Page 1 GAO-16-661R Foreign Space Launch

441 G St. N.W.

Washington, DC 20548

July 22, 2016

The Honorable Mike Rogers

Chairman 

Subcommittee on Strategic Forces

Committee on Armed Services

House of Representatives

Evolved Expendable Launch Vehicle: DOD Is Assessing Data on Worldwide Launch 

Market to Inform New Acquisition Strategy

Dear Mr. Chairman:

This report formally transmits the information we provided in a briefing on June 7, 2016, in 

response to your request to examine issues related to foreign space launch capabilities and the 

Department of Defense’s (DOD) efforts to incorporate consideration of the global launch market 

into the next Evolved Expendable Launch Vehicle (EELV) program acquisition strategy. The 

United States government is striving to help develop a competitive market for space launches 

from which it can acquire its military satellite launches in order to help lower the price of launch 

and assure its access to space. Questions have been raised about whether competition among 

U.S. launch providers can be sustained in the long run given market conditions and competition 

from foreign launch providers in the global commercial launch market. A key question is the 

extent to which other countries that launch satellites rely on more than one launch provider with 

similar capabilities or have been able to foster competition to the extent that the United States is 

seeking. In 2015, there were 86 global satellite launches, 22 of which were considered 

commercial launches.1

 Table 1 provides the number of civil government, military, and 

commercial launches by country in 2015.

 

1 Three of the 86 launches failed; these included two commercial launches—one provided by International Launch 

Services (ILS) of a Proton M launch vehicle and one provided by Space Exploration Technologies (SpaceX) of a 

Falcon 9 launch vehicle — and one U.S. Air Force-sponsored Super Strypi vehicle launched from Hawaii. 
Page 2 GAO-16-661R Foreign Space Launch

Table 1. Civil Government, Military, and Commercial Launches by Country in 2015

a For the purposes of this report, we refer to the European Union as a country because the 

Federal Aviation Administration’s (FAA) 2016 Compendium on Commercial Space 

Transportation categorizes it as a country or jurisdiction with operational space launch 

capability. The main government organizations who use launch services are the European 

Union, two intergovernmental organizations – the European Space Agency and Eumetsat – 

France, Germany, Italy, Spain and the United Kingdom. These organizations have a different 

set of member countries and procurement rules. 

This report addresses the following questions: (1) What is known about foreign launch 

capabilities, and which, if any, foreign governments rely on more than one launch provider with 

similar capabilities for access to space? (2) What is known about the range and types of 

government support that foreign launch providers receive? (3) To what extent is DOD 

incorporating consideration of the current and predicted national security, civil government, and 

commercial launches into its acquisition strategy for the EELV program?

To describe what is known about foreign satellite launch capabilities, and which, if any, foreign 

governments rely on more than one launch provider with similar capabilities for access to space, 

we reviewed the Federal Aviation Administration’s Commercial Space Transportation 2014 Year 

in Review, the 2015 Commercial Space Transportation Forecasts, and the 2016 Annual 

Compendium of Commercial Space Transportation reports which provide a summary of the 

global commercial satellite launch industry and emerging trends relating to payload size, 

number of launch missions, and which countries and companies are competing for services. We 

also interviewed FAA officials regarding the types of information collected to produce the reports 

and met with both domestic and foreign launch companies to understand their perspective 

relating to the industry as well as to discuss the findings of the FAA reports with officials from 

the domestic companies.

To describe what is known about the range and types of government support that foreign launch 

providers receive, we interviewed officials from the European Space Agency (ESA),the Japan 

Aerospace Exploration Agency (JAXA), and interviewed and spoke with Arianespace and 

International Launch Services (ILS) to obtain insights on how foreign government launch 

services and infrastructure are funded. We also obtained information from Department of 

Commerce, National Aeronautics and Space Administration (NASA), DOD, Federal Aviation 

Administration, Department of State officials, and domestic commercial launch providers to 

obtain their insights on foreign government involvement with space launch providers. We also 

reviewed publically available information from foreign launch provider company websites.

To describe the extent DOD has incorporated consideration of the current and predicted 

military, civil and commercial launch markets into its acquisition strategy, we obtained 

information from Air Force and DOD officials regarding the development of the EELV acquisition 
Page 3 GAO-16-661R Foreign Space Launch

strategy and reviewed market research documentation. We also interviewed domestic launch 

providers regarding the EELV program.

We conducted this performance audit from March 2016 to July 2016 in accordance with 

generally accepted government auditing standards. Those standards require that we plan and 

perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our 

findings and conclusions based on our audit objectives. We believe that the evidence obtained 

provides a reasonable basis for our findings and conclusions based on our audit objectives.

Foreign Launch Capabilities

In summary, five countries outside of the United States have operational space launch 

capabilities — the European Union, Russia, India, Japan, and China — for launching civil 

government, military, and commercial payloads.2 Most countries primarily depend on a single 

launch provider for launches of specific capability within their country to meet civil and military 

launch requirements. Arianespace is the primary launch provider to the ESA, who also 

frequently purchases launches for scientific payloads from other non-European launch 

providers. The United States is unique in that it has more than two launch providers with some 

overlapping capabilities to meet U.S. civil and military launch needs, two of which are certified to 

launch national security payloads. U.S. based providers are United Launch Alliance (ULA), 

Space Exploration Technologies Corporation (SpaceX), and Orbital ATK. Countries we 

reviewed did have more than one launch provider in some instances, but, in countries with 

multiple providers, the providers had different capabilities.3

 Commercial launches are those that 

are open to international competition or were licensed by the FAA. Companies select from 

global launch providers based on a number of factors, including price, capability, and reliability 

of the launch vehicle. Governments play a significant role in stimulating the launch market since 

they constitute a large portion of demand. The United States’ budget for space programs, which 

includes launch services, is much larger than any other country. The U.S. budget for space is 

approximately $39 billion, which is roughly one-half of all government space budgets, globally. 

Iran, Israel, North Korea, and South Korea also have space launch capability. However, little 

information is readily available about their launch vehicles, launch payload capabilities, or 

launch providers. While the FAA did report one successful civil mission for Iran in 2015, 

because so little information is readily available, we did not include Iran, Israel, North Korea, 

and South Korea in our review. However, agency officials we spoke with said that South 

Korea's Korea Aerospace Research Institute (KARI) has plans to develop a launch vehicle 

capability, but does not currently have a self-sufficient indigenous launch capability. 

Government Support of Foreign Launch Providers

Data on how foreign governments support their launch providers are limited. Based on what 

general information is available, experts we spoke with said that launch providers receive some 

support from their respective governments through provision of historical launch vehicle 

 

2 For the purposes of this report, we refer to the European Union as a country because FAA’s 2016 Compendium on 

Commercial Space Transportation categorizes it as a country or jurisdiction with operational space launch capability. 

The main government organizations who use launch services are the European Union, two intergovernmental 

organizations – the European Space Agency and Eumetsat – France, Germany, Italy, Spain and the United Kingdom. 

These organizations have a different set of member countries and procurement rules. 

3 Payloads are generally distinguished by their weight, called a payload mass class. Small payloads are those 

weighing approximately 1-2,600 lbs. Medium class payloads weigh between 2,600-5,500 lbs. Intermediate payloads 

range in weight from 5,500-9,300 lbs. Large payloads range in weight from 9,300-12,00lbs, while the Heavy payload 

class weighs over 12,000 lbs. 
Page 4 GAO-16-661R Foreign Space Launch

research and development funding, direct payments to cover launch system operating costs, 

government-provided infrastructure, government ownership, government as a customer or 

indemnity insurance.

4 For example, launch providers in Russia, China, and India are fully or 

partially owned by their governments. The Russian launch provider Khrunichev, which is owned 

by the Russian government, operates and maintains launch infrastructure for civil, military, and 

commercial launch services. Arianespace, ESA’s preferred launch provider, receives direct 

payments annually to cover the cost of operating three launch systems. Japan researches and 

develops space technologies such as launch vehicles, and transfers the technologies to its main 

launch provider, Mitsubishi Heavy Industries for production. In the United States, the U.S. 

government has provided support in the form of early expenditures on launch vehicle 

development, and launch providers made significant investments in developing capabilities as 

well. DOD officials said that launch providers in the United States, in general, own their testing 

and launch infrastructure but lease the land for their launch pads from the U.S. government and 

pay a fee to the U.S. government for Range operations support. Since 2005, DOD has paid 

separately for EELV’s launch service and launch capability, including, among other things, the 

costs associated with operating and maintaining the United Launch Alliance (ULA) launch 

infrastructure. ULA reimburses DOD for a portion of the cost when ULA launches a non-DOD 

customer.

Extent DOD Is Incorporating Information of the Global Launch Market into the EELV 

Acquisition Strategy

As DOD considers options in developing a new acquisition strategy for the EELV program, it is 

gathering and analyzing information on the global launch market to help ensure multiple U.S.-

based launch providers can remain viable to compete for future launches. Additionally, the 

EELV program office is using FAA information on the global demand for launches and results 

from a 2014 Request for Information to solicit industry inputs on propulsion and launch systems, 

which included information about the number of launches potential domestic providers require to 

stay in business. Furthermore, the Office of the Secretary for Defense (OSD) Cost Assessment 

and Program Evaluation (CAPE) is working with the Air Force Cost Analysis Agency to analyze 

the business cases of potential launch providers for the EELV program. The FAA provides 

launch market information on commercial launch forecasts, foreign launch capabilities, and 

historical global launch demand. Although DOD is taking steps to gather data, history has 

proven that it is difficult to reliably predict growth in the demand for launch services. Many 

factors influence the quantity, size, and frequency of satellite launches for both government and 

commercial use. For additional information on the results of our work, see the enclosure: 

Briefing on Foreign Space Launch. 

Agency Comments 

We are not making recommendations in this report. We provided a draft of this report to the 

Departments of Defense, Commerce, State, Transportation, and NASA for comment. 

Departments of Defense, Commerce, and Transportation provided technical comments, which 

were incorporated as appropriate. The Department of State and NASA did not provide 

comments.

 

4 In anticipation of a catastrophic commercial launch accident, which could result in injuries or property damage to the 

uninvolved public or “third parties”, a launch company must purchase a fixed amount of insurance for each launch 

and reentry, per calculation by FAA; the federal government may indemnify the launch provider against claims above 

that amount up to an additional $3.06 billion, adjusted for inflation in 2015 dollars and subject to congressional 

appropriations. 51 U.S.C. §§ 50914-50915.
Page 5 GAO-16-661R Foreign Space Launch

We are sending copies of this report to the appropriate congressional committees, the Secretary 

of Defense, the Secretary of the Air Force, the Secretaries of State and Commerce, the NASA 

Administrator, and other interested parties. This report is also available at no charge on the 

GAO website at http://www.gao.gov. 

Should you or your staff have questions about this report, please contact me at (202) 512-4841 

or at chaplain@gao.gov. Contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this report. GAO staff who made key contributions to 

this report were Rich Horiuchi, Assistant Director; Emily Bond, Erin Cohen, Lorraine Ettaro, Kurt 

Gurka, Jordan Kudrna, Keith Hudson, and Carol Petersen.

Sincerely yours,

Cristina T. Chaplain

Director

Acquisition and Sourcing Management

Enclosure
Enclosure Briefing on Foreign Space Launch

Page 6 GAO-16-661R Foreign Space Launch
Page 7 GAO-16-661R Foreign Space Launch
Page 8 GAO-16-661R Foreign Space Launch
Page 9 GAO-16-661R Foreign Space Launch
Page 10 GAO-16-661R Foreign Space Launch
Page 11 GAO-16-661R Foreign Space Launch
Page 12 GAO-16-661R Foreign Space Launch
Page 13 GAO-16-661R Foreign Space Launch
Page 14 GAO-16-661R Foreign Space Launch
Page 15 GAO-16-661R Foreign Space Launch
Page 16 GAO-16-661R Foreign Space Launch
Page 17 GAO-16-661R Foreign Space Launch
Page 18 GAO-16-661R Foreign Space Launch
Page 19 GAO-16-661R Foreign Space Launch
Page 20 GAO-16-661R Foreign Space Launch
Page 21 GAO-16-661R Foreign Space Launch
Page 22 GAO-16-661R Foreign Space Launch
Page 23 GAO-16-661R Foreign Space Launch
Page 24 GAO-16-661R Foreign Space Launch
Page 25 GAO-16-661R Foreign Space Launch
Page 26 GAO-16-661R Foreign Space Launch
Page 27 GAO-16-661R Foreign Space Launch
Page 28 GAO-16-661R Foreign Space Launch
Page 29 GAO-16-661R Foreign Space Launch
Page 30 GAO-16-661R Foreign Space Launch
Page 31 GAO-16-661R Foreign Space Launch
Page 32 GAO-16-661R Foreign Space Launch
Page 33 GAO-16-661R Foreign Space Launch
Page 34 GAO-16-661R Foreign Space Launch
Page 35 GAO-16-661R Foreign Space Launch
Page 36 GAO-16-661R Foreign Space Launch
Page 37 GAO-16-661R Foreign Space Launch
Page 38 GAO-16-661R Foreign Space Launch
Page 39 GAO-16-661R Foreign Space Launch
Page 40 GAO-16-661R Foreign Space Launch
Page 41 GAO-16-661R Foreign Space Launch
Page 42 GAO-16-661R Foreign Space Launch
Page 43 GAO-16-661R Foreign Space Launch

(100712)
This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The published product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

copyrighted images or other material, permission from the copyright holder may be 

necessary if you wish to reproduce this material separately.
The Government Accountability Office, the audit, evaluation, and 

investigative arm of Congress, exists to support Congress in meeting its 

constitutional responsibilities and to help improve the performance and 

accountability of the federal government for the American people. GAO 

examines the use of public funds; evaluates federal programs and 

policies; and provides analyses, recommendations, and other assistance 

to help Congress make informed oversight, policy, and funding decisions. 

GAO’s commitment to good government is reflected in its core values of 

accountability, integrity, and reliability.

The fastest and easiest way to obtain copies of GAO documents at no 

cost is through GAO’s website (www.gao.gov). Each weekday afternoon, 

GAO posts on its website newly released reports, testimony, and 

correspondence. To have GAO e-mail you a list of newly posted products, 

go to www.gao.gov and select “E-mail Updates.”

The price of each GAO publication reflects GAO’s actual cost of 

production and distribution and depends on the number of pages in the 

publication and whether the publication is printed in color or black and 

white. Pricing and ordering information is posted on GAO’s website, 

http://www.gao.gov/ordering.htm. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or 

TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card, 

MasterCard, Visa, check, or money order. Call for additional information.

Connect with GAO on Facebook, Flickr, Twitter, and YouTube. 

Subscribe to our RSS Feeds or E-mail Updates. Listen to our Podcasts. 

Visit GAO on the web at www.gao.gov. 

Contact:

Website: www.gao.gov/fraudnet/fraudnet.htm

E-mail: fraudnet@gao.gov

Automated answering system: (800) 424-5454 or (202) 512-7470

Katherine Siggerud, Managing Director, siggerudk@gao.gov, (202) 512-

4400, U.S. Government Accountability Office, 441 G Street NW, Room 

7125, Washington, DC 20548

Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, DC 20548

GAO’s Mission

Obtaining Copies of 

GAO Reports and 

Testimony

Order by Phone

Connect with GAO

To Report Fraud, 

Waste, and Abuse in 

Federal Programs

Congressional 

Relations

Public Affairs

Please Print on Recycled Paper.