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NASA to award space contract to Boeing and SpaceX NASA awards space contracts to Boeing and SpaceX
(about 1 hour later)
NASA plans to award a much-anticipated, multibillion-dollar contract to ferry astronauts to the International Space Station to both Boeing and SpaceX, according a person familiar with the process. NASA on Tuesday awarded a much-anticipated contract, worth up to $6.8 billion, to ferry astronauts to the International Space Station to both Boeing and SpaceX in a deal that would allow the U.S. to launch astronauts into space from U.S. soil for the first time in years.
The contracts, which are expected to be announced at 4 p.m. Tuesday,  would allow the United States to get to the space station aboard American spacecraft instead of having to rely on the Russians, who charge more than $70 million a seat for the ride. The person familiar with the deal spoke on the condition of anonymity because the contract has not been awarded. Speaking from the Kennedy Space Center in Florida, NASA Administrator Charles Bolden said the contracts “sets the stage for what promises to be most exciting chapter in NASA and human space flight.” Relying so heavily on contractors to take astronauts to space would allow the agency “to focus on an even more ambitious mission-- that of sending humans to Mars,” he said.
The awards show a significant shift for NASA, which has long owned and operated its own rockets. Instead of going to space on government-owned rockets, NASA’s astronauts would essentially rent space on vehicles provided by Boeing and SpaceX. It was unclear how Boeing and SpaceX would divide the work and how big each company's contract would be. The announcement of the “commercial crew” awards is a big step toward allowing the U.S. to end its reliance on Russia, which has been ferrying American astronauts to the space station since the retirement of the space shuttle three years ago. The arrangement hasn’t been cheap: the Russians currently charge $71 million per seat, and NASA has in a single year sent more than $400 million to Russia for these taxi rides. If the schedule doesn’t slip, and Boeing and SpaceX are successful, NASA should see its astronauts launched on U.S. soil with American rockets by as early as 2017.
The two companies represent vastly different cultures in the space industry. Boeing is an “old space” stalwart with decades of experience. SpaceX is the upstart California-based company founded by billionaire entrepreneur Elon Musk that has sought to disrupt the industry. The awards represent a significant shift for NASA, which has long owned and operated its own rockets. Instead of going to space on government-owned vehicles, NASA’s astronauts would essentially rent space on ships provided by Boeing and SpaceX.
SpaceX already uses its Dragon capsule to ferry cargo to the space station and is the first private company to do so. Boeing is offering its CST-100 capsule and uses the Atlas V rocket to deliver the capsule to space. The contracts “highlight what commercial companies can accomplish and we are counting on them to deliver our most precious cargo,” said Kathy Lueders, NASA’s commercial crew program manager.
Musk has criticized Boeing for using the Atlas V, which uses a Russian-made engine. Boeing’s contract is worth up to $4.2 billion; SpaceX’s is valued at $2.6 billion.
United Launch Alliance is expected to counter that on Wednesday by announcing that Blue Origin, the space startup founded by Washington Post owner Jeff Bezos, would develop an American-made engine for the Atlas V, according to another person who is close to the situation. ULA is a joint venture between Boeing and Lockheed Martin. For SpaceX, which is already the first private company to deliver cargo to the space station, the award is further evidence that it has transformed from start-up to a major a player in an industry long dominated by large, traditional companies, such as Boeing.
The partnership between ULA and Blue Origin was first reported by the Wall Street Journal. The two companies represent vastly different cultures in the space industry. Boeing is a so-called “old space” stalwart with decades of experience, contacts and lobbying might. SpaceX is the upstart California-based company founded by billionaire entrepreneur Elon Musk that has gleefully played the role of disrupter.
Boeing and SpaceX could not be reached for comment. Musk, who also runs Tesla Motors, sued the Air Force earlier this year on a separate contract to launch military payloads, such as satellites, into space. He argued that SpaceX’s Falcoln 9 rocket was a less expensive alternative that should be able to compete against the United Launch Alliance, the joint venture of Boeing and Lockheed Martin, which currently holds the contract.
Musk has relentlessly criticized Boeing for using the Atlas V, which uses a Russian-made engine.
United Launch Alliance is expected to counter that tomorrow by announcing that Blue Origin, the space startup founded by Washington Post owner Jeff Bezos, would develop an American-made engine for the Atlas V, according to a person who is close to the arrangement who was not authorized to speak publicly.
A ULA spokesperson did not respond to requests for comment. Blue Origin declined to comment.
The end result of the contract announced Tuesday will be a single mission for each company to demonstrate the capability of delivering astronauts to the ISS. An “operational” contract will be awarded down the road after that capability has been shown.
Some lawmakers wanted NASA to go with a single company — and Boeing was always a front-runner. But others are pleased that the awards are going to two companies in an effort to foster competition and keep prices down.
“I think that’s the most important aspect of the decision-- that it is two companies,” said Michael Lopez-Alegria, the president of the Commercial Spaceflight Federation. “I’m more or less agnostic on which two companies but preserving competition is absolutely the right choice.”
Left out in the cold is Sierra Nevada Corp., which had developed a winged space plane that looked like a miniature space shuttle. Sierra Nevada had some troubles with its Dream Chaser vehicle (it did a face-plant, sort of, during a test flight a while back).
NASA also hopes that investing government money into private enterprises will help touch off a broader commercial space industry. In addition to NASA, foreign governments, scientists and the super rich would also be able to buy seats on the ships, officials say.
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