Table Of ContentContraCting for SpaCe
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Contracting for Space
Contract practice in the european Space Sector
Edited by
LeSLey Jane Smith
Leuphana University Lueneburg and Weber-Steinhaus & Smith, Bremen, Germany
ingo Baumann
BHO Legal, Cologne, Germany
First published 2011 by Ashgate Publishing
Published 2016 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright © 2011 Lesley Jane Smith and ingo Baumann
Lesley Jane Smith and ingo Baumann have asserted their right under the Copyright, Designs and patents act,
1988, to be identified as the editors of this work.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any
electronic, mechanical, or other means, now known or hereafter invented, including photocopying and
recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for identification
and explanation without intent to infringe.
British Library Cataloguing in Publication Data
Contracting for space : contract practice in the european
space sector.
1. Space law--european union countries. 2. Space vehicle
construction contracts--european union countries. 3. Space
industrialization--Law and legislation--european union
countries. 4. Artificial satellites in telecommunication--
Law and legislation--european union countries.
5. astronautics and state--european union countries.
i. Smith, Lesley Jane. ii. Baumann, ingo.
343.2'40786294-dc22
Library of Congress Cataloging-in-Publication Data
Smith, Lesley Jane.
Contracting for space : contract practice in the european space sector / by Lesley Jane Smith and
ingo Baumann.
p. cm.
includes index.
ISBN 978-1-4094-1923-5 (hardback)
1. Space law--europe. 2. astronautics and state--europe. 3. aeronautics--Law and legislation--europe.
4. outer space--exploration--government policy--europe. 5. research and development contracts--eu-
rope. i. Baumann, ingo. ii. title.
KJC6925.S65 2011
341.4'7094--dc22
2011009549
ISBN 9781409419235 (hbk)
ISBN 9781315574073 (ebk)
Contents
List of Figures and Tables ix
List of Contributors xi
Foreword by Sir Martin Sweeting xix
List of Abbreviations xxi
1 Introduction 1
Lesley Jane Smith and Ingo Baumann
Part I: IntroductIon
2 The Impact of the European Space Policy on Space Commerce 7
Kai-Uwe Schrogl and Christophe Venet
3 The Relationship between the EU and ESA within the Framework of European Space
Policy and its Consequences for Space Industry Contracts 25
Bernhard Schmidt-Tedd
4 Toward a European Space-Specific Procurement Policy? 35
Jean-Jacques Tortora
Part II: the LegaL Framework For SPace ProjectS In euroPe
5 The Principles of International Space Law and their Relevance to Space
Industry Contracts 45
Lesley Jane Smith
6 The Impact of National Space Legislation on Space Industry Contracts 59
Michael Gerhard and Kamlesh Gungaphul-Brocard
7 The Legal Framework for EU Activities in the Space Sector, with a Particular
Focus on GMES 69
Leopold Mantl and Sylvia Kainz-Huber
8 The Geographical Return Principle and its Future within the European Space Policy 85
Bernhard Schmidt-Tedd
9 Regulatory Framework for Authorising Satellite Applications:
The Case of Telecommunications 99
Philippe Achilleas and Romain Loubeyre
vi Contracting for Space
10 Reforming National Licensing and Agency Structures:
A Current Overview of the UK Space Agenda 111
Richard Tremayne-Smith
11 Consequences of the French Space Law on Space Operations (FSOA) on
CNES’s Mission as a Contracting Space Agency 117
Philippe Clerc
12 The Complexities of International Space Industry Contracts 133
Cristian Bank
13 Developing Space Markets in Small Jurisdictions: The Case of the Isle of Man 151
Timiebi U. Aganaba
Part III: generaL aSPectS oF SPace InduStry contractS
14 Typology of Contracts in the Space Sector 161
Laurence Ravillon
15 Space Contracting within the Framework of the European Space Agency 169
Gunilla Stjernevi and Eleni Katsampani
16 Procurement in the Space Sector 183
Oliver Heinrich
17 Economics of the Procurement Process 205
Vasilis Zervos
18 Security Rights over Satellites: An Overview of the Proposed Protocol to the
Convention on International Interests in Mobile Equipment on Matters Specific
to Space Assets 221
Dietrich Weber-Steinhaus and Deirdre Ní Chearbhaill
19 Research and Development Contracts 233
Martin J. Mittelbach
20 Contract Management 243
Mustapha Elriz and Peter Newman
Contents vii
Part IV: SPecIFIc aSPectS oF SPace InduStry contractS
21 Performance and Warranty Articles in Space Industry Contracts 257
Ines Scharlach
22 Cost Overruns in Space Contracts: Mitigation Methods and Strategies 267
Walter Peeters
23 Space Insurance 283
Philippe Montpert
24 Export Control Issues in Space Contracts 291
Matthias Creydt and Kay-Uwe Hörl
25 The Use of Service Level Agreements in Space Projects 303
Ingo Baumann
26 Space Contracts: The Legal and Financial Liability Regime under the
New French Space Legislation 319
Mireille Couston
27 Intellectual Property Issues in the Use and Distribution of Remote Sensing Data 337
Lesley Jane Smith and Catherine Doldirina
28 Negotiating the Security Aspects of Satellite Communications Services Contracts 349
Tare C. Brisibe
29 The Legal Framework for Space Projects in Europe:
Aspects of Applicable Law and Dispute Resolution 357
Frans von der Dunk
30 The ITU Filing of Satellite Systems 367
Ingo Baumann and Hans Dodel
Part V: SPecIFIc aSPectS oF SateLLIte SerVIceS contractS
31 Specific Clauses of Launch Services Agreements 385
Claude-Alain du Parquet
32 Specific Aspects and Characteristics of Satellite Capacity Agreements in the
Satellite Communications Business 393
Oliver Huth and Rafaël Roelandt
33 ESA Earth Observation Data Policies:
Principles, Current Status and Reforms 401
Gisela Süß
viii Contracting for Space
Part VI: concLuSIonS and outLook
34 Conclusions and Outlook 417
Lesley Jane Smith and Ingo Baumann
Index 423
List of Figures and Tables
Figures
17.1 Project price and cost relationships 210
17.2 Augmented earned value management system with price (EVMS-P) 213
17.3 NASA’s percentage distribution of competitive contracts through time 214
17.4 NASA’s percentage distribution of contract types through time 215
22.1 Commitment of life cycle cost per phase (Peeters and Madauss 2008) 275
22.2 Earned value method (EVM 2010) 279
22.3 Risk matrix principle 280
30.1 The ITU regions, (1) Europe incl. Russia, the Middle East, Africa,
(2) the Americas and (3) the Rest of the World 371
30.2 Frequency allocations for MSS, BSS, FSS from P-Band to 1 THz
(↑ = uplink, Earth to space, ↓ = downlink, space to Earth) 372
30.3 Priorities of radio systems 373
30.4 The chronological sequence of events of an ITU filing 376
Tables
12.1 Typical duration of export licensing procedures 140
17.1 NASA overruns in astronomy and astrophysics 215
22.1 Comparison of cost evaluation methods 274
22.2 Appropriate choice of contract type 278
26.1 The liability regime 334
26.2 The mechanisms of action for indemnity and state guarantee 335
30.1 Planned bands for Broadcasting Satellite Services (BSS) 374
30.2 Planned bands for Fixed Satellite Services (FSS) 374
30.3 System parameters required for application 378
