Commercial launch providers could see a new line item on their bills for sending payloads into orbit from Vandenberg Space Force Base and other military ranges to cover the costs of wear and tear from the boost in business.

Rep. Salud Carbajal, D-Santa Barbara, said the annual defense policy bill signed late last year allows the U.S. Space Force to seek reimbursement for the indirect costs for wear and tear on key facilities to ensure they remain ready to support missions into the future. 

Companies already pay for direct costs related to services required to launch from Vandenberg’s Western Range, which ensures missions occur safely.

“What became abundantly clear is that when you really look at all the costs associated, indirect costs were never really factored in in the past,” Carbajal said, adding that prior laws didn’t allow the Department of Defense to seek reimbursement for indirect costs.

“What this is doing is providing a framework by which DOD could charge these companies for indirect costs, and at the end, it’s a win-win for the companies because they have modernized investment in the base infrastructure so they could do what they want to do better.”

The Western Range at Vandenberg and its East Coast counterpart in Florida began to serve the military and government rocket launches and missile tests along with NASA. 

Over time, the government’s role has declined as private firms now manufacture rockets and their own satellites to send into space. The evolution has seen creation of privately owned rockets and satellites such as SpaceX Falcon missions to deliver Starlink craft into orbit.

While SpaceX conducts the most missions from Vandenberg, other rocket manufacturers and commercial satellite developers hope to compete.

The exponential growth of commercial space has see Vandenberg’s launch rate grow from five in 2020 to more than 35 in 2023 with that number only expected to grow.

“This provides an important new tool for the federal government to reinvest in the Central Coast and space infrastructure priorities — positioning us to support the growth of the commercial space industry and attract more jobs and innovation to our region,” said Joshua Boswell, vice president of policy and economic development for REACH.

Direct costs include manpower and equipment required for launches to occur. For instance, each launch includes Vandenberg personnel issuing forecasts to note weather conditions such as winds or clouds that can interfere with the mission.

Indirect costs include the actual toll of maintaining, operating, upgrading and modernizing a military space-related facility.  

The new rules will go into effect for future launch contracts and won’t involve seeking wear-and-tear costs for missions already in the pipeline.

The law also spells out that indirect costs paid by a commercial space company will be limited to 30% of what the firm is contracted to reimburse for direct launch costs. Additionally, it creates a cap of $5 million per year for indirect costs paid by a company.

While the authorization has been approved, the details of its implementation remain in the works.

“This process will be transparent and done in collaboration with our partners,” said Col. Mark Shoemaker, Space Launch Delta 30 commander.

“As the frequency of launches continues to rise, these indirect costs will enable Vandenberg to enhance spaceport infrastructure and range facilities, including the airfield, harbor and roadways, to transform Vandenberg into a next-generation spaceport. Both the Space Force and commercial partners will benefit from these enhancements.”

Carbajal pointed out that the amendment he proposed for the Fiscal Year 2024 National Defense Authorization Act (FY24 NDAA) had bipartisan support. 

“When commercial space launch first came onto the scene, their use of military facilities was minimal enough that there was less concern for the wear and tear their operations would have on our nation’s launch ranges,” Carbajal said. “Nowadays, that era already seems like ancient history.”