[greglindahl]

That's not a subsidy. That's progress payments. Many industries other than space have progress payments.

In fact you see some private contracts which are exactly like that NASA contract: "We want to pay you to create a much cheaper product than we can already buy, and here are some early progress payments so you don't have to finance it yourself."

You may think this is a moot point, that's totally fine. The difference between subsidies or not is important to others.

[notahacker]

You'll find private sector contracts which pay in instalments for hitting milestones, but not ones which give companies hundreds of millions of non-reimbursable research dollars without the obligation to buy or sell any actual services or transfer IP or equity. Phase I of COTS was a series of grants for hitting planning milestones with a right to terminate before Phase II. The procurement contracts were separate and subsequent to this.