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Official NASA Communication 95-205

Official NASA Communication 95-205

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Published by: NASAdocuments on Oct 06, 2007
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Ed Campion/Ray CastilloHeadquarters, Washington, DC November 7, 1995(Phone: 202/358-1778)RELEASE: 95-205NASA TO PURSUE NON-COMPETITIVE SHUTTLE CONTRACT WITH U.S.ALLIANCENASA will pursue a non-competitive contract withUnited Space Alliance to eventually assume responsibilityfor Space Shuttle operations."This clearly is the appropriate path to take," saidNASA Administrator Daniel S. Goldin. "It will allow us toensure the safe operations of the Space Shuttle, meet theflight manifest and maintain our commitment to launch thefirst Space Station element in late 1997. I am committedto working with Congress to maximize the future commercialpotential of the Station and make the best use of theAmerican taxpayer's dollar."Rockwell International and Lockheed MartinCorporation, which together hold 69 percent of the dollarvalue of all Shuttle related prime contracts, will form a joint venture, "United Space Alliance," to become the SpaceFlight Operations contractor.Goldin said reaching a contract with U.S. Alliancedepends on three factors. First, the two companies mustform a viable, separate legal entity (U.S. Alliance)capable of operating the Shuttle program. Second, NASA andU.S. Alliance must negotiate a contractual arrangement thatcommits the contractor and provides appropriate incentivesto maintain safety, meet the flight manifest and achieveprogram efficiencies. And third, the workforce which U.S.Alliance applies to the Space Flight Operations contractmust possess sufficient experience with Shuttle operationsthat additional time-consuming training is unnecessary tokeep the program progressing safely and efficiently."With Lockheed Martin and Rockwell, we have twoexperienced companies that clearly understand how to
operate the Shuttle safely," Goldin said. "There's no newcontractor or workforce to train, and because the twocompanies already have nearly 70 percent of the dollarvalue of all Shuttle-related prime contracts, the task of combining the existing separate contracts under theconsolidated Shuttle contract will be greatly simplified. "-more--2-Goldin said the Source Evaluation Board, which hasbeen evaluating expressions of interest from companies inbecoming the Space Flight Operations Contractor, concludedthat a non-competitive contract with U.S. Alliance wasclearly in the public interest. "There was no othercompany that could possibly meet our safety, manifest andschedule requirements," saidGoldin. "Under all the circumstances, the advantages of contracting directlywith U.S. Alliance outweigh any benefits from competition."Goldin described the next steps which could lead toaward of a non-competitive contract by September 1996.¥ Both parties must agree on a Statement of Work whichadequately describes what the Space Flight OperationsContractor must do in performance terms. "We will tellthem what we want in terms of outcome, but we will notdictate the steps to get there," said Goldin.¥ U.S. Alliance must prepare definitive technical and costproposals that are responsive to the Statement of Work.These proposals must contain specific plans and commitmentsto reduce contract requirements, facilities and workforce.¥ NASA will evaluate these proposals and use them todevelop an agreed-upon contractual document thatincorporates all of U.S. Alliance's obligationsand provides appropriate incentives to ensure thecontractor maintains safety, meets the flightmanifest and achieves efficiencies.¥ The parties must develop a phased contractualarrangement that commits U.S. Alliance to an

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