PAM Liability Forum Presentation.pptx

Private Astronaut Mission Liability Forum

National Aeronautics and Space Administration

Background – Private Astronaut Missions NASA added Focus Area 4 - Private Astronaut Missions to the International Space Station (ISS) existing ISS NASA Research Announcement (NRA) NNJ13ZBG001N Research Opportunities for ISS Utilization following the June 7, 2019 roll-out of the NASA LEO Commercialization Strategy.

Multiple companies have expressed interest in brokering PAMs NASA has established the LEO Commercialization Office at JSC. This will be the portal for receipt and preliminary approval of PAM proposals A NASA Pricing Policy has been implemented to provide subsidized government services and equipment to PAM provider Early SAAs have been established to enable partnerships in support of potential future PAMs NASA anticipates supporting no more than 2 PAMs per year (One 10 and One 30 day mission) Number of PAMs limited by ISS resources and ISS flight plans and results in reduced utilization capability Development of Contract/Agreement framework in work

Private Astronaut Missions Private astronaut missions, as we’re discussing today, are:

Flights that are dedicated to flying non-government astronauts to the ISS PAs may be passengers (SFPs) or crew.

Flights with US government astronauts Are purchased through the Commercial Crew Program’s contracts Are permitted to include non-NASA passengers at the direction of the Commercial Crew provider/acceptance by NASA Are not private astronaut missions as discussed today PAMs May include up to 4 PAs on opportunities to occur up to 2 times a year May last up to 30 days May include work performed for NASA, such as use of pressurized lockers May include foreign PAs, consistent with minimum requirements May not include minors May perform activities on the ISS consistent with the ISS Commercialization NID (June 2019)

Purpose of RFI and Forum Develop an approach to liability for PAMs that facilitates the goal of affordable LEO commercialization and appropriately allocates and mitigates risk

Obtain feedback from industry Understand impacts of liability options on industry Understand impact of items in the RFI on provider ability to obtain insurance Understand insurance coverage and amounts available Seek suggestions on liability options from industry

Clarify RFI content Understand where further clarification is required Answer questions (to the extent possible)

Ground Rules and Logistics Q&A Session after Presentation Questions submitted in advance will be addressed first (to the extent not addressed during presentation) Questions may be submitted in writing at any time through chat Anonymous questions may be submitted via email to karen.m.reilley@nasa.gov Follow-up questions or clarifications may be asked or made verbally after hand is raised and moderator recognizes NASA may not be able to answer all questions Purpose is market research, clarification of RFI content Discussions limited to scope of RFI Liability, insurance, risk, impact on industry, alternative frameworks Forum will be recorded NASA will post official responses to questions via beta.sam.gov after the Forum and will make reasonable efforts to answer all questions.

Input will continue to be accepted until RFI submission deadline of Sept. 1

Current Assumptions NASA will enter into an agreement with a Private Astronaut Mission (PAM) provider, through which NASA will impose ISS-specific requirements. The framework outlined below will be implemented through liability terms in said agreement(s).

The term “Private Astronaut” includes all astronauts that are not “Government Astronauts” (defined in 51 U.S.C.§ 50902(4).

NASA will have a direct relationship only with the PAM provider. The PAM Provider will flow down NASA-required provisions (e.g., to launch providers, private astronauts) NASA will certify that the spacecraft meets ISS visiting vehicle requirements and ISS emergency safe haven requirements only. NASA is not certifying the system (launch vehicle or spacecraft) for safety of persons on board or the public.

A Private Astronaut Mission will carry only private astronauts (i.e., no Government Astronauts).

NASA may, at its sole discretion and subject to applicable legal and policy requirements, choose to acquire services (e.g., crew time or up-mass) from a PAM provider if available.

Certain terms of the proposed liability framework are required to meet obligations to NASA’s international partners or to meet NASA policy requirements.

The PAM provider will be subject to all statutory and regulatory requirements, including 51 U.S.C. § 50914, Liability insurance and financial responsibility requirements and other requirements imposed by the FAA under the Commercial Space Launch Act, 51 U.S.C. § 50901, et seq.

PAM Liability RFI Options The following charts describe liability options listed in the RFI, including updates based on informal feedback

A specific liability approach has not been developed.

NASA consideration of possible options continue to evolve

Industry feedback on liability options will help the Government determine which items to incorporate into agreements for PAMs.

Required:

FAA licensing requirements ISS cross-waiver

Liability Options Options informed by previous practice with SFPs and Commercial Crew contracts

ISS Cross-Waiver (modified): PAM Provider certifies PA has signed written waiver of claims PAM Provider and Gov’t waive claims for Damage against each other Gov’t waiver of claims above required Gov’t property insurance (discussed below) Private Astronauts (PAs) waive claims against the Gov’t (unilateral waiver) Estates, survivors, or anyone claiming by or through them cannot bring claims against the Government Gov’t does not waive claims against PAs, their estates, survivors, or anyone claiming by or through them

Insurance (supplements FAA licensing requirements):

Insurance for gov’t property or other loss/damage arising as a result of activities under the agreement at maximum amount available on market for reasonable premium Not required: Insurance for damage to ISS structure/systems during prox ops, willful misconduct of Gov’t employees, damage to Gov’t property during training (covered under separate agreement)

Insurance protecting the U.S. Government and U.S. Government contractors and subcontractors from any liability as a result of any activities conducted under this Agreement resulting in damage to third parties Third parties also include U.S. Gov employees, employees of contractors and subcontractors, Government Astronauts, and their estates, survivors, or anyone claiming by or through them

Insurance covering damage to or loss of any property or injury or death of any person on the ISS or claims by third parties, resulting from any action, negligence, or failure to act by a PA Previous International Partner (IP) requirement: $5M for claims affecting IPs, contractors, related entities Covers damage to or loss of any property or injury or death of any person on the ISS resulting from the mission.

Life Insurance as PA’s sole source of recovery, in an amount required by IPs (minimum) or Gov

Indemnification The PAM provider indemnifies and holds NASA harmless for Damage, including damage resulting from failure to flow down cross-waiver or other requirements to Private Astronauts or its other Related Entities.

Assumption of Risk: PAM Provider certifies PA has executed PA executes written assumption of risk statement binding heirs, administrators, assignees, next of kin, estate, or anyone who attempts to bring a claim on behalf of the PA PA must sign statement recognizing inherent risks of spaceflight and agreeing to assume the risk

Informed Consent: PAM Provider certifies that PA has signed Each PA executes written informed consent statement PA is informed of all risks associated with non-FAA licensed portions of mission

Q&A

Next Steps NASA continues to seek feedback from industry and encourages all participants to submit a response to the RFI by the submission deadline of Sept 1.

Ideas or suggestions for liability framework are encouraged Response may include questions

NASA is interested in answers to questions such as the following:

What impact would each of the liability options in the RFI have on the likelihood of a successful PAM?

Would changing one or more of the assumptions lead to an increase in likelihood of success of PAMs? If so, which ones and why?

Which (if any) of the liability options would industry implement as a best practice?

Are there additional liability options that the Gov’t should consider? If so, what and why?

What (if any) of the liability options increase or decrease the ability to obtain insurance at a reasonable rate?

What insurance coverage and products are available on the market at reasonable premiums?

What is the scope and amount of insurance coverage available at a reasonable premium?

What insurance would industry purchase for PAM with no NASA involvement/liability requirements?

What impact would waiver of claims/lack thereof against PAs have on ability to obtain insurance

Thank you for your participation.

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