WASHINGTON \u2014 The U.S. Space Force has established a working capital fund with a projected value of more than $1 billion to help facilitate military agencies\u2019 access to commercial space services.<\/p>\n
The Space Systems Command announced Oct. 8 that the Enterprise Space Activity Group (ESAG) was established Oct. 1 under the Air Force Working Capital Fund.<\/p>\n
This fund is meant to help military users purchase services such as commercial satellite communications.<\/p>\n
\u201cThe establishment of a Working Capital Fund for the U.S. Space Force represents an important milestone in integrating commercial capabilities into the architecture,\u201d said Col. Timothy Trimailo, head of the command\u2019s Commercial Space Office.<\/p>\n
A revolving fund model<\/strong><\/p>\n A Working Capital Fund (WCF) is a self-sustaining pool of money used by defense organizations to pay for routine goods and services. Instead of relying on annual congressional funding, a WCF works like an internal business: customers pay fees that cover costs, and those revenues are reinvested to keep the fund running.<\/p>\n \u201cThe WCF operates on a \u2018break-even\u2019 basis with a long-term strategy,\u201d the Space Systems Command said. \u201cAny profits can lead to lower rates for customers in the future, while losses may require higher rates; or a request for more money may be needed to add more money to the corpus.\u201d<\/p>\n The Space Force described its version as an \u201cadaptable and scalable financial platform\u201d designed to support future commercial space demands.<\/p>\n The new fund began operations with an initial $120 million deposit and is expected to handle more than $1.2 billion annually. The Commercial Satellite Communications Office (CSCO) \u2014 which manages military contracts for commercial satellite services \u2014 is the first program authorized to use it.<\/p>\n \u201cThe fund allows enough lead time to budget for anticipated demand,\u201d said Clare Hopper, CSCO\u2019s director.<\/p>\n Transitioning contracts from DISA<\/strong><\/p>\n Until now, CSCO had relied on the Defense Information Systems Agency (DISA) to procure commercial satellite services through its own working capital fund. When CSCO moved under the Space Force<\/a> in 2019, it became the Defense Department\u2019s sole authority for commercial satellite communications across U.S. military branches, government agencies, and allied partners.<\/p>\n The creation of ESAG allows those contracts and operations to move under Space Force control. \u201cWe\u2019re looking forward to offering even more capabilities that our warfighters need,\u201d Hopper said.<\/p>\n