[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR1214.202]



[Page 106-109]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

PART 1214_SPACE FLIGHT--Table of Contents

 

Subpart 1214.2_Reimbursement for Shuttle Services Provided to Civil U.S. 

Government Users and Foreign Users Who Have Made Substantial Investment 

                           in the STS Program

 

Sec. 1214.202  Reimbursement policy.



    (a) Features of policy. (1) All users will be charged on a fixed 

price basis; there will be no post-flight charges, except for 

prespecified optional services.

    (2) The price will be based on estimated costs.

    (3) The price will be held constant for flights in the first three 

years of Space Transportation System (STS) operations.

    (4) Payments shall be escalated according to the Bureau of Labor 

Statistics Index for Compensation per hour, Total Private.

    (5) Subsequent to the first three years, the price will be adjusted 

annually to insure that total operating costs are recovered over a 

twelve-year period.

    (6) Pricing incentives are designed to maximize the proper 

utilization of the STS.

    (b) Dedicated flight reimbursements. (1) For the purposes of this 

policy, a dedicated flight is one sold to a single user.

    (2) The policy is established for two distinct phases of Shuttle 

operations. The first phase is through the third full fiscal year of 

Shuttle operations and the second phase consists of nine full fiscal 

years subsequent to the first phase.

    (i) For a dedicated Shuttle flight during the first phase, NASA 

shall be reimbursed in an amount which is a pro-rata share of forecast 

additive costs averaged over the first phase of three years; however, 

the price shall not be less than a pro-rata share of forecast total 

operating costs averaged over both the first and second phases of the 

twelve year Shuttle operation period.

    (ii) For a dedicated Shuttle flight during the second phase, NASA 

shall be reimbursed a pro-rata share of forecast total operating costs 

over both phases to insure that total operating costs are recovered over 

the twelve year period.

    (iii) The definition of the costs are specified in this subpart are 

set forth in appendix A to this subpart.

    (iv) Subject to NASA approval, a dedicated flight user may apportion 

and assign STS services to other STS users provided they satisfy STS 

user requirements. The price of integrating additional payloads will be 

negotiated.

    (v) A summary of standard Shuttle services included in the flight 

price is set forth in appendix B to subpart 1214.1.

    (vi) The prices of optional Shuttle services are being developed and 

shall be set forth in the Shuttle Price Book which is being developed. A 

summary of the optional services is set forth in appendix C to subpart 

1214.1.

    (vii) For the user with an experimental, new use of space or first 

time use of space of great public value, the reimbursement to NASA for 

the dedicated, standard Shuttle flight in either the first or second 

phase shall be a pro-rata share of the average twelve year additive 

costs as estimated at the time of negotiations. Programs which qualify 

for this price will be determined by an STS Exceptional Program 

Selection Process. In all cases, the Administrator will be the selection 

official.

    (viii) For dedicated flight users, NASA and the user will identify a 

desired launch date within a period of ninety days three years prior to 

flight. One year prior to the flight, a firm launch and payload delivery 

date will be identified by NASA. The firm launch date will be within the 

first sixty days of the original ninety day period. Launch will occur on 

the firmly scheduled launch date or within a period of thirty days 

thereafter. The payload must be ready to launch for the duration of that 

period.

    (c) Shared flight reimbursements. (1) The price of a shared Shuttle 

flight will be a fraction of the dedicated Shuttle flight price. The 

fraction will



[[Page 107]]



be based on the length and weight of the payload and the mission 

destination at the time of contract negotiations. The formula for 

computing the fraction is set forth in appendix D to subpart 1214.1.

    (2) For shared flight users, NASA and the user will identify a 

desired launch date three years prior to flight. Launch will occur 

within a period of ninety days, beginning on the desired launch date. 

One year prior to flight, a payload delivery date and a firm launch date 

will be coordinated among the shared flight users. This firm launch date 

will be within the first thirty days of the original ninety day period. 

The launch will occur on the firmly scheduled launch date or within a 

perod of sixty days thereafter. The payloads must be ready to launch for 

the duration of that period.

    (3) A 20 percent discount on the standard flight price will be given 

to shared flight users who will fly on a space-available (standby) 

basis. NASA will provide launch services within a prenegotiated period 

of one year. Shared flight payloads must be flight deliverable to the 

launch site on the first day of the one year period and sustain that 

condition until delivery to the launch site. The user will be notified 

sixty days prior to the firmly scheduled launch date which has been 

established by NASA. At that time, NASA will also establish a payload 

delivery date. The payload must be available at the launch site on the 

assigned delivery date and ready to launch for a period of sixty days 

after the firmly scheduled launch date.

    (d) Small self-contained payloads. Packages under 200 pounds and 

smaller than five cubic feet which require no Shuttle services (power, 

deployment, etc.), and are for R&D purposes, will be flown on a space-

available basis during both phases of Shuttle operation. The price for 

this service will be negotiated based on size and weight, but will not 

exceed $10,000 in 1975 dollars. A minimum charge of $3,000 in 1975 

dollars will be made. If Shuttle services are required, the price will 

be individually negotiated. Reimbursement to NASA will be made at the 

time the package is scheduled for flight.

    (e) Options. (1) In order to allow the user greater flexibility in 

selecting a launch date, the user may purchase a ``floating launch 

date'' option. At the time of contract execution, the user will begin to 

make payments according to a 33 month reimbursement schedule for this 

launching. At any time during Phase 1 or 2, the user may exercise this 

option by informing NASA of his desired launch date for this option 

which will then be negotiated by NASA and the user. This launch date 

must be at least 33 months after the date of the first reimbursement 

payment. If the desired launch date is within one year of the date of 

declaration, the short term call-up option and associated fee will 

apply. If the desired launch is to occur in a year for which a new price 

per flight is in effect, the user will pay the new price. The fee for 

this option is 10 percent of the user's flight price in effect at the 

time of contract execution and is payable at that time. This fee will 

not be applied to the price of the user's flight.

    (2) Options must be exercised for a flight by the end of the second 

phase of operations or the option fee will be retained by NASA.

    (f) Fixed price period and escalation. (1) The price will remain 

constant for flights during the first phase of Shuttle operations. For 

flights during the second phase, the price wil be adjusted on a yearly 

basis, if necessary, to assure revovery of total operating costs over a 

twelve-year period. These adjusted prices will be applicable only to 

agreements executed after the adjustment is made.

    (2) Shuttle services for both phases will be contracted on a fixed 

price basis. The payments in the contract will be escalated to the time 

of the payment using the Bureau of Labor Statistics Index for 

Compensation per hour, Total Private.

    (g) Earnest money. Earnest money shall be paid to NASA prior to 

NASA's accepting a launch reservation. The earnest money required shall 

be $100,000 per payload; however, if the payload is a small self-

contained payload, the earnest money shall be $500.00 per payload. The 

earnest money shall be applied to the first payment for each payload 

made by the customer, or shall



[[Page 108]]



be retained by NASA if a launch services agreement is not signed.

    (h) Reimbursement schedule. (1) Reimbursement shall be made in 

accordance with the reimbursement schedule contained in this subsection. 

No charges shall be made after the flight, except as negotiated in the 

contract for prespecified extra services. Those users who contract for 

Shuttle services less than three years before the desired launch date 

will be accommodated and will pay on an accelerated basis according to 

the reimbursement schedule.

    (2) Standby payloads. (i) Before the establishment of a firmly 

scheduled launch date, the number of months before launch will be 

computed assuming a launch date at the mid-point of the designated one-

year period.

    (ii) Once the firmly scheduled launch date is established, the user 

shall reimburse NASA to make his payments current according to the 

reimbursement schedule.

    (3) Rembursement schedule.



                           [Percent of price]

------------------------------------------------------------------------

                                                     Months prior to

    Number of months before launch flight is      scheduled launch date

                   scheduled                    ------------------------

                                                 33  27  21  15   9   3

------------------------------------------------------------------------

33 months or more..............................  10  10  17  17  23   23

27 to 32 months................................  ..  21  17  17  23   23

21 to 26 months................................  ..  ..  40  17  23   23

15 to 20 months................................  ..  ..  ..  61  23   23

9 to 14 months.................................  ..  ..  ..  ..  90   23

3 to 8 months..................................  ..  ..  ..  ..  ..  ...

------------------------------------------------------------------------





This schedule holds unless there are offsetting advantages to the U.S. 

Government of an accelerated launch schedule.

    (4) Contracts for Shuttle services made one year or less before a 

flight and up to three months before a flight will be made on a space-

available basis unless short term call-up option is elected.

    (i) Short term call-up option. (1) For flights contracted on year or 

less before launch, but not less than three months before launch, short 

term call-up will be provided to dedicated flight users at the dedicated 

flight prices according to the reimbursement schedule.

    (2) For dedicated flight users requiring short term call-up flights 

less than three months before launch, NASA will provide STS launch 

services on a space-available basis. NASA shall be reimbursed the 

dedication flight price according to the reimbursement schedule plus 

short term call-up additional costs. The additional costs will be based 

on estimated costs to be incurred.

    (3) For shared flights contracted one year or less before launch, 

but more than six months before launch, users may elect the short term 

call-up option. The user shall reimburse NASA the standard shared flight 

price according to the reimbursement schedule plus a load factor-

recovery fee. The load factor-recovery fee is half the difference 

between a dedicated flight price and the user's shared flight price or 

the difference between a dedicated flight price and the total adjusted 

reimbursements from all shared users, whichever is less.

    (4) For shared flights contracted six months or less before launch, 

but more than three months before launch, users may elect the short term 

call-up option. The user shall reimburse NASA the standard share flight 

price according to the reimbursement schedule plus a load factor-

recovery fee which is the difference between a dedicated flight price 

and the total adjusted reimbursement from all shared flight users.

    (5) Shared flights contracted three months or less before launch 

will be flown on a space-available basis. NASA shall be reimbursed the 

shared flight price according to the reimbursement schedule plus short 

term call-up additional costs. These additional charges will be based on 

estimated costs to be incurred.

    (6) For the purposes of this paragraph, adjusted reimbursements is 

defined to be reimbursements assuming all shared users are among those 

defined in Sec. 1214.201.

    (7) The load factor-recovery fee will never be less than zero.

    (8) The load factor-recovery fee is payable upon receipt of NASA's 

billing therefor.

    (j) Accelerated launches. For users who reschedule a launch so that 

it occurs earlier than the planned launch, the user will pay on an 

accelerated reimbursement schedule. The user will reimburse NASA to make 

his payments



[[Page 109]]



current on the new accelerated reimbursement schedule. If the time from 

notification of acceleration is less than one year from the new launch 

date, short term call-up reimbursements will also apply.

    (k) Postponements--(1) Non-standby payloads. (i) A user can postpone 

a flight of his payload one time with no additional charge if 

postponement occurs more than one year before launch. For subsequent 

postponed flights more than one year before launch, the user shall 

reimburse NASA a postonement fee of 5 percent of the user's flight 

price. For postponements one year or less before launch, the user shall 

reimburse NASA 5 percent of the user's flight price plus an occupancy 

fee according to the occupancy fee schedule in appendix B.

    (ii) If the postponement of a flight causes the payload to be 

launched in a year for which a different price per flight has been 

established, the new price shall apply if it is higher than the 

originally contracted price.

    (2) Standby payloads. (i) For flights postponed more than six months 

prior to the beginning of the negotiated one-year period, NASA shall 

renegotiate a new one-year period during which launch will occur. No 

additional fee will be imposed.

    (ii) For flights postponed six months or less prior to the beginning 

of the negotiated one-year period, the user shall reimburse NASA 5 

percent of the user's flight price plus an occupancy fee according to 

the occupancy fee schedule set forth in appendix B.

    (3) Postponement fees are payable upon receipt of NASA's billing 

therefor.

    (4) Flights postponed will henceforth be treated as newly scheduled 

launches according to the reimbursement schedule. The number of months 

prior to launch will be taken as the total number or months between the 

date postponement is elected and the new launch date. Short term call-up 

options and associated fees shall apply.

    (5) Minor delays (up to three days) caused by the users will not 

constitute a postponement. No fee will be charged for a minor delay.

    (l) Cancellations--(1) Non-standby payloads. Users who cancel a 

flight more than one year before launch shall reimburse NASA 10 percent 

of the user's flight price. For a cancelled flight one year or less 

before launch, the user shall reimburse NASA 10 percent of the user's 

flight price plus an occupancy fee as set forth in appendix B.

    (2) Standby payloads. (i) Users who cancel a flight more than six 

months prior to the beginning of the negotiated one-year period shall 

reimburse NASA 10 percent of the user's flight price.

    (ii) For a flight cancelled six months or less prior to the 

beginning of the negotiated one-year period, the user shall reimburse 

NASA 10 percent of the user's flight price plus an occupancy fee as set 

forth in appendix B.

    (3) Cancellation fees are payable upon receipt of NASA's billing 

therefor.



[42 FR 8631, Feb. 11, 1977, as amended at 49 FR 17736, Apr. 25, 1984]