Exploring the Unknown - NASA's History Office

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SPACE AS AN INVESTMENT IN ECONOMIC GROWTH
competition is not a factor in selection, but value to the Government is. In Phase II,
embodying the principal research effort, awards will be made to Phase I contractors whose
work shows promise of producing something of value for the agency in terms of technical
merit and feasibility. Special consideration will be given to proposals which demonstrate
funding commitments to development of commercial application of the idea. Phase II
awards are expected to be in amounts of up to $500,000 for a period of performance, generally,
not to exceed 24 months. In both Phase I and II contracts, a profit or fee may be
included. Phase III, hopefully, will involve private market funding support of contractor
efforts with ultimate commercialization of the product or service.
In order to be eligible to propose, a contractor must be a small business. And, the proposer
must be the primary source of employment of the principal investigator. However,
some subcontracting is permitted in both phases and joint ventures are permitted and
even encouraged, providing small business eligibility standards for the proposers are
maintained.
One of the most significant aspects of the SBIR contracts yet to be resolved is the exact
nature of the data rights issue; neither the statute nor the SBA [Small Business
Administration] have given clear guidance on this issue which must be resolved in a uniform
manner throughout the SBIR program.
An SBIR program was established at NASA Headquarters in the Office of Aeronautics
and Space Technology to coordinate and handle the development of topics, and to conduct
the selection process. Topics were proposed by the NASA field centers, evaluated and culled
at Headquarters for inclusion in a topic list sent out with the solicitation. Evaluation and
selection of winning proposals are accomplished through panels of NASA scientific and
technical experts. Awards of contracts will be made by the SBIR office with the administration
at the field center from which the topic originated. Initial first phase contract awards
have been made. If this program proves successful, NASA may extend the concept beyond
the original statutory requirements as an adjunct of its commercialization program.
Document III-18
Document title: “Space Commercialization Meeting,” memo with agenda, participants,
and outline of policy issues, The White House, August 3, 1983.
Source: NASA Historical Reference Collection, NASA History Office, NASA
Headquarters, Washington, D.C.
In 1983, the Reagan administration decided to encourage the private sector to invest in space research
and commercialization and wanted to understand what government policies would provide the best
climate for private investment in space. A meeting was held at the White House with business and
government leaders to discuss measures that would stimulate private-sector industrial activity in
space. This meeting was one of the first very high-level and visible signals from the government to business
to plan for a new era in space of profit-making opportunities, manufacturing, and other activities.
It was also a direct signal to business that the planned space station would be available for
commercial opportunities and that to advance the plans for the station, the lobbying and support of
the business sector would be important.