fy2000 link to home page department of commerce

logo for the Department of CommerceIn FY 2000, the DoC engaged in a wide variety of activities that furthered U.S. interests in aeronautics and space, including satellite operations and licensing, technology development, civilian and commercial space policy support, and trade promotion. The National Oceanic and Atmospheric Administration (NOAA) was involved in many space activities. In September 2000, NOAA’s National Environmental Satellite, Data, and Information Service (NESDIS) launched the Nation’s newest polar-orbiting environmental satellite, NOAA-16, from Vandenberg Air Force Base in California. It replaced the 6-year-old NOAA-14 and improves weather forecasting and monitoring of environmental events around the world. In the United States, NOAA’s National Weather Service uses the data primarily for long-range weather and climate forecasts. It is the second in a series of 5 polar-orbiting satellites with improved imaging and sounding capabilities that will operate over the next 10 years. The direct broadcast, on a free and open basis, of Advanced Very High Resolution Radiometer (AVHRR) instrument data provides imagery to scientific, commercial, and educational groups throughout the world. In addition, the search and rescue instruments on NOAA-16 will continue to support a global community that has established ground stations that “listen” for distress beacons relayed through the NOAA polar and Russian Cospas satellites. Also, new development of microwave instrumentation from NOAA-15 has enabled NOAA short-term weather forecasting and warning programs to measure moisture in the atmosphere for identifying conditions conducive to heavy precipitation.

Geostationary Operational Environmental Satellite (GOES)-11, launched on May 3, 2000, was stored in orbit, ready to replace GOES-8 or -10, which are stationed at 75 degrees east and 135 degrees west, respectively. If one of them fails, GOES-11 can be put into service without delay and provide expected delivery of data within 2 days of activation. GOES-8 continued to overlook the East Coast of North and South America and out over the Atlantic Ocean. GOES-10 continued to overlook the West Coast and out over the Pacific Ocean, including Hawaii. Similar to the other operational GOES, GOES-11 will be used to monitor Earth’s atmosphere and surface to support NOAA’s forecasting and warning programs. Following the launch and testing of the spacecraft, NOAA developed capability to process and disseminate the new data stream.

As part of NOAA’s share of convergence of DoC and DoD meteorological satellite programs, NESDIS continued to operate the Defense Meteorological Satellite Program (DMSP) satellites. During the course of the year, five DMSP satellites provided atmospheric, ocean, and space weather measurements to operational forecast centers. In part from these satellites, NESDIS’ data centers continued to provide useful new products for public and Government use. The National Geophysical Data Center (NGDC) used lights seen in DMSP images recorded at night to monitor possible power problems during the Y2K transition from December 31, 1999, to January 1, 2000. DMSP data were also used, for the first time, to support weather forecasts for the Olympic Games in Australia. DMSP nighttime imagery also was used to monitor wildfires in remote areas in Asia and middle America. NGDC also provided input on the near real-time transmittal of DMSP low-resolution Operational Linescan System (OLS) data to Singapore for use in the Program to Address ASEAN Regional Transboundary Smoke (PARTS). In addition, OLS data transmittal to Singapore commenced in March 2000 on a daily basis.

The Director of NESDIS’ National Climatic Data Center (NCDC) was a coauthor of a chapter on climate variability and change in a report of the Intergovernmental Panel on Climate Change. Publication of the final report is expected to occur in May 2001. NCDC also continued its activities in climate monitoring by providing leadership in overseeing, as lead editor, the World Meteorological Organization (WMO) Guide to Climatological Practices and in coordinating the WMO Global Climate Statement.

NOAA, in collaboration with the U.S. Coast Guard, U.S. Air Force, and NASA, continued to lead the national Search and Rescue Satellite-Aided Tracking (SARSAT) and the international Cospas-Sarsat programs. The SARSAT program uses search and rescue payloads on NOAA and Russian satellites to detect emergency beacons used by aviators and mariners in distress. In FY 2000, the SARSAT program contributed to the rescue of 227 lives. Since its inception in 1982 over 11,000 lives have been rescued as a result of the Cospas-Sarsat System. In October 1999, Cospas-Sarsat decided to phase out by 2009 satellite processing of 121.5 MHz emergency signals in response to international guidance, in favor of emergency beacons operating at 406 MHz.

In FY 2000, NOAA repositioned the surplus spacecraft GOES-7, which was launched in 1987, to 175 degrees east longitude. This was done to support the Pan-Pacific Education and Communications Experiment by Satellite (PEACESAT) program, which is a public service satellite telecommunications network that links educational institutions, regional organizations, and governments in the Pacific Islands region. The PEACESAT program, a partnership with the University of Hawaii, uses a NOAA command and telemetry processor that is no longer needed to operate the newer GOES satellites.

Within NOAA’s Office of Oceanic and Atmospheric Research (OAR), a number of aeronautics and space activities occurred within the Space Environment Center (SEC) in Boulder, Colorado. The SEC provided real-time monitoring and forecasting of solar and geophysical events, conducted research in solar-terrestrial physics, and developed techniques for forecasting solar and geophysical disturbances. SEC’s Space Weather Operations Center is jointly operated by NOAA and the U.S. Air Force and serves as the national and global warning center for disturbances that can affect people and equipment that operate in the space environment. This past fiscal year, the SEC continued to upgrade physics-based numerical models, which are used to produce operational space forecasts. The center also won a Hammer Award from Vice President Al Gore as part of the initiative for reinventing Government for its work incorporating data obtained from its sensors on NASA satellites into its operational forecasts and disseminating these data on the World Wide Web. The SEC also improved its Web site to distribute space weather information to interested users. It has the only full-time space weather forecasting office in the world, and the forecasts are crucial to the telecommunications industry, astronauts, power companies, weather satellite operations, and users of GPS. The SEC disseminated to the public the first real-time images of the magnetosphere/ionosphere response to changing space weather conditions. These images will enable new research and development activities that will lead to improved space weather monitoring and predictive capabilities. Additionally, OAR continued to use the wide range of satellite data products developed by NOAA and other agencies. Scientists continued to use these products in the fields of oceanography, air quality, water resource management, severe storm prediction, and climatology. Also, the NESDIS GOES and Polar-orbiting Environmental Satellite (POES) instruments monitored changes in the near-Earth space environment due to bursts of energetic particles and fields from the Sun. During a peak in solar cycles, GOES and POES measurements made critical contributions to space weather forecasts. Finally, in anticipation of improving weather monitoring and prediction, OAR continued using GPS with meteorological observations, including COSMIC (occultation) and the use of ground-based GPS sites Continuously Operating Reference System (CORS) to continuously measure the 3-D distribution of precipitable water vapor in Earth’s atmosphere, to continuously measure total electron content in Earth’s ionosphere, and to monitor other space weather phenomena.

NOAA continued its international activities and cooperation over the course of FY 2000. In particular, NESDIS involvement with activities associated with the Committee on Earth Observation Satellites (CEOS) contributed to the establishment of the ad hoc Disaster Management Support Group (DMSG). The objective of the group is to maintain momentum for activities in disaster management support and to move toward the demonstration of coordinated space agency responses and development of suitable response models. The Director of NESDIS’s Office of Satellite Data Processing and Distribution (OSDPD) chairs the group. NESDIS also hosts the Secretariat in support of the DMSG. In September, NESDIS presented its activities in Earth observation education and training at a meeting and workshop of the CEOS ad hoc Working Group on Education and Training in Dehra Dun, India. This group is assessing technology trends and the consequent need for Earth observation education and training–especially in developing countries. In addition, NOAA provided continued support to the CEOS Working Group on Information Systems and Services and worked with the National Institute of Standards & Technology (NIST) to organize a working group meeting for the CEOS Calibration-Validation Working Group.

NOAA’s CEOS involvement at the 5th Integrated Global Observing Strategy (IGOS) Partners Meeting contributed to progress on theme concept development. NESDIS’ Oceanic Research and Applications Division Chief participated on the team that developed a prototype Oceans Theme, which NASA produced as a brochure. NESDIS, earlier in the year, had indicated its readiness to contribute to development of operations for follow-on Jason altimetry missions. NOAA scientists are participating in the development of IGOS Coral Reef/Coastal, Global Carbon Cycle, and Water Cycle Themes.

Throughout FY 2000, NESDIS responded to requests from the White House, U.S. Department of State, U.S. Agency for International Development (USAID), and in some instances, the United Nations or foreign governments, to provide data or information products for assistance in responding to various stages of disaster. The response activity included floods in Mozambique, Venezuela, and Vietnam; wildfires in Bolivia and Ethiopia; and drought in central Asia and the horn of Africa. NESDIS continued to support multiyear projects that are funded by USAID to work with colleagues in Brazil and Bolivia on satellite-derived wildfire applications. NESDIS was further involved in implementation of Hurricane Mitch recovery and development activities in Central America with the countries of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. NESDIS continued to play an important role in a number of interagency and international disaster-planning activities, such as the Subcommittee on Natural Disaster Reduction (SNDR), which is under the White House Committee on Environment and Natural Resources (CENR). At the request of USAID, NESDIS continued to participate in the U.S. Government-sponsored Hurricane Mitch reconstruction and development project in Central America. NESDIS’ participation was part of a Department of Commerce initiative that involves installation of a regional satellite ground receiving station in Costa Rica. In addition, funding has been obtained to install a network of satellite display systems in six additional countries in Central America to display and analyze GOES satellite data and products from the Costa Rica ground station. This is meant to enhance access to, and use of, GOES satellite imagery by the national meteorological and hydrological agencies in Central America for weather and flood forecasting, and also disaster preparation, management, and mitigation. As requested by USAID in Brazil, NESDIS continued to work with the government of Brazil, using satellite imagery to detect wildfires that threaten the Amazon rainforest.

NESDIS staff gave presentations at the Third International Conference of the Global Disaster Information Network (GDIN) held in Ankara, Turkey. On April 27, 2000, President Clinton signed an Executive Order that established GDIN activities within the United States and affirmed a commitment to support international GDIN activities. The Executive Order designated NOAA, the U.S. Department of State, and the Office of the Vice President as cochairs of an interagency committee to implement GDIN throughout the U.S. Government. NESDIS continued to serve an important role for support and implementation of GDIN.

The pace of NOAA’s commercial remote sensing licensing work accelerated in FY 2000 and proved to be the busiest ever for such activities. NESDIS approved five foreign partnership agreements and six amendments to current licenses. In August 2000, NOAA issued its much-awaited new private remote-sensing regulations that provided the regulated community with increased transparency and predictability in the licensing process. The year also saw a major focus on outreach activities, with the Assistant Administrator meeting twice with NOAA licensee CEOs to discuss issues affecting the industry. This included hosting a Senior Executives Forum on Commercial Remote Sensing in conjunction with the United States Space Foundation and the National Space Symposium. Finally, the RAND Corporation conducted a commercial remote-sensing industry-wide risk assessment that will offer an objective view of the technical, regulatory, and market risks confronting this nascent industry.

NOAA’s National Ocean Service (NOS) continued to use both remote sensing technology and the Global Positioning System (GPS) to meet its mission of mapping the national shoreline, producing airport obstruction charts, and monitoring and analyzing coastal and landscape changes. In its use of remote-sensing applications, the office has benefited from the development of high-performance, low-cost workstations and the advent of digital imagery, which has revolutionized the evolution of three-dimensional surface models and other derived products (such as orthophotographs) in support of NOAA’s coastal mapping and airport survey programs. In FY 2000, NOS’s National Geodetic Survey (NGS) collaborated with the U.S. Air Force to complete a high-resolution, three-dimensional mapping project at Cape Chiniak on Kodiak Island in Alaska. The goal was to explore the use of digital photogrammetric techniques of digitized aerial photographs for the production of a LEVEL-5 digital topographic elevation data product, in an area with complex terrain. NGS has demonstrated that photogrammetric procedures can deliver with ease, high-resolution digital surface model data that are accurate to the submeter level.

NGS has traditionally used only airborne photography for mapping missions. The advent of high-resolution, space-borne imagery is useful for precision (better than 5 meters) mapping projects. Beginning in FY 2000, NOAA/NGS acquired SPIN-2 data (a trademark for Russian digital ortho-rectified, geo-coded imagery data) with a resolution of approximately 2 meters, acquired from Microsoft’s TerraServer. This server is an online database that offers free public access to maps and aerial photographs of the United States through partnership with the U.S. Geological Survey. NGS used this data to assess the need to acquire high-resolution, metric-quality photography over specific areas under their Coast and Shoreline Change Analysis Program. Such updated information will be used to aid in updating nautical charts produced by NOS’s Coast Survey. Additionally, IKONOS and Indian Remote Sensing (IRS) satellite data, acquired from Space Imaging, are used in conjunction with SPIN-2 data. IRS 5-meter-resolution satellite data also was acquired to access shoreline mapping for Charleston, South Carolina.

Currently, Airborne Visible and Infrared Imaging Spectrometer (AVIRIS) data are being assessed for shoreline mapping, coastal change detection, and airport obstruction charting. This past year, the AVIRIS sensor was flown in the NOAA Twin Otter, which was the first low-altitude operational use of this sensor. The results provided 2- and 4-meter resolution. The integration of the image data with GPS and inertial navigation technologies enabled NASA Jet Propulsion Laboratory engineers to construct high quality scenes for NOAA.

Light Detection and Ranging (LIDAR) was tested in a wide variety of applications including assessing storm damage to beaches, mapping the Greenland ice sheet, and measuring heights within forest timber stands. NGS explored the possibility of integrating LIDAR into the production of shoreline mapping and airspace obstruction charts.

The NGS continued to evaluate the use of RADARSAT data to delineate shorelines. In addition, NGS experimented with satellite-based Synthetic Aperture Radar (SAR). Since SAR is largely unaffected by the presence of dense cloud cover, it can offer substantial benefit to acquisition of data for shoreline mapping in areas such as Alaska.

The largest effort for NGS in FY 2000 was active outsourcing of its photogrammetric processes, including the acquisition of aerial photography. This past year, NGS held its first outsourcing workshop, which allowed contractors to learn first-hand about NGS mapping and surveying programs. Topics covered included aerial photography over airports, aerial photography over U.S. shorelines, geodetic control at airports, shoreline mapping, and height modernization projects.

In addition, NOS’s Coastal Services Center (CSC) utilized LANDSAT Thematic Mapper (TM) imagery to produce land cover data sets and to determine landscape changes in coastal Massachusetts, New Hampshire, Rhode Island, and North Carolina. CSC contributed to procurement of LANDSAT TM imagery for use in land cover analysis in Hawaii and brown marsh analysis activities in coastal Louisiana. NOAA’s Coastal Change Analysis Project (CCAP) has also used this type of data in conjunction with aerial imagery, to assess the health of the Chesapeake Bay, and in particular, the land loss in the Blackwater area.

NGS also procured French Satellite Pour l’Observation de la Terre (SPOT) multispectral imagery for use in analyzing the brown marsh phenomenon. OrbImage SeaWiFS imagery, in conjunction with NOAA Coastwatch and NOAA National Centers for Coastal Ocean Science (NCCOS), assisted in determination and monitoring of harmful algae bloom transport within the Gulf of Mexico. NOAA Advanced Very High Resolution Radiometer imagery was also used to determine turbidity and sea surface temperature in coastal regions of the United States.

NOAA/NGS continued to advance the use of GPS for centimeter-level positioning through its National CORS Program. At the end of the fiscal year, the National CORS network contained over 200 sites and was increasing at a rate of approximately 3 new sites per month. In FY 2000, NOS initiated the Cooperative CORS program enabling States and local institutions that have established their own CORS sites to make their associated GPS data more accessible to the public. Space Weather Total Electron Content provides a measure of the ionospheric disturbance, which affects radio signals, including those used for navigation, such as GPS signals. NOS derives maps of Total Electron Content from the observations of GPS receivers in the National CORS network and from globally distributed International GPS Service for Geodynamics stations. The technique developed by NOS to model the ionosphere was a direct result of NOS efforts to account for positioning errors inherent in the GPS signal.

In addition, NGS continued leading a program, termed Height Modernization, which utilizes GPS to efficiently provide accurate, consistent elevation information for a wide variety of activities Nationwide. Traditionally, “elevation” meant height above mean sea level (technically referred to as orthometric height). In its most accurate definition, “elevation” is defined as a height above a surface called the “geoid.” The geoid is a very complex surface, defined by variations in Earth’s gravity field (encircling the entire planet) and which is nearly identical to mean sea level over the oceans. However, GPS elevations are heights above an “ellipsoid,” a simple geometric surface that differs from the geoid in its simplicity. As such, one significant element of Height Modernization is to provide an accurate model between the ellipsoid and the geoid. The objective is to achieve GPS elevations that are consistent with the more traditional “elevation”–often known as sea level. Height Modernization and GPS will make significant strides in providing more robust height measurements for users of GPS. Activities relying on these height improvements include mapping vertical measurements–flood mapping, positioning of ships in three dimensions, and accurate port water-level information for safe and efficient transportation into U.S. ports, and air navigation.

NOS also computed precise GPS orbits (satellites location) to an accuracy of 7 centimeter (cm) Root Mean Square (RMS) in support of users of the National Spatial Reference System and is working toward achieving an accuracy of 5 cm RMS. Such orbits are needed for users requiring submeter positioning. NOS makes the orbits available in a timeframe that meets users’ requirements, including a rapid product (8-14 cm accuracy) available within a 16-hour turnaround, and a more accurate product available within 7 to 10 days of data collection. The GPS orbits are computed using station coordinates and velocities derived in the International Earth Rotation Service (IERS) Terrestrial Reference Frame (ITRF). The GPS orbital data are available without cost and can be retrieved from the Internet.

Also at DoC, the Technology Administration (TA) continued to engage in a number of space-related activities through the Office of Space Commercialization (OSC) and NIST. During FY 2000, OSC concentrated the majority of its resources on issues related to satellite navigation and the U.S. GPS. This included participation in numerous interagency working groups, steering groups, review teams, and executive committees in support of the Interagency GPS Executive Board (IGEB), established by President Clinton to manage GPS as a national asset. DoC, represented by TA and NOAA, serves on the IGEB as a key advocate for the commercial, scientific, and governmental users of GPS.

Through the IGEB process, both OSC and NOAA participated in interagency deliberations leading to major GPS-related decisions, including the deactivation of GPS Selective Availability (SA) in May 2000 and the acceleration of the GPS modernization program. The SA decision was announced at a White House press conference featuring remarks by NOAA Administrator James Baker and through a press release by Secretary of Commerce William Daley–both hailing it as an important advance for commercial GPS users. Afterwards, NOAA monitored and evaluated the newly improved GPS performance and published the results on its public Web site. This effort was important in promoting the global benefits of the White House decision.

OSC continued to participate in ongoing talks between the United States and Europe on potential cooperation in satellite navigation, helping develop negotiating strategies and draft agreement language, and serving on official U.S. delegations led by the Department of State (DoS). OSC hosted one round of the U.S.-European talks as well as several meetings with U.S. industry to hear its views on the subject. OSC also participated in a round of GPS-related consultations with Russia (again led by DoS) and a number of outreach missions to Belgium, Denmark, Sweden, Finland, Spain, and Portugal. During these international meetings, OSC provided educational briefings to Government and industry representatives on international GPS markets and applications.

OSC played a lead role in the implementation of the IGEB Executive Secretariat, the permanent office that provides day-to-day staff support to the IGEB and its working groups. With the support of the Under Secretary for Technology, OSC significantly increased its commitment of personnel, office space, and other resources to the IGEB Executive Secretariat, helping solidify its legitimacy and visibility within the national GPS management structure. Among other things, OSC provided a Director for the IGEB Executive Secretariat and funding to support a major GPS industry trade fair on Capitol Hill. OSC created and hosted the highly popular IGEB Web site. OSC also provided drafting assistance to congressional staff on legislation enabling DoC to accept funding from interagency sources in order to support the IGEB Executive Secretariat. NOAA also continued to support the IGEB Executive Secretariat by assigning personnel to serve in the office and participating in the GPS trade fair.

In the area of satellite imaging, OSC, NOAA, and the International Trade Administration’s (ITA) Office of Aerospace (OA) continued to represent commercial interests as part of the Remote Sensing Interagency Working Group (RSIWG). Led by the DoS, the RSIWG is charged with coordinating policy for the export of remote-sensing satellite systems and negotiating government-to-government agreements covering the safeguarding of those systems’ technology. The RSIWG completed agreements with Japan, Canada, and Spain in FY 2000.

OSC and OA continued to actively support the Office of the U.S. Trade Representative (USTR) and its working groups in developing options for handling trade with Russia, China, and Ukraine in the area of commercial space launch services. In June 2000, OA participated in the termination of the U.S.-Ukraine agreement and in annual consultations with Russia that led to its ultimate expiration on December 31, 2000. These efforts created a more open market environment in this important trade sector.

OSC and OA continued to support the ongoing work of the White House-led Interagency Working Group on Future Management and Use of the U.S. Space Launch Bases and Ranges. The review will examine the appropriate division of responsibilities for bases and ranges between the Government and commercial sectors. Working closely with the FAA, OSC and OA solicited and collected private- sector views on this subject and continued efforts to integrate these into a national strategy for launch range management.

During FY 2000, NIST delivered to NASA’s Johnson Space Center an efficient, reliable laboratory version of a pulse-tube oxygen liquefier for use in rockets to bring rock samples from Mars to Earth. New concepts were used in the system, and it performed according to NIST models, yielding one of the highest efficiencies ever achieved in cryocoolers.

With support from the U.S. Air Force, NIST assisted in efforts to develop microscale heat exchangers for use in compact cryocoolers to cool infrared detectors on satellites. These heat exchangers should be at least an order of magnitude smaller and lighter than more conventional heat exchangers. NIST also provided technical guidance to Northrop Grumman and Lockheed Martin in their research and development of cryocoolers for the Spaced-Based InfraRed System in low- Earth orbit (SBIRS-Low).

Using cofunding from NIST’s Advanced Technology Program (ATP), 3M and Lockheed Martin formed a joint venture to develop a nonhazardous alternative for aircraft exterior spray paint. This alternative, known as Paint Replacement Film (PRF), consists of an advanced “peel and stick” polymer film with a pressure- sensitive adhesive, and has a unique potential to reduce aircraft drag and reduce fuel consumption. A commercial long-haul aircraft, sheathed in the film, could save $250,000 or more a year in fuel, require less corrosion maintenance, and provide more color and pattern options for commercial aircraft. During FY 2000, PRF began undergoing large-scale flight evaluations on a variety of commercial and military aircraft.

In projects funded by the U.S. Air Force and FAA, NIST embarked on research to assess the flammability and physical properties of clay nanocomposites when used in aircraft parts. Clay nanocomposites improve the parts’ mechanical properties, especially when subjected to extreme heat, and reduce the need for environmentally problematic flame-retardants. With funding from NASA, NIST continued its comprehensive research on fires and fire suppression in microgravity environments. These projects better characterize the ignition, spread, and suppression of fires in the microgravity of space, helping to protect astronauts and their spacecraft. With support from DoD, NIST continued to search for effective and environmentally friendly alternatives to halon for aircraft fire protection. In other work funded by NASA and FAA, NIST researchers evaluated the performance of new technologies for detecting fires in aircraft cargo spaces.

In the area of timing, NIST continued to support the Primary Atomic Reference Clock in Space (PARCS), a laser-cooled cesium clock being developed for deployment aboard the International Space Station. The PARCS project, which has completed its first two NASA reviews, was scheduled to fly in early 2005. In addition, NIST continued to provide synchronization support for NASA’s Deep Space Network, used for space navigation.

The NIST force calibration facilities, which include a unique deadweight stack of 1 million pounds of weight, continued to allow NASA and other aerospace organizations to reliably measure propulsive force. This facility dates back to the original space race of the 1950’s and 1960’s. Other NIST facilities continued to provide the U.S. aerospace industry with world-class measurement services for the mechanical quantities of mass, acceleration, shock, sound pressure, and ultrasonic power.

OA took the lead role in seeking resolution of the dispute over a European Union (EU) regulation restricting the registration and operation of aircraft modified with noise-suppression technology, including aircraft engine “hush kits” and replacement engines. OA and other Federal agencies participated in bilateral negotiations with the EU seeking withdrawal of the regulation. In March 2000, following the failure of intensive high-level bilateral negotiations, the United States initiated dispute settlement proceedings in the International Civil Aviation Organization under Article 84 of the Chicago Convention.

OA participated in an interagency effort that led to the Czech government providing a tariff waiver for large civil aircraft, helicopters, and certain spare parts. The waiver eliminated for 1 year the 4.8-percent tariff differential between U.S. and EU aircraft. The Czech government confirmed its intention to join the WTO Trade in Civil Aircraft Agreement (which, among other things, binds tariffs on aircraft and parts to zero) as part of any future multilateral trade negotiations.

OA played an active role in the Export-Import Bank’s approval of $143 million in financing to support the installation of U.S. engines, avionics, parts, and equipment into Russian-designed and manufactured Ilyushin-96T cargo aircraft. This action marked a milestone in aviation history and the final hurdle in the realization of a dream to foster U.S. and Russian aerospace cooperation. The ITA-established U.S.-Russia Business Development Committee Aerospace Subgroup had been working toward this goal since the opening of the Russian market.

In FY 2000, OA continued to assist the U.S. aerospace industry in competing in the global marketplace. To promote the export of U.S. aerospace products, OA sponsored Aerospace Product Literature Centers at major international exhibitions and air shows in China, Germany, Malaysia, Singapore, South Africa, Russia, the United Arab Emirates, and the United Kingdom. Trade leads generated through this program totaled more than 10,000. OA worked closely with the overseas posts to maximize the exposure of small- and medium-sized U.S. companies to the export market in these events.

In May 2000, OA organized and managed an aerospace executive trade mission to Rio de Janeiro, Brasilia, and Sao Paulo, Brazil. Over 20 U.S. business representatives attended the mission, which arranged high-level meetings with Brazilian government and industry aerospace officials. The program also arranged one-to-one meetings for each of the participants, and several identified local representatives, agents, or distributors, or negotiated sales contracts during the mission.

OA sponsored a Government briefing attended by over 100 U.S. aerospace industry representatives on the relationship between e-commerce and the aerospace industry. OA and the ITA Advocacy Center supported U.S. companies in international aerospace competitions, including helicopters, commercial transport aircraft, remote-sensing satellites, and space launch vehicles.

OA and ITA’s Advocacy Center supported U.S. companies bidding for international aerospace contracts. The competitions spanned all areas of the aerospace industry including space launch vehicles, commercial aircraft, helicopters, and air traffic management projects.

The March 15, 1999, implementation of the 1998 National Defense Authorization Act provision that moved export licensing jurisdiction for commercial communications satellites from the DoC to the DoS has harmed U.S. satellite and related component manufacturers. The movement of jurisdiction has also resulted in substantial backlash from potential foreign buyers of U.S. satellites. U.S. satellite manufacturers continue to lose contracts and business to foreign suppliers. As an example, during 2000, publicly reported orders of U.S.-made geostationary satellites dropped from 16 in 1998 to 13, while orders for European spacecraft rose from 6 to 16 during the same period. Satellite and security experts believe that a weakened satellite industry will jeopardize America’s global surveillance, reconnaissance, and communications network. Satellite manufacturers have detailed many of these problems in testimony to Congress. Lockheed Martin reported that long-time customers, such as Japan, are looking to European manufacturers for meeting future satellite requirements. Boeing Satellite Systems and Loral Space and Communications have reported similar foreign market reactions. Foreign buyers want to retain a choice in launch service providers, and they want predictability and timeliness in delivery schedules; this includes the licensing process.

The congressionally mandated movement of all commercial satellites to DoS’s jurisdiction has resulted in the plummeting of U.S. global market share from 73 percent to 42 percent. The DoS’s licensing function continues to be unable to process commercial satellite export license applications in a timely and certain manner. Under the monitoring provisions of the legislation, the DOD and DOS have been forced to require U.S. manufacturers to obtain DOS-issued Technology Transfer Agreements for the launch support of satellites previously licensed by the DoC, even when the customers or the launch service providers have been NATO allies.

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