Hill sends mixed signals to satellite imagery firms

The Obama administration is moving forward with plans to buy more satellite imagery from private companies while Congress grapples with developing a long-term strategy to ensure that U.S. military and intelligence agencies have access to the images they need.

The National Geospatial-Intelligence Agency issued a classified request two weeks ago asking firms that operate remote-sensing or imaging satellites for information on how they could meet U.S. government needs.

The agency plans to award major contracts to commercial imagery providers next spring under its EnhancedView program, which is designed to augment the capabilities of powerful U.S. spy satellites.

But commercial providers are closely following proposals in Congress that might have an impact on the millions of dollars in revenue they get each month from selling images to the government.

In a move that could spark a clash with the industry, Congress is backing a plan under which the government would build new satellites that might ultimately compete with those of commercial providers, such as GeoEye of Dulles, Va., and DigitalGlobe of Longmont, Colo.

Last week's conference agreement for the fiscal 2010 defense authorization bill includes a little-noticed provision directing the Defense Department to develop two commercial-grade electro-optical satellites, one with a 1.1-meter aperture and a second with a more powerful 1.5-meter aperture.

The House approved the agreement Thursday; the Senate is expected to do so this week.

When asked about the directive for the government to build the new commercial-grade satellites, GeoEye spokesman Mark Brender gave a carefully worded response.

"The authorizers have spoken. Whatever comes of this I am hopeful we'll have a seat at the table when these decisions are being made," he said.

Key lawmakers support the idea of turning to the private sector for large amounts of satellite imagery. Both the Bush and Clinton administrations also made using more private satellite images a priority.

But Congress has yet to agree on a long-term strategy for replacing the nation's aging spy satellites. The Obama administration earlier this year proposed buying large, expensive satellites for intelligence and military operations, a plan backed by the House Intelligence Committee.

The Senate Intelligence Committee balked, however, putting forward an alternative plan that would allow the government to buy more -- albeit cheaper and less sophisticated -- satellites.

Even though a long-term plan has yet to materialize, the National Geospatial-Intelligence Agency believes it is prudent to award new contracts for commercial imagery in the spring.

"We are still working with the Hill on the FY10 budget, while concurrently moving forward with our plans," the agency said in response to questions. "The U.S. government continues to support the U.S. commercial imagery industry; we will continue to rely on commercial data providers in the near future."

Companies like GeoEye and DigitalGlobe boast that they are able to launch satellites on time and on budget compared to the government, whose expensive programs have experienced delays and, in some cases, outright failures.

Notably, Congress is also taking a major step toward the relaxation of restrictions on the commercial sale of detailed imagery by private companies.

The defense authorization conference agreement directs the administration to review whether changes should be made. Companies are now barred from the commercial sale of imagery that reveals details smaller than half a meter.

"We do welcome the review of the resolution limits since this will allow U.S. industry to maintain its leadership position in the face of increasing foreign competition," Brender said.