Advance Funding Commitments

Commercial space companies sometimes ask federal agencies to enter into anchor tenancy arrangements or make other advance funding commitments to ensure there will be paying customers at the end of the companies’ capital investment cycles. Having “guaranteed” government customers helps firms raise the private funds needed to launch new space assets.

Few federal agencies have legal authority to commit future year appropriations for the purchase of commercial products and services. The authorities that do exist come with many conditions.

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