This makes sense. Bigelow probably wants to encourage as many players as possible, and he wants to encourage commercial space companies, so this spreads the wealth, increasing diversity in space access providers. And COTS winners don’t really need the prize money anyway. It’s the same philosophy that disqualified people from winning the X-Prize using government-developed hardware.
Over at The Space Review today, Jeff Foust writes that space enthusiasts have to avoid the Segway problem of overhype. On a related note, Bob Clarebrough says that space entrepreneurs need to be both visionary and customer focused.
Bigelow Aerospace seems to be making good progress in developing private orbital facilities (a key component of a spacefaring infrastructure). Alan Boyle has more.