ed States Code, as added by paragraph (1)(F) of this sub-
section.
(3) Section 70102(5) of title 49, United States Code,
is amended—
(A) by redesignating subparagraphs (A) and
(B) as subparagraphs (B) and (C), respectively; and
(B) by inserting before subparagraph (B), as so
redesignated by subparagraph (A) of this paragraph,
the following new subparagraph:
‘‘(A) activities directly related to the prep-
aration of a launch site or payload facility for
one or more launches;’’.
(4) Section 70103(b) of title 49, United States Code,
is amended—
(A) in the subsection heading, as amended by
subsection (a)(4)(A) of this section, by inserting
‘‘AND STATE SPONSORED SPACEPORTS’’ after ‘‘AND
REENTRIES’’; and
(B) in paragraph (1), by inserting ‘‘and State
sponsored spaceports’’ after ‘‘private sector’’.
(5) Section 70105(a)(1) of title 49, United States
Code, as amended by subsection (b)(1) of this section, is
amended by inserting at the end the following: ‘‘The Sec-
retary shall submit to the Committee on Science of the
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a writ-
ten notice not later than 7 days after any occurrence when
a license is not issued within the deadline established by
this subsection.’’.
(6) Section 70111 of title 49, United States Code,
is amended—
(A) in subsection (a)(1), by inserting after sub-
paragraph (B) the following:
‘‘The Secretary shall establish criteria and procedures for
determining the priority of competing requests from the
private sector and State governments for property and
services under this section.’’;
(B) by striking ‘‘actual costs’’ in subsection
(b)(1) and inserting in lieu thereof ‘‘additive costs
only’’; and
(C) by inserting after subsection (b)(2) the fol-
lowing new paragraph:
‘‘(3) The Secretary shall ensure the establishment of
uniform guidelines for, and consistent implementation of,
this section by all Federal agencies.’’.
(7) Section 70112 of title 49, United States Code,
is amended—
(A) in subsection (a)(1), by inserting ‘‘launch,
reentry, or site operator’’ after ‘‘(1) When a’’;
(B) in subsection (b)(1), by inserting ‘‘launch,
reentry, or site operator’’ after ‘‘(1)A’’; and
(C) in subsection (f), by inserting ‘‘launch, re-
entry, or site operator’’ after ‘‘carried out under a’’.
(c) REGULATIONS.—(1) Chapter 701 of title 49,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 70120. Regulations
‘‘The Secretary of Transportation, within 6 months
after the date of the enactment of this section, shall issue
regulations to carry out this chapter that include—
‘‘(1) guidelines for industry to obtain sufficient
insurance coverage for potential damages to third
parties;
‘‘(2) procedures for requesting and obtaining li-
censes to operate a commercial launch vehicle and
reentry vehicle;
‘‘(3) procedures for requesting and obtaining
operator licenses for launch and reentry; and
‘‘(4) procedures for the application of govern-
ment indemnification.’’.
(2) The table of sections for such chapter 701 is
amended by adding after the item relating to section
70119 the following new item:
‘‘70120. Regulations.’’.
(d) REPORT TO CONGRESS.—(1) Chapter 701 of title
49, United States Code, is further amended by adding at
the end the following new section:
‘‘§ 70121. Report to Congress
‘‘The Secretary of Transportation shall submit to
Congress an annual report to accompany the President’s
budget request that—
‘‘(1) describes all activities undertaken under
this chapter, including a description of the process
for the application for and approval of licenses under
this chapter and recommendations for legislation
that may further commercial launches and reentries;
and
‘‘(2) reviews the performance of the regulatory
activities and the effectiveness of the Office of Com-
mercial Space Transportation.’’.
(2) The table of sections for such chapter 701 is fur-
ther amended by adding after the item relating to section
70120, as added by subsection (c)(2) of this section, the
following new item:
‘‘70121. Report to Congress.’’.
SEC. 302. REQUIREMENT FOR INDEPENDENT COST ANALY-
SIS.
Before any funds may be obligated for Phase C of
a project that is projected to cost more than $75,000,000
in total project costs, the Chief Financial Officer for the
National Aeronautics and Space Administration shall con-
duct an independent cost analysis of such project and shall
report the results to Congress. In developing cost account-
ing and reporting standards for carrying out this section,
the Chief Financial Officer shall, to the extent practicable
and consistent with other laws, solicit the advice of exper-
tise outside of the National Aeronautics and Space Admin-
istration.
SEC. 303. OFFICE OF SPACE COMMERCE.
(a) ESTABLISHMENT.—There is established within
the Department of Commerce an Office of Space Com-
merce.
(b) FUNCTIONS.—The Office of Space Commerce
shall be the principal unit for the coordination of space-
related issues, programs, and initiatives within the De-
partment of Commerce. The Office’s primary responsibil-
ities shall include—
(1) promoting private sector investment in
space activities by collecting, analyzing, and dissemi-
nating information on space markets, and conduct-
ing workshops and seminars to increase awareness
of commercial space opportunities;
(2) assisting United States commercial provid-
ers in their efforts to do business with the United
States Government, and acting as an industry advo-
cate within the executive branch to ensure that the
Federal Government meets its space-related require-
ment, to the fullest extent feasible, with commer-
cially available space goods and services;
(3) ensuring that the United States Govern-
ment does not compete with the private sector in the
provision of space hardware and services otherwise
available from the private sector;
(4) promoting the export of space-related goods
and services;
(5) representing the Department of Commerce
in the development of United States policies and in
negotiations with foreign countries to ensure free
and fair trade internationally in the area of space
commerce; and
(6) seeking the removal of legal, policy, and in-
stitutional impediments to space commerce.
SEC. 304. NATIONAL AERONAUTICS AND SPACE ACT OF 1958
AMENDMENTS.
(a) DECLARATION OF POLICY AND PURPOSE.—Sec-
tion 102 of the National Aeronautics and Space Act of
1958 (42 U.S.C. 2451) is amended—
(1) by striking subsection (f) and redesignating
subsections (g) and (h) as subsections (f) and (g),
respectively; and
(2) in subsection (g), as so redesignated by
paragraph (1) of this subsection, by striking ‘‘(f),
and (g)’’ and inserting in lieu thereof ‘‘and (f)’’.
(b) REPORTS TO THE CONGRESS.—Section 206(a) of
the National Aeronautics and Space Act of 1958 (42
U.S.C. 2476(a)) is amended—
(1) by striking ‘‘January’’ and inserting in lieu
thereof ‘‘May’’; and
(2) by striking ‘‘calendar’’ and inserting in lieu
thereof ‘‘fiscal’’.
(c) DISCLOSURE OF TECHNICAL DATA.—Section 303
of the National Aeronautics and Space Act of 1958 (42
U.S.C. 2454) is amended—
(1) in subsection (a)(C), by inserting ‘‘or (c)’’
after ‘‘subsection (b)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(c)(1) The Administrator may, and at the request
of a private sector entity shall, delay for a period of at
least one day, but not to exceed 5 years, the unrestricted
public disclosure of technical data in the possession of, or
under the control of, the Administration that has been
generated in the performance of experimental, devel-
opmental, or research activities or programs funded jointly
by the Administration and such private sector entity.
‘‘(2) Within 1 year after the date of the enactment
of the Civilian Space Authorization Act, Fiscal Years 1998
and 1999, the Administrator shall issue regulations to
carry out this subsection. Paragraph (1) shall not take ef-
fect until such regulations are issued.
‘‘(3) Regulations issued pursuant to paragraph (2)
shall include—
‘‘(A) guidelines for a determination of whether
data is technical data within the meaning of this
subsection;
‘‘(B) provisions to ensure that technical data is
available for dissemination within the United States
to United States persons and entities in furtherance
of the objective of maintaining leadership or com-
petitiveness in civil and governmental aeronautical
and space activities by the United States industrial
base; and
‘‘(C) a specification of the period or periods for
which the delay in unrestricted public disclosure of
technical data is to apply to various categories of
such data, and the restrictions on disclosure of such
data during such period or periods, including a re-
quirement that the maximum 5-year protection
under this subsection shall not be provided unless at
least 50 percent of the funding for the activities or
programs is provided by the private sector.
‘‘(4) The Administrator shall annually report to the
Congress all determinations made under paragraph (1).
‘‘(5) For purposes of this subsection, the term ‘tech-
nical data’ means any recorded information, including
computer software, that is or may be directly applicable
to the design, engineering, development, production, man-
ufacture, or operation of products or processes that may
have significant value in maintaining leadership or com-
petitiveness in civil and governmental aeronautical and
space activities by the United States industrial base.’’.
SEC. 305. PROCUREMENT.
(a) PROCUREMENT DEMONSTRATION PROGRAM.—
(1) IN GENERAL.—The Administrator shall es-
tablish a program of expedited technology procure-
ment for the purpose of demonstrating how innova-
tive technology concepts can rapidly be brought to
bear upon space missions of the National Aero-
nautics and Space Administration.
(2) PROCEDURES AND EVALUATION.—The Ad-
ministrator shall establish procedures for actively
seeking from persons outside the National Aero-
nautics and Space Administration innovative tech-
nology concepts, relating to the provision of space
hardware, technology, or service to the National Aer-
onautics and Space Administration.
(3) SPECIAL
AUTHORITY.—In order to carry
out this subsection the Administrator shall recruit
and hire for limited term appointments persons from
outside the National Aeronautics and Space Admin-
istration with special expertise and experience relat-
ed to the innovative technology concepts with respect
to which procurements are made under this sub-
section.
(4) SUNSET.—This subsection shall cease to be
effective 10 years after the date of its enactment.
(b) TECHNOLOGY PROCUREMENT INITIATIVE.—
(1) IN GENERAL.—The Administrator shall co-
ordinate National Aeronautics and Space Adminis-
tration resources in the areas of procurement, com-
mercial programs, and advanced technology in order
to—
(A) fairly assess and procure commercially
available technology from the marketplace in
the most efficient manner practicable;
(B) achieve a continuous pattern of inte-
grating advanced technology from the commer-
cial sector, and from Federal sources outside
the National Aeronautics and Space Adminis-
tration, into the missions and programs of the
National Aeronautics and Space Administra-
tion;
(C) incorporate private sector buying and
bidding procedures, including fixed price con-
tracts, into procurements; and
(D) provide incentives for cost-plus con-
tractors of the National Aeronautics and Space
Administration to integrate commercially avail-
able technology in subsystem contracts on a
fixed-price basis.
(2) CERTIFICATION.—Upon solicitation of any
procurement for space hardware, technology, or serv-
ices that are not commercially available, the Admin-
istrator shall certify, by publication of a notice and
opportunity to comment in the Commerce Business
Daily, for each such procurement action, that no
functional equivalent, commercially, available space
hardware, technology, or service exists and that no
commercial method of procurement is available.
SEC. 306. ACQUISITION OF SPACE SCIENCE DATA.
(a) ACQUISITION FROM PRIVATE SECTOR.—The Ad-
ministrator shall, to the maximum extent possible and
while satisfying the scientific requirements of the National
Aeronautics and Space Administration, acquire, where
cost effective, space science data from the private sector.
(b) TREATMENT OF SPACE SCIENCE DATA AS COM-
MERCIAL ITEM UNDER ACQUISITION LAWS.—Acquisitions
of space science data by the Administrator shall be carried
out in accordance with applicable acquisition laws and reg-
ulations (including chapters 137 and 140 of title 10, Unit-
ed States Code), except that space science data shall be
considered to be a commercial item for purposes of such
laws and regulations (including section 2306a of title 10,
United States Code (relating to cost or pricing data), sec-
tion 2320 of such title (relating to rights in technical data)
and section 2321 of such title (relating to validation of
proprietary data restrictions)).
(c) DEFINITION.—For purposes of this section, the
term ‘‘space science data’’ includes scientific data concern-
ing the elemental and mineralogical resources of the moon
and the planets, Earth environmental data obtained
through remote sensing observations, and solar storm
monitoring.
(d) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government
from requiring compliance with applicable safety stand-
ards.
(e) LIMITATION.—This section does not authorize the
National Aeronautics and Space Administration to provide
financial assistance for the development of commercial
systems for the collection of space science data.
SEC. 307. COMMERCIAL SPACE GOODS AND SERVICES.
The National Aeronautics and Space Administration
shall purchase commercially available space goods and
services to the fullest extent feasible, and shall not conduct
activities that preclude or deter commercial space activi-
ties except for reasons of national security or public safety.
A space good or service shall be deemed commercially
available if it is offered by a United States commercial
provider, or if it could be supplied by a United States com-
mercial provider in response to a Government procurement
request. For purposes of this section, a purchase is fea-
sible if it meets mission requirements in a cost-effective
manner.
SEC. 308. ACQUISITION OF EARTH REMOTE SENSING DATA.
(a) ACQUISITION.—For purposes of meeting Govern-
ment goals for Mission to Planet Earth, the Administrator
shall, to the maximum extent possible and while satisfying
the scientific requirements of the National Aeronautics
and Space Administration, acquire, where cost-effective,
space-based and airborne Earth remote sensing data, serv-
ices, distribution, and applications from the private sector.
(b) TREATMENT AS COMMERCIAL ITEM UNDER AC-
QUISITION LAWS.—Acquisitions by the Administrator of
the data, services, distribution, and applications referred
to in subsection (a) shall be carried out in accordance with
applicable acquisition laws and regulations (including
chapters 137 and 140 of title 10, United States Code),
except that such data, services, distribution, and applica-
tions shall be considered to be a commercial item for pur-
poses of such laws and regulations (including section
2306a of title 10, United States Code (relating to cost
or pricing data), section 2320 of such title (relating to
rights in technical data) and section 2321 of such title
(relating to validation of proprietary data restrictions)).
(c) STUDY.—(1) The Administrator shall conduct a
study to determine the extent to which the baseline sci-
entific requirements of Mission to Planet Earth can be
met by the private sector, and how the National Aero-
nautics and Space Administration will meet such require-
ments which cannot be met by the private sector.
(2) The study conducted under this subsection
shall—
(A) make recommendations to promote the
availability of information from the National Aero-
nautics and Space Administration to the private sec-
tor to enable the private sector to better meet the
baseline scientific requirements of Mission to Planet
Earth;
(B) make recommendations to promote the dis-
semination to the private sector of information on
advanced technology research and development per-
formed by or for the National Aeronautics and
Space Administration; and
(C) identify policy, regulatory, and legislative
barriers to the implementation of the recommenda-
tions made under this subsection.
(3) The results of the study conducted under this
subsection shall be transmitted to the Congress within 6
months after the date of the enactment of this Act.
(d) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government
from requiring compliance with applicable safety stand-
ards.
(e) ADMINISTRATION AND EXECUTION.—This section
shall be carried out as part of the Commercial Remote
Sensing Program at the Stennis Space Center.
SEC. 309. EOSDIS REPORT.
Not later than 90 days after the date of the enact-
ment of this Act, the Administrator shall transmit to the
Committee on Science of the House of Representatives
and the Committee on Commerce, Science, and Transpor-
tation of the Senate a report which contains—
(1) an analysis of the scientific capabilities,
costs, and schedule of the Earth Observing System
Data and Information System (EOSDIS);
(2) an identification and analysis of the threats
to the success of the EOSDIS Core System; and
(3) a plan and cost estimates for resolving the
threats identified under paragraph (2) to the
EOSDIS Core System before the launch of the
Earth Observing System satellite known as PM–1.
SEC. 310. SHUTTLE PRIVATIZATION.
(a) POLICY AND PREPARATION.—The Administrator
shall prepare for an orderly transition from the Federal
operation, or Federal management of contracted oper-
ation, of space transportation systems to the Federal pur-
chase of commercial space transportation services for all
nonemergency launch requirements, including human,
cargo, and mixed payloads. In those preparations, the Ad-
ministrator shall take into account the need for short-term
economies, as well as the goal of restoring the National
Aeronautics and Space Administration’s research focus
and its mandate to promote the fullest possible commercial
use of space. As part of those preparations, the Adminis-
trator shall plan for the potential privatization of the
Space Shuttle program. Such plan shall keep safety and
cost effectiveness as high priorities. Nothing in this section
shall prohibit the National Aeronautics and Space Admin-
istration from studying, designing, developing, or funding
upgrades or modifications essential to the safe and eco-
nomical operation of the Space Shuttle fleet.
(b) FEASIBILITY STUDY.—The Administrator shall
conduct a study of the feasibility of implementing the rec-
ommendation of the Independent Shuttle Management Re-
view Team that the National Aeronautics and Space Ad-
ministration transition toward the privatization of the
Space Shuttle. The study shall identify, discuss, and,
where possible, present options for resolving, the major
policy and legal issues that must be addressed before the
Space Shuttle is privatized, including—
(1) whether the Federal Government or the
Space Shuttle contractor should own the Space
Shuttle orbiters and ground facilities;
(2) whether the Federal Government should in-
demnify the contractor for any third party liability
arising from Space Shuttle operations, and, if so,
under what terms and conditions;
(3) whether payloads other than National Aero-
nautics and Space Administration payloads should
be allowed to be launched on the Space Shuttle, how
missions will be prioritized, and who will decide
which mission flies and when;
(4) whether commercial payloads should be al-
lowed to be launched on the Space Shuttle and
whether any classes of payloads should be made in-
eligible for launch consideration;
(5) whether National Aeronautics and Space
Administration and other Federal Government pay-
loads should have priority over non-Federal payloads
in the Space Shuttle launch assignments, and what
policies should be developed to prioritize among pay-
loads generally;
(6) whether the public interest requires that
certain Space Shuttle functions continue to be per-
formed by the Federal Government; and
(7) how much cost savings, if any, will be gen-
erated by privatization of the Space Shuttle.
(c) REPORT TO CONGRESS.—Within 60 days after
the date of the enactment of this Act, the National Aero-
nautics and Space Administration shall complete the study
required under subsection (b) and shall submit a report
on the study to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Science of the House of Representatives.