ABSTRACT
In March 2020, Japan Aerospace Exploration Agency (JAXA) concluded a public-private partnership (PPP) contract for Phase I of the Commercial Removal of Debris Demonstration (CRD2). The eventual goal of this is active debris removal. This project represents a new initiative in terms of procurement and contractual aspects and serves to promote new entrants into the space industry as well as make improvements in scientific-technical matters.
Traditional public procurement for space activity is typically designed for high-cost, long-term, and high-risk research and development, and is led by the public sector due to its unforeseen risks and low profitability. However, the progress made in cost reduction and miniaturised technology has supported more affordable access to space and allowed for new entrants, so-called NewSpace. NewSpace is widely recognised as being the critical factor in revitalising the space industry. PPP as the solution to facilitate this has been adopted in Japan. This chapter considers traditional public procurement and describes the issues in promoting new entrants and innovation. It then addresses recent public-private partnerships (PPPs) such as H3 launch vehicle (Japan’s new flagship rocket) and CRD2, and gives insights into each contractual aspect and the issues for future projects.
