ESA contracts under its Contracting Regulations and General Clauses and Conditions, not national law. It pays fixed-price contracts on milestones, allows advance payments of up to 35%, and allocates work by country under geographic return. Tenders are run on esa-star, its electronic tendering system, and companies must be registered before they bid.
At a glance
| Standard terms | ESA Contracting Regulations (ESA/REG/001) and General Clauses and Conditions (ESA/REG/002), with special conditions per contract. |
|---|---|
| How it pays | Fixed-price contracts are paid on milestones after ESA approves each one, within 30 days of the invoice. Advance payments are capped at 35% and advance plus progress payments at 90% of the price. |
| When it can walk away | ESA may terminate without fault, taking over work in progress at a fair price and indemnifying losses, including the part of lost profit attributable to termination. |
| Assignment and transfer | The contract cannot be transferred without ESA's prior authorisation, and an assignment of contract IP must be notified to ESA within four weeks. |
| Where awards are published | Intended and open invitations to tender on esa-star, which replaced EMITS in 2021. |
The key terms, read across
From the ESA and EU column of contracts and licensing.
Cross-waivers
Contractual. Launch services agreements commonly include reciprocal waivers, flowed down to contractors. ESA contracts exclude consequential damages between the parties.
Procurement and geographic return
ESA scores tenders on price, technical marks and, where set, industrial policy and geographic return. EU programmes follow the Space Programme Regulation, with a 30% subcontracting target outside the prime's group on contracts above €10m.
IP and data rights
ESA: the contractor owns the IP, ESA and participating states get access rights, and ESA can require assignment on failure to register or exploit. EU programmes: the Union owns assets created under them, with exceptions.
Change of control and transfer
ESA contracts cannot be transferred without prior authorisation, and may not be used as capital to float a company. National licences set their own transfer rules.
Anchor revenue and termination
ESA may terminate without fault, taking over work in progress at a fair price and indemnifying losses, including the part of lost profit attributable to termination.
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Related
- ESA: Business with ESA
- Guide: Your first government contract: a guide for new space general counsel
- Tool: Launch services agreement checklist
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.