Business-to-government (B2G) is a business model that refers to businesses selling products, services, or information to governments or government agencies. NASA established its Commercial Crew Program in 2010 using the business-to-government transactional process in mind. NASA launched its Commercial Crew program to spark the development of new American-made spacecraft. The program asked private companies to begin developing new astronaut-ready spacecraft. Once the program reaches its completion, the agency will have paid out more than $8 billion in contracts over roughly a decade.
NASA worked alongside SpaceX to launch the first astronauts to Space Station from the U.S. since 2011. It’s a new milestone for space exploration; this is the first commercially operated human spaceflight. A new era of human spaceflight has begun as American astronauts once again launch on an American rocket from American soil to the International Space Station as part of NASA’s Commercial Crew Program. NASA also announced it had selected SpaceX to provide cargo transportation services for the agency’s planned lunar Gateway. Space X is the first private company to be chosen for each of these programs, but why? Since NASA ended its space shuttle program in 2011, the agency has depended exclusively on Russia to transport its astronauts to and from space in their Soyuz spacecraft. But those seats have gotten increasingly expensive: A single round-trip seat now costs NASA about $85 million. Eventually, a round-trip seat on the Space X Dragon is expected to cost about $55 million. This relationship between Space X and NASA (a U.S. government agency) is a perfect example of how private-public partnership (B2G transactions) can save a government entity time and capital in terms of major projects.
By: Brandon Diaz