Ted Mercer

Maj. Gen. Ted Mercer is the new CEO and executive director of Virginia Space, the owner and operator of the Mid-Atlantic Regional Spaceport (MARS), collocated at the NASA Wallops Flight Facility on Virginia’s Eastern Shore. VEDP Executive Vice President Jason El Koubi spoke with Mercer about his priorities at Virginia Space, the facility’s capabilities and clients, and the importance of commercial launches at Wallops.

Jason El Koubi: Having just started at Virginia Space in August, can you share with us your early impressions and view of Virginia Space and MARS, and what drew you to the position?

Ted Mercer: I’ve been around the space business for a lot of years. I started out in our nation’s Air Force in the intercontinental ballistic missile business. I sat in underground silos, ready to launch our nuclear assets should the president decide to do that. During that time, there was a program called the Follow-On Test and Evaluation Program, which tested the reliability of intercontinental ballistic missiles that had been sitting in underground silos for years. The program would randomly select a missile by serial number, remove it from its operational silo, take it to Vandenberg Air Force Base in California, reinsert it into a like silo at Vandenberg, and when directed, launch it some 4,200 nautical miles downrange to the Kwajalein Atoll.

I had to pull together an operations, maintenance, and logistics team encompassing some 50 to 60 people. The team went out to Vandenberg for 45 days to prepare this missile for launch. I take you back to that point because that was when I was bitten by the launch bug. I fell in love with space lift when we launched that missile downrange.

I am extremely pleased to join the Virginia Space team and assume responsibility for Virginia Space and the Mid-Atlantic Regional Spaceport. There aren’t many places in the United States where you can actually launch rockets to orbit. In all of my years of service in the U.S. Air Force, government, and industry, being a part of a rocket launch is just extremely special. To be able to do that safely is a great responsibility and extremely rewarding.

MARS has world-class facilities and an extremely strong workforce that make MARS a leader in low-earth orbit launches. The spaceport, in my view, was already well-positioned for future development. My charter is to grow that expertise and increase our operations tempo, or the frequency of launches out of MARS.

We are one of only four launch spaceports in the United States that are licensed by the FAA for vertical launch into orbit. Unlike horizontal launch, vertical launch provides the ability to get larger payloads to space on a single rocket.

Ted Mercer CEO and Executive Director, Virginia Space

El Koubi: Thinking back on your career in the Air Force and your leadership there, how does that affect the way you approach this new position?

Mercer: One of the things you learn in the U.S. military is that the most important asset you have is your people. You can’t get the mission done without your people.

Prior to joining Virginia Space, my career encompassed decades in aerospace and executive leadership in the military, the private sector, and then back in government after I left the private sector. I commanded what was then the 45th Logistics Group at Cape Canaveral in Florida. I ran the operational launch range for everything that launched out of the Cape, to include shuttle operations. That meant I was in charge of all optics, telemetry, radar, and command destruct systems, all the way down the coast of Florida out to the island of Antigua, and all the way to Ascension Island off the west coast of Africa. I’ve been involved in developing national security policy and operations almost my entire career. In industry, I had profit and loss responsibility in actually building the exquisite satellites for our intelligence community that were launched into orbit on behalf of this nation.

El Koubi: Can you give us a quick overview of space assets in Virginia — the facilities and capabilities?

Mercer: It’s one of the things that impresses every person who comes to MARS to tour our facilities. They leave with their eyes the size of half dollars, saying to themselves, “Wow, we didn’t know that the Commonwealth of Virginia had this kind of capability.”

Let me walk through some of that capability. We have basically three launchpads. Launchpad 0A is designed to handle liquid fuel rockets. The Northrop Grumman commercial Antares rocket with the payload to resupply the International Space Station launches out of Pad A. Pad B is for launching solid rockets like the Minotaur I, the Minotaur IV, and the Minotaur V. We launch many Department of Defense and national security missions, as well as other federal government satellites off of Pad B. We also launched the first lunar mission off of Pad B, the LADEE mission, the Lunar Atmospheric Dust Environmental Explorer. Pad C is a venture-class launchpad that will be used to launch the Rocket Lab Electron rocket. We built this launchpad, from groundbreaking to full operational status, in 11 months.

We have a MARS command building that offers secure operational facilities for classified work, a spaceport control room, large meeting rooms, and a segregated, dedicated customer space.

We have a state-of-the-art MARS Payload Processing Facility designed to accommodate and attract both classified and unclassified security missions. It’s designed to process classified and unclassified payloads simultaneously, but yet segregated for security and clearance requirements.

We have an Integration and Control Facility, owned by Virginia Space and leased to Rocket Lab for them to integrate their multiple Electron launch vehicles. Additionally, it has a mission control room and office and customer space. It’s located only nine miles from their launchpad.

We are one of only four launch spaceports in the United States that are licensed by the FAA for vertical launch to orbit. One interesting thing to note is that unlike horizontal launch, vertical launch provides the ability to get larger payloads to space on a single rocket. For example, most horizontal space lift operations can put up anywhere from 1,000 to about an 1,100-pound payload. We routinely launch payloads in excess of 18,000 pounds.

Rocket Lab, Accomack County

Rocket Lab, Accomack County

El Koubi: We interviewed your predecessor, Dale Nash, about a year and a half ago for this publication. At that time, Mr. Nash said that about half of the launches at MARS were commercial. Can you talk about the operation today? Is it roughly the same mix, or is it changing?

Mercer: That’s not a cut-and-dried answer. The lines are blurring between commercial and government launches more than they ever have before. Let me start by giving you the FAA definition. The FAA says a commercial launch is a launch that is internationally competed, or whose primary payload is commercial in nature. The reason I say that it’s not cut and dried is because we launch many payloads into orbit that may be on a commercial rocket, but the payload is a government payload — or the payload was actually built by a commercial company. In that scenario, is that a government payload or is that a satellite commercial launch? According to the FAA’s definition, about 67% of our launches last year would be classified as commercial.

The other thing I would point out is that all the rockets launched from MARS this past year were commercial launch vehicles, supporting government and DOD customers. For example, the Northrop Grumman Antares rocket that resupplies the International Space Station — the resupply is a NASA payload, but the rocket is a Northrop Grumman commercial rocket.

Testing of newly developing delivery concepts, like the stuff that Amazon and Walmart want to do, where they want to test capability to deliver packages [via drone] in residential or downtown areas, fits very well with the MARS UAS airfield. They've got to have a place to test those concepts, prove them out, and certify them. Our runway is a marvelous place to do that.

Ted Mercer CEO and Executive Director, Virginia Space
Northrop Grumman Space Centers, Accomack County

Northrop Grumman Space Systems, Accomack County

El Koubi: In that context, let’s talk about your priorities for MARS. How important is commercial space business to the long-term vision and operations of the spaceport?

Mercer: Both commercial and government customers and payloads are very important to us, for different reasons. There are a great number of new rocket-producing companies in the business today — 88 the last time I looked — and that number is increasing. My objective is to begin leveraging existing and future planned assets to increase our ops tempo. Whether it’s commercial rockets coming to put up government payloads or commercial payloads, we want to increase that operation tempo and continue to build our company’s already outstanding reputation, brand, and competitiveness.

We see an explosion in commercial activity, and you see it already when you look at the kinds of constellations that SpaceX is putting up for their Starlink system, which you can multiply times 10 across the industry. The other thing to keep in mind is that the commercial space business is an economic engine for Delaware, Maryland, and Virginia. The Wallops aerospace cluster has a significant economic impact on this region.

When we did our last economic impact study in 2018, the estimated economic impact for this region from the aerospace cluster was $1.37 billion. The installations and the organizations that make up that cluster are the NASA Wallops Flight Facility, the United States Navy, NOAA, the Coast Guard, Virginia Space, Northrop Grumman, and Rocket Lab. After doing a quick survey of these organizations, it’s estimated that they support nearly 1,900 direct jobs and $145 million in salary and fringe benefits. Most of that is occurring in the Commonwealth of Virginia.

El Koubi: You’re making investments right now that are drawing attention from some of those potential clients, things like the new payload processing facility. What kind of interest are you seeing from potential clients in the commercial space as you build on these incredible capabilities?

Mercer: Customers can come to MARS and not have to worry about building facilities for their payload processing. All they have to do is bring their payload and their payload team and the facilities are ready and fully operational for them. That’s a huge value proposition for coming to the region. That, combined with the MARS reputation and investments the Commonwealth has made in our infrastructure, positions us as the premier location for the venture class launch business. Those are the folks interested in aggressively pursuing launch opportunities out of MARS.

On March 1 this year, Rocket Lab publicly announced they are developing a new rocket called the Neutron. It’s an 8-ton payload class rocket that can put up mega constellations on a single rocket. Rocket Lab has formally announced that they want to launch the Neutron from MARS.

El Koubi: I want to zoom out to the broader focus of this issue of Virginia Economic Review. It’s all about industries of the future. What are some advances in aerospace and aviation that you find most interesting?

Mercer: I’m focusing on the areas surrounding unmanned aerial systems (UAS), drone capability, and how that might factor into the industry and our ability to support that industry through our UAS runway. The advances in aerospace that I’m most focused on are UAS new rocket and propulsion technologies, new rocket classes, new satellites, and satellite systems.

El Koubi: Can you go a little deeper into the capabilities and vision related to unmanned systems on the Eastern Shore?

Mercer: As you well know, Virginia’s business climate was rated No. 1 for UAS development by Business Facilities magazine the last two years running. Our MARS airfield contributes to this rating due to its unique combination of assets and geography. We are the perfect location for the Department of Defense to test non-kinetic counter-UAS systems. You would not want non-kinetic UAS systems getting tested at an airport — the danger of interference and other complications is too great. We are an ideal location for that kind of multi-domain training and testing. Our airfield is a great place to do intelligence surveillance and reconnaissance testing, land, air, and sea training.

Testing of newly developing delivery concepts, like the stuff that Amazon and Walmart want to do, where they want to test capability to deliver packages in residential or downtown areas, fits very well with the MARS UAS airfield. They’ve got to have a place to test those concepts, prove them out, and certify them. Our runway is a marvelous place to do that. I think it’s beginning to catch on more and more because our operations tempo at our airfield increases year after year.

El Koubi: We both have the tremendous benefit of working and living in this beautiful Commonwealth. What’s your favorite place to visit in Virginia?

Mercer: We fell in love with Virginia back in the mid-‘80s when I was assigned to the Pentagon. The great thing about Virginia is there’s something for everybody to enjoy, whether you like beaches, mountains, or everything in between — you can even do some skiing in Virginia. This time of year, you really can’t beat places like Shenandoah National Park or Skyline Drive for the views, the turning of the leaves, and that kind of thing. I love the cities, the downtown areas, but the parks and watching nature take its course is also just beautiful.

El Koubi: Gen. Mercer, thank you so much for being with us today. It was such a pleasure to talk with you.

Mercer: It is an honor to serve the Commonwealth in this role and in this capacity, and it was an honor and a privilege to talk with you today.

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