Starbridge Weekly Space Update for 10/31/2022

SpaceX Passes Boeing

Ars Technica reported that in the Federal fiscal year 2022, SpaceX became NASA’s second-largest contract behind CalTech which operates the Jet Propulsion Lab for NASA. The result is that Boeing is no longer NASA’s largest contractor. In FY 2022 NASA paid SpaceX $2.04 billion while Boeing only received $1.72 billion and Lockheed Martin received $1.3 billion. This comes as Boeing reports that it took another charge against earnings because of CST-100 Starliner delays. Turning the giant ship of state takes time but they do eventually turn.


General Space News

Regulatory Humility

At the CONFER Global Satellite Servicing Forum meeting late last week, member companies and CONFERS organizers were clear that there was a need for some limited and voluntary standards but cautioned that premature standards and regulations could hamstring the industry. This was primarily in response to the National Space Council scheduling two listening sessions in November to gauge what is needed. 

 

Public vs Private Markets: Information Asymmetry

Ever since the market downturn began earlier this year there has been a steady stream of press describing the imminent death of the commercial space sector. Much of that press reflects the fact that private equity markets benefit from a significant information asymmetry with public markets. One exception is when companies such as Pitchbook, a specialist in private equity databases and analytics, use their superior knowledge of actual deal details to briefly break down that information asymmetry. In their recent report on mid-year performance within the space sector, their data suggests that the sector is positioned to match or outperform 2021 in terms of funded space sector deals. Yes, general economic sentiment is affecting round pricing in some cases. Some firms are even postponing their next raise until mid-next year if possible. The primary lesson to learn from Pitchbook’s report is that SPAC performance is not a valid proxy for the sector.

 

Commercial Companies As Defense Assets

While Russia has signaled its intent to stay in the ISS Partnership until 2027, it has ratcheted up its rhetoric with respect to US commercial companies being treated as military assets. Konstantin Vorontsov, deputy director of the Russian foreign ministry's department for non-proliferation and arms, said at a United Nations meeting, “Quasi-civilian infrastructure may be a legitimate target for a retaliatory strike”. Vorontsov went on to reiterate Moscow’s position that Western civilian and commercial satellites helping Ukrainian’s war effort were “an extremely dangerous trend.” While not unexpected, this is the first time Russia has said its position out loud and in public.

The trend will continue though as the recently published US National Defense Strategy outlined that the DoD will continue to depend on commercial providers for all of its needs, space included. When it does depend on them it will prepare to defend them if necessary. White House spokesman John Kirby said on Thursday that any attack on U.S. infrastructure would be met with a response but he did not go into detail.

 

Other Space News

Readers have probably noticed that we are including more news reports from Payload Space. The team at Payload is doing one of the best jobs around at reporting on what is actually happening in the space business sector.