This paper documents the decision process pursued by the President and key federal agencies addressing the issue of privatization of routine commercial space satellite launches via expendable launch vehicles. It is a case study of incremental decision making in the extreme, characterized by the formulation of conflicting policy goals in response to contingencies which ultimately paralyzed the policy process, even as government was confronted with issues of considerable gravity and urgency. The decision process unfolded in a highly dynamic environment, including the development of a internationally competitive space launch market and the Challenger accident. A key issue is the role of the chief executive in managing the policy implementation process, once conflicting goals have been formulated. The case illustrates how strategic miscalculation by the agencies involved, and a laissez‐faire management style by the chief executive, exacerbate the ordinarily expected difficultie