)$,/85(72/$81&+ :+<1$6$¶681&+(&.('86(2)27$32:(5 0$<21('$<'2207+($*(1&< Andrew Strauss ,,1752'8&7,21 ,,1$6$¶6&5($7,21$1'+2:7+($*(1&<+$686(',7627$ 32:(5 A. The National Aeronautics and Space Act of 1958 ..................... B. An Overview of the Scope and Use of NASA’s OTA Power ....... 27$DQGWKH&2763URJUDP C. SAAs and Government Procurement Contracts: A Comparison .............................................................................. )HGHUDO$FTXLVLWLRQ5HJXODWLRQ :KHQDQ$JHQF\0XVW)ROORZWKH)$5 1$6$)HGHUDO$FTXLVLWLRQ5HJXODWLRQ6XSSOHPHQW 7KH&2763URJUDP D. The GAO’s Decision and Chevron Deference ........................... E. When Does Chevron Deference Apply? ..................................... F. Energy Conversion Devices: The GAO’s First OTA Question .. G. The GAO and Exploration Partners .......................................... H. The GAO and Rocketplane Kistler ............................................ I. The GAO and Competitiveness Concerns: The Case of Blue Origin ....................................................................................... ,,,1$6$¶6,17(535(7$7,212),7627$32:(5$1'7+(*$2¶6 $87+25,7<725(9,(: A. A Look at NASA’s OTA Power Through the Lens of Statutory Construction and Legislative History ...................................... B. Should NASA’s Interpretation of “Other Transaction Authority” Be Given Chevron Deference? .............................. $SSO\LQJWKHChevron7ZR6WHSWR1$6$ 7KH6SDFH$FWDQG7H[WXDO&DQRQV 7KH7H[WRIWKH6SDFH$FW,WVHOI C. The GAO’s Decision not to Review SAAs: Why NASA Won ...... D. Was The GAO Right?: Why Its Decision not to Review Leads to Anti-Competitive Concerns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ook at how Other Agencies with OTA Power Work with Private Companies ................................................................... B. Why Reviewing Its OTA Power Is Also in NASA’s Best Interest ..................................................................................... 9&21&/86,21 ,,1752'8&7,21 :KHQ D JRYHUQPHQW DJHQF\ ZRUNV ZLWK D SULYDWH FRPSDQ\ WR DFFRPSOLVK D JRDO WKH DJUHHPHQW LV XVXDOO\ LQ WKH IRUP RI D JRYHUQPHQW SURFXUHPHQWFRQWUDFW*RYHUQPHQWDJHQFLHVZRUNZLWKSULYDWHFRPSDQLHV LQRUGHUWRKDYHDFFHVVWRWKHPRVWUHFHQWUHVHDUFKDQGWHFKQRORJLHV7KHVH FRQWUDFWVDUHJRYHUQHGE\WKH)HGHUDO$FTXLVLWLRQ5HJXODWLRQ )$5 ZKLFK RXWOLQHVWKHVWHSVDQDJHQF\PXVWWDNHWRHQVXUHWKDWWKHELGGLQJSURFHVVLV IDLU ,I D FRPSDQ\¶V ELG LV UHMHFWHG LW FDQ DSSHDO WKH GHFLVLRQ WR WKH *RYHUQPHQW $FFRXQWDELOLW\ 2IILFH *$2 7KH *$2 KDV WKH SRZHU WR YRLGJRYHUQPHQWSURFXUHPHQWFRQWUDFWV :KHQ LW ZDV FUHDWHG E\ &RQJUHVV WKH 1DWLRQDO $HURQDXWLFV DQG 6SDFH $GPLQLVWUDWLRQ 1$6$ ZDV JLYHQ D VSHFLDO SRZHU DOORZLQJ WKH $JHQF\ WR E\SDVV )$5 UHTXLUHPHQWV 7KH SRZHU LV NQRZQ DV 1$6$¶V ³RWKHUWUDQVDFWLRQDXWKRULW\´ 27$ 1$6$KDVXVHGWKLVSRZHUWRZRUN ZLWKSULYDWHFRPSDQLHVRQDZLGHUDQJHRISURMHFWV:KHQ1$6$ZRUNV ZLWK D FRPSDQ\ YLD LWV 27$ SRZHU WKH DJUHHPHQW WKDW JRYHUQV WKH See 6XU\D *DEOLQ *XQDVHNDUD “Other Transaction” Authority: NASA’s Dynamic Acquisition Instrument for the Commercialization of Manned Spaceflight or Cold War Relic?38% &217 /- ± SURYLGLQJ DQ RYHUYLHZ RI WKH SURFHGXUHV WKDW JRYHUQ JRYHUQPHQW SURFXUHPHQW FRQWUDFWV See1DQF\2'L[HWDOFear and Loathing of Federal Contracting: Are Commercial Companies Really Afraid to do Business with the Federal Government? Should They Be?38%&217/- H[SODLQLQJWKDWWKHJRYHUQPHQWQRORQJHUFRQGXFWVDVPXFKUHVHDUFKDVWKHSULYDWHVHFWRUGRHV See *XQDVHNDUD supra QRWH DW SURYLGLQJ DQ RYHUYLHZ RI WKH )HGHUDO $FTXLVLWLRQ 5HJXODWLRQ )$5 DQGSURYLGLQJH[DPSOHVRIZD\VWKH)$5FRQWUROVWKHSURFXUHPHQWSURFHVV See generally id.DW± GHVFULELQJWKHJXLGDQFHWKDWDJHQFLHVPXVWIROORZLQRUGHUWRHQVXUH WKDW)$5JXLGHOLQHVDUHPHW See generally id. DW H[SODLQLQJ WKDW WKH SRZHU WR UHYLHZ ELG SURWHVWV KDV VWUHQJWKHQHG FRPSHWLWLRQ See0LFKDHO-6FKDHQJROGHWDOChoice of Forum for Federal Government Contract Bid Protests )('&,5%- SURYLGLQJDQH[SODQDWLRQRQWKH*RYHUQPHQW$FFRXQWDELOLW\2IILFH¶V *$2 SRZHU See*XQDVHNDUDsupraQRWHDW GLVFXVVLQJWKHUHDVRQVZK\2WKHU7UDQVDFWLRQ$XWKRULW\ 27$ SRZHULVVRXQOLPLWHGDQGH[SODLQLQJZK\27$SRZHULVQRWVXEMHFWWR)$5UHTXLUHPHQWV 'DYLG66FKXPDQSpace Act Agreements: A Practitioner’s Guide - 63$&( / SURYLGLQJLQVLJKWLQWRKRZWKH1DWLRQDO$HURQDXWLFVDQG6SDFH$GPLQLVWUDWLRQ¶V 1$6$ OHJDO GHSDUWPHQWXVHV27$SRZHU See id.DW±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¶VJURZWK1$6$ VKRXOG UHFRJQL]H WKH XQIDLUQHVV RI LWV FXUUHQW SUDFWLFH DQG SURYLGH FRPSDQLHV ZLWK DQ RXWOHW WR YRLFH WKHLU GLVSOHDVXUH ZLWK WKH $JHQF\¶V GHFLVLRQ ,I 1$6$ GRHV QRW FKDQJH SULYDWH VSDFH FRPSDQLHV FRXOG VWRS ELGGLQJWRZRUNZLWK1$6$DOWRJHWKHU1$6$FRXOGILQGLWVHOIRXWRIWKH VSDFHUDFH 7KLV&RPPHQWVHHNVWRDQDO\]HWKHKLVWRU\RI1$6$¶V27$SRZHU DQG KRZ LW DIIHFWV WKH SULYDWH VSDFH LQGXVWU\ WRGD\ 3DUW ,, ORRNV DW WKH HQYLURQPHQW WKDW IRVWHUHG 1$6$¶V FUHDWLRQ LQYHVWLJDWHV KRZ WKH $JHQF\ LQWHUSUHWHGLWV27$SRZHUDQGGLVFXVVHVWKHGLIIHUHQFHVEHWZHHQDW\SLFDO JRYHUQPHQW SURFXUHPHQW FRQWUDFW DQG DQ 6$$ 3DUW ,,, VHHNV WR DQVZHU KRZ 1$6$ LV XVLQJ LWV 27$ SRZHU WRGD\ ,W LQFOXGHV D VWDWXWRU\ DQG WH[WXDODQDO\VLVRIWKH1DWLRQDO$HURQDXWLFVDQG6SDFH$FWRI 6SDFH $FW DQG H[SODLQV KRZ D FRXUW ZRXOG LQWHUSUHW WKH VWDWXWH 3DUW ,,, DOVR H[SODLQV WKH *$2¶V GHFLVLRQV WR QRW DOORZ FKDOOHQJHV WR 1$6$¶V 27$ SRZHU)LQDOO\3DUW,9ORRNVWRWKHIXWXUHRIFRPPHUFLDOVSDFHIOLJKWDQG SURYLGHV1$6$ZLWKUHFRPPHQGDWLRQVRQKRZWRSURYLGHEXVLQHVVHVZLWK DQDYHQXHWRTXHVWLRQLWV27$SRZHU ,,1$6$¶6&5($7,21$1'+2:7+($*(1&<+$686(',7627$32:(5 A. The National Aeronautics and Space Act of 1958 ,Q WKH 6RYLHW 8QLRQ ODXQFKHG WKH ILUVW PDQPDGH VDWHOOLWH SputnikLQWRRUELW7KH8QLWHG6WDWHVZDVZRUULHGWKDWWKH6RYLHW8QLRQ ZRXOG ZLQ WKH VSDFH UDFH 3UHVLGHQW (LVHQKRZHU NQHZ WKDW WKH 8QLWHG 6WDWHV KDG WR UHJDLQ WKH ZRUOG¶V UHVSHFW DQG GHFLGHG WR PDNH VSDFH H[SORUDWLRQ D JRYHUQPHQW SURJUDP $V D UHVXOW &RQJUHVV SDVVHG WKH 6SDFH $FW LQ 7KH 6SDFH $FW FUHDWHG 1$6$ 7R KHOS 1$6$ DFKLHYHLWVJRDORIEHDWLQJWKH6RYLHW8QLRQWKHGUDIWHUVRIWKH6SDFH$FW See id. DW GLVFXVVLQJ 1$6$¶V 27$ SRZHU DQG LWV FRQQHFWLRQ WR 6SDFH $FW $JUHHPHQWV 66$V See id. H[SODLQLQJWKDW6$$VDUHQRWWREHXVHGDVSDUWRIWKHURXWLQHSURFXUHPHQWSURFHVV 3DXO*'HPEOLQJThe National Aeronautics And Space Act of 1958: Revisited-63$&( / See id. H[SODLQLQJWKHWHQVHSROLWLFDODQGVRFLDOFOLPDWHLQWKH8QLWHG6WDWHVGXULQJWKH³6SDFH 5DFH´ See id.DW± UHPHPEHULQJWKDW3UHVLGHQW'ZLJKW'(LVHQKRZHURULJLQDOO\ZDQWHG1$6$WR EHDSDUWRIWKH'HSDUWPHQWRI'HIHQVHEXWKHZDVXOWLPDWHO\SHUVXDGHG WR PDNH 1$6$ D FLYLOLDQ DJHQF\ Id.DW See id. H[SODLQLQJWKH1DWLRQDO$HURQDXWLFVDQG6SDFH$FWRI 6SDFH$FW 81,9(56,7<2)'$<721/$:5(9,(: >9RO JDYH 1$6$ LWV 27$ SRZHU7KHSRZHUZDVQHYHUJLYHQWRDQDJHQF\ EHIRUHDQGLWUHSUHVHQWHGDQXQSUHFHGHQWHGJUDQWRISRZHU B. An Overview of the Scope and Use of NASA’s OTA Power 1$6$ KDV LQWHUSUHWHG LWV 27$ SRZHU WR EH YHU\ EURDG DQG WKH $JHQF\KDVXVHGLWVSRZHULQVHHPLQJO\HYHU\DVSHFWRILWVRSHUDWLRQ7KH $JHQF\KDVXVHGLWV27$SRZHU³WKRXVDQGVRIWLPHV´DQG³XVH>V@LWDOPRVW HYHU\GD\´1$6$LVVXHVWKUHHW\SHVRI6$$V7KHUHDUHUHLPEXUVDEOH 6$$VQRQUHLPEXUVDEOH6$$VDQGIXQGHG6$$V$UHLPEXUVDEOH6$$ LVZKHQ1$6$JHWVWKHFRVWVDVVRFLDWHGZLWKWKHDJUHHPHQWUHLPEXUVHGE\ WKHRXWVLGHFRPSDQ\ $ QRQUHLPEXUVDEOH 6$$ LV ZKHQ 1$6$ DQG WKH SDUWQHUVDVVRFLDWHGZLWKWKHDJUHHPHQWHDFKEHDUWKHFRVWRIWKHLUUHVSHFWLYH SDUWLFLSDWLRQ7KHUHIRUH³WKHUHLVQRH[FKDQJHRIIXQGVEHWZHHQ>DQ\RI@ WKHSDUWLHV´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eeid.DW± GLVFXVVLQJWKDWWKHGUDIWHUVEHOLHYHGWKDW27$SRZHUZDVXQOLPLWHGDQGWKH\ ZDQWHG1$6$WRKDYHWKHSRZHUWRRYHUFRPHDQ\FRQWLQJHQF\ See id.DW H[SODLQLQJWKDWWKH6SDFH$FWUHSUHVHQWHGWKHILUVWWLPHDQDJHQF\ZDVJLYHQ27$ SRZHU See6FKXPDQsupraQRWHDW VKRZLQJWKHIOH[LELOLW\27$SRZHUDOORZV Id. Id. DW Id. See generally 1$6$ 32/,&< ',5(&7,9( 13' G H available at KWWSQRGLVJVIFQDVDJRYGLVSOD\'LUFIP"W 13' F V GLVFXVVLQJ WKH UHLPEXUVDEOH 6$$ )RU UHDGHU FODULILFDWLRQ WKLV VRXUFH UHIHUV WR VSHFLILF IRUPV RI 6$$V DV &RRSHUDWLYH 5HVHDUFK DQG 'HYHORSPHQW$JUHHPHQWV &5$'$V Id. See generally 6SDFH