The Programs with Increasing Commercial Users operating model centers around full support of NASA programs but embraces the emerging market of commercial opportunities at KSC.  Under this model, NASA still owns the land and operates government-controlled assets, infrastructure, and services on KSC, but NASA begins to divest facilities to non-NASA entities that are no longer needed for NASA’s mission.

Overview

• Focused support of NASA programs only
• Embracing of emerging market driven commercial opportunities
• Sustain capability required to support continuing NASA programs by maintaining key assets
• Available funding leveraged in response to shrinking federal dollars
• Divest assets not needed to support continuing NASA programs (transfer or demolish)
• Preserve unique capabilities and assets that may not be matched to current programs (mothball) 
• Maintain current agreements that leverage available assets and developable land resources to meet current demand (i.e., alternative energy demand, ancillary uses)

NASA operations

• Owns the land; operates most assets
• Easements may be granted for certain users
• NASA Programs with increasing number of commercial users
• Appropriated funding used for operations and maintenance of NASA-managed assets only
• Lower KSC infrastructure charges
• NASA/KSC proposes real property agreements, NASA HQ reviews/approves

Non-NASA Operations

• Dedicated commercial areas (COZ) allow maximum flexibility
• Relaxed NASA Standards; commercial standards apply
• Initiate market-based pricing
• Entity pays a portion of infrastructure charges within COZ

Operational Initiatives

OI-1 | Continue to apply a customer-centric business approach to ensure position as private sector first alternative

• Continue to explore adoption of policies and procedures consistent with marketplace expectations, including pricing structures, approval procedures, and operational regulations.
• Continue the publishing of a “menu” of core services and facilities pricing that is standardized.
• Continue to explore streamlining the approval process to the greatest extent possible by negotiating and approving agreements at the local level.
• Continue to consider providing ancillary amenities to tenants such as on-site dining, service facilities, or recreational opportunities.
• Continue to address business practice policies and procedures before aggressively marketing KSC as a business-friendly location.
• Continue the communication of the terms of any agreements with non-NASA tenants to NASA personnel who will implement the agreement so they can respond appropriately to tenant requests.

OI-2 | Continue to use all available legal and administrative tools to support commercial efforts

• Continue using advantageous Space Act Agreement property agreements, Enhanced Use Leases, and out-grants through the National Historic Preservation Act as appropriate for tenant contracts.
• Continue to structure agreements with non-NASA entities to include profit-sharing partnerships in addition to standard lease agreements.
• Continue using templates for legal agreements with standardized terms and conditions that can be modified as necessary for each negotiation.

OI-3 | Continue to negotiate and administer Commercial Space Launch Act (CSLA) agreements at a local level

• Continue giving the center director the authority to negotiate leases at a local level.
• Continue supplementing the center director’s authority via appointing of a local representative to serve as headquarters liaison for commercial agreements.
• Continue supplementing CSLA agreements with Space Act Agreements, Enhanced Use Leases, and National Historic Preservation Act administrative and legal tools if deemed more beneficial to KSC.

OI-4 | Continue to leverage legitimate private sector interface to promote business with non-NASA entities

• Continue to review existing policies regarding competition with the private sector for appropriate guidance.

OI-5 | Continue commitment to commercialization with clear and consistent leadership vision

• Continue having a senior-level champion for change management who has decisional authority and is the primary point of contact to begin to implement the vision for transition to a multi-user spaceport.
• Update the strategic framework for the transition that builds upon identified goals, objectives, initiatives and actions, and also identifies responsible parties, schedule milestones, associated costs, and projected revenues.
• Ensure the Kennedy tactical map aligns with the strategic imperatives required for both non-NASA programmatic launch activities and non-NASA, non-programmatic activities.