rather than undergo the expense and complexity of replacing it. So, in-orbit servicing is the ability to extend the life of a satellite, either by supplementing its original propulsion capabilities or by replacing failed modules like solar areas, batteries or other hardware essential to continued operation of the satellite. Over the past several decades, NASA has been a leader for in-orbit servicing, with several missions with astronauts extra-vehicular activity to repair the Hubble Space Telescope. These were astounding successes that prove the utility of in-orbit servicing. The time is right to apply many of these proven technologies to the commercial marketplace. The challenge is to perform in-orbit servicing without humans turning wrenches to replace hardware, and to do so at other than Low Earth Orbits, e.g., geosynchronous orbits, where humans cannot easily perform EVAs. Therefore, the future of this industry is very dependent on robotics and remotely manipulated devices. This is the reason U.S. Space is teaming with ATK Space Systems, a world-class developer of robotics for satellite servicing, in our ViviSat in-orbit servicing joint venture.

MSM
You and ATK created quite a stir when you announced ViviSat earlier this year. Were you surprised by the big reaction?

General Weston
It’s not often that an entirely new market in the satellite industry opens up. ViviSat offers satellite operators, the U.S. Government, and its coalition government partners a service that had previously been imagined but not realized commercially — in-orbit mission extension and operations protection services. These services are flexible, scalable, capital-efficient and low-risk operations that can add years to the revenue producing life of a satellite. The potential long-term impact for the commercial operator, government user, manufacturer, insurance provider is substantial. So it’s not surprising that players from all segments of the industry have been, and are today, quite keen to learn about ViviSat.

MSM
That being said, how’s the ViviSat business doing?

General Weston
The last several months have been a period of substantial progress and achievement. We are now well along in the design phase. We also now have firm fixed price offerings that we have communicated to potential customers that are being well received by the market. Our discussions with satellite operators around the world have become productive and we are in serious negotiations with several of them. In addition, ViviSat is currently testing its rendezvous and proximity operations at a new ATK lab in Beltsville, Maryland.

MSM
Shortly after you introduced ViviSat in January, MDA announced a competitive offering. Have there been any developments in the competitive landscape since then?

General Weston
In a business this young and exciting, we should expect rapid evolution in the service offerings, new entrants, business arrangements and enhancements of various kinds.

MSM
Is ViviSat technologically different from the competition?

General Weston
Unlike our competitors’ service, we don’t interfere with anything the client satellite is doing. Our approach does not have any electrical connection or fuel exchange of any kind. Like a “jet pack” for satellites, ViviSat simply makes a physical connection through docking. In addition, ViviSat can repeatedly dock and un-dock, servicing multiple satellites. Our solution is simple, low risk and unique — and can provide years of extra mission life.

MSM
Also, please bring us up to date on your mobile communications business.

General Weston
We launched U. S. Space Mobile Communications in April 2011. This business provides the U. S. Government and commercial entities the most reliable, secure, flexible, stable and cost-effective mobile communications services available in the market. This is an operationally intensive business, so we have spent a lot of time ensuring we have top quality customer support capabilities, and have been reaching out to hundreds of potential customers. We have also been working with selected customers on end-to-end solutions that include our industry-leading durable, small and smart mobile satellite handsets, and a compact IP broadband terminal that is a generational leap forward in design and performance.

MSM
Do you have any customers yet at USSMC?

General Weston
We do. We are generating revenue and, more importantly, we have happy customers. We have had some exciting reports from users in the field, in places like Ulaanbaatar, Addis Ababa and the Himalayas who have told us that the phones and IP terminals have made critical differences for them.

MSM
How does USSMC address the government customer’s specialized service and security needs?

General Weston
U.S. Space Mobile Commun-ications is a U.S.-owned and operated Company. We offer U.S. military personnel with increased OPSEC for sensitive operations by shielding customer identity from our service provider. Our Network Operations center that provides the 24×7 Help Desk and Customer Care Services for USSMC is based in Maryland and is staffed by native-English speaking, cleared U.S. citizens.

MSM
One area of great interest for commercial and military firms is the hosted payloads segment. How do you see the role of hosted payloads gaining ground, and what importance will it play in our future satellite launch efforts?

General Weston
I see hosted payloads as an important ingredient in our nation’s future space architecture. Whether it is a commercial communications satellite with a secondary military payload or our U.S. Space business model of purpose-built satellites dedicated to hosting military payloads as the primary mission, the government gains a number of benefits from hosting, among them: 1) A less expensive means of getting to, and operating, in space, 2) diversity of assets on orbit, 3) diversity in the industrial base, and 4) relatively rapid delivery timelines. In the forthcoming belt tightening our national security agencies must endure, hosted payloads is an idea whose time has come!

MSM
Start-ups are rare in this industry. Did U. S. Space make a mistake in the timing of the company’s introduction in light of the way the budgetary environment has developed over the last two years?

General Weston
We think our timing was perfect. U.S. Space was created to provide rapidly delivered, high-quality services in a resource-constrained world. We bring to government customers private financing and proven commercial business practices that provide space services that are transparent and fit easily into the government’s existing operations infrastructure. The marketplace, Congress and the Administration all seem to be saying that this kind of cross-fertilization is precisely what these challenging times demand.

MSM
And are there other business initiatives we haven’t heard about yet?

General Weston
Yes. Our business model is flexible and can be applied quite broadly, so we are developing and nurturing a number of other initiatives in the government space arena. Stay tuned!

MSM
General Weston, during your many years within the satellite and space segment of the U.S. Air Force as a Major General developing, directing, launching and operating MILSATCOM spacecraft, there must have been many projects which remain with you as the most satisfying of your military career. Would you please tell our readers about those projects, and why you consider them to be so important?

General Weston
I had the good fortune to be a part of a number of ground-breaking programs and systems during my Air Force career, both in the space and other mission areas. The most satisfying MILSATCOM project to which I contributed was the MILSTAR program, and the launch of the first military EHF frequency satellite in 1994. As with many high-technology programs, MILSTAR underwent a difficult birthing process but it and its successors, like the Advanced EHF satellites, provide a unique capability. The ability to communicate without disruption at all levels of conflict and in all conditions is a priceless advantage to our battlefield commanders, and is only possible with EHF satellites.

MSM
The technical needs of firms such as yours are huge. In order for our nation to compete on the global stage, our students’ education must radically improve in the sciences, mathematics, the various technologies and engineering disciplines. Unfortunately for both the military and commercial segments, there is a decreasing pool of trained professionals from which to drive new projects and missions through new hires. How important is STEM training in your estimation? How can our industry drive home and support the need for today’s students to be immersed in the sciences, mathematics, various technologies, and engineering disciplines? Is U.S. Space involved in any such programs?

General Weston
Yes — it is critical to our competitiveness as a nation to improve quality of education, especially at elementary and secondary levels, and especially in the areas of math, science and technology. That’s why a number of us at U. S. Space are very involved in educational programs. As examples, I work with the American Institute of Aeronautics and Astronautics, which has extensive programs to support educators at all levels in math, science, and technology; our Chairman, Mark Albrecht is involved with the California State Summer School for Mathematics and Science, and he donated the proceeds of his recent book to that program; and our co-founder Ed Horowitz serves on both The Kenan Institute for Ethics at Duke University and the Board of Trustees of the New York Hall of Science.

While we have much work to do, it’s also important to note the United States has the finest universities and colleges in the world. The U. S. dominates everyone’s list of world’s best universities, including schools like MIT, Stanford, Harvard, Cal Tech, Chicago, Johns Hopkins, as well as our outstanding service academies. No other country in the world is close to us in the choice of top-tier higher education — that’s true in math, science and technology and across other areas of study.

http://www.milsatmagazine.com/cgi-bin/display_article.cgi?number=476197360

The U.S. Space study identified and examined alternative approaches to the existing military satellite acquisition model and recommended alterations that will enable faster, more cost-effective, and more efficient solutions to meet U.S. Government needs.

Major General, USAF (Ret.) Craig P. Weston, CEO of U.S. Space LLC, said, “The government must start doing business differently in order to provide our warfighters with all the satellite communications capabilities they need. The Department of Defense and many of us in the satellite community understand that our nation not only needs to acquire the right MILSATCOM services; we also need to acquire them in the right way. The U.S. Space study identifies better, innovative government practices that put taxpayer dollars to their best use.” The U.S. Space study researched alternative models with which to acquire MILSATCOM capabilities using variations of a commercial fee-for-service model and compared these commercial approaches with traditional U.S. Government procurements of the same or substantially similar satellites. Also included in the study was an analysis of acquisition law, regulation and policy to facilitate the use of these innovative procurement methods. The study recommends the use of innovative methods to acquire a portion of the dedicated MILSATCOM capabilities by leveraging the commercial capital markets through a service provider to finance the needed capabilities.

General Weston continued, “Our study demonstrates there is a better way for the government to procure a substantial portion of their MILSATCOM capabilities. All we need now is for the government to select the best of several models and for industry to step up. U.S. Space stands ready.”

# # #

ABOUT U.S. SPACE
U.S. Space LLC is a U.S.-owned provider of dedicated, commercial space solutions. The company was established in January 2009 as a U.S.-owned provider of satellite solutions with a unique model combining the best commercial and government practices. The company, which is run by a small group of highly respected former military and corporate leaders, now offers a variety of dedicated space solutions to serve the nationʼs interests. More information on the company is available at www.usspacellc.com.

MEDIA CONTACT:
Hilary Condit
U.S. Space LLC
646.278.0371
hilary.condit@usspacellc.com

The Potomac Institute for Policy Studies (www.potomacinstitute.org) is pleased to announce that The Honorable Donald M. Kerr, PhD, has joined the Institute as a Senior Fellow and Member of the Board of Regents. Dr. Kerr is a distinguished scientist who has held several prominent positions in government service and private industry. He has served as Principal Deputy Director of National Intelligence, Director of the National Reconnaissance Office, Deputy Director for Science and Technology at the Central Intelligence Agency, and Assistant Director of the Federal Bureau of Investigation in charge of the Laboratory Division. He has been honored with the National Intelligence Distinguished Service Medal and the CIA Distinguished Intelligence Medal. Dr. Kerr is a Research Professor in George Mason University’s Volgenau School of Engineering, and serves as a member of the Board of Trustees for the MITRE Corporation. He is also a member of the Defense Science Board.

Regarding Dr. Kerr’s appointment as a Senior Fellow and Member of the Potomac Institute’s Board of Regents, Institute Chairman and CEO Michael Swetnam said, “Don Kerr is one of this country’s most distinguished leaders. It is a profound honor to have him join us.”

Dr. Kerr was confirmed by the Senate on October 4, 2007, as Principal Deputy Director of National Intelligence, and served in that position until January 20, 2009. From July 21, 2005, Dr. Kerr served as the fifteenth Director of the National Reconnaissance Office. He previously served as Deputy Director for Science and Technology at the Central Intelligence Agency, a position he assumed in August of 2001. From 1997 until 2001, Dr. Kerr was an Assistant Director of the Federal Bureau of Investigation in charge of the Laboratory Division. Dr. Kerr’s prior government service was with the Department of Energy from 1976 through 1979, first in Las Vegas as Deputy Manager of Nevada Operations, and subsequently in Washington, DC, as the Deputy Assistant Secretary and Acting Assistant Secretary for Defense Programs and later for Energy Technology.

He has also held several key executive positions in private industry. From 1993 through 1996, he was Corporate Executive Vice President and Director at Science Applications International Corporation. Dr. Kerr was President and Director of EG&G, Inc., from 1989 through 1992. He served as a Director of Resources for the Future from 1990 through 1999 and on the Executive Committee of the National Association of Manufacturers Board from 1987 through 1992. He currently acts as an advisor for several aerospace and defense firms.

Dr. Kerr was the fourth Director of the Los Alamos National Laboratory from 1979 to 1985. He was also employed at Los Alamos from 1966 until 1976, conducting and leading research in high altitude weapons effects, nuclear test detection and analysis, weapons diagnostics, ionospheric physics, and alternative energy programs.

Dr. Kerr received his Bachelor’s degree in electrical engineering in 1963 and went on to earn an MS (1964) in microwave electronics and a PhD(1966) in plasma physics and microwave electronics, all from Cornell University. He is a Fellow of the American Physical Society and the American Association for the Advancement of Science.

Listen to the interview

See more coverage of his book “Falling Back to Earth”

By Mark J. Albrecht

The Washington Times

Wednesday, July 6, 2011

NASA has scheduled the final launch of the space shuttle Atlantis for Friday. This 12-day mission to the International Space Station not only will be the final space-shuttle flight, but, without a serious course correction, augurs the end of America’s pre-eminence in space altogether.

Since 1960, America’s space program has been the crown jewel and Exhibit A of American exceptionalism. It has been a symbol of our spirit, ingenuity and technological prowess. It has fueled and sustained an economic expansion unparalleled in history and has powered the most awesome and unrivaled global military capability since the Roman Empire.

Yet our space program has been in a slow and steady decline since the fall of the Berlin Wall. In 1989, our lead in all aspects of space and space technology was so large that even decades of neglect, waste and inaction have left us without peer in almost all categories even today. This won’t last long. We are eating our technology seed corn.

How did this happen? It wasn’t because of inattention. President George H. W. Bush saw the coming crisis as he took office in 1989 and took bold and courageous steps to prevent reversing course on space exploration. In the face of a call for a defense “peace dividend” in 1990, he added money for new launch capabilities, for programs including the National Aerospace Plane and a new National Launch System. He beefed up spending on the advanced work of the Strategic Defense Initiative and the Defense Advanced Research Projects Agency (DARPA), all while sustaining an almost 20 percent cut in defense spending overall.

For NASA, Mr. Bush requested a one-time 25 percent increase in spending and a plan for 10 percent annual increases for five years thereafter. On July 20, 1989, the 20th anniversary of the landing of Apollo XI on the moon, he stood on the steps of the National Air and Space Museum and called for a new round of exploration, back to the moon, this time to stay, and then a journey to tomorrow, a human mission to Mars. His justification was simple: It is Americans’ destiny to explore and to lead. Mr. Bush’s program plan was steady and even, with heavy emphasis on new technology development and new ways of doing business. His vision was clear: We would continue our exploration of space not in competition, but in cooperation with the nations of the world, even our recent enemy, Russia. None of those plans came to fruition. The reasons are clear. Our institutions are bloated, wasteful and bureaucratic. Elected representatives act as fiscal stewards of jobs in their states and districts, making efficient and coherent allocation of resources nearly impossible. Private industry wields its consolidated power to smother competition, grow cost and mimic its slow and bureaucratic customer. And the academic community, for its part, deftly uses its power to influence, adjudicate and validate government science initiatives to ensure that it gets its “fair share” of the exploration pie.

The system has become adept at resisting reprioritization and powerful in protecting itself and the status quo. The only successful initiatives to alter the direction of our space efforts at the national level since the end of the Cold War have been negative. Cuts count; they force change.

President Clinton dramatically reoriented and redefined the space station by cutting its budget in half and threatening to cancel it outright. President Obama has changed the human spaceflight program by letting the shuttle fly out, commercializing operations of the space station and canceling the Constellation program. His intention, properly, is to use the savings to underwrite new developments. Even in the best of times this would be difficult, but current fiscal realities are likely to push Congress to harvest much of the savings for deficit reduction. Worse, the president’s space team is sending conflicting signals about its commitment to his plan.

For decades, America introduced inventions to the world, such as high-speed and personal computers, robotics, satellite telecommunications, lasers, solar panels, laparoscopic surgery, nanomachines and nuclear medicine, and built industries and high-tech jobs around each of them in a seemingly unending cavalcade of spinoff technologies developed by our space programs. Will space remain an economic and technological catalyst for America in the coming decades, or is our future in innovations like Facebook and Twitter?

The conventional wisdom in the federal bureaucracy is that you can reduce spending or you can restructure, reprioritize and reorganize. You can cut programs or start new programs. But you can’t do both. Now, our backs are to the wall. To re-establish our leadership in space, we must defy conventional wisdom and cut spending, start new initiatives and radically restructure a mature agency – all at the same time. It won’t be pleasant, and it won’t be easy, but neither was putting a man on the moon.

Mark J. Albrecht is chairman of U.S. Space. He was the principal adviser on space to President George H. W. Bush and author of “Falling Back to Earth: A First Hand Account of the Great Space Race and the End of the Cold War” (New Media Books, 2011).

http://www.washingtontimes.com/news/2011/jul/6/americas-space-program-is-crashing/print/

Mark Albrecht’s White House memoir is educational—and entertaining.

By William Kristol

The Economist magazine thinks the Space Age is probably over, and the discussion of our space future (or non-future) in its new issue is intelligent and informative. I’ve found over the years, though, that in many instances, the Economist‘s suave articulation of the not-so-cutting edge of conventional wisdom proves wrong. Mark Albrecht hopes that’s so in this case, because he’s a believer in space exploration, and his new book argues for U.S. leadership in that endeavor.

But Falling Back to Earth: A First Hand Account of the Great Space Race and the End of the Cold War is much more than a book about the American space program. It’s primarily a memoir of Mark’s years running the Space Council from 1989 to 1992—and, as such, it’s a truly engaging and insightful account of what it’s like to operate at a reasonably senior level in the White House. I worked closely with Mark in those years—I was Dan Quayle’s chief of staff and Vice President Quayle was head of the Space Council, and I have a bit role in the book—and I can say that Mark has conveyed, better than the huge majority of White House memoirs, the challenges, the frustrations, and the excitement of the odd mix of policy, politics, and personality that keep staffers busy at 1600 Pennsylvania Avenue.

Space enthusiasts and experts will all be studying Falling Back to Earth, anyway. But if you’re interested in politics and public policy, you should take a couple of hours to read its couple hundred of pages. If you think you don’t have the time to spare—well, skip this week’s Economist. With all due respect to that august publication, you’ll enjoy reading Albrecht more and you’ll learn more from him—not just about space policy, but about American politics and government.

http://www.weeklystandard.com/blogs/mark-book_575994.html

Mr. Brinkley was President of Boeing Satellite Systems Inc., the world’s largest manufacturer of commercial communication satellites, from 2001 to 2003, and before that was Senior Vice President of Programs for Hughes Space and Communications Company. Mr. Brinkley was also Chief Executive Officer of Rocketplane Kistler Inc., a commercial space transportation company from 2004 to 2007.

Mr. Brinkley was the NASA Program Manager for the International Space Station from 1994 until 1999. While at NASA, Mr. Brinkley was responsible for the integration of Russia’s participation in the ISS Program and the successful on-orbit assembly of the first elements of the ISS. Before his assignment as Program Manager for the ISS, Mr. Brinkley was Mission Director of the Hubble Space Telescope Repair Mission in 1994. From 1990 to 1992, Mr. Brinkley managed research and development activities for advanced aircraft systems and technologies at the McDonnell Douglas Corporation.

Presently, Mr. Brinkley manages Brinkley & Associates Company, a private investment and aerospace consulting firm he established n August 2004. Mr. Brinkley is also a limited partner and member of the Operating Executive Committee for J.F. Lehman Company, a private equity investment firm.

Dr. Mark A. Albrecht, U.S. Space Chairman of the Board, said, “Randy is a wonderful addition to the U.S. Space Board of Directors. Randy’s breadth of experience in senior government and industry roles gives him a rich perspective and valuable relationships that will help propel U.S. Space forward as we continue our work in bringing innovative space solutions to market.”

Mr. Brinkley said, ”U.S. Space is unique. I know no other company that combines the fresh thinking, practical solutions and customer commitment that is the U.S. Space way of doing business. I welcome the opportunity to join the U.S. Space Board, which also includes Mark Albrecht, Ed Horowitz, Mike Hamel, Don Kerr, Mark Piegza and Craig Weston – it’s an impressive group.”

Mr. Brinkley served in the U.S. Marine Corps for 25 years before retiring as a Colonel. He saw combat in Viet Nam before entering the U.S. Air Force pilot training program to eventually become the Navy’s Flight Instructor of the Year and the Marine Corps’ Aviator of the Year. He has flown more than 4,000 hours in 42 types of aircraft, which include the F-18 Hornet and AV-8B Harrier.

Mr. Brinkley has received numerous awards for outstanding achievement in aerospace, including the NASA Distinguished Service Medal and two NASA Outstanding Leadership Medals. Mr. Brinkley was also awarded the1993 Aviation Week and Space Technology Laurels Award, and the National Aviation Association’s Robert J. Collier Trophy in 1993 for his efforts as Mission Director of the Hubble Telescope Repair Mission. He was subsequently inducted into the Smithsonian’s Aviation Hall of Fame for his efforts as Program Manager of NASA’s International Space Station. Mr. Brinkley has also received the Space Achievement Award from the U.S. Space Foundation and also the Nelson P. Jackson Aerospace Award from the National Space Club.

Mr. Brinkley received a B.S. degree from the University of North Carolina and an M.S. degree from Boston University. He also graduated from the Navy Fighter Weapons School (TOPGUN), Amphibious Warfare School, NATO Defense College, and the Marine Corps School of Engineering.

#      #      #

ABOUT U.S. SPACE

U.S. Space LLC is a U.S.-owned provider of dedicated, commercial space solutions. The company was established in January 2009 as a U.S.-owned provider of satellite solutions with a unique model combining the best commercial and government practices. The company, which is run by a small group of highly respected former military and corporate leaders, now offers a variety of dedicated space solutions to serve the nationʼs interests. More information on the company is available at www.usspacellc.com.

CONTACT:

Hilary Condit

U.S. Space LLC

646.278.0371

hilary.condit@usspacellc.com

     May 12 (Bloomberg) — The U.S. Air Force is reviewing a contracting model that would provide upfront private financing of its satellite communications projects.

     U.S. Space LLC of Dulles, Virginia, is one of six businesses on an Air Force contract to study how the agency can better use industry for its satellite communications needs. The company is proposing contracts similar to those implemented by other government agencies such as the Energy Department.

     The firm fixed-price contracts, which could range from two to 15 years, would use dedicated satellites to lease services on a fee-for-service basis to the Defense Department. The limit on the contract’s cost would allow the Pentagon to avoid overruns for these services as it targets $400 billion in budget cuts with a focus on expenses in its space programs.

     The company’s model would ease the Pentagon’s budgeting process, shift risk to the contractor and allow the government to “focus on other programs that are higher-risk and may be pushing the state of the art in technology,” Craig Weston, U.S. Space’s chief executive officer, said in a phone interview.

     Under the proposed model, a satellite program, which is subject to congressional authorization and appropriation, begins immediately with lease costs budgeted in later years. The delayed payments avoid “spikes in the budget,” Weston said.

     Amid the department’s push for more fixed-price contracting, Weston said he sees this as an opening for the government to control “opportunity costs,” or money wasted when projects are delayed beyond their expected completion.

     “We want this to be firm fixed price because we want this to be attractive to a government that quite often sees overruns in even its most routine programs,” he said.

     Kari Bingen, a spokeswoman for the House Armed Services Committee, didn’t respond to requests for comment.

 ‘Tipping Point’

     Private financing at the project’s start has appealed to defense officials, Weston said. The Defense Information Systems Agency, which the military has used for short-term satellite service leases, posted a request for information March 15 that Weston said “closely emulates” the U.S. Space proposal.

     Lieutenant Colonel Jack Miller, an Air Force spokesman, declined to make an immediate comment on the agency’s consideration of the U.S. Space model.

     Commercial satellite providers have gotten more business from the military since the start of the war in Afghanistan, Don Brown, vice president of Bethesda, Maryland-based Intelsat General Corp., another company on the study contract, said in a phone interview. Intelsat General is a subsidiary of Luxembourg-based Intelsat S.A.

 Military Reliance

     The military’s reliance on the private sector for satellite services had grown to over 85 percent of its global communications, according to a 2009 report by the President’s National Security Telecommunications Advisory Committee.

     “This is one of those tipping points where the government was content to lease services from us based on existing satellites and they leased more and more and more of it,” Brown said.

     The Air Force “realized we’re pretty good at what we do, and now across the spectrum they’re looking at what if we used these guys more effectively ourselves?” he said.

     Seven satellite communications businesses, including Intelsat, Chicago-based Boeing Co. and Lockheed Martin Corp. of Bethesda, Maryland, formed the Hosted Payload Alliance in March to promote more sharing of space on satellites by military and commercial systems.

 ‘Hosted Payload’

     The U.S. Space model is “taking a hosted payload to the extreme” by dedicating a satellite, payload and services to the government customer, Weston said.

     “The payload, satellite, launcher would be built based on private financing, launched commercially, commercially insured, and could be operated on a commercial basis or the government could operate that satellite,” he said.

     The two-year-old company has two satellites in orbit in a joint venture with closely held Thuraya Satellite Telecommunications Co. of Abu Dhabi.

     U.S. Space has many opportunities to implement its model even as the government is likely to rely on its own satellites for its most secure communications, Weston said.

     Weston is a former chief information officer and director of research for the National Reconnaissance Office, which manages U.S. intelligence satellites.

     “The vast majority of government communications is not that sensitive or does not need to be as assured as that,” he said.

     Security for its government customers is “not an issue,” Brown, the Intelsat executive, said.

     The military uses encryption to protect its communications as signals travel from one government terminal to another, and dedicating the satellite to one customer can help streamline the process, Weston said.

     U.S. Space’s contract number for the Air Force study is FA8808-11-C-0006.

U.S. Space will review commercial and other alternative approaches to the existing military satellite acquisition model and recommend alterations that will enable faster, more cost-effective, and more efficient solutions to meet U.S. Government needs.

Major General, USAF (Ret.) Craig P. Weston, CEO of U.S. Space LLC, said “We look forward to working together with our U.S. Air Force partners to engage in a focused dialogue on how industry can better support their needs, and how alterations to the acquisition and policy guidelines will enable them to harness the capabilities of commercial space providers, to include U.S. Space and our enterprise partners.”

U.S. Space is committed to providing dedicated commercial space solutions to serve the nation’s interests. This study positions the company to make actionable recommendations on new procurement and service models that leverage the best attributes of both commercial and military satellite communications services.  The government-dedicated business model of U.S. Space utilizes industry best practices for the acquisition, build, and launch of spacecraft combined with the agility, flexibility, responsiveness and cost-effectiveness of private financing.

#         #        #

ABOUT U.S. SPACE

U.S. Space LLC is a U.S.-owned provider of dedicated, commercial space solutions. The company was established in January 2009 as a provider of satellite solutions with a unique model that combines the best commercial and government practices. The company, which is run by a small group of highly respected former military and corporate leaders, now offers a variety of dedicated space solutions to serve the nationʼs interests. More information is available at www.usspacellc.com.

MEDIA CONTACT:

Hilary Condit

646.278.0371

hilary.condit@usspacellc.com